Every time you renew your Car or Bike insurance, you see a line item:
"Compulsory Personal Accident (CPA) Cover for Owner-Driver: ₹375 (plus 18% GST)."
Most people just pay it.
But did you know that for many car owners, this is a Double Payment?
If you own two cars, or if you already have a standalone accident policy, you are legally allowed to waive (remove) this charge.
Disclaimer: This waiver applies to the Owner-Driver only. You must hold a Valid Driving License to be eligible for (or to waive) this cover.
Stop Paying ₹375 Extra on Car Insurance!
1. What Is CPA Cover?
Indian law mandates that every vehicle owner must have a Personal Accident cover of at least ₹15 Lakhs.
This pays out in case of accidental death or permanent disability while driving.
Previously, it was bundled with every policy. If you had 2 cars and 1 bike, you paid for it 3 times (but could only claim once!).
2. The "Unbundling" Rule (Good News)
Thanks to a court ruling and IRDAI circular, you can now opt out of this cover if you meet ONE of the following conditions:
- Condition A: You already have a standalone Personal Accident Policy with a Sum Insured of at least ₹15 Lakhs.
- Condition B: You have another vehicle (Car/Bike) where you have already paid for the CPA cover.
Big Savings for New Vehicles:
For a new bike (5-year policy), waiving this saves not just ₹375, but ₹375 x 5 years = ₹1,875 (+GST)!
3. Common Confusion: Term Insurance vs. PA Cover
"I have a ₹1 Crore Term Life Insurance. Can I skip CPA?"
NO.
Standard Term Insurance covers death, but CPA covers Disability specifically while driving.
However, if your Term Plan has a specific "Personal Accident Rider" of ₹15 Lakhs+, then YES, you might be eligible. Check your policy document carefully.
4. How to Remove It (Step-by-Step)
When renewing online (on Policybazaar, Acko, or Digit):
- Reach the "Add-ons" or "Review" page.
- Look for the "Personal Accident Cover for Owner Driver" toggle.
- Uncheck it.
- A pop-up will ask for a reason. Select "I have a standalone PA cover" or "Covered in another policy."
- Enter the Policy Number of your existing cover.
- Instant Savings: Your premium drops by approx ₹443 (including tax).
5. Why You Should Buy a "Standalone PA Policy" Instead
The CPA cover in car insurance is weak. It only covers you while driving that specific car.
A smart investor buys a Standalone Personal Accident Policy (e.g., from Niva Bupa or HDFC Ergo).
- Cost: Approx ₹1,000/year for ₹20 Lakhs cover.
- Coverage: Covers you 24/7, anywhere in the world (even if you fall in the bathroom or slip on stairs).
- Benefit: Once you have this, you can waive CPA on ALL your vehicles (Car 1, Car 2, Bike).
Don't Pay Twice for the Same Thing
₹375 might seem small, but if you have multiple vehicles, you are wasting thousands over the years.
Check your portfolio. If you are already protected, tick that box to "OFF" and keep the money in your pocket.
Helpful Resources:
Economic Times: Avoid Double Premium for PA Cover
IRDAI Official Website
0 Comments