Driving a cab amidst the bustling traffic is not an easy task. The driver has to focus on the road and simultaneously listen to the instructions of the customer. At times, it may become difficult to keep yourself cool and if you lose your focus, it may lead to accidents or to untoward incidents. Just for such a scenario, you need to have a Cab or Taxi Insurance Policy so that you can safeguard your vehicle and yourself. You must also note that on an average, a cab runs more on the roads than a private car, hence it is more exposed to wear and tear. Thus, it is essential to purchase a Taxi Insurance Policy. Moreover, it is mandatory by law to purchase a Cab/Taxi Insurance Policy by the owner/driver.
What is Cab Insurance?
Cab or Taxi Insurance Policy is a type of Commercial Vehicle Insurance Policy that provides insurance cover to the cab in case of theft, accidents, natural calamities as well as third-party liabilities. Every cab owner or driver should essentially secure his cab by taking a Cab Insurance Policy. A Comprehensive Insurance Policy ensures protection to both the vehicle and the owner/driver from own damages as well as third-party damages.
Buy/Renew Commercial Taxi/Cab Insurance
Types of Taxis Covered by a Commercial Taxi Insurance Plan
Commercial taxi insurance plans typically cover various types of taxis –
Taxis Used For Transportation
Commercial taxi insurance protects all vehicles utilised for transporting passengers from one location to another for commercial purposes. In case your company owns a fleet of hundreds of cabs and taxis to offer taxi services. You have the option to purchase taxi insurance to provide coverage for all your vehicles.
If you own a private car and utilise it for commercial purposes, such as transporting people between cities, it is essential to acquire cab insurance. This type of insurance safeguards both you and your vehicle from potential losses or unforeseen incidents.
Cars Operated For Businesses
If you own multiple cars to operate a small business, providing various services such as on-demand and office-cab services, it is crucial to obtain coverage for each of your cabs. This ensures protection against any unforeseen losses or damages.
Need for Taxi Insurance
Here are three important reasons why you need to buy taxi insurance -
Ensures Financial Security for Your Business
Your taxi, a commercial vehicle, is like a vital member of your business family, tirelessly navigating the roads, often 24/7. Given its higher travel frequency compared to private vehicles, the risk of potential damage is elevated. Any damage to your commercial vehicle not only takes it off the road but also affects your business and its earnings. That is why insuring commercial vehicles is a crucial step – a financial shield that safeguards your business from potential losses arising due to significant damage to your valuable asset.
Offers Protection Against Potential Third-Party Liabilities
Commercial vehicles operate extensively, traversing diverse routes, areas, and cities. Often entrusted to paid drivers, these vehicles pose the risk of accidents leading to bodily injuries or damage to valuable properties. According to legal mandates, your business assumes responsibility for compensating damages determined by the court. Such unforeseen losses can significantly impact your business and its financial stability. Third-party insurance provides a robust solution, offering coverage for unlimited liability in cases of death or injuries and up to Rs. 7.5 lakhs for property damage.
A Third-Party Insurance Cover Is A Legal Requirement
It is crucial to recognise that third-party insurance is a legal necessity. Whether your vehicle is used for commercial purposes or is privately owned, the law mandates that every vehicle on the road must be covered by at least third-party insurance. Non-compliance with such regulations can result in legal implications, such as fines, etc., which can be a financial burden for your business.
- The cab insurance policy covers loss or damage to the insured vehicle in case of an accident.
- The insurance policy also provides protection to third-party damages, property and bodily damage from the cab as well as death benefits.
- You can take Add-on benefits to increase your insurance cover.
- You can avail personal accident cover in the policy.
- You can opt for direct claim facility to settle claims.
- Get your vehicle repaired at any of the network garages.
- Simple and easy claim settlement process.
Taxi Insurance Inclusion
While purchasing an insurance policy for your taxi, there are certain things that you need to understand so that you can take well-informed decision. Let us look at what all is covered in the policy:
The policy covers damage or loss to the insured vehicle because of
- Natural Calamities such as earthquakes, landslides, floods, typhoons, cyclone, hurricane, hailstorms, frost etc.
- Riots, terrorist activities, other malicious acts.
- Fire, explosion or self-ignition.
- Theft, burglary or house-breaking.
