Passenger Cover in Car Insurance
Saif is on a road trip with his friends. In a sudden turn of events, the car gets into an accident. Everyone in the car gets injured and the car faces some damage as well. Saif makes a claim under his comprehensive car insurance policy, only to find out that he and his car are covered. The passengers aren’t.
If Saif had opted for a Passenger Cover along with this base car insurance policy, his friends would’ve been protected by it and the expenses incurred for the treatment of their injuries would’ve been covered.
So, what is a Passenger Cover? How does it work? What are its benefits? Let’s discuss all this and more - in the article below.
What is the Passenger Cover?
The Passenger Cover is an add-on with which you can customise your car insurance policy. It provides financial protection to passengers travelling in an insured car and covers injuries, temporary and permanent disabilities, and death.
For example, Sofia and Lana are close friends who travel to work in Sofia’s car every day. Once, while coming back from work, a lorry hits the car. Sofia and Lana are injured, and the car is damaged.
👉Now, if Sofia’s car insurance policy has the Passenger Cover added to it, the injuries caused to Sofia and Lana, along with the damages caused to the car, will be covered by the insurance company.
👉If Sofia’s car insurance policy does not have a Passenger Cover, only Sofia and her car will be covered.
Benefits of the Passenger Cover
The Passenger Cover is meant to protect the passengers in an insured car. Here are some of its benefits –
➔ It provides coverage for the medical expenses of passengers involved in an accident.
➔ It provides financial aid to passengers in case of temporary or permanent disability.
➔ It offers financial assistance to the passenger’s family in case of death.
How to Add the Passenger Cover to Your Policy?
Follow these simple steps to add the Passenger Cover to your car insurance -
1. Go to any broker's website and select the "Car Insurance" link.
2. Enter your information as well as that of your car, like make and model, year of registration, level of driving experience, and location.
3. You will then be directed to the quote page, where you will find a variety of quotes from several insurers after you have filled out these details.
4. You might notice that not many insurers provide Passenger Cover as a built-in add-on.
5. Others may provide you with the choice to add the same to your insurance policy by charging an additional premium.
6. Add the extension, after which you can move on to making the payment.
The Scale of Compensation
The table below lists in detail the scope and scale of compensation provided by the passenger cover -
|Total irrecoverable loss of eyesight in both eyes||200,000|
|Total loss by physical severance at or above the wrist, or ankle of both hands, or both feet, or of one hand together with one foot||200,000|
|Total loss by physical severance at or above the wrist, or ankle of one hand, or one foot together with the total and irrecoverable loss of eyesight in one eye||200,000|
|Total and irrecoverable loss of eyesight in one eye||100,000|
|Total loss by physical severance at or above the wrist, or ankle of one hand or one foot||100,000|
It is important to note that the compensation offered by passenger cover may vary across each insurance provider. It is always recommended to carefully review the policy wording to fully understand the coverage and compensation offered.
How to Claim Under the Passenger Cover?
Here are the steps to follow to make a claim under the Passenger Cover -
1️⃣In the event of an accident, notify the police authorities right away. They will generate a police report.
2️⃣Take as many pictures or videos of the accident, the damage it caused to your car, and any injuries you or your other passengers may have (if you are in a position to do so).
3️⃣Once this is completed, notify your insurance provider and provide them with all the accident-related information.
4️⃣To substantiate your claim, give your insurance company all the necessary supporting documentation.
5️⃣If the passengers have already been hospitalised, give the insurance provider the medical bills and costs.
6️⃣The insurer will then verify all the information and paperwork provided before moving forward with the claim.
The Passenger Cover in car insurance offers financial protection for passengers in the event of an accident and gives you the assurance your near and dear ones are always shielded against any unfortunate contingencies. But, before you opt for the same, go through the policy wording and assess your requirements to see if you need the cover.