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Taxi Insurance

Every vehicle that comes on the road has to be insured. In the chaos of the city, while you drive your cab, with so much traffic and constant instructions from the passengers, it gets difficult to get hold of everything at once, and so you’re likely to come across accidents and mishaps. Thankfully, with your motor insurance, things often would not go out of hand.

Insurance is a legal contract between the insurer which is the company, and the insured which in this case is the taxi. So, whether it’s your bike, scooter, car, or even a commercial vehicle, insurance is a must.

What is taxi insurance?

Commercial vehicles are vehicles used for carrying goods or means of public transport. A taxi is a means of public transport used to fare passengers and like any other private vehicle, it also needs an insurance cover, under the Indian Motor Act, 1988. By having insurance, you get paid for the cost that you have to spend in case of loss caused by or/and to the taxi. The reasons for mishaps are accidents, natural calamities, crashes, burglaries, or fires.

Why do I need to invest in taxi insurance?

It is mandatory for all commercial vehicles to get at least third-party liability insurance done. But buying taxi insurance, only because it is made compulsory by law, is not the right approach. For a person having a taxi or providing the same on a rented basis, is his medium to earn the bread for his family, therefore, it’s very important to get his taxi(s) insured. Here’s a list of reasons that why should you have taxi insurance:

  1. Having a taxi insurance policy is compulsory by law and not having one will put you in legal trouble.
  2. Mishaps can happen anytime, anywhere. In case your vehicle causes damage to another’s property, you will have to bear the repair cost. In such a situation, having third-party taxi insurance will benefit you on a financial level.
  3. In case of your taxi getting damaged in an accident, the taxi insurance will pay for the repairs/ damages.
  4. It covers and protects the taxi driver and his family disability or death happens.
  5. The policy comes with a built-in cover for the registered driver
  6. As your taxi would be carrying passengers, you also have the option to extend the coverage for them too
  7. When you purchase taxi insurance from a reputed company you can ensure a quick and easy claim settlement
  8. Towing facility can also be opted for so that in case of an accident, you are not left stranded
  9. Your policy can save you from the burden of unnecessary expenses in case of an accident.
  10. Along with the basic coverage, you can also opt for add-ons/ riders to enhance the coverage.

 

What all is covered in taxi insurance?

Buying comprehensive Taxi insurance will get you the following:

1. Third-Party Liability Cover: It is the most basic coverage that you can get for your taxi. Under such type of insurance, the mishap costs that arise because of the participation of a third party are covered. It can be an injury, death of the driver or passenger, harm to another’s property.

2. Personal Accident Cover: It comes as an in-built cover. If the owner of the taxi or driver employed dies in a road accident or gets injured, the losses will be covered by the insurance company.

3. Own Damage Cover: Under this, damages caused to the taxi by the following are covered:

  • Man-made disasters such as burglaries, terrorism, riots
  • Natural incidents such as earthquakes, fire, floods, etc
  • Mishaps during transit through airways, roadways, and seaways.

 

 What all is not covered in taxi insurance?

When you are to make a claim with the insurance company, always remember that taxi mishap due to the following reasons will NOT be included in the insurance cover:

  • Disasters that take place in non-geographical regions for that taxi.
  • The taxi was driven by another person rather than the appointed driver.
  • Damage under wars/nuclear attacks.
  • Contractual liabilities.
  • Technical failures.
  • Expired/ lapsed insurance policy.
  • Ionizing radiation.
  • Losses that are consequential.

 

How can I purchase taxi insurance?

You can directly purchase taxi insurance online, compare the policy benefits, add ons, and the policy amount with various different insurance-providing companies. Choose according to your requirements.

However, if you wish to purchase the policy offline, you can visit the company office or request an insurance agent to come to you.

How can I claim taxi insurance?

If you follow all the regulations as stated by the insurance company while buying taxi insurance, the claim for your taxi will be easy. To ensure the claim procedure is smooth, follow the steps given below:

  • Inform your insurer as soon as possible after the mishap.
  • Do ask for the towing service (if it’s covered), depending on the plan you have opted for while buying taxi insurance.

 

There are 2 ways for claiming your taxi insurance:

1. Cashless Claim: In this case, you need to go to the nearest network garage possible, a surveyor from the insurance company will come and assist you in all you need to do. You would have to fill the claim form and attach a copy of the driver’s license and the registration certificate of the taxi. You can also fill in the claim form online, available on the insurance company’s website.

Depending on the accident and damage caused, some other documents may be asked for.

2. Reimbursement Claim: Contact the customer care of the insurance company to inform about the mishap and follow up with the compensation procedure.

Once the insurer has accessed your taxi, you can get it repaired at a non-network garage. You need to pay the bills yourself, at first and then get it compensated later as you submit all the necessary documents. Do keep all the servicing bills and receipts handy so the claiming procedure is swift.

In case of a burglary,

  • File a FIR (First Information Report) instantly at the nearest police station
  • Inform about the situation to the insurer along with the FIR details
  • The police will search for your stolen taxi, if they can’t find it, a “Non-Traceable Certificate” will be issued by them
  • The insurer will take care of the expenses you’ve incurred as per the taxi’s IDV, which stands for Insured Declared Value.

Which documents are required when making a claim?

At the time of a claiming for your taxi insurance you must have these documents:

  • Registration certificate of your taxi
  • Appointed driver’s license
  • Claim form filled and signed
  • E-copy in case of an online claim filing
  • Photocopy of FIR (First Information Report) or a MCR (Motor Collision Report), in case of an accident
  • Appointed driver’s Aadhar card or valid Identity proof
  • Receipt of tax paid
  • Insurance policy papers
  • Route permit
  • All related bills and receipts

 

Conclusion

Taxi insurance is hence a must-buy in order to abide by the Indian Motor Act, as it derives several benefits (as mentioned above) for the owner, driver, and the passengers as well. While taking precautions and maintaining safety on roads, insurance goes hand in hand with these measures. So go safe by getting taxi insurance.

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