- Protection to Third-party damage or loss including bodily injury or death. The policy also includes damage to third-party property involving the insured cab.
Taxi Insurance Exclusion
Taxi Insurance policy excludes certain things:
- Mechanical and electrical breakdown of the vehicle.
- Regular wear and tear of the vehicle.
- The insurer does not reimburse the damages incurred due to driving under the influence of drugs or alcohol.
- Damage of the insured vehicle or passenger due to willful negligence driving.
- If the driver does not hold a valid driving license at the time of accident.
- Loss or damage under wars, nuclear radiations and other such activities.
- The compulsory and voluntary deductibles which amounts to the percentage of a claim that you pay yourself.
Add-On Features of Taxi Insurance
- Hotel and Transportation cover in an emergency.
- Zero Depreciation cover.
- Key Replacement feature.
- Insurance cover for personal belongings.
- Return to Invoice for new cabs.
- In case of total loss of the new vehicle, you can get 100% refund of the vehicle value.
- Rebate on multiple cars.
Types of Taxi Insurance Policies
Let's delve into the diverse range of insurance policies tailored for commercial vehicles -
1️⃣Insurance for Passenger Carrying Vehicles
This category encompasses vehicles designed to transport one or more passengers, spanning cabs, taxis, private buses, school buses, auto-rickshaws, etc. Securing insurance for these vehicles is important due to the significant responsibility they bear towards passengers. This policy acts as a safeguard, offering protection against unforeseen circumstances that may arise during transit.
2️⃣Insurance for Goods-Carrying Vehicles
Goods-carrying vehicles are used by businesses that rely on the transportation of goods such as lorries, trucks, tempos, etc. Due to their substantial size, these vehicles are more susceptible to risks. Acquiring insurance for goods-carrying vehicles is crucial, as it not only provides protection for third parties against loss or damage but also safeguards the owner-driver and the vehicle from the impact of natural disasters and unforeseen circumstances. Insurance for goods-carrying vehicles is indispensable for businesses that regularly employ such vehicles for transporting goods.
3️⃣Insurance for Miscellaneous and Special Vehicles
Any vehicles utilised commercially, excluding those mentioned earlier, are categorised as miscellaneous and special vehicles. These include vehicles employed in farming, construction, mining, and similar activities. The insurance for miscellaneous and special vehicles serves two key purposes -
- Ensures coverage for both the losses incurred by the vehicle and losses caused to others.
- Safeguards the owner-driver against accidents or other unfortunate events.
How to Select The Right Commercial Car Insurance for my Taxi?
To make a well-informed decision when selecting commercial taxi insurance in India, it is essential to take into account certain factors specific to the Indian market and regulations. Here are key steps to guide you through the process -
Comprehend The Legal Requirements
Understand the legal obligations for commercial taxi insurance in India by familiarising yourself with the Motor Vehicles Act, which necessitates a minimum of third-party liability insurance.
Assess The Types of Coverage
Here are some types of coverage provided under commercial taxi insurance -
- Third-Party Liability Coverage
This coverage is obligatory, encompassing bodily injury and property damage to third parties. Ensure your policy aligns with legal mandates.
It shields your taxi from accidents, fire, theft, natural disasters, etc.
- Personal Accident Coverage
It offers protection against bodily injury or an unfortunate event of the driver/owner's death.
Check The Coverage Limits
Review the coverage limits for each insurance type. Verify that the limits are adequate to cover potential liabilities and damages.
Check The Insured Declared Value (IDV)
When considering your own damage coverage, familiarise yourself with the concept of Insured Declared Value (IDV). It is the maximum amount your insurance company will reimburse in case of total loss or theft. Ensure that the IDV aligns with the current market value of your taxi.
Know About The No Claim Bonus (NCB)
No Claim Bonus is a reward given to you for not making any claims during a policy period. This is an incentive for responsible and safe driving. Speak with your insurer and understand the No Claim Bonus (NCB) benefits applicable under your policy, which can result in a reduction of premiums for every claim-free year.
Watch Out For Deductibles
A deductible is a certain amount of money you agree to pay out of pocket before your insurance coverage kicks in and starts covering the remaining costs. Understand the deductible amount applicable under your policy. While opting for a higher deductible can indeed lead to lower premiums, it is vital to ensure that you have the financial means to cover that deductible amount if you need to make a claim.
