All About Passenger Cover in Car Insurance

A driver might take all the precautions and abide by road safety rules, but the risks of road accidents cannot be entirely ignored. With precarious road conditions and unruly traffic, accident rates have considerably increased.

Mishaps while driving can have severe implications as both the driver and the co-passenger are at risk of injuries, disabilities, and even loss of life. Thus, in addition to personal accident cover for the owner/driver of the insured car, passenger covers are also crucial in car insurance.

Did You Know: Insurance providers offer passenger cover in car insurance as an add-on. The add-on extends insurance coverage to all the passengers travelling in an insured vehicle.

Understanding passenger cover in car insurance:

Cars plying on the roads often have passengers besides the drivers. Sometimes it is a family, at other times a group of friends or colleagues. In the event of an accident, everyone faces a high amount of risk. But a car insurance policy by itself does not cover everyone. It only covers the driver. This is where passenger cover becomes important.

A passenger cover provides additional coverage. Unlike personal accident protection for the owner or the driver, it isn’t compulsory by law. But by paying a little extra premium as a car owner, you can avail financial protection for all riders. It makes car insurance more comprehensive and covers the liabilities towards passengers.


Inclusions in passenger cover:

  • Personal accident cover for occupants
  • Fixed Compensation in the event of the death of a passenger


Exclusions in passenger cover:

  • Financial assistance is not provided if a passenger has stepped out of the car and the accident occurs outside


Did You Know: Royal Sundaram offers a maximum compensation of ₹50 lakhs under its passenger cover add-on. It also provides additional coverage for legal liability to the employees and paid driver of the insured car.

Who should buy passenger cover:

A passenger cover adds a lot of value to car insurance policies. Thus, every car owner should consider opting for the add-on. Typically, passenger covers are essential for the below owners.

  • Commercial vehicle owners: Cars that are used commercially are more prone to road accidents. So, vehicle owners who run cabs or buses should buy passenger cover to prevent liabilities, in case an accident results in passenger injuries or deaths.
  • Private car owners: Families and friends often use private cars. Opting for passenger cover allows vehicle owners to shift the costs of treatments to insurance providers.



Passenger covers have significant benefits for car owners. They reduce financial and legal burdens for the insured. In the aftermath of an unforeseen accident, the add-ons also help car owners fulfil their responsibilities towards every passenger riding with them.


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