Adding a driver to your car insurance: what every car owner must know about driver and passenger cover

When buying a car insurance policy in India, most people focus on damage to the vehicle. But equally important is the coverage offered for the driver and passengers. This includes driver cover, passenger cover, and personal accident (PA) cover. Car insurance covers can vary based on individual policies, and it's crucial to review policy documents or consult with insurance providers to understand specific coverage details and any applicable restrictions.

Let’s break it down so it’s easy to understand. Car insurance policies in India also have mandatory components, such as Personal Accident Cover, as stipulated by the Motor Vehicles Act, which apply to both rental and insured vehicles.

What is driver cover?

Driver cover refers to insurance protection for the person operating the car, whether it’s the owner driver or a paid driver. An additional driver can be added to the policy, which may affect the insurance premiums, especially if the additional driver is considered high-risk.

In India, every insurance provider must offer a personal accident cover mandatory for the owner driver under IRDAI guidelines. This PA cover usually includes:

• Compensation for death
• Cover for permanent disability (like loss of one limb or eyesight)
• Medical expenses related to the accident

Car owners are liable to compensate paid drivers injured in accidents, as mandated by the Workman Compensation Act. If you have a paid driver, they are not automatically covered. You need to buy a driver cover add-on to ensure they also get financial support for:

• Medical treatment
• Accidental injuries
• Disability or death

This add-on cover ensures your insurance company pays compensation in case the driver suffers injuries while driving your insured car. Additionally, car owners or employers must pay compensation for personal injuries sustained by paid drivers under the Workman Compensation Act.

What is passenger cover?

Passenger cover offers protection for people travelling with you in the car – these could be family members, friends, or any household members. It is crucial to have passenger cover to ensure that passengers are protected in case they get injured in an accident.

This type of insurance coverage is usually optional and comes as an add-on to your auto insurance policy. Car owners are responsible for ensuring that their passengers are covered and safe.

• Passenger cover typically includes:
• Hospital bills after a car accident
• Compensation for accidental injuries
• Financial support for death or permanent disability

In many car insurance policies, this is not part of the standard insurance covers, so you need to request it separately when you purchase or renew your policy.

What does PA cover include?

Personal accident cover (PA cover) is a mandatory benefit under IRDAI for the owner driver, and is one of the most important parts of any car insurance policy. The development authority, specifically the Insurance Regulatory and Development Authority of India (IRDAI), mandates personal accident cover to ensure financial protection for owner-drivers and their families in the event of personal injuries or fatalities resulting from car accidents.

PA cover typically provides:

• ₹15 lakh compensation for accidental death
• Cover for permanent disability
• Partial disability (like loss of one limb)
• Reimbursement for medical expenses

The insurance regulatory framework established by the IRDAI ensures that these guidelines are followed to protect vehicle owners.

If you want full protection, you should get additional PA cover for:

• Paid drivers
• Additional drivers
• Passengers

The compensation amounts and premium rates for the personal accident cover are fixed by the IRDAI, ensuring standardized protection across policies. This makes sure everyone in your car – whether driver or passenger – is financially protected in case of an accident.

Adding a driver to your car insurance

Adding a driver to your car insurance policy is a common practice, especially when a family member or dependent moves in. To add a driver, you’ll need to provide their personal details, including their name, date of birth, and driving license number. The driver’s driving history, including any previous convictions or claims, will be taken into account when assessing the risk. Adding a driver can increase your premium, as the insurer will consider the new driver’s risk profile. This process ensures that all potential drivers of your car are covered, providing peace of mind and financial protection.

Final note on driver and passenger cover

While your vehicle insurance protects the car, don’t forget about the people inside it. Adding driver cover and passenger cover to your insurance policy is a smart decision that:

• Offers financial protection
• Covers medical expenses
• Ensures you meet legal requirements
• Gives you peace of mind on every drive
• Provides essential coverage in case of accidents

Talk to your insurance provider and ask if your current policy includes these important covers – or if you need to purchase them separately as add-on covers. In most cases, adding regular drivers to your policy is advisable to ensure comprehensive protection.

Your car can be repaired, but lives matter more. Make sure your car insurance protects both your car and the people who ride in it. Ensure you maintain the same coverage even if your circumstances change, such as adding a new driver.

ARN: Zuno/Blog/DM/Adding a driver to your car insurance: what every car owner must know about driver and passenger cover/04/25/34

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