🚗💥 Compulsory Personal Accident (PA) Cover for Owner-Driver – What Every Insurance Agent Must Know!

Let’s simplify GR.36 of the Motor Insurance Guidelines so you never go wrong while selling a policy.

🔑 What Exactly is Compulsory PA Cover?

Think of it as a safety helmet for the vehicle owner-driver.
It gives financial protection if the owner-driver:
✔️ Is driving the insured vehicle.
✔️ Is getting into or out of the vehicle.
✔️ Is even sitting as a co-driver.

In short – whenever the registered owner with a valid driving license is using the vehicle, he/she is protected.

👤 Who Actually Gets This Cover?

Only the registered owner in person is eligible.
And only if he/she has an effective (valid) driving license.

👉 Example:
If the car is in Mr. Sharma’s name, and he has a valid license → ✅ PA cover applies.
If the car is in the name of Sharma & Sons Pvt. Ltd. (a company) → ❌ No PA cover.

🚫 When is PA Cover NOT Applicable?

This is where many agents make mistakes.

You CANNOT grant compulsory PA cover if:

1. The vehicle is owned by a company, partnership firm, or any corporate body.

2. The owner-driver does not have a valid driving license.

💡 Tip: If PA cover is not applicable, don’t charge extra premium for it! Remove it from the policy.

🚘 What If the Owner Has Multiple Vehicles?

Here’s the catch:

• PA cover can be taken for only one vehicle, even if the owner has many.

👉 Example:
Mr. Sharma has 2 cars and 1 bike. He can choose PA cover for only one vehicle (say his car). The other two won’t have compulsory PA cover.

🎯 Quick Agent Checklist

Before you issue PA cover, always check:
✅ Is the owner an individual (not a company)?
✅ Does the owner hold a valid driving license?
✅ Does the owner have multiple vehicles? (Apply PA cover to only one)

🤝 Why This Matters for You as an Agent

• Avoid mis-selling and customer complaints.

• Build trust by explaining the difference between PA cover (for owner-driver) and passenger cover.

• Become a knowledgeable advisor, not just a salesperson.

Customers love agents who educate them instead of confusing them with jargon.

📌 Takeaway for Agents

Compulsory PA Cover = A must for registered individual owners with a valid license.
Not for companies, not for firms, and not for every vehicle an owner holds.

When explained in simple terms, customers will see you as a trusted guide who protects their interests.

✨ Pro Tip: Next time you sell a motor policy, tell your client —
"Sir/Madam, this PA cover is not for passengers, but for you as the registered owner-driver. It’s like your personal shield on the road."

This one line will clear confusion and make you look like an expert!