When buying car insurance, you may have heard of the mention of CPA. Have you ever wondered what is CPA cover in car insurance? CPA stands for compulsory personal accident coverage. It is one of the many jargon that is used in car insurance that often leaves policyholders confused. In this article, we will show you what is CPA in motor insurance and how it helps you.What is CPA cover in motor insurance?
As stated above, CPA stands for ‘Compulsory Personal Accident’ in motor insurance. Just as it is mandatory to have third–party coverage to drive on the roads in the country, it is also essential to have personal accident coverage. Therefore, you need to have CPA with a third–party insurance policy and with a comprehensive one. This personal accident cover insures you against death or disability due too an accident.
Every motorist needs to have a minimum personal accident cover of at least Rs 15 lakh. Also, a single personal accident insurance policy will suffice no matter how many cars or bikes you have. You do not need to purchase separate personal accident insurance coverage for each vehicle.What does personal accident cover include?
The personal accident cover offers insurance for accidental death and permanent total disability sustained in an accident. The percentage of payout can differ based on the type of injury sustained. For example, 100% payout will be made for death and loss of limbs whereas the loss of a single limb might see the policyholder get a 50% payout of the sum insured.
The complete detail of the payout percentage and type of injuries covered can be found in the policy booklet of your personal accident insurance policy.
As we know, the treatment for injuries sustained during an accident can truly deplete your savings. The situation can be even worse if you have to pay for car repairs as well. Having the coverage of a personal accident plan can protect you from such expenses.Benefits of CPA cover in car insurance
As we can see, the biggest benefit of the CPA cover in car insurance is the financial aid that you receive for medical care. The next benefit is the payout which can act as income replacement. If you lose your limbs or eyesight in an accident, you may no longer be able to financially provide for your family. The payout that you receive can help your family run the home and also help you afford adequate care.
While Rs 15 lakh is the minimum coverage you need to buy, you can always opt for more, depending on your own household expenses and budget.
We hope that this blog has helped you understand a bit more about the CPA cover in car insurance. For more details on how you can buy this form of insurance, do reach out to your insurer or agent today.Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.