Taxis would be the means of public transport which help you travel in one spot to another should you don’t own a vehicle or maybe your automobile is otherwise unavailable for commuting. Taxis are commercial vehicles, also called Passenger Carrying Vehicles . Thus, they need to fulfil the traffic regulations to run on Indian roads. Underneath the provisions from the Cars Act, 1988, taxis in India should have a valid insurance plan before they commute on the highway and/or carry passengers. This is where a taxi insurance policy comes into the picture.

What is taxi insurance?

Taxi auto insurance is a commercial vehicle insurance plan available for vehicles used commercially to move passengers. The insurance policy is issued by general insurance providers and should be bought by taxi owners before they use their taxis for transportation purposes.

Features and advantages of taxi insurance

A taxi car insurance policy has various features and benefits. Some of these are mentioned below –

  • There are two types of insurance coverage readily available for insuring taxis – a 3rd party liability cover and a comprehensive package policy.
  • Third-party coverage is required according to law. It protects you against legal liabilities suffered if any third party suffers an economic loss because of your taxi
  • Comprehensive taxi insurance plans provide an all-round coverage for third party legal liability as well as for the damages suffered from your car
  • A comprehensive taxi car insurance also provides different types of add-ons for enhancing the scope of coverage 
  • The taxi driver also gets coverage against accidental / accident death and disablement under the personal accident cover provided with the plan
  • You can buy or renew taxi insurance online in simple steps
  • Cashless claims can be found at networked garages

Types of taxi insurance in India

As mentioned earlier, there's two types of taxi car insurance plans obtainable in India. They are detailed below –

  1. Third-party liability policy

    This policy is the basic mandatory cover required as per the Motor Vehicles Act, 1988. The insurance policy covers financial liabilities suffered in case of death, injury or property damage suffered by other people.

  2. Comprehensive taxi insurance

    A comprehensive policy has two coverage components. The first is the mandatory third party liability. The second is the own damage cover that covers the damages suffered by the insured taxi.

Inclusions in taxi insurance

The instances covered within taxi car insurance rely on the kind of policy that you simply buy. Coverage under the mandatory 3rd party cover includes the following –

  1. Financial liability faced for causing a injuries to a 3rd party in which the insured taxi reaches fault
  2. Financial liability faced for causing death in which the insured taxi is at fault
  3. Financial liability faced for causing 3rd party damage to property in which the insured taxi is at fault

Under the own damage element of the policy, available under comprehensive taxi insurance plans, the next instances are covered –

  • Damage towards the taxi due to natural calamities like earthquakes, hurricanes, cyclones, landslides, lightning, etc.
  • Damages towards the taxi due to man-made calamities like riots, fire, self-explosion, strikes, malicious acts, etc.
  • Theft from the taxi
  • Damages towards the taxi when it's being transported to a different place through air, road or water

Moreover, an individual accident cover is also readily available for the driver/owner from the taxi. This cover is mandatory so they cover the motive force against accidental death or disablement. However, if the driver includes a personal accident cover on his/her life, you don’t have to purchase the cover again with the taxi insurance plan.

Exclusions in taxi insurance

There are a few cases of loss that the taxi insurance policy does not cover. These instances range from the following –

  1. Depreciation and normal wear and tear from the taxi
  2. Mechanical or electrical failure or breakdown
  3. Any type of consequential loss
  4. The loss suffered when driving without a valid license
  5. The loss suffered when driving under the influence of alcohol or drugs
  6. The loss suffered when driving away from territory of India
  7. The loss suffered when using the taxi violating its limitations
  8. The loss suffered whenever your taxi insurance policy has expired
  9. The loss suffered when participating in a criminal act
  10. Deliberate losses

Add-on covers under taxi insurance

A comprehensive taxi car insurance policy allows a variety of add-on coverage benefits that help in enhancing the scope of coverage. These add-ons can be found in an additional premium and you can add as many add-ons that you want. Some of the most popular add-ons available with taxi car insurance are as follows –

  1. Zero depreciation cover

    This is, undoubtedly, probably the most important add-ons covers that you can go for. This cover eliminates the deduction for depreciation at the time of claims. Since depreciation isn't covered underneath the insurance plan, your claims get low cost considerably due to the depreciation around the repaired or replaced parts. However, if you possess the zero depreciation cover, the insurer pays the entire claim amount, without deducting depreciation.

  2. Personal accident cover named individual

    You can opt for an optional personal accident cover for any driver other than yourself when the taxi can be used by another person too.

