Understanding CPA Coverage in Car Insurance
The Compulsory Personal Accident (CPA) cover in car insurance provides standalone protection across all car insurance policies, whether third-party or comprehensive.
Enforced since January 2019, the CPA cover is mandatory for all types of vehicles, including cars, two-wheelers, and commercial vehicles. It offers drivers financial protection in the event of accidents resulting in bodily injuries or death.
The CPA cover is an essential part of any car insurance policy, providing both legal compliance and crucial financial support in case of an accident. With its valuable benefits and affordable cost, this coverage is a vital component of motor insurance, ensuring peace of mind and financial security for car owners.
Let’s explore what the CPA cover in car insurance entails and why it’s a crucial part of your car insurance policy.
What does CPA cover mean in Car Insurance?
In motor insurance, the CPA cover is a mandatory feature that offers a lump-sum benefit in the event of accidental death or permanent disability of the owner-driver. This coverage provides a minimum sum insured of Rs 15 lakh.
Mandated by law, this cover is included in every motor insurance policy. The purpose of CPA cover in car insurance is to provide financial support to the policyholder or their family in the event of a serious accident while driving or riding in the insured vehicle.
Advantages of a Compulsory Personal Accident Policy Cover
Car insurance offers numerous CPA benefits. Let’s take a look at them.
- Policyholders can obtain coverage with minimal documentation and without the need for a medical test.
It provides a financial safety net for the policyholder’s family, offering them financial security if an accident leads to the policyholder’s death or permanent disability. This also allows the insured’s family to manage any liabilities arising from the accident.
Another important benefit is the universal coverage feature. No matter who is at fault in the accident, the CPA cover will provide the agreed-upon compensation. This offers relief in cases where determining fault is complicated and time-consuming. The claims process is also straightforward.
The CPA cover in motor insurance is highly affordable given the level of coverage it provides. For a modest premium, you receive significant coverage, making it a valuable addition to your car insurance policy.
The straightforward claim process under CPA cover is another advantage. Unlike other types of insurance claims, the process for claiming CPA cover is simple, allowing beneficiaries to access the benefits without unnecessary hassle.
CPA policies generally provide worldwide coverage, meaning the insured or their family will receive financial benefits even if an accident occurs overseas.
Customers can also customize CPA covers to meet their needs, and they offer the benefit of lifelong renewability.
Conclusion
Car insurance provides numerous benefits, offering protection against various events based on the terms and conditions of your policy. It protects you and your finances in unexpected situations, such as an accident or car theft. Additionally, four wheeler insurance covers expenses related to third-party damage. You can also transfer your car insurance.
So, you should secure your finances with the right car insurance. While selecting the right plan for you, you must consider factors such as the premium rate, along with coverage and benefits provided by the plan. The rate of premiums for car insurance can change with the plan and extra riders that you may choose to add to your policy. You can also estimate the premium amount you may have to pay for your car insurance with the help of car insurance price calculator.
FAQs
The CPA cover in car insurance is a required policy feature that offers financial protection in the event of accidental death or permanent disability of the owner-driver.
Yes, Indian law mandates that every vehicle owner must have CPA cover in motor insurance.
No, because it is mandatory, opting out of CPA cover in motor insurance is not allowed.
Yes, it offers financial support if the policyholder suffers permanent disability due to an accident involving the insured vehicle.
The coverage amount may vary, but typically, CPA provides a substantial lump sum in the event of accidental death or permanent disability.