What Is CPA Cover in Car Insurance?

CPA cover, or Compulsory Personal Accident Cover, is mandatory personal accident protection. It is provided to the owner-driver of a vehicle. Introduced under the guidelines of the Insurance Regulatory and Development Authority of India (IRDAI), this cover is generally included with every private car insurance policy.

The primary objective of the CPA cover is to provide financial assistance if the owner-driver faces accidental death or permanent disability resulting from a road accident.

Generally, the standard CPA cover offers compensation of up to ₹15 lakh, subject to the terms and conditions of the policy.

Here are some of the key features of CPA cover:

• Mandatory for owner-driven private vehicles. 

• Covers accidental death of the owner-driver. 

• Covers permanent total disability.

• Covers loss of limbs or eyesight due to an accident.

• Available with both comprehensive and third-party car insurance policies.

For anyone searching for what is CPA cover in motor insurance, it refers to the same mandatory personal accident protection provided to the registered owner-driver.

CPA cover offers an additional layer of protection beyond vehicle-related damages. While a standard policy protects the vehicle, CPA cover focuses on the individual driving it.

Some of the notable benefits include:

• Financial Support for Families

If the vehicle owner or driver passes away due to an accident, the nominee may be entitled to receive compensation as per the policy terms. This support can provide some financial relief to the family when it is needed most.

• Coverage for Permanent Disability

If an accident leads to permanent total disability, CPA cover provides compensation as per policy terms.

• Protection Against Major Injuries

The cover may provide benefits for:

• Loss of both eyes 

• Loss of two limbs 

• Loss of one eye and one limb 

• Permanent loss of earning capability due to disability 

• Mandatory Compliance

Since CPA cover is compulsory for owner-drivers, having it helps ensure compliance with applicable motor insurance regulations.

• Affordable Additional Protection

CPA cover is generally available at a nominal premium compared to the financial protection it offers.

Not every individual associated with a vehicle automatically receives protection under CPA cover. Specific eligibility conditions apply.

A person is usually eligible for a Compulsory Personal Accident (CPA) cover if they meet the following conditions:

• They are the registered owner of the insured vehicle.

• They hold a valid and effective driving licence.

• They are driving the insured vehicle at the time of the accident.

• The vehicle is covered under a valid motor insurance policy.

CPA cover is linked to the owner-driver rather than the vehicle itself. This means the registered owner can remain covered while driving any insured vehicle owned by them, subject to policy conditions.

If an individual has an eligible CPA cover from their previous motor insurance purchase, they do not need to purchase another one when buying a new vehicle or a new policy. 

The following individuals are generally not covered under standard CPA cover:

• Passengers travelling in the vehicle (unless a relevant add-on* has been opted for them)

• Paid drivers or chauffeurs 

• Family members who are not the registered owner 

• Individuals driving without a valid licence 

Such individuals may require separate personal accident coverage depending on their needs.

While CPA cover provides valuable protection, certain situations are excluded from coverage.

Common exclusions include:

• Driving without a valid driving licence 

• Driving under the influence of alcohol or drugs 

• Participation in illegal racing or speed testing 

• Self-inflicted injuries 

• Attempted suicide 

• Accidents occurring during criminal activities 

• War, nuclear risks, or related events 

• Injuries occurring outside policy terms and conditions. 

Vehicle owners must review policy wording beforehand to understand the complete list of exclusions.

Understanding what is CPA cover in motor insurance is important for vehicle owners. Vehicle insurance protects against damage to the car. On the other hand, the CPA cover focuses on protecting the owner-driver against accidental death and permanent disability. 

As a mandatory component of motor insurance, it offers financial support during difficult circumstances and helps policyholders comply with regulatory requirements.

In addition to maintaining valid CPA cover, vehicle owners should also review their car insurance policy regularly. Doing so can help them ensure adequate protection. 

Opting for a suitable motor insurance plan from SBI General Insurance can help address both vehicle-related and personal accident risks more effectively.

1. Is CPA cover mandatory in car insurance?

Yes. A CPA cover is mandatory for owner-drivers of private vehicles as per regulatory requirements, unless a valid exemption applies.

2. What does compulsory personal accident cover include?

CPA cover generally includes compensation for accidental death, permanent total disability, loss of limbs, loss of eyesight, and other injuries suffered by the owner-driver, as noted in the policy wordings. 

3. What is the premium for CPA cover?

The premium is determined according to prevailing regulatory guidelines and may vary based on policy structure and insurer requirements.

4. Who is covered under CPA in car insurance?

The insured vehicle’s registered owner-driver with a valid driving licence is covered under CPA insurance.

5. Can I opt out of CPA cover?

Certain exemptions may be available if the vehicle owner already holds an active personal accident policy meeting the regulatory requirements. Policyholders should check the applicable eligibility criteria with their insurer.

6. What is the CPA Cover Period in Car Insurance?

The CPA cover period usually matches the tenure of the car insurance policy, which is usually one year. In case of long-term policies, the CPA cover may also extend accordingly, subject to policy terms.