What is CPA in Insurance?

When you think about car insurance online or plan your insurance renewal, it’s easy to focus only on protecting your vehicle or fulfilling legal requirements. Many vehicle owners overlook the personal risks involved in driving. Accidents can lead to serious injuries, permanent disability, or even death, creating unexpected medical expenses and financial challenges for you and your family.

This is where a CPA in insurance plays a vital role. The CPA cover ensures that the owner-driver receives financial support in case of such unfortunate events. It is included in all motor insurance policies to protect you personally, not just your car. By understanding what a CPA in insurance is and choosing a comprehensive motor policy from Bajaj General, you can drive with greater confidence, knowing you and your family are protected from the financial impact of accidents.

CPA Full Form in Insurance

The CPA full form in insurance stands for Compulsory Personal Accident cover. It provides financial compensation to the insured vehicle’s owner-driver in the event of death or permanent disability resulting from a road accident. This cover is mandatory under the Motor Vehicles Act and is typically included in all motor insurance policies, whether third-party or comprehensive. However, since January 2019, an owner-driver who already holds a standalone personal accident policy with coverage up to ₹15 lakhs is exempted from purchasing CPA again with a new car insurance policy. The CPA cover ensures the owner-driver is financially protected for life-altering accidents, with compensation of up to ₹15 lakh as per IRDAI regulations. This compensation is a lump sum amount payable in case of death or permanent total disability and does not cover temporary injuries or passengers.

Why CPA Cover Is Mandatory in Car Insurance?

The introduction of CPA in insurance addresses a critical gap. Third-party policies cover damage to others but do not protect the vehicle owner-driver personally. The CPA cover ensures:

• Financial Protection – Provides monetary support for the owner-driver or their family in case of accidental death or permanent total disability, but not for temporary injuries or passengers.
• Bridging the Gap – Protects the insured person in situations not covered by third-party insurance.
• Legal Compliance – Mandatory under the Motor Vehicles Act, 1988, and IRDAI guidelines, with a minimum sum insured of ₹15 lakh as per regulatory norms. However, the insured driver can opt out if they already hold a standalone personal accident policy with coverage of at least ₹15 lakh.

When you purchase or renew car insurance online, the CPA cover becomes a key component of your policy. However, you may have the option to choose coverage duration from one to five years and a standalone CPA for multiple vehicles under IRDAI guidelines.

Key Features of CPA in Insurance

The Compulsory Personal Accident (CPA) cover is an essential part of motor insurance in India, designed to protect the owner-driver financially in case of accidental death or permanent total disability while driving. It acts as a crucial safety net mandated by regulatory authorities to ensure drivers and their families face fewer financial burdens due to accidents.

• Mandatory Coverage – Compulsory under IRDAI regulations and the Motor Vehicles Act for all owner-drivers unless they hold a standalone personal accident policy with equivalent coverage.
• Sum Insured – Standard minimum coverage of ₹15 lakh as mandated by IRDAI.
• Affordable Premium – Nominal cost for high-value protection.
• No Medical Examination Required – Quick and easy policy issuance.
• Flexible Policy Duration – Aligns with your car insurance renewal cycle, offering options to choose coverage for one to five years, as per IRDAI guidelines.
• Protection Across Vehicles – Standalone personal accident policies with equivalent coverage allow owners with multiple vehicles to avoid paying for numerous CPA covers. Companies or organisations owning vehicles are typically exempt.

Benefits of CPA in Car Insurance

The Compulsory Personal Accident (CPA) cover is an important part of car insurance that offers financial protection to the owner-driver. It helps reduce the economic impact of accidents by providing assured compensation and a straightforward claims process.

• Financial Protection for the Owner-Driver – Ensures that the insured or their family receives compensation in the event of accidental death or permanent total disability.
• Peace of Mind – Provides confidence to drive, knowing you are financially covered for personal injuries caused by accidents.
• Universal Coverage – Applies regardless of fault in the accident, offering protection to the insured owner-driver.
• Simple Claim Process – Quick reporting and verification procedures ensure timely compensation to the claimant.
• Cost-Effective Coverage – Offers high coverage limits with relatively low premiums, making it an affordable protection option.

Compensation Offered Under CPA Cover

Exclusions Under CPA Cover

Claims under CPA cover will not be paid if:

• Injury or death results from self-inflicted harm or suicide.
• Driving under the influence of alcohol or drugs.
• Accidents occur outside the policy’s geographical area.
• The vehicle is used unlawfully or driven without a valid licence.

Who Needs CPA Cover?

Every vehicle owner in India requires a CPA in insurance. However, if a standalone personal accident policy already provides a minimum of ₹15 lakh coverage, additional CPA cover with motor insurance is not required. During car insurance online renewal, check if your policy includes CPA to avoid duplicate payments while maintaining protection.

How to Claim CPA Cover in Car Insurance?

To file a claim with Bajaj General Insurance Limited:

• Report the Accident – Notify Bajaj General Insurance immediately through their helpline or online portal.
• Gather Documentation – FIR, medical reports, death certificate, and other supporting documents (hospital bills are generally not required as CPA provides lump sum compensation).
• Complete the Claim Form – Provide accurate details on the CPA claim form.
• Submit Documents – Send the form and supporting documents for verification.
• Claim Settlement – Once approved, compensation is paid to the insured or nominee.
• Commonly Required Documents: Valid driving licence, vehicle registration certificate, FIR, medical records, income proof, KYC documents, and a cancelled cheque for disbursement.

Why Choose Bajaj General Insurance Limited for CPA and Car Insurance?

Bajaj General Insurance Limited offers a transparent, customer-focused approach and robust protection plans. When purchasing or renewing car insurance online, policyholders get:

• Mandatory CPA cover is included as per law.
• Add-ons such as Zero Depreciation, Engine Protector, Key Replacement, Roadside Assistance, Consumables Cover, and No Claim Bonus Protection.
• Quick claim processing and responsive customer support.
• Cashless claim settlement facilities across a vast network for eligible claims, though CPA claims are largely settled via lump sum reimbursements.

Conclusion

The CPA cover means more than a mandatory clause in your policy. It provides lump sum financial protection for the owner-driver in the event of an accident, permanent disability, or death. Understanding what a CPA in insurance entails and including it in your car insurance online or insurance renewal ensures compliance with the law while offering peace of mind. Bajaj General Insurance Limited provides reliable coverage, smooth claim processing, and optional add-ons to enhance your protection and keep you financially secure on every journey.

*Standard T&C Apply

#Visit the official website of IRDAI for further details.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

Claims are subject to terms and conditions set forth under the motor insurance policy.