A.O.A. (Any One Accident) refers to the maximum liability an insurer will cover for third-party bodily injuries and property damages resulting from a single accident. It is a critical term in liability insurance policies that determines the payout limit per incident.
How It Works:
- If an accident occurs, the insurer will cover compensation claims up to the specified A.O.A. limit in the policy.
- If multiple third-party claims arise from the same accident, they will be covered collectively within the A.O.A. limit.
- Any costs exceeding this limit must be borne by the insured party.
Importance of A.O.A. Coverage:
✔ Protects against significant financial losses from third-party claims.
✔ Ensures compliance with legal and contractual obligations.
✔ Commonly included in Public Liability, Professional Indemnity, and Motor Insurance policies.
Example Scenario:
A delivery truck insured under a liability policy with an A.O.A. limit of ₹5 lakh crashes into a storefront, causing injuries and property damage. If the total third-party claims amount to ₹6 lakh, the insurer will cover ₹5 lakh, and the insured will have to bear the remaining ₹1 lakh.
Who Needs A.O.A. Coverage?
- Businesses with public-facing operations (e.g., retail stores, logistics companies).
- Professionals like doctors and lawyers with Professional Indemnity Insurance.
- Employers seeking Workers’ Compensation Insurance to cover workplace accidents.
At PlanCover, we help businesses secure tailored insurance policies with the right A.O.A. (Any One Accident) coverage. Get expert assistance in selecting the best liability protection today!
