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Taxi Insurance/Commercial Car Insurance

Driving a taxi becomes difficult due to the honks and constant city hustle and bustle. You must pay attention to the road, the steering wheels, and your customers’ specific directions. It becomes quite challenging to manage everything without losing your calm, which results in unfortunate circumstances and mishaps. All taxi drivers and owners must protect their vehicles and businesses, so it makes sense to purchase a comprehensive insurance policy rather than a liability-only one to receive coverage for both your damages and third-party damages.

What is Taxi or Commercial Car Insurance?

In the event of unintentional damage, third-party liabilities, etc., taxis are financially protected by a special type of commercial vehicle insurance known as taxi insurance. If you are the owner of a cab or taxi fleet, you must protect them with sufficient taxi insurance. In the event of any unfortunate or unanticipated circumstances, such as theft, accidents, natural disasters, etc., it will lessen the financial burden of damage repairs.

If you purchase a thorough commercial vehicle policy, you may also strengthen your protection by choosing extra advantages like CNG kit coverage, zero depreciation coverage, key replacement coverage, and similar benefits. An emergency does not require you to jump from one thing to another. Also, it’s simple to purchase and renew taxi insurance online from the convenience of your home or place of business.

What are the Two Types of Taxi Insurance?

There are various insurance needs for various kinds of company vehicles. A commercial vehicle that transports passengers will have different features than one that transports products. Hence, you must have an insurance plan that is appropriate for its use whether you purchase a new car or hire a new driver.

There are 2 main types of commercial vehicle insurance:

  1. Third-Party Commercial Vehicle Insurance

A third party’s person or property is covered by third-party taxi insurance. It also covers coverage for death, physical harm, and other damages. Your personal car damage is not covered by this type of insurance.

  1. Comprehensive Insurance

Comprehensive insurance has a broader range of coverage, as the term implies. It includes protection for the commercial vehicle against unanticipated events like damage, fire, theft, and natural calamities as well. In addition, it also covers injuries to third parties.

Features and Benefits of Taxi Insurance

If you purchase taxi insurance, you will get the following benefits –

  1. Saves You on the Legal Front: As was said before, every vehicle that travels on Indian roads for business purposes must have legal insurance. Also, if you don’t have insurance, you could face legal repercussions. So, if your cab is covered by commercial insurance, you can avoid engaging in any illegal driving following the Motor Vehicles Act.
  1. Liability Coverage: Taxi insurance makes sure that you won’t have to pay out of pocket in the event of an accident or injury. Because in these circumstances, your insurer will make up for your losses by making up for the losses or damages caused to third parties or property. As a result, taxi insurance enables you to continue operating even in the event of legal action or other liabilities.
  1. Coverage for Loss: With taxi insurance, you can survive and recover from such catastrophic losses if you experience circumstances like theft, accidents, etc. while the policy is in effect. The insurer reimburses you up to the taxi’s current Insured Declared Value (IDV), which was in effect at the time the insurance was purchased.
  1. Pay Off Bank Loans: The majority of consumers use bank loans to buy taxis. So, if you have comprehensive business taxi insurance, you will be shielded from a bank loan if your car is totalled or stolen.

What's Covered in Taxi Insurance/Commercial Car Insurance?

When you buy comprehensive taxi insurance, you have the following facilities:

  1. Third-Party Liability

The obligations that result from a third party’s engagement are covered by this kind of insurance. A person may suffer a physical injury, pass away, or cause harm to another person’s property.

  1. Personal Accident Cover

Commercial vehicle insurance would cover the loss if the owner or the hired driver was hurt or killed in a car accident.

  1. Own Damage Cover

The following are included in this insurance’s coverage:

  • Man-made catastrophes like robberies, terrorism, and riots
  • Natural disasters including earthquakes, fires, and floods, among others
  • Damages sustained during air, sea, and road transportation
  1. Towing Coverage

Towing services are frequently included in taxi insurance policies by several providers. This service comes in quite handy if the car breaks down and needs to be towed.

What’s Not Covered in Taxi Insurance?

The following are not covered by taxi insurance policies:

  1. The insured vehicle’s regular wear and tear, resultant losses, and electrical failure.
  1. The parts’ depreciation value, unless a zero-depreciation cover is obtained
  1. Damages from irresponsible driving while under the influence of drugs or alcohol are not covered by taxi insurance.
  1. Accidental loss or damage brought on by the driver’s deliberate negligence.
  1. If it was discovered that the driver of the car didn’t have a valid licence or wasn’t permitted to operate the insured vehicle.
  1. Any unintentional loss or damage that has occurred outside of a defined geographic area.
  1. Any loss or harm resulting from nuclear radiation, war conditions, or other associated activity.
  1. The combined sum of optional and required deductibles. It refers to the portion of a claim that you decide to cover out of pocket.

Add-On Covers Under Taxi Insurance

Here are the popular add-on covers under taxi insurance.

  1. Zero Depreciation Cover

One of the most significant add-on covers available is zero depreciation. The deduction for depreciation at the time of claims is eliminated by this cover. As depreciation is not covered by the insurance policy, the depreciation on the repaired or replaced parts significantly lowers your claims. But, if you have no depreciation coverage, the insurer will pay the full value of the claim without taking depreciation into account.

  1. Personal Accident Cover for a Named Individual

If the cab is used by another person in addition to you, you have the option of purchasing personal accident insurance for any other driver.

  1. Emergency Assistance

You can choose the emergency assistance add-on in case your taxi breaks down in the middle of the road and cannot be towed to the closest garage. You receive both lodging and transportation as part of this add-on.

  1. Return to Invoice Cover

If your taxi is stolen or irreparably destroyed, this add-on will pay you its invoice value rather than the policy’s insured declared value (IDV).

  1. Engine Protection Cover

A standard taxi insurance policy will not provide coverage for losses caused by water seepage to the engine of your cab. You can choose this add-on to acquire this coverage.

  1. Key Replacement Cover

Coverage for replacing lost keys is included with this add-on.

  1. Electrical Accessories Cover

Under the terms of this add-on, the taxi’s electrical equipment is protected against damage.

How To File a Claim Under Taxi Insurance?

Claiming your taxi won’t be challenging if you adhere to all the instructions provided by the insurance provider. Follow the steps outlined below to ensure a smooth claim procedure.

Claim for Accidental Damage:

  • Report the accident or damage right away to your insurance provider or your agent.
  • You can request a towing facility; depending on the type of plan you have, it might or might not be covered.

The claim can be made in 2 ways:

  1. Cashless Claim
  • To file a cashless claim, you must visit a network garage. An insurance company surveyor will then come to the garage to access the vehicle and assist you in the process.
  • You must complete the claim form and include copies of the driver’s licence and the taxi registration certificate.
  1. Reimbursement
  • After the surveyor evaluates your vehicle, you can take it for repairs and receive compensation.
  • You would have to pay the repair costs upfront before you could receive a later reimbursement.
  • To ensure a smooth refund process, make sure to properly and securely store any repair-related bills and receipts.
  • Contact customer service to submit a request for reimbursement or go to a branch or business office.
  • You can also submit the claim form online by going to the website of the insurance provider.

Theft Claim:

  • An FIR must be filed as quickly as feasible and at the earliest if your commercial vehicle is stolen.
  • The insurance provider needs to know about this.
  • If the police are unable to locate your business vehicle, they will issue a “Non-Traceable Certificate.”
  • After that, you must get a Claim Form from the business.
  • Return it with the necessary paperwork, including the “Non-Traceable Certificate,” as well.
  • The insurance provider will resolve the claim under the insured declared value of your commercial vehicle (IDV).

Documents Required for Filing a Taxi Insurance Claim

The following documents may be required when filing a claim with the taxi insurance:

  1. Registration documents of the vehicle
  2. Original driver’s Licence
  3. Claim Form-Filled and signed
  4. Driver’s Aadhar Card
  5. Copy of FIR or MCR
  6. Receipt of Tax paid
  7. Policy papers
  8. Route Permit
  9. Load challan, in case of a goods-carrying vehicle
  10. Cancelled Check, in case of reimbursement, is requested
  11. Payment bills and receipts, in case reimbursement is requested.

How To Buy Taxi Insurance Policy?

If you are looking to buy taxi insurance, then you can simply buy it via offline or online mode.

Offline Process:

If you’d prefer to purchase the taxi insurance in person, please go to the nearest branch. You can get all the information you need about insurance when you visit the branch. However, if the problems persist, you can receive help by contacting the insurance provider.

Online Process:

All you need to do to purchase taxi insurance online is visit the company’s website, adhere to the directions, complete the required information, and then submit your payment to finish the transaction.

Note: Many independent service providers, like Probus Insurance, can assist you in finding the best taxi insurance that caters to your needs and budget.

Frequently Asked Questions

Yes, you are eligible for a no-claim discount if you do not file any claims under your taxi insurance coverage. This discount starts at 20% for the first year without a claim and rises to 50% after five consecutive years without a claim.

You have the choice to choose insurance for passengers from many insurers. Nonetheless, it is advised that you get your insurance to certify the same.

It is, certainly. You must timely renew your commercial car insurance if you want to keep using it as a safety net. You run the danger of incurring financial loss in the event of an accident, but you also run the chance of legal difficulties if you go without insurance if there is a delay.

You wouldn’t require the car’s insurance if you intended to sell it. You should therefore change the insurance to the new owner’s name when you sell your commercial vehicle. You will stay clear of any potential liabilities by taking this action.

Understanding the distinction between the two is crucial since you might not be able to file an insurance claim if you use your vehicle for business purposes. All of your company vehicles, including large trucks, trolleys, and small automobiles that are registered for the same use, are covered by commercial insurance. Accidents that happen while driving for personal purposes are covered by your taxi insurance; commercial use is not.