  3. Emergency assistance

    In case your taxi breaks down in the center of the street and can't be towed towards the nearest garage, you can choose the emergency assistance add-on. Under this add-on, you receive accommodation as well as a transportation facility.

  4. Return to invoice cover

    Under this add-on, if your taxi is stolen or damaged beyond repairs, you receive the invoice worth of the taxi as claimed and never the policy’s Insured Declared Value .

  5. Engine protection cover

    If the engine of your taxi gets damaged because of water seepage, such damages wouldn't be covered within basic taxi insurance policy. To get this coverage, you are able to go for this add-on.

  6. Key replacement cover

    This add-on provides coverage for lost key replacement.

  7. Electrical accessories cover

    The electrical accessories from the taxi are insured against damages under this add-on.

Optional covers under taxi insurance

Though add-ons within comprehensive policy can be found as optional add-ons, there are more coverages features too that you can increase the policy if needed. These optional covers range from the following –

  1. Coverage for that bi-fuel kit should you add one to the taxi
  2. Coverage for further accessories put into the taxi that didn't come factory included in the vehicle

How to compare taxi insurance online?

Many leading general insurance companies offer taxi insurance policies. To find the best coverage, you should compare taxi car insurance online and then buy. So, here’s how you can compare taxi insurance online –

  1. The coverage benefits

    Though most taxi insurance plans offer standard coverage benefits, some plans add attractive coverage advantages to the inbuilt coverage for a wider scope of protection. For example, you are able to explore the disposable towing facility or emergency roadside assistance inbuilt under some plans. So, the first thing that you can examine is the coverage benefits offered and purchase a plan using the widest scope of cover.

  2. The Insured Declared Value
    The IDV of the taxi car insurance policy may be the market value of the vehicle after deducting depreciation in line with the vehicle’s age. The IDV determines the maximum claim payable under the taxi insurance plan. So, when comparing taxi insurance online, you should attempt and opt for an IDV as close to the market value for maximum claim settlement.
  3. The premium charged

    The fees are another important criterion that needs to be checked when you compare taxi car insurance online. Try to opt for a plan that provides the lowest premium rate without compromising around the coverage benefits.

  4. The add-ons offered

    Compare taxi insurance plans on the basis of the plethora of add-ons they provide. The wider the plethora of add-ons the greater flexibility you are able to acquire for customizing the coverage as per your needs.

  5. Discounts

    Comprehensive taxi insurance plans allow premium reduced prices for multi-car insurance, for selecting a voluntary deductible, for fitting safety devices within the vehicle, etc. Look for the discounts and select an agenda offering the maximum discounts.

  6. Claim process

    Nowadays, companies have eased up their motor insurance claim tactic to make their policies customer-friendly. Look at the claim process of different insurers and select one which provides the simplest settlement process.

  7. Garage network

    Networked garages allow cashless claims and so some insurance company using the widest network of garages ought to be preferred for easy cashless claims.

    Compare taxi insuranceonline keeping these points and also you could find the best arrange for your coverage needs.

How to purchase taxi insurance?

You can purchase a taxi insurance policy in 2 ways. They are as follows –

  1. Offline 

    You could possibly get in contact with an insurance coverage agent or broker and purchase taxis insurance policy. You can also visit the branch of an insurance provider that sells taxi insurance and apply for a policy by filling up an offer form for availing of coverage. Spend the money for premium and submit the proposal form. The insurer would assess the form, accept the premium and issue the taxi car insurance policy.

  2. Online 

    An alternative and much more convenient way to buy taxi insurance is the online mode. You can go to the website from the insurance company, supply the information on your taxi and purchase the plan online. You may also choose to buy the taxi insurance policy with an aggregator’s website wherein you receive the advantage of comparison. You should check out the different taxi insurance coverage available in the market, do a comparison after which purchase the most suitable policy.

    Turtlemint also provides taxi insurance online from the leading general insurers asia. You are able to compare leading plans after which choose the best policy for your vehicle. Just visit https://www.turtlemint.com/car-insurance/, enter your vehicle details and discover the key plans. Compare the plans, pick one making a web-based payment from the premium. The taxi insurance policy could be issued instantly.

How to renew taxi insurance?

Just like buying, renewing the taxi insurance plan may also be done in the next two ways –

  1. Offline renewals

    Get in contact with your agent or broker or visit the insurance company’s branch and renew the policy offline.

