Driver and Passenger Cover in Car Insurance


Even an experienced driver may face accident that is fatal or suffer from lifelong disability. As per the IRDA mandate every car owner must have a Personal Accident cover that safeguards the finances of the family incase of death or permanent disability of the car owner or driver. But what happens if the passengers are victim to the accident? To address this issue car owners can buy add-on cover to provide coverage to the family of the passenger. Read on to know more.

What Does Car Insurance Cover?

Primarily, there are two types of car insurance- third-party insurance and comprehensive insurance.

Third-party Insurance

Third-party insurance provides cover against third-party liabilities. The insurer can pay to cover expenses caused to a third-party property by the policyholder in case of an accident. 

Third-party insurance also covers expenses arising due to injuries or the death of a policyholder. However, people should keep in mind that third-party car insurance doesn’t cover own damage.

Comprehensive Insurance

Comprehensive insurance provides enhanced financial protection. It offers cover against third-party liabilities as well as own damage. Therefore, expenses arising due to damages caused to the policyholder’s car are also covered in this insurance. Comprehensive insurance also covers natural and man-made calamities like earthquake, flood, lightning, theft, burglary, riot, etc.

One of the most important benefits that car insurance in India provides is driver and passenger cover. This cover provides financial assistance to pay for expenses arising due to medical bills and disability liability.

What is Driver and Passenger Cover?

It’s necessary for the owner-driver to get personal accident insurance. However, there are different methods to get insurance for a passenger or any paid driver who uses the policyholder’s car.

  • Personal Accident Insurance

Every car owner must get personal accident cover. It provides financial support in case the policyholder dies or suffers from temporary or total disability. The insured person or his/her successors are eligible to receive the claim amount. Any other person isn’t allowed to file a claim for this cover.

  • Passenger Personal Accident Cover

The personal accident cover for passengers is an add-on that covers the passengers in the policyholder’s vehicle. Therefore, in case of an accident, the insurer will also provide cover for passengers in the car. Generally, the number of passengers that can be covered in this add-on depends on the seating capacity of the vehicle.

  • Personal Accident Insurance for Paid Drivers

This add-on must be considered by people who have a driver for their vehicle. By purchasing this add-on, a person can get cover for his/her driver. The cover amount will be provided to the person indicated as the paid driver. Any other person can’t claim this benefit.

The Importance of Driver and Passenger Cover

Car insurance in India can cover own damage. Therefore, it provides financial assistance to repair the vehicle. 

It can also cover the insured person. Thus, if the policyholder dies or suffers from permanent or temporary disability due to an accident, then the insurer can pay the sum insured amount. However, car insurance doesn’t cover passengers and paid drivers in case of accidents. Therefore, it’s recommended to get cover for them. Hence, it’s wise for policyholders to buy personal accident insurance for paid drivers and passengers.