What is Taxi insurance – Explained in Details

Taxi Insurance – An Overview

Before getting taxi insurance online, you should delve deeper into the finer nuances of the same. Taxis are public transportation or passenger carrying vehicles (PSVs) which are commercial in nature. Hence, they should adhere to the regulations of the 1988 Motor Vehicles Act, bearing valid insurance policies prior to running on Indian roads and carrying any passengers. Taxi car insurance is a commercial policy that is provided for these vehicles which ferry passengers commercially. There are several general insurance companies issuing such policies in India.

 

Key benefits of taxi insurance

 

Before learning about the taxi insurance prices, it is important to learn a little more about the features and benefits.

• There are two plan types available, namely third party liability coverage which is compulsory in the country and comprehensive insurance coverage.
• The former is about covering legal liabilities in case a taxi causes any loss to another third party.
• The latter is extensive coverage including legal liabilities and the damages of the taxi itself. Comprehensive policies also have varying add-ons for boosting coverage scope.
• Taxi drivers also have accidental death and disablement coverage under the personal accident insurance part of the plan.
• Insurance may be renewed or bought online.
• Cashless facilities are provided at garages within the insurer’s network.

Why you should purchase taxi insurance?

Taxi insurance is compulsory, i.e. the third-party liability insurance is mandatory for Indian roads. At the same time, comprehensive coverage is also required for covering damages to the vehicle and the driver. You can also scale up protection by taking add-ons such as zero depreciation, CNG kit coverage, etc.

What is IDV? 

The insured declared value (IDV) is the maximum sum given by the insurance company in case any vehicle is lost or stolen. It is the present market value of the taxi in question and is calculated by using the suggested retail pricing for the model and the vehicle version at the beginning of the policy. Depreciation is adjusted for every year of the policy as well. The amount payable by the company is based on this IDV if the taxi is either damaged beyond the possibilities of repairs and also if it is stolen.

What is included within the insurance plan?

• Financial liabilities for any injury/death of a third party due to the taxi.
• Financial liabilities for property damage of any third party due to the taxi.
• Comprehensive policies cover damages to the taxi owing to man-made or natural calamities along with damages upon transportation to another location, and theft.
• Personal accident insurance coverage is compulsory for owners/drivers of taxis, ensuring coverage against accidental disablement or death. If the taxi driver already has this coverage, then it is not required afresh.

What is excluded within the insurance plan?

• Regular wear and tear.
• Depreciation.
• Any consequential losses.
• Losses due to driving without a proper license.
• Losses while driving under the influence of drugs/alcohol. Losses when the taxi violates its own limitations or regulations.
• Losses after expiration of the insurance policy.
• Losses while taking part in any criminal activity.

Types of Add-Ons to add in Taxi Insurance

Here are some of the available add-ons that can be considered:

• Zero Depreciation– It takes away depreciation deductions in the IDV while you are filing a claim. The amount paid by the insurer would have reduced considerably otherwise. The full claim amount is paid by the insurance company in case this coverage is there.
• Personal Accident Cover– You can choose an optional personal accident cover for any other driver if the taxi is operated by him.
• Emergency Assistance– This cover ensures quick assistance for any sudden breakdowns along with towing, accommodation and transportation facilities.
• Return to Invoice– This add-on helps you get the taxi’s invoice value upon filing a claim, where the taxi is either damaged beyond any repair or stolen.
• Engine Protection– This helps if the engine gets damage owing to water entry. These damages are not otherwise covered under regular insurance policies.
• Key Replacement– This ensures coverage for replacement of lost keys.
• Electrical Accessories– This insures the taxi’s electrical accessories against any damages.

You can choose coverage for any extra additions to the taxi in terms of accessories or bi-fuel kits.

How to choose the right insurance plans for your Taxi

You should compare the following factors:

• Coverage amount and overall benefits.
• Premium amount.
• IDV.
• Available Add-Ons.
• Discounts and bonuses.
• Process of filing claims and claim settlement ratio of the company.
• The network of garages.

How to purchase Taxi Insurance – Online and Offline

• Offline– Contact your agent/broker for purchasing a plan that fits your needs. You may directly apply for the policy at the insurance company’s branch that is nearest to you. Fill up the form and submit with all documents and the premium amount.
• Online– You can always purchase your policy online from the insurance company’s website or through any other insurance platform. You can also compare plans before deciding. You have to upload documents online while making the payment digitally as well.

You can renew your taxi insurance policy either online or offline in the same manner.

Claim Filing and Documents

• The insurance company will guide you towards finding the nearest network garage in case of your own damage claims. You can check the list online as well.
•  You have to visit this garage where the damages will be scrutinized by the surveyor of the insurance company. A claim estimate will be prepared accordingly.
• The company will then approve this claim, based on the estimate in question. Upon the claim being approved, the garage will start repairs, with the bill being cleared by the insurance company directly.
• You can pay the non-admissible costs and deductibles to get your vehicle after the repairs are complete.
• You have to fill up the claims form and submit all necessary documents alongside.
• Third party claims require the police FIR and will be handled by the Motor Accidents Tribunal whose ruling is required for the insurer to directly pay the amount to the affected third party.
• A police FIR is also required in case the taxi is stolen. If the police cannot find the vehicle, then they will provide a certificate accordingly. This has to be submitted with your insurance company for obtaining the claim settlement.
• In case of own damage claims, if you do not visit any network garage, then you should initially cover the bill yourself. Thereafter, you have to submit your claim with your insurance company for reimbursement.

The following documents are a must for settling claims:

• RC book copy.
• Policy bond.
• Driving license copy.
• Policy holder’s ID proof.
• Police FIR for third-party or theft claims.
• Medical/legal certificate for personal accident claims.
• Any other documents required by the insurer.
• All repair documents and bills (original) if there is a reimbursement claim.