Driver and Passenger Cover in Car Insurance

A major accident is uncertain and can come knocking at the door at any point, putting the life of the driver and passengers at risk. While a personal accident cover is mandatory for every car owner, one can also voluntarily insure the passengers to be fully secured in such situations. There are many choices available in the market to cover the risk of personal injuries to any passenger or paid driver. By opting for such insurance, one can make sure that each and every person present in the car during the accident is insured against injuries and disabilities. Now that we know how beneficial driver and passenger car insurance is, let's delve deeper into everything there is to know about it.

What is a passenger cover?

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Irrespective of whether you operate a private vehicle or a commercial car, you mostly have passengers in the car with you. They are just as liable to accidental injury during the ride as you are. Therefore, they need proper financial protection against liabilities arising from accidents. 

Car insurance policies do not cover passengers in your vehicle under normal circumstances. However, most insurers offer passenger cover in car insurance as an add-on. Opting for this additional protection increases your premium payments for a policy by an insignificant margin but is vital for the complete safety of everyone inside the vehicle, nonetheless.

What is a driver cover?

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A driver cover, also known as legal liability cover, implies that if you have hired a driver to drive your vehicle and he meets with an accident while driving it, then the insurance company will provide compensation for his injury/loss of life.

Generally, driver cover is offered as a rider along with your car insurance policy. You have to pay an additional premium amount (which is low, mostly around Rs. 50 or so) to avail this coverage along with your third-party/comprehensive car insurance policy.

When you have the legal liability cover, if your hired driver meets with an unexpected accident driving your vehicle, your insurance company pays the compensation for treating the injuries sustained by the hired driver.

What are the inclusions of passenger and driver cover?

The following are included in the passenger and driver cover:

• Covers the cost incurred by your vehicle's occupants and paid driver for medical treatment after accidents.
• Provides disability liability cover to your vehicle passengers and driver.
• Offers financial assistance in the event of death of a passenger or paid driver due to the car accident

What is not included in the passenger and driver cover?

• Does not provide financial assistance to passengers if they step out of the car during the accident.
• Does not cover beyond three passengers in a car. Any additional passenger needs to bear their financial liability during accidents.

Who should buy the passenger and driver cover?

It is recommended for every car owner to buy a passenger cover. If you ply friends or family in your car, it is a must-have add-on to your regular insurance.  It is all the more important for commercial vehicle owners who operate cabs, pool cars, etc. This will ensure every passing occupant in the vehicle is secured under the cover.

What are the benefits of driver and passenger cover?

While we have already discussed how important driver and passenger cover can be, let's take a look at the real benefits of it:

• It provides financial aid to families of passengers who died in the accident
• Covers medical costs of driver and passengers involved in the accident
• Provides disability liability cover to driver
• Avoids legal liability if you have a commercial vehicle that plies passengers regularly

How do you claim a driver and passenger cover?

To claim a driver and passenger cover, you need to follow the below procedures:

• Inform the insurance company about the accident and number of passengers involved
• File an FIR at the nearest police station
• Record details of the witness, other parties involved and registration numbers
• File an official claim so that the insurance company sends a surveyor to assess the situation
• The insurance company will provide financial assistance to the passengers of the insured vehicle. In case of death, compensation will be provided to the families of the deceased.