A legal liability cover for a paid driver implies that if you have hired a driver to drive your vehicle and he meets with an accident while driving it, then the insurance company will provide compensation for his injury/loss of life.

Generally, legal liability cover is offered as a rider along with your car insurance policy. You have to pay an additional premium amount (which is low, mostly around Rs. 50 or so) to avail this coverage along with your third-party/comprehensive car insurance policy.

When you have the legal liability cover, if your hired driver meets with an unexpected accident driving your vehicle, your insurance company pays the compensation for treating the injuries sustained by the hired driver. While this cover is an add-on to regular car insurance plans, it is to be noted that if a driver hired by you is injured on the job, you have to provide the driver with due compensation, as per the Workmen’s Compensation Act of 1923 and the Fatal Accidents Act of 1855.

So, if you often use a driver to ferry you around, then it makes sense to pay extra for the legal liability cover, while getting your car insurance plan.