Everything You Should Know About Taxi Insurance

In India, taxi insurance covers the taxis used for business operations when they sustain damage due to accidents. This insurance policy provides coverage for hired drivers, repairs, and provides add-ons, and peace of mind. Some of its key features are third-party liability coverage, own damage cover, passenger cover, and so on.

Let us know what does a taxi insurance cover in more detail and how to purchase it.

What is Taxi Insurance?

A taxi insurance plan offers the insured financial assistance when the taxi sustains damage and needs to be repaired as a result of covered incidents. A commercial taxi insurance policy is a type of motor insurance is an essential component of every cab owner's secure financial portfolio.

When your taxi is damaged, it can help you cover the expense of repairs and make sure you do not have any unexpected financial shock.

What are the Key Features of Taxi Insurance?

Commercial taxi insurance is a type of motor insurance that protects taxi owners financially by covering risks including theft, accidents, and third-party liability. Here are the key coverages of taxi insurance and their details:

1. Third-party liability coverage: Covers legal and financial liabilities for third-party injuries, deaths, or property damage caused by the taxi.

2. Own damage cover: Protects against damage to the taxi due to accidents, fire, theft, natural calamities, and vandalism.

3. Passenger cover: Provides compensation for injuries or death of passengers travelling in the taxi during an accident.

4. Personal accident cover for driver: Offers financial protection to the taxi driver in case of accidental disability or death.

5. Zero depreciation add-on: Ensures full claim settlement without considering depreciation deductions on replaced parts.

6. Loss of income cover: Provides compensation for loss of earnings if the taxi is under repair after an accident.

7. Roadside assistance: Helps with emergency services like towing, fuel refills, flat tyre repairs, and battery jump-starts.

8. Engine protection cover: Covers engine damage due to waterlogging, oil leakage, or mechanical failures.

9. Key replacement cover: Reimburses the cost of replacing lost or stolen taxi keys.

10. Legal liability for paid driver: Covers legal responsibilities towards the driver employed to operate the taxi.

What are the Benefits of Having Taxi Insurance?

There are two types of policies you can buy for your taxi. One is third-party liability coverage, and the other is comprehensive motor vehicle insurance. Of these, a third-party liability policy is mandatory as per the Motor Vehicles Act, 1988.

On the other hand, a comprehensive insurance policy is an optional but advisable purchase. Let us understand the benefits of taxi insurance, be it a third-party cover or a comprehensive one.

Covers Hired Drivers

If you have hired a driver, the policy also covers any physical injury or injuries they sustain from covered occurrences.

Numerous Add-Ons

Add-ons like roadside assistance and No Claim Bonus (NCB) insurance can improve your coverage and provide you with more peace of mind.

ரொக்கமில்லா பழுதுபார்ப்புகள்

Get hassle-free repairs at any garage in the insurer's network; the garage will pay your costs immediately.

மன அமைதி

Lastly, having an insurance plan guarantees that you can drive without worry since you know you're insured, whether you are driving yourself or have hired a driver.

Inclusions of Taxi Insurance

The common inclusions of comprehensive commercial vehicle insurance are as follows:

1. Own Damage Cover

2. Third-party liability cover

3. தனிநபர் விபத்துக் காப்பீடு

4. Any other add-on that the policyholder has opted for

5. Coverage against natural disasters

6. Coverage against terrorist activities, theft, and riots

7. Coverage against damage during transit by rail, road, waterway, etc.

To get a better idea of policy inclusions, it is ideal to go through the policy document and details, as the minutiae of a plan may differ across providers.

Exclusions of Taxi Insurance

Before choosing a taxi insurance policy, here are the coverage exclusions you need to know:

1. Any damage caused if the vehicle was under the influence of drugs or alcohol

2. Routine damage to the taxi caused by regular wear and tear

3. Any damage caused due to negligence

4. Depreciation of the vehicle and its parts, unless the taxi is covered with zero depreciation

5. Any damage that is caused outside the geographical area

6. Any damage caused when the driver was found driving without a valid licence

மேலும் படிக்க: What Happens If You Ignore Car Insurance Exclusions?

How to Buy and Renew Taxi Insurance?

Since most insurance policies these days are available online, the buying and renewing process has become quite easy. Follow the steps below to purchase a taxi insurance online:

1. Go to the ‘Commercial Vehicle Insurance’ page.

2. Enter the details of your taxi.

3. Make sure to review your no-claim discount.

4. Select an Insured Declared Value (IDV) that accurately represents the worth of your vehicle.

5. Examine exclusions, optional covers, add-ons, and covers.

6. Make your own strategy or choose one from the suggested options.

7. Examine the coverage details, including the premium.

8. Proceed with the payment using the method of your choice.

9. Get an email and SMS confirming the coverage you purchased.

To renew your taxi insurance, follow the steps below:

1. Go to the ‘Commercial Vehicle Insurance Renewal’ page from the ‘Renew’ section.

2. Enter the details of your taxi.

3. Enter the details of your existing insurance.

4. Examine and adjust the coverage as needed.

5. Look for deals for renewals.

6. Include or exclude riders

7. Verify the information and continue.

8. Pay for the renewal online.

9. Get an immediate confirmation when your coverage is renewed.

Once you get the policy copy, you can either print it out or contact your insurance provider to check whether they provide a hard copy of the same.

Running a taxi service involves operational and financial risks on the road. Protect your taxi with the Commercial Vehicle Package Policy from Bajaj General Insurance and drive with confidence.

How to Claim for Your Taxi Insurance Policy?

To file a claim for your taxi insurance policy, follow the steps below:

1. Call your insurance provider as soon as you can. In addition to reporting the incident, provide specifics like the date, time, and place it happened.

2. If the accident was caused by theft, third-party activity, or significant damage, file a formal complaint at the local police station that is closest to you.

3. Take pictures, record videos, and record the statements of the witnesses. Make sure you have authorisation before relocating your car.

4. To determine the extent of damage and the liabilities that must be covered, your insurance provider will dispatch a surveyor.

5. Following the surveyor's assessment of the damage, you will submit all required documentation, such as a copy of the insurance policy, the FIR report, your driver's license, registration certificate, and the completed claim form.

6. You may take your taxi to any garage and submit the invoices for reimbursement claims, or you can drive it to one of the network garages of your insurer.

7. The insurer will accept your claim when the surveyor and the supporting documentation have successfully verified it.

8. By going to the check claim status website, you may monitor the status of your taxi insurance claim.

மேலும் படிக்க: பொது காப்பீட்டு கோரல் செயல்முறை பற்றிய படிப்படியான வழிகாட்டி

Things to Consider While Choosing the Right Taxi/Cab Insurance

Understand Legal Requirements

Taxi insurance is legally required for all commercial vehicles. Operating a taxi without proper insurance can lead to heavy penalties, fines, or even vehicle seizure. It is crucial to check local regulations and ensure your policy meets the mandatory coverage criteria.

Choose Between Third-Party and Comprehensive Insurance

Third-party insurance is the most basic form of coverage, providing financial protection against damages caused to other vehicles, property, or individuals. However, it does not cover your taxi.

On the other hand, comprehensive insurance includes third-party coverage along with protection for your taxi against accidents, theft, fire, and natural disasters. If you want full financial security, a comprehensive policy is the better option.

Evaluate Coverage Options

Not all policies offer the same benefits. Some include additional coverage such as zero depreciation, engine protection, roadside assistance, and personal accident cover for both the driver and passengers. It is important to assess your taxi’s risk exposure and select coverage options that best fit your needs.

Compare Premium Costs

Since taxis are used frequently and cover longer distances, their insurance premiums tend to be higher than those of private cars. To find the best deal, compare quotes from multiple insurers. Some providers offer discounts for safe drivers, bulk policy purchases for fleets, or those with a good claims history.

Consider No Claim Bonus (NCB) Benefits

If you do not make any claims in a policy year, you can avail of a No Claim Bonus (NCB), which reduces your renewal premium. The longer you go without claims, the higher the discount. Some insurers even allow NCB transfer when switching providers, helping you save money on your new policy.

Look for Customisation Options

Taxi businesses have unique needs, and having customizable policies can be beneficial. If you own multiple taxis, opting for fleet insurance can reduce costs. Add-ons like loss of income cover can provide compensation if your taxi is off the road due to an accident or breakdown.

Check the Insurer’s Customer Support

Reliable customer support is essential, especially in emergencies. Choose an insurer that offers 24/7 assistance for accidents, claims, and roadside services. Having quick support ensures that your taxi is back on the road as soon as possible, minimising business disruptions.

By considering these factors, you can select the right taxi insurance policy that provides adequate protection, cost savings, and seamless claim handling for your business.

மேலும் படிக்க: What is an Automobile Insurance Policy? Everything You Need to Know

இறுதி சிந்தனை

In India, the premium of a taxi insurance policy is determined by a number of factors. These include the vehicle type, its age, purpose of use, its location, the amount insured, the coverage selected, and the underwriting policies of the insurance company. Before purchasing one, try to compare different policies.

Commercial vehicle owners must have the proper taxi insurance to cover anything from accidental damage to third-party liability. Explore Bajaj General Insurance's numerous coverage options to protect your cab from unforeseen events.

அடிக்கடி கேட்கப்படும் கேள்விகள்

Can I use third-party insurance for a taxi?

Yes, third-party insurance is the minimum legal requirement for taxis. It covers liabilities related to injury, death, or property damage caused to a third party in an accident. However, it does not cover damages to your taxi.

Can I get temporary insurance on a taxi?

Yes, temporary taxi insurance is available for short-term needs, such as rental taxis or seasonal drivers. These policies typically last from a single day to a few months and provide flexible coverage options.

Can I insure an old taxi car?

Yes, an old taxi can be insured, but the premium depends on factors like the vehicle's age, condition, and Insured Declared Value. Some insurers may have restrictions on very old taxis, but comprehensive and third-party policies are available.

How to calculate the taxi insurance premium price?

The taxi insurance premium is calculated based on factors like the vehicle’s IDV, age, location, type of coverage, usage frequency, claim history, and any add-ons. Online insurance calculators can provide an estimated premium amount.

How to get the lowest taxi insurance price?

To reduce taxi insurance costs, compare multiple insurers, opt for higher voluntary deductibles, maintain a no-claim record, install safety features, and avoid unnecessary add-ons. Fleet insurance can also help reduce costs for multiple taxis.

Is it mandatory to have commercial insurance for a taxi/cab?

Yes, commercial vehicle insurance is mandatory for all taxis and cabs as per the Motor Vehicles Act. A personal car insurance policy is not valid for taxis used for commercial purposes.

What should I do if my taxi gets into an accident?

In case of an accident, ensure the safety of passengers, inform the police if required, document the damage, and notify your insurance provider. File a claim with the necessary documents, including an FIR (if applicable), photos, and repair estimates.

How much does it cost to insure a taxi?

The cost of taxi insurance varies based on factors like the type of policy, location, taxi model, coverage options, and insurer. On average, premiums range from a few thousand to several lakhs per year, depending on the coverage and add-ons selected.

பொறுப்புத்துறப்பு: இந்த பக்கத்தில் உள்ள உள்ளடக்கம் பொதுவானது மற்றும் தகவல் மற்றும் விளக்க நோக்கங்களுக்காக மட்டுமே பகிரப்படுகிறது. இது இணையத்தில் உள்ள பல இரண்டாம் நிலை ஆதாரங்களை அடிப்படையாகக் கொண்டது மற்றும் மாற்றங்களுக்கு உட்பட்டது. எந்தவொரு தொடர்புடைய முடிவுகளையும் எடுப்பதற்கு முன்னர் ஒரு நிபுணரை கலந்தாலோசிக்கவும்.

காப்பீடு என்பது தேவையின் பொருள். நன்மைகள், விலக்குகள், வரம்புகள், விதிமுறைகள் மற்றும் நிபந்தனைகள் பற்றிய மேலும் விவரங்களுக்கு, விற்பனையை முடிப்பதற்கு முன்னர் விற்பனை சிற்றேடு/பாலிசி விதிமுறைகளை கவனமாக படிக்கவும்.