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taxi insurance guide
Mar 26, 2023

Everything You Should Know on Taxi Insurance

The type of motor insurance you buy for your car depends on the intended use of the car. Suppose you have purchased a car for personal use, you will register it as so. Thus, the insurance policy you buy for it will also be such that it is meant for a vehicle that is registered for personal use. Similarly, when buying a car for commercial use, like a taxi, you will register it as such. In this case, the policy you will need to buy for this car is a commercial vehicle insurance policy. This term can refer to a third-party liability policy as well as a comprehensive insurance policy. It encompasses almost all sorts of motor insurance plans available for commercial vehicles. Taxi insurance is a rather colloquial term for insurance policies that are available for commercial vehicles, specifically taxis or cabs. If you own a taxi and are looking for a new insurance policy for it, or to renew your existing one, you can look for commercial four-wheeler insurance. Note that commercial vehicle insurance can mean insurance for any vehicle that is classified as commercial.

Benefits of Having Taxi Insurance

There are two types of policies you can buy for your taxi – third-party liability coverage and comprehensive motor 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’s understand the benefits of having insurance for your taxi, be it a third-party cover or a comprehensive one.
  1. With third-party coverage, you can protect yourself against financial liability if your vehicle was ever involved in an incident where damage is caused to someone else’s vehicle.
  2. With own damage cover, financial protection is possible in cases where your vehicle is damaged. The cost of repairs of the parts or their replacement can be claimed with this policy.
  3. Comprehensive insurance also comes with personal accident cover. If you were to encounter permanent disability or death due to an accident where your car is involved, you or your nominee can make a claim and expect a pay-out.
  4. When buying taxi insurance, you may also want to consider add-ons. For example, you could opt for a consumables add-on cover, which would cover the cost of consumables such as nuts and bolts, engine oil, and brake oil. This may bring down your share of the costs of repairs that you may have to endure after an event that is covered by your policy.
  5. You can claim cashless claim settlement, so your claim is settled directly between the company and the garage.
  6. You can opt for some of the network garages without having to worry about the cost.

Inclusions & Exclusions

The common inclusions of comprehensive commercial vehicle insurance are as follows:
  1. Own damage cover
  2. Third-party liability cover
  3. Personal accident cover
  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. Here is a look at some of the common exclusions of taxi insurance.
  1.  Any damage caused if the vehicle was under the influence of drugs or alcohol
  2. Routine damages 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

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. If you are buying or renewing motor insurance for your taxi online, you can do it in the following ways:
  1. Online: via insurance provider website or app
  2. Offline: via insurance agent
Once you get the policy copy, you can either print this out or contact your insurance provider to check whether they provide a hard copy of the same.

Making Claims for Commercial Vehicle Insurance

Following an event that is covered by your policy, you can initiate a vehicle insurance claim through any of the various channels provided by your insurance provider. The most commonly available channels are:
  1. Via call
  2. Via app
  3. Via website
  4. Through your insurance agent
When you use these channels to make a vehicle insurance claim, ensure that you have a copy of your policy as well as personal details handy. Getting taxi insurance is a requirement. It is also a way to protect yourself financially if your taxi were to meet an accident or any such unfortunate event.   * Standard T&C apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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