Tailor your policy with add-ons like roadside assistance cover, engine protection cover, zero depreciation cover, etc. These add-ons address specific risks and provide an extra layer of protection for your vehicle.
Gather insurance quotes from various insurance providers to ensure you get the best possible coverage at a competitive price. Leverage online insurance aggregators for swift and efficient comparisons, allowing you to make informed decisions about policies that meet your needs and budget.
Check The Claim Settlement Ratio
Evaluate the claim settlement ratio of different insurance companies. A higher ratio signifies a more reliable track record of successfully settling claims, indicating the insurer's commitment to fulfilling policy obligations.
Verify The Network Garages
Ensure you ask about the list of cashless network garages listed with your insurer, as this information is crucial for streamlining the efficiency of the claim process.
Seek information on potential discounts, including those for installing anti-theft devices, maintaining a favourable safety record, or bundling multiple policies.
Learn About The Renewal Process
Gain insight into the policy renewal process, including details about grace periods and the convenience of online renewal.
Thoroughly review the policy's terms and conditions, taking note of exclusions and inclusions. It is crucial to ensure a clear understanding of the scope of the coverage and any limitations outlined in the policy.
Evaluate The Customer Service
Take into account the insurance company's reputation for customer service by examining customer reviews and testimonials. Assessing feedback can provide valuable insights into the company's service quality.
Advantages of purchasing taxi insurance policy online
We are all using online portals for almost all our needs at this age, be it shopping for our daily needs, household requirements, even our groceries are ordered online. When our banking and financial transactions have moved online, then why not our insurance needs? Purchasing taxi insurance policy online is very easy.
- It saves you the trouble of maintaining and submitting a lot of paperwork.
- It is a hassle-free process wherein you only need to download the policy and keep the soft copy.
- You can also apply for claim settlement or reimbursement online as well.
- Policy renewal process can be easily done online too.
- You can purchase or renew the policy as per your convenience of time and place.
Thus, purchasing your taxi insurance policy online is a big advantage as it saves your time and reduces the effort.
Buy/Renew Commercial Taxi/Cab Insurance
Documents required to purchase taxi insurance policy online
By purchasing the insurance policy online, you can save yourself from a lot of trouble and hassles that you have to face while going for an offline purchase.
Personal information required:
- Your Name
- Postal/Pin Code
- Contact Number
- Email Address
Some documents required to purchase the policy include:
- Place where cab is registered (RTO)
- Capacity of the Engine.
- Year of Manufacturing of the vehicle
- Make and Model of the vehicle.
- Fuel Type
- Seating Capacity
- Body type of the vehicle
- Accessories cover installed in the vehicle
- Current Insurance Policy
- Term of Policy
- NCB Applicable
What is Insured Declared Value?
Insured Declared Value (IDV) is an important term that you need to understand while purchasing your taxi insurance policy. IDV refers to the amount of sum assured of the taxi that has been insured. The IDV is calculated taking into account the selling price as listed by the car company. Insured Declared Value also includes cost of the additional accessories fitted in the cab. IDV or final sum assured can be derived by subtracting the yearly depreciation value as per the Indian Motor Tariff schedule.
What is No Claim Bonus?
In case you do not file any claim on your insured vehicle within the existing policy period, you will be eligible to avail the No-Claim Bonus or discount on the premium at the time of renewing your new policy. For every claim-free year, the company will give you discount on the premium which keeps increasing progressively, until your premium gets lessened by 50%.
How to Buy/Renew Taxi Insurance Online?
You can purchase taxi insurance online by following these simple steps -
- Go to the website of your chosen insurance provider, broker, or web aggregator.
- Choose whether your vehicle is for carrying goods or passengers.
- Fill in essential information like make, model, registration number, RTO details, etc.
- After submitting details, proceed to the quotation page. Select your desired value for the vehicle and move to the payment page.
- Confirm your policy purchase by making the payment. Double-check all entered details for accuracy.
- Upon payment, you will receive the policy document. Confirm that all details are correct, and ensure the policy explicitly covers commercial vehicles.
Note: The online application process may vary among different insurers.
Taxi Insurance Renewal Process
Usually, the insurer sends reminder message to the customer about the policy renewal. However, you can renew your policy online in a simple process before the date of expiry of the current insurance policy.
We need to follow the below process for submitting the documents:
- Policy Number
- Contact number
- Registration number of the vehicle or the Engine or Chassis number
Once you fill in this information, click on renew. Download your copy of the insurance policy.
What are The Factors That will Influence My Taxi Insurance Premium?
Several factors influence the cost of commercial taxi insurance in India, and these factors may include -
The cost of a taxi insurance policy is often influenced by factors such as the make, model, and age of the vehicle. Generally, insurance premiums tend to be higher for newer and more expensive vehicles.
The choice of coverage type and its extent significantly impacts the cost of a taxi insurance policy. Opting for a comprehensive policy with additional coverage will result in an elevated premium compared to a basic third-party liability policy.
Location and Usage of Vehicle
The price of the taxi insurance policy is influenced by the vehicle's usage, such as whether it is employed in an urban or rural setting. Premium rates also vary based on the specific location where the vehicle is stationed and operated.
Insured Declared Value (IDV)
The Insured Declared Value (IDV) represents the current market value of the vehicle and serves as one of the key factors in determining the insurance premium. This amount reflects the total coverage and is the total compensation provided in the unfortunate event of a total loss of the vehicle.
Add-ons refer to optional covers that can be included in your taxi insurance policy, enhancing its coverage. To incorporate these additions, an extra premium is required. Therefore, this becomes a contributing factor to the overall increase in the premium of the taxi insurance policy.
Buy/Renew Commercial Taxi/Cab Insurance
Taxi Insurance Claim Process
At the time for filling for claim for your insured vehicle, keep the following information ready:
- Date and time of the accident
- Contact details and name of the driver along with the details of his driving license.
- An estimation of loss incurred
- Existing Insurance Policy number of the vehicle
- Brief description of the insured vehicle.
- Survey report of the accident location.
- Contact information of the insured
- To initiate the claim process, intimate the customer care department of the insurer.
- The customer support team of the insurer provides you a claim reference number.
- The company assigns a surveyor to you.
- Submit all the documents to the surveyor about the incident and the damage incurred.
- Also inform the company about your requirements of the claim to settle own damage.
- Co-ordinate with the surveyor at the time of inspection of the vehicle.
Document Required for Filing Claim
- Copy of the FIR
- Fitness Certificate of the insured vehicle.
- Claim form duly filled and signed by the policyholder.
- Documents of the existing insurance policy.
- Vehicle Registration Certificate (RC).
Comparing Taxi/Cab Insurance Online
It is always good to be a wise spender and take well researched decisions regarding your taxi insurance policy. Before making the final purchase, always compare different insurance policies offered by insurance aggregators in the market. This will help you in saving a lot of money. Moreover, by comparing different policies, you can select the best add-on features and expand your insurance cover.
After comparing policies, write down all the policy and features that suit your requirements. For instance, if you are interested in purchasing third-party liability coverage, then select liability insurance only and if you want to go for own damage cover, then opt for the same in your policy. However, if you are interested in both the third-party liability as well as own damage cover, it would be wise to purchase a Comprehensive Cab Insurance Policy for your commercial vehicle.
Insurance companies also offer add-on features or riders to provide you more benefits on your insurance plan. These beneficial features include no-claim bonus, zero depreciation benefit, and roadside assistance in case of cab breakdown.
While comparing policies, always ensure to compare the IDV amount as quoted by various insurance aggregators. Choosing your taxi insurance policy by researching and comparing different plans and benefits as offered by different companies also will make a significant difference to the premium amount that you need to pay.
Furthermore, compare the process of claim settlement of every Cab Insurance Policy. After shortlisting and deciding upon the benefits and insurance cover, compare the quotes given by insurance companies online and make the final purchase.
Difference between Taxi and Personal Car Insurance
There is a simple difference between taxi or commercial vehicle insurance plans and personal car insurance plans. Let us understand this difference from the data given below:
Personal Car Insurance
A cab or a taxi is at a much higher risk because it is used more than a personal car. Due to its higher usage, it is more at risk to accidents and third-party damages. Hence, the taxi insurance policy has a lesser premium than a personal car premium.
As a personal car is exposed to less risk as its usage is less than a taxi car, it is less prone to accidents or third-party liabilities. Hence, the premium for a car insurance policy is higher than a commercial car insurance policy.
Towing of a damaged Car Insurance cover.
Taxi Insurance Policy compensates for any damage or loss caused by an insured damaged cab while being towed to the workshop.
Personal car insurance does not provide cover for damage by the disabled insured car while being towed to the workshop.
Personal Accident Cover (PAC)
A cab insurance policy offers PAC to the passengers as well as the paid driver of the cab. It also provides protection to the owner of the car from legal liabilities due to the paid driver and the passengers, in case of injury in an accident.
A personal car insurance policy offers PAC to the policyholder or the owner of the car only in case of a fatal accident leading to death or disability.
Premium of the car insurance plans
The premium of a taxi insurance policy is lesser as compared to the personal car insurance plan as it is at a much higher risk of accident.
Usually, the premium of a personal car insurance policy is higher than the premium of a commercial taxi as it is at a lesser risk of accidents
Claim Process and Documents
At the time of filing a claim for your insured taxi, you need to file a FIR and get on the spot survey by the insurance company. You would be required to submit the FIR copy, registration number of the car, fitness certificate etc.
While filing for a claim for your personal car insurance policy, you are required to submit some documents such as your driving license, registration certificate of the car. However, you may not need to file a police complaint (FIR) or get on the spot survey done by the insurance company.
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Why Choose Commercial Taxi Insurance By SMC?
When it comes to insurance, having the right partner matters. At SMC, we have got your back for these reasons -
1️⃣You Are Our Priority
At SMC, our main focus is recommending plans that suit your needs and preferences.
2️⃣No Unwanted Calls
Rest assured, we will only give you a ring when you want to hear from us.
3️⃣Support Beyond Paperwork
Insurance is more than just documents - it is a promise. We are dedicated to providing you with unwavering support, especially when it matters most – during claims. Your peace of mind is our commitment.
Which insurance is best for a taxi car?
To ensure compliance with legal provisions, it is imperative to secure a commercial taxi insurance policy. By legal mandate, obtaining a third-party cover is essential for your taxi. For comprehensive protection of your taxi, opting for comprehensive coverage is advisable. This comprehensive coverage not only addresses own damage losses but also extends to cover any potential losses incurred by third parties.
- What are the benefits of purchasing a Taxi Insurance policy online?
Here are the advantages of purchasing a taxi insurance policy online -
- Quickly and easily compare policies from various insurance companies online.
- Enjoy discounts when policies are purchased through online platforms.
- Experience a smooth and hassle-free process for claim settlement.
- How is the taxi insurance price calculated?
The premium calculation for taxi insurance takes into account several key factors:
- Cubic capacity of the engine
- Insured Declared Value
- Depreciation of parts
- Age of the vehicle
- Place of registration
- What can happen if your commercial taxi insurance plan is not renewed on time?
In India, the Motor Vehicles Act of 1988 mandates that all commercial vehicles must have a valid insurance policy. If you fail to renew the policy on time, you may face substantial fines and penalties, imposing a significant financial burden on the business. This legal requirement underscores the importance of timely insurance coverage for commercial vehicles.
- Can I renew my commercial taxi insurance online?
You can renew your commercial taxi insurance online by either visiting the official website of the insurance company where the policy was issued or using web aggregator portals. Simply enter the necessary details about the vehicle and follow the online renewal process to ensure the continuation of insurance coverage.
- On what basis should I ideally select a good commercial taxi insurance plan?
Choosing an appropriate taxi insurance policy involves considering several key factors:
- Your coverage requirement.
- Balance in the coverage and the premium
- Customer service
- Network garages with the insurance company.
- How much does it cost to insure a taxi?
The cost of taxi insurance is influenced by various factors, including the age, make, model and variant of the vehicle, the registration city, etc.
- Where can I repair my taxi in case of damage?
If your taxi incurs any damages, you have the option to have it repaired at any of the authorised garages listed with your insurance company's network.
Should you encounter difficulty locating a network garage, you have the flexibility to choose any garage for repairs. Subsequently, you can file a claim with the insurance company to seek reimbursement for the incurred expenses.
- Are passengers also covered by taxi insurance?
Yes, you have the option to include a passenger cover when acquiring taxi insurance.