  2. Online renewals

    Visit the website of the insurance provider where you purchased the insurance policy. Choose the renewal option, go into the policy number, pay the renewal premium and renew taxi car insuranceonline. If you have bought the program from Turtlemint, you can log into your online Turtlemint account and renew the insurance policy from there itself. You may also port to another taxi insurance policy during the time of renewals. You should check the various taxi insurance plans available on Turtlemint’s website and renew having a different plan whether it offers better coverage at low premiums.

How to create a claim under taxi insurance?

If you incur any claim in your taxi insurance policy, inform the insurance company immediately. The claim process is as follows –

  1. For your personal damage claims, the insurer would guide you to the nearest networked garage. You may also check the garage list online on the company’s website or mobile application.
  2. Take your taxi to the garage where the insurer’s surveyor would come and assess the extent of damages. The surveyor would also prepare a claim estimate and submit the same towards the insurance company.
  3. The company would approve of the claim in line with the surveyor’s estimate
  4. Once the claim qualifies, the garage would repair your taxi and also the bills could be settled by the insurance provider.
  5. Pay the deductibles and non-admissible expenses to take delivery of your vehicle. You should also file a claim form and submit the relevant documents for claim settlement.
  6. In the case of 3rd party claims, you would have to file a police FIR. The claim would be handled and settled through the motor accidents tribunal. When the tribunal gives its ruling, the insurer would directly spend the money for claim that they can the 3rd party.
  7. If your taxi is stolen, you'd again need to file a police FIR. If the information not able to trace your vehicle, they would issue certificates certifying exactly the same. Submit this certificate using the insurance company to obtain a settlement of the claim.
  8. In the situation of your damage claims, if you get your vehicle repaired at a networked garage, you would have to bear the repair charges yourself. Once the repairs are carried out, file a claim using the insurance provider and the company would reimburse you for that costs incurred.

For claim settlement, you would need to submit the next documents –

  • The policy bond
  • Copy of the RC book of the taxi
  • Copy from the driving license of the driver riding the taxi at the time of claim
  • Identity proof of the policyholder
  • Police FIR for theft and third party claims
  • Medico-legal certificate for personal accident claims
  • All repair bills in original when it comes to reimbursement claims
  • Any other document as required by the insurance company 

If you have bought the taxi insurance plan from Turtlemint, you are able to call 1800 266 0101 or send a mail to support@turtlemint.com. Turtlemint’s claim department would help you get your claim settled in the earliest.

To know very well what taxi insurance coverage is all about after which purchase a suitable policy for your automobile.

Frequently Asked Questions

  1. How may be the 3rd party premium calculated for that taxi insurance policy?

    The third-party premium of a taxi insurance policy is calculated by the Insurance Regulatory and Development Authority of India. It's fixed and reviewed every financial year. For taxis, the premium depends either on the engine capacity of the vehicle or the number of passengers the taxi is licensed to carry.

  2. What is the applicable depreciation on the areas of the taxi?

    The depreciation depends upon the various parts. It is as follows –

    Parts from the taxi

    Applicable depreciation rate

    Nylon, rubber or plastic areas of the car

    50% depreciation 

    Fibreglass areas of the car

    30% depreciation 

    Glass parts of the car

    Nil depreciation
  3. Do I recieve any discount if I do not claim under my taxi insurance policy?

    Yes, if you don't make claims on your taxi insurance plan you can claim a no claim discount. This discount starts from 20% for that first claim-free years and rises to 50% if you have five successive claim-free years. 

  4. What information on the taxi could be needed when buying taxi insurance online?

    When buying taxi auto insurance online you would have to provide the following details to the insurance company for calculating the optimal IDV as well as the premium amount –

    • The make, model and variant of the taxi
    • The year of manufacture
    • The year of registration
    • Registration location
    • Additional accessories added to the taxi if any
    • The engine and chassis number

    After these details are correctly entered the insurer would calculate the IDV and the corresponding premium for the comprehensive taxi insurance plan.

  5. What are deductibles within the taxi insurance plan?

    Deductibles are your out-of-pocket expenses. In the case of claims, the insurance company pays the claim only when it exceeds the deductible limit. Claims up to the deductible would need to be borne by you. There are two types of deductibles in taxi insurance plans. The first is the compulsory deductible which is mandatorily applicable at each demonstration of a claim. Another may be the voluntary deductible which you can choose yourself for availing of reasonably limited discount. If you choose a voluntary deductible, you would have to spend the money for compulsory deductible along with the voluntary deductible amounts from your pockets and also the insurance provider would spend the money for remaining admissible claim.

RELATED ARTICLESMORE FROM AUTHOR

LEAVE A REPLY