Learn how Compulsory Personal Accident (CPA) cover works in car insurance. Understand its importance, benefits, and when you actually need to buy it.
Compulsory Personal Accident (CPA) - A complete guide
When you buy or update car insurance in India, you'll often see something called CPA Cover. CPA stands for "Compulsory Personal Accident coverage.". It's pretty easy to understand terms like "comprehensive" and "third-party" insurance, but "CPA" can seem like a fancy extra. But many people don't understand how important it is.
We explain what CPA cover in car insurance is, why it's required, what it does and doesn't cover, and how it fits into the bigger picture of Indian motor insurance in this blog.
What does Compulsory Personal Accident (CPA) coverage mean in car insurance?
In India, you have to have compulsory personal accident (CPA) cover as part of your car insurance. This insurance gives money to the owner-driver of a car if someone dies or becomes permanently disabled in an accident involving the covered car.
The Motor Vehicles Act of 1988 says that you have to have this coverage. Its purpose is to protect the person who is most at risk in an accident: the driver.
Why do you have to have a Compulsory Personal Accident (CPA) cover?
The main goal of the CPA (Compulsory Personal Accident) cover is to protect the owner-driver (the registered owner who also drives the car) financially in case of crashes that change their lives.
The government made this rule to protect families after a tragedy, as car crashes are rising in India.
While purchasing third-party car insurance or comprehensive car insurance, it is essential to include personal accident cover (CPA) as part of the policy, in compliance with legal requirements. This coverage is mandatory, even if you already have an existing personal accident insurance policy that meets the necessary criteria.
What kinds of things does a compulsory personal accident (cpa) cover?
The person who owns and drives the car is covered by the CPA (Compulsory Personal Accident), not the car itself. Usually, the following is included:
Death by Accident: If the owner-driver dies in an accident, a lump sum payment is made to the candidate.
Permanent Total Disability: If the accident leaves the person permanently and totally disabled, like losing both limbs or the sight in both eyes, they will get a lump sum payment.
IRDAI (Insurance Regulatory and Development Authority of India) says that the usual amount of insurance for CPA cover is ₹15 lakh.
What does the Compulsory Personal Accident (CPA) not cover?
It's important to know what CPA cover doesn't cover, so there are no surprises later:
● People who get hurt or die while driving without a licence
● Accidents that happen when people are drunk or high
● Claims where the car was being used for illegal purposes
● Short-term accidents or partial disabilities
● If someone else drove the car instead of the owner-driver
● Third parties and other passengers are not covered by CPA. They need to be covered by a different insurance or rider.
Who should get compulsory personal accident (cpa) cover?
You need CPA insurance if:
● You own and drive the covered car
● You don't already have a more than ₹15 lakh personal accident cover.
● You are purchasing a fresh car insurance plan (third-party or comprehensive).
You don't have to buy CPA coverage for every new car you insure, though, if you already have separate personal accident coverage that meets the minimum sum insured.
To get rid of the CPA coverage from a new auto insurance policy, insurers usually need a statement or proof that you already have a PA policy.
Compulsory personal accident (cpa) coverage and more than one car
People often ask, "Do I need CPA cover for each vehicle if I own more than one?"
It's not true. One valid CPA insurance policy that covers the required sum insured is all you need because CPA (Compulsory Personal Accident) cover only protects the person, not the car. You can show proof to your insurance company and choose not to have CPA coverage when you buy extra car insurance.
This method helps cut down on duplicate fees and charges that aren't needed while still following the law.
How to get cover for your compulsory personal accident (cpa)
It's effortless to buy CPA (Compulsory Personal Accident) cover. When you buy or update your car insurance, most companies leave this line item blank by default. It can be bought as part of your car insurance (third-party or comprehensive).
You can buy it as a separate personal accident insurance.
No matter what, make sure that the policy is in the name of the owner-driver and that the information on the registration certificate matches what is written on the policy.
How much does compulsory personal accident (cpa) cover cost?
The cost of the CPA (Compulsory Personal Accident) cover fee is usually not too high. The IRDAI last changed the fee for a 15 lakh cover to about ₹750 per year. This rate may be a little different based on the insurance company and the structure of the product, but it is still one of the best values for money in the insurance market.
A small cover that makes a big splash
While it may appear insignificant to include in your car insurance application, CPA coverage can significantly impact you and your family. In the event of a catastrophic accident, it provides instant financial support, which is both important and necessary.
It's the law, but more importantly, it's a useful safety measure that gives you peace of mind every time you drive.
When you ask yourself again, "What is CPA coverage in car insurance?" You'll know that it's more than just a routine. It's required for all the right reasons and is meant to protect people.
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