Taxi Insurance: An insurance policy for commercial vehicles that protects taxis/cabs third party liabilities, accidents, natural calamities, fire, or theft. Every commercial vehicle must be at least a third-party insurance holder under the Motor Vehicle Act 1988.
Features and Benefits of Taxi Insurance
Some of the features and benefits of taxi insurance are as follows:
- The policy gives financial protection against any loss or damage to your vehicle.
- It comprises loss or damage leading to injuries to third parties, causing death and damage to their property by the vehicle insured
- A Personal Accident Cover is also included for the owner/driver of the taxi
- The taxi insurance policy can also enhance its coverage by purchasing additional covers or add-ons.
- An online taxi insurance purchase or renewal is also possible.
- This insurance also comes in the cashless claim settlement mode.
Need for Taxi Insurance
This is the need for a Taxi Insurance policy for the individual or the organization owning taxis or cabs. It is essential to buy a commercial vehicle insurance policy as it protects you and your customers if there occurs any loss or damage arises due to an accident or collision. At a minimum, third-party liability commercial vehicle liability insurance is required per the Motor Vehicles Act.
You can also increase your safety when you get a comprehensive commercial vehicle policy with additional benefits such as a CNG kit cover, zero-depreciation cover, critical replacement cover, among others.
You do not necessarily have to run from post to pillar when an emergency strikes. Moreover, your taxi Insurance can be compared, readily bought, and renewed at the comfort of your home or office online.
Here are the types of Taxi Insurance policies:
A couple of primary types of commercial taxi insurance plans are available in India. These are
3rd Party Taxi Insurance
The third-party insurance for a commercial taxi is that kind of insurance that would indemnify the insurer from any third-party liability occurring because of the insured taxi. Third-party liabilities include damages to third-party property, death, disability, or bodily injuries to a third person involved in an accident.
This is the mandatory cover that, under Indian laws, every taxi owner has to drive with, but it doesn’t cover own damage sustained by the insured vehicle.
Fully Comp Taxi Insurance
A fully comprehensive policy for a taxi or cab aspires to reimburse the policyholder in case their taxi suffers damages due to unforeseen incidents, comprising road accidents, fire, third-party damages, and man-made or natural acts, among others.
Another way of augmenting a fully comprehensive cab insurance policy is by acquiring add-ons at some premium.
What all does Taxi Insurance Cover?
Taxi insurance provides coverage in the event of mishaps taking place on Indian roads, as well as third-party liability. The following table enumerates coverage available:
Personal injury: loss, theft, or damage to own cars due to natural calamities like storms, earthquakes, floods, etc., or man-made perils such as strikes, riots, terrorist attacks, etc.
Personal Accident Cover: Medical expenses for injuries or death of the car owner, riders, paid driver, and cleaner
Third party liability: There will be compensation of third party accidental deaths and injury, including drivers or riders, on the part of the insured company. It also covers damages to third party vehicles.
The policy owner may pay some additional premium and extend the scope of the policy to cover the following:
- Damage to electrical and non-electrical parts of the taxi
- More personal accident indemnity for driver
- Legal indebtedness of the paid driver with respect to the insured taxi Add-on covers
- Damage to headlights, damage to bonnets, and damage to bumpers Legal liability in non-fare paying travellers
Documents Required for Claim Process
Any claims on a taxi insurance should be aware of filing the necessary documents. The required documents are:
- Claim form correctly filled out
- Details of injuries
- Photocopy of insurance policy
- Invoices from work done on the vehicle
- Proof of Damage or Accident Medical certificate for injury or death
Getting taxi insurance is a necessity. It is also a way to protect yourself financially in case your taxi meets with an accident or any such unfortunate event.
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