CPA Cover in Car Insurance: What It Means & Why It’s Important?

When you take a car insurance, the prime features that you look for would include vehicle damage, theft and third-party liabilities. However, there is one aspect that we tend to forget or overlook. Yes, I am referring to the CPA Cover in car insurance. Even when it is a mandatory part of a car insurance, many of the policy holders aren’t aware of what it is and what it offers:

What is CPA Cover in Car Insurance?

CPA Cover refers to Compulsory Personal Accident Cover in car insurance. It is a mandatory part of the vehicular insurance policy that offers financial protection to the owner of the vehicle in case of accidental injury or death to the owner of the vehicle. It aims to offer a basic cover to car owners and drivers. The current sum insured under CPA is Rs 15 Lakhs. This means the insured (or their family) can receive compensation up to this amount, depending on the severity of the injury or death caused by a road accident involving the insured vehicle.

What are the Things Covered Under CPA? 

The CPA cover provides protection in several ways. Some of these protections include :

• Accidental death : In case of the death of the driver or owner while driving the insured vehicle, the nominee will receive the sum assured as compensation.
• Permanent or total disability : If the accident results in a permanent disability, the person will get the full sum assured. This covers the permanent disability pertaining to limbs, eyes and other vital organs. 
• Permanent partial disability : If the accident results in permanent, but partial disability, a portion of the sum insured will be paid to the person as compensation. 
• Medical expenses : Some insurers offer medical reimbursement for hospitalisation and treatment after the accident, but this is usually an add-on and not part of the standard CPA cover.

The CPA cover is available only to the registered owner or driver of the vehicle. If you are not the registered owner or do not have a driving license while driving the vehicle, you will not get any benefits under the insurance policy. 

What Are The Situations Where The CPA Cover Period Does Not Apply?

Even when the CPA provision is offered to protect the owner and driver of the vehicle, there are times when it may not be applicable, and you will not get the benefits assured. The exclusions and limitations under CPA include:

• Invalid or no driving license : if you or the driver is found without a valid driving license at the time of the accident, the claim under CPA is liable to be denied
• Drunk driving or drug influence : An Accident caused by a drunk driving or under the influence of drugs is not covered under the CPA
• Vehicle is used for commercial or illegal purposes : If the insured vehicle is used for commercial purposes when it is insured under personal usage, your CPA cover will be invalid. The same rule will be applicable if the vehicle is used for unlawful activities. 
• Not wearing a helmet or seat belt : Not wearing a seat belt when driving a four-wheeler or not wearing a helmet while riding a two-wheeler will make the insurance policy liable to be rejected. 
• Non-renewal of policy : The CPA cover is a part of your insurance policy. If your policy is not renewed, the benefits will not be available.

Benefits of a CPA Cover in Car Insurance 

Well, as you would have understood already, CPA is an essential element of your car insurance. It offers you the following benefits :

Also read, How to Save Money on Your Car Insurance?

How to Claim CPA Cover in Car Insurance?

Filing your claim under CPA can be a very straightforward process. Your nominee or you can follow up with the claim process. 

Here are the steps involved in claiming the CPA cover :

• Inform the insurance company immediately : The first step is to inform the insurer as soon as possible. Most insurance companies offer a 24/7 helpline.
  • Submit the required documents : you will need to submit the following documents.
  • FIR (First Information Report)
  • Medical reports or a death certificate
  • Disability certificate (if applicable)
  • The driving license of the owner-driver
  • Insurance policy document
  • Vehicle registration certificate (RC)
  • KYC documents of the nominee
    

• Claim assessment : The insurer will assess the claim based on your documents. They will also investigate the accidents. Your claim will be approved if every document is in order.
• Claim settlement : Once approved, the insurer will transfer the claim amount to the nominee’s or insured’s bank account, depending on the nature of the claim.

Conclusion

Compulsory Personal Accident (CPA) cover is not just a checkbox in your car insurance. It is a safeguard for your life and your loved ones. You may be a first-time buyer or a seasoned driver. Make sure that your policy includes CPA coverage is a smart and responsible choice. It offers critical protection against the uncertainties of the road. It also offers benefits like financial compensation for accidental death or disability, all at a very affordable cost.

Indus Used Cars is one of the most trusted names in the pre-owned car market in India. They offer a wide range of thoroughly inspected and certified vehicles. But, they also provide expert guidance in understanding and securing the right insurance coverage, including CPA cover.

When you're in the market for used cars, it’s essential to choose a seller that not only provides quality vehicles but also guides you through important aspects like insurance. That’s where Indus Used Cars makes a real difference.