School Bus Insurance

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School bus insurance is a specialized type of commercial auto insurance that provides coverage for school buses and their operators. It includes liability coverage for bodily injury or property damage caused by the school bus, as well as physical damage coverage for damages to the bus itself.

School Bus Insurance Price

The cost of insuring a 12-seater school bus with a third-party policy is 24,999 Rupees for a one-year period of coverage. This policy offers coverage for damages caused to third-party properties, with a limit of up to 750,000 Rupees. Additionally, it provides liability coverage with no limit for any claims arising from third-party deaths or injuries.

Factors Affecting the Cost of School Bus Insurance

• Type of coverage: Your choice of coverage can greatly affect your insurance premiums. Liability insurance will cover damages to others in the event of an accident, while comprehensive insurance covers damages to your own bus, regardless of fault.
• Make and model of your bus: Certain bus models may be more expensive to insure due to their higher value or cost of repair.
• Age of your bus: Older buses may have higher insurance rates due to their higher risk of accidents and need for repairs.
• Driving record: Your driving record is a major factor that can affect the price of your insurance. A clean driving record can lower your rates, while a history of accidents or traffic violations can increase them.
• Location: Your location can also influence the cost of your insurance. Drivers in urban areas may pay more than those in rural areas due to higher traffic and accident rates.

How To Reduce The School Bus Insurance Cost

Below are some practical tips that can help you lower the cost of your school bus insurance:

• Choose the right type of coverage: Liability insurance is a must-have, but comprehensive insurance can be added for added protection from accidents and other incidents.
• Get a safety inspection: Conducting a safety inspection can help identify potential issues that may increase the risk of an accident.
• Take a defensive driving course: By taking a defensive driving course, you can improve your driving skills and decrease your chances of being involved in an accident.
• Maintain a good driving record: A clean driving record can result in lower insurance premiums for you.
• Shop around for insurance: Getting quotes from different insurers will help you compare policies and find the best deal available.

Key features of school bus insurance

Compare School Bus Insurance Prices

List of top school bus models & their school bus insurance prices in 2023

Types of school bus Insurance

1. Third Party Insurance – In case of any accident third party insurance provide coverage against the losses occurred to insured due to third party property damage or any injury or death to third party person. Third party insurance does not covers the damages to bus and one can not claim for the loss of the vehicle with third party policy.

2. Comprehensive Insurance – Apart from covering all things as mentioned above in third party policy, comprehensive coverage for school bus will also cover the damages to own vehicle in case of any accident, theft or fire or damage to the vehicle by any external means.

Since third party policy coverage is limited to property damage & liabilities to third parties and does not cover your own vehicle it is always preferred to buy comprehensive school bus insurance.

How To Calculate School Bus Insurance Cost

School bus insurance costs 24050 Rupees for a 12 seater bus for a third party liability only policy for 1 year.

To compare/calculate the cost by yourself you can use below formula –

[Premium = 13729+(839*Sitting Capacity)]

Top 3 Factors Which Decides School Bus Premium

• Age and make of the school bus: Newer school buses or buses with advanced safety features are generally considered to be less risky and may result in lower premiums.
• School bus usage: The frequency and purpose of use of the school bus, such as daily commutes or occasional trips, can impact the insurance premium.
• Driver details: The age, experience, driving record, and training of the driver(s) can affect the insurance premium.
• School bus seating capacity: The number of seats in the school bus can impact the premium amount, as larger buses may be considered to be at higher risk of accidents.
• Geographical location: The location of the school, the routes taken by the bus, and the prevalence of accidents in the area can impact the insurance premium.
• Insurance coverage: The type of insurance coverage chosen, such as comprehensive or third-party liability insurance, and any add-ons or riders selected can impact the premium amount.
• Claim history: The claims history of the school or institution and the driver(s) can impact the insurance premium.
• Safety features: The presence of safety features in the school bus, such as seat belts, anti-lock braking system (ABS), airbags, etc., can impact the insurance premium.
• Deductibles: The voluntary excess or deductible amount chosen by the insured can impact the premium amount.
• Discounts: Any available discounts for good driving history, multiple policies, no-claim bonuses, etc., can help reduce the premium amount.

Inclusions In School Bus Insurance

ACCIDENTS

Damages to or by school bus in case of an accident are covered in comprehensive or first party school bus insurance. [Coverage Limited By Sum Insured]

FIRE

In unforeseen incident of a school bus get damaged or lost totally in the case of fire the school bus insurance policy covers the losses for the insured. Hence its always advisable to buy comprehensive insurance to have such benefits.

THEFT

School bus policy provide coverage against the loss of school bus because of any theft case.

THIRD PARTY LOSSES

Third party property damages are covered by 7.5 lac and injuries/deaths of third parties are covered by unlimited amount.

Natural Disasters

Partial or total damages to school bus insurance due to any kind of natural calamity such as floods, theft, lightening etc.

Exclusions

It is important to know what is not covered in your school bus insurance to understand the policy and the entitlement of claim according to it. A few of the similar exclusions are:-

• Unethical Driving- If an accident or disaster occurs while under the influence of alcohol or another intoxication. Furthermore, if the driver is not in possession of a valid commercial vehicle driving license. The claim will be declined.

• Deliberate Loss- In case of any loss as a result of an accident, that was a deliberate act the claim will be rejected.

• Consequential Loss- In the event of a loss or damage caused by the insured’s or a third-actions. party’s Driving in the rain, for example, causes harm to the vehicle’s engine. It will not be covered.

• Normal Wear and Tear- Any harm to the vehicle caused by a recognized cause, such as a damaged engine due to oil leaks over a lengthy period of time will not be covered.

• State of National Emergency- Any damage incurred to the vehicle out of war, civil war, mutiny, any nuclear-related hazard, nuclear weapons, etc. will not be covered.

How To Buy School Bus Insurance Online – Step By Step

Steps involved in buying school bus insurance online –

• