Commercial Car Insurance

WHY DO YOU NEED COMMERCIAL CAR INSURANCE ?

Organizations or individuals who own taxis or cabs as an asset to their business should acquire a Cab Insurance policy since it protects you and your passengers in the event of a loss or damage caused by an accident or collision. Also, according to the Motor Vehicles Act, a minimum of third-party liability commercial vehicle liability insurance is needed to drive a cab/taxi. However, If you purchase a comprehensive commercial vehicle plan, you may also increase your protection by opting for other advantages such as CNG kit cover, zero depreciation cover, key replacement cover, and other similar benefits. So, when an emergency strikes, you do not need to dash from pillar to post. Furthermore, you may quickly purchase and renew Taxi Insurance online from the convenience of your own home or workplace.

HOW TO BUY COMMERCIAL CAR INSURANCE ONLINE ?

In today’s era with the internet being used to purchase any services you no longer need to run from pillar to post to buy a Commercial Vehicle Insurance policy. Once you are done crosschecking and comparing taxi insurance plans online, you can simply buy the policy that meets most of your requirements by paying for it online.

To obtain a taxi car insurance price quotation or to compare taxi cab insurance prices, simply need to provide us with your vehicle and personal details as shown below  

Personal Information of the Proposer: 

• Full name
• Mobile Number
• City
• Area
• Pincode
• Email Address
• Other areas ( if applicable) 

Vehicle Information:

• City where the taxi was registered (RTO)
• Engine Capacity
• Make
• Fuel Type
• Model
• Year of Manufacture
• Seating Capacity
• Type of Body
• Current Insurance Policy Type
• IDV (Insured Declared Value)
• Policy Term
• Transfer of Ownership (Yes/No)
• Cover for Accessories Installed In Vehicle
• NCB Applicable 

WHAT’S COVERED IN BUSINESS CAR INSURANCE ?

To protect themselves and the pillion passengers in the event of a traffic accident, all commercial taxi owners and drivers are obliged to get a business vehicle or taxi insurance coverage. The following are the types of damages covered by taxi insurance:-

• Third-party Cab Insurance Coverage- Under this cover, the damage resulting due to third-party death, bodily injuries and property damage from the insured commercial vehicle are covered.

• Comprehensive Taxi Insurance Coverage- It provides coverage for loss or damage caused to your vehicle due to both natural and man-made disasters. It also covers any damage caused to your car during transit by rail, road, air, lifts, inland waterway and elevator as well as natural catastrophes such as loss or damage arising due to flood, fire, earthquake, self-ignition, typhoon, hurricane, cyclone, storm, inundation, landslide etc.

• Man-made Disasters Coverage– Taxi Insurance policy provides coverage against riots, theft, terrorist activities, malicious acts etc.

• Third-Party Damage Coverage- Third-party liability damages are covered as well. Unlimited coverage is provided in case of third-party accidental injuries or death. The amount of compensation, in this case, is decided by the judiciary.

• Third-party Property Damage Coverage- Cab Insurance also covers damage caused to a third party property from the insured vehicle. Compensation is provided in case a third-party property is harmed due to a mishap involving the insured vehicle. 

WHAT’S NOT COVERED UNDER COMMERCIAL CAR INSURANCE?

Commercial Car Insurance or Taxi insurance policy doesn’t cover the following –

• Normal wear and tear, consequential losses and electrical or mechanical breakdown of the insured vehicle.

• Depreciation value of the parts unless zero depreciation cover is bought.

• Taxi Insurance policy will not cover damages resulting from carelessness driving while under the influence of intoxicating drugs or alcohol.

• Accidental loss or damage caused due to the willful negligence of the driver.

• If the driver was found without a valid driving license or is not authorized to drive the insured vehicle.

• Any accidental loss or damage that has taken place beyond the coverage of geographical limitations.

• Any loss or damage arising due to war conditions, nuclear radiation, and any other related activities.

• The amount of voluntary and compulsory deductibles. It is the percentage of a claim that you choose to pay from your wallet. 

ADD-ONS AVAILABLE WITH COMMERCIAL CAR INSURANCE

An add-on cover is supplemental coverage that a car owner can obtain in exchange for an additional fee to increase the coverage level of his or her vehicle under commercial car insurance. It helps car owners to increase the financial security of their vehicles in addition to the standard policy coverage. As a consequence, it extends coverage under a taxi insurance policy to the covered four-wheeler. However, it is not available under a third party car insurance policy

Several add-on covers are available with private car insurance plans in India. Listed below are some of the add-on covers that you can acquire:- 

• Zero Depreciation Cover- The value of a taxi decreases as it matures. An insurance company accounts for depreciation on automobile parts and deducts it from the car’s IDV (Insured Declared Value). The insurance company pays the claim amount at the time of claim settlement, after deducting the applicable depreciation on the car parts. Zero Depreciation insurance is an optional coverage that bears the weight of depreciation on the vehicle’s parts and allows the car owner to file a bigger claim. It ensures that depreciation is not reflected in the claim amount when it is calculated at the time of settlement.

• Engine Protection Cover- The engine is one of the most important parts of an automobile. Unfortunately, non-accidental engine damage is not covered by a standard commercial car insurance policy. The ‘Engine Protection’ add-on insurance can cover any damage or loss to the engine of the insured vehicle. Engine Protection insurance protects against any loss or damage to a vehicle’s engine caused by issues such as water intrusion, oil spills, electrical or mechanical malfunctions, and so on. It also provides financial support for the replacement of the engine or parts of the vehicle.

• Tire Protect Cover- Tires are yet another vital component of a vehicle. If the car’s tires are utilized on a frequent basis, they may be damaged. However, if the tire damage or loss is not the result of an accident, the taxi insurance provider will not cover it. The automobile owner is liable for the cost of repairing or replacing the tires. This is when the ‘Tire Protect’ cover may come in handy. Tire Cover pays for any expenses incurred as a result of the repair or replacement of the covered vehicle’s tires. It ensures that the car insurance company will cover tire damages such as punctures, in-tire bulges, tire cuts, tire bursting, and so on.

• Roadside Assistance Cover- A car can malfunction at any time often without warning. This may happen in the middle of the road, leaving you stranded. It may be difficult to locate a specialist in your region, and any repair work may be pricey. Roadside Support insurance reimburses the car owner for any on-road support services necessary if the covered vehicle breaks down in the middle of the road. A mechanic is assigned to check the automobile and aid with a simple phone call to the insurance company. Replace a flat tire, minor on-site repair, automotive towing, fuel delivery, obtaining replacement car keys, and battery jumpstarting are just a few of the support services offered under this add-on plan.

• Accessories Add on Cover- As a car owner, you are likely to want to personalize your vehicle by adding numerous accessories to it, allowing you to make it your own and represent your unique style, requirements, and desires. Car accessories like fog lights, music systems, LCD mini TV and even seat covers are likely to be extremely costly. This adds to the need to ensure that they are secure and that you have coverage for them in the event of an unexpected incident such as theft. It is crucial to note, however, that ordinary taxi insurance does not cover items such as your expensive car accessories. You would need to purchase the add-on for accessories to ensure that they are protected.

• Personal Accident Cover- You can get a personal accident cover in addition to the current limit. This coverage applies to the policyholder and the driver. This policy is also applicable for any damage or loss that may occur while mounting and dismounting the car.

• CNG & LPG Kit Cover- You can avail of CNG & LPG Kit cover. Insuring your CNG & LPG kit is important whether you buy a new vehicle or install a new kit in an old one. Only if you insure the kit can get you coverage for it. If you install a kit in your vehicle but do not inform the insurance company and change the insurance policy, in case of any claim involving the CNG & LPG kit, you would not get assistance from the insurance company. If the Bi-fuel kit is damaged, you would have to bear the repair costs yourself. However, it could be beneficial to buy a CNG & LPG Kit Cover as it would avoid and loss and provide financial support in such cases.

KEY FEATURES

A commercial car insurance policy has many factors that could come in handy a few of those are:-

• Protection from Unforeseen Damages- Whether it’s third-party or your own car damage, commercial car insurance coverage assures that you’re protected for everything, reducing company losses and avoiding any difficulties that may happen during your daily commute.

• Personal Coverage for Owner/Driver- A taxi insurance coverage not only covers losses and damages to your vehicle or third-party cars, but it can also cover bodily injuries or death for the owner/driver in the event of an accident or when mounting and dismounting the car, depending on the plan you decide.

• Passenger Coverage- It is your obligation as a driver to provide the same level of protection to your passengers, who are not responsible for any accidents. With a commercial car insurance policy, you can also provide protection to your passengers from accidents, fire, or natural disasters. In the case of permanent disability or death of a passenger, their family is eligible to receive the insured amount from the insurer.

• Mandatory by Law- According to the Motor Vehicle Act, all taxis, including ones used for business, must carry third-party taxi insurance coverage to provide cover for third-party damages and losses. Driving without valid insurance is a criminal offence, and you will be penalized if you are convicted.

• Network Garages- Commercial car insurance offer a network of cashless garages. It enables you to get your taxi fixed hassle-free without any cash transaction at one of the insurer’s network garages.

• Prevents Loss in Business- These vehicles are high value and generally play a vital role in business. But due to continuous operation, which includes long-distance travel, the vehicles are subject to a variety of risks, including accidents, natural disasters, and substantial wear and tear. Any sudden damage to the vehicle might not only result in the expense of having it fixed, but it can also result in losses to your business. However, if your taxi is covered by insurance coverage, such commercial losses can be simply avoided. And it will allow you to concentrate on the business rather than the financial costs.

• Add-On Covers- The finest commercial car insurance provides numerous add-on covers that can be utilized to enhance taxi insurance coverage to provide adequate protection. It does, however, come at an additional expense. Some of the best add-on covers include zero depreciation, roadside assistance, personal coverage, accessory coverage, etc.

TYPES OF COMMERCIAL CAR INSURANCE PLANS

In India, one can choose between two types of plans based on their truck and their requirements- a comprehensive truck insurance policy or a third-party truck insurance policy. However, given the risk and usage of goods-carrying trucks, it is advised that you acquire a comprehensive truck insurance policy that will financially cover both your truck and the driver who is operating it.

THIRD-PARTY COMMERCIAL CAR INSURANCE

According to the Motor Vehicles Act of 1988, the minimum required for motor insurance is third party (liability only) coverage. It must be carried at all times by a taxi or commercial car owner/driver. Third-party insurance only covers the liability resulting from an accident involving a third party. It provides unlimited liability coverage for Third Party death/injury claims arising from the covered vehicle.

COMPREHENSIVE CAR INSURANCE

A Comprehensive Insurance Policy however offers coverage to one’s vehicles as well as covers third party damages, injuries, deaths in case of an accident when the insured vehicle is involved. It also provides coverage to partial or total loss of the vehicle in case of an accident, theft, fire or any other accidental damage. It is advisable to acquire this insurance as a commercial car or taxi is always prone to road accidents and natural calamities.

COMPREHENSIVE COMMERCIAL CAR INSURANCE POLICY COVERAGE

GLASS PARTS

Glass Parts are covered 100% at the time of claim. Like if your windshield gets broken the insurance company provides full claim for the replacement of it.

For all the fibre glass components insurance company provide coverage of 70% of the total value.

RUBBER/NYLON/PLASTIC PARTS/TYRE/TUBES/BATTERIES

All these parts are covered by 50% at the time of claim in comprehensive insurance means for example if any rubber part was replaced at the time of claim insurance company will pay 50% of the total value.

Metal, Wooden and all other parts are included in this category and generally the coverage value is decided as per the age of vehicle

• Not Exceeding 6 months 100% coverage
• Exceeding 6 months but not exceeding 1 year – 95%
•  Exceeding 1 year but not exceeding 2 years – 90% 
• Exceeding 2 year but not exceeding 3 years – 85%
• Exceeding 3 years but not exceeding 4 years  – 75% 
• Exceeding 4 years but not exceeding 5 years  – 65%
•  Exceeding 5 years but not exceeding 10 years – 60% 
• Exceeding 10 years – 50%

COMMERCIAL CAR INSURANCE CLAIM PROCEDURE

o file a claim, firstly you need to make sure that you have the following information ready with you:-

1. Time & date of the accident
2. Name of the driver and contact details along with driving license details
3. Taxi Insurance Policy number
4. Estimated loss
5. A brief description of the incident
6. Survey location to support the investigation process
7. Insured contact details. 

Furthermore:-

1. The claim will be filed at the customer support desk. They will take you through the claim process.
2. Once you have notified the taxi insurance customer services, you will be given a claim reference number.
3. After you register a claim, a surveyor will be assigned to your case.
4. Provide the assessor with all papers, including the vehicle type and degree of the damage.
5. You must also tell the claim processing staff of the necessity to pay your own damage claim.
6. You can cooperate with the surveyor if the vehicle has to be inspected again.
7. A claim settlement survey will be conducted.

FAQS