Passenger Carrying Vehicle Insurance

passenger carrying vehicle insurance

What is passenger carrying vehicle insurance?

Passenger carrying vehicle insurance is a type of commercial vehicle insurance policy which provide coverage against the damages to or from vehicles which are used for passenger transport purpose such as E Rickshaw, Auto Rickshaw, Commercial Car/Taxi, Commercial Bus or School/College Buses.

Types of vehicles covered in passenger carrying vehicle insurance

  • E-rickshaw – Battery operated three wheelers e rickshaws are covered in commercial passenger carrying vehicle insurance.
  • Auto Rickshaw – Three wheeler petrol/CNG auto rickshaws which are mostly used for carrying passenger for short distances are also covered in this policy.
  • Commercial Car – Taxis, Cab or commercial cars which are mostly used for app based transport such as ola/uber and other tourist transportation are covered in passenger carrying vehicle insurance policy
  • School Van/Passenger Van – Mini vans such as tata ace magic, mahindra supro are used to carry passengers are covered in this policy. These type of vehicles are mostly used for carrying school children or for local transport.
  • School Bus/Passenger Bus – Buses used for transporting passengers, staff or school children are covered in passenger carrying vehicle insurance.

Why passenger carrying vehicle insurance is mandatory to have?

  • Mandatory by law
  • Provides protection for the passengers
  • Provides protection from third party property damages
  • Coverage of third party liabilities of injuries or deaths.
  • Owner driver is covered.
  • Paid Driver cover can also be opted to secure paid driver/

What is covered in a passenger carrying vehicle insurance?

accidental insurance


Damages due to an accident or collision are covered in passenger carrying vehicle insurance.


In case your vehicle gets stolen and can not be traced commercial passenger carrying vehicle insurance ensures you are covered for any losses due to theft of your vehicle.

theft coverage in passenger carrying vehicle insurance
Fire coverage in passenger carrying vehicle insurance


Loss of vehicle due to fire accidents is common in passenger carrying vehicle insurance and hence having commercial vehicle insurance policy for your passenger vehicle is a must to save from high amount of losses in case of a fire accident which involves your vehicle.

Third Party losses

Passenger carrying vehicles have very high risk of damages to third party properties and lives and passenger carrying vehicle insurance ensures owner and passengers are covered from huge losses in case of any unfortunate incidents.

third party insurance for passenger vehicles.

Natural Calamities

Natural disasters almost always completely destroy vehicles but if you have insurance for your passenger vehicle it does provide claims in case of loss or damage to vehicle in case of calamities.

Towing Disabled Vehicles

Any damages to insured vehicle at the time of vehicle being towed by another vehicle will covered in passenger carrying commercial vehicle policy.

What’s not covered?

  • Any claims arising out of the contract.
  • Normal wear and tear of the vehicle.
  • Mechanical and electrical breakdown.
  • Loss or dam​age due to war or nuclear risks.
  • Deductible as stated in your policy.
  • Loss or damage due to ionizing radiation.
  • Any claims arising beyond the limitations discussed in the policy schedule.
  • Vehicle driven by someone other than the driver, as mentioned in the ‘Driver’s Clause’.
  • Accidental loss, damage or liability occurring outside the defined geographical area for the vehicle.
  • Vehicles being used other than in accordance with the limitations as to use. For example, if you use a private vehicle for commercial purposes.
  • Consequential loss – if the original damage causes subsequent damage / loss, only the original damage will be covered.

Passenger vehicle insurance price list

E-RICKSHAW (4+1)5800
BUS (12+1)24050
passenger carrying vehicle insurance price list

Key features of passenger carrying vehicle insurance

Key FeaturesBenefits
Damages to third partyTPPD cover up to 7.5 lac & Unlimited for liabilities
Accidental CoverageUp to sum insured.
Theft CoverIncluded in comprehensive policy.
Claims ProcessHassle free paperless easy process
key features of passenger carrying vehicle insurance

Types of passenger carrying vehicle insurance

1. Third party insurance – With this insurance, you can reduce your accountability for third party death and property damages of the third parties. You may get the coverage even if your vehicle was at fault. However, you are not entitled to coverage for the damages to your vehicle under the exclusion terms of a third-party insurance policy such as while driving under the influence of alcohol.

2. Comprehensive Insurance – A comprehensive insurance policy provides 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 this type of vehicle is always prone to road accidents and natural calamities.

How to make a claim in passenger carrying vehicle insurance

  • Inform the insurance company about the incident.
  • The insurance provider will make a physical inspection of the truck.
  • Network garage will make the repair work evaluation.
  • The insurer will approve the repair following the repair work at the network garage.
  • After repairs, the invoice is submitted to the insurance provider.
  • Fill up the claim form and submit all the other required documents.
  • The bill will be settled directly with the network garage.

Documents required to process the claim

  • Copy of Registration Certificate (RC) of the truck
  • Original loss estimate
  • Original repair bill or invoice
  • Repair bill payment receipt
  • Police FIR (in case of third party liabilities)
  • Vehicle’s keys (in case of theft)
  • Non-traceable certificate (in case of theft) 

FAQs about Goods Carrying Vehicle Insurance Online in India

What is a passenger carrying vehicle?

Every vehicle which is used for transportation of passengers from one place to another is classes as passenger carrying vehicle insurance.

Does passenger carrying vehicle insurance provide claims to passengers?

Yes. All passengers are covered in case of any unfortunate incident involving the insured passenger carrying vehicle.

What is the cost of passenger carrying commercial vehicle in India?

Passenger carrying commercial vehicle insurance cost starts from 5800 for e-rickshaw and differ according to type of vehicle.

Can I buy private car insurance for my passenger carrying car?

No. Buying private car insurance for a commercial car can lead to rejection of claims by insurer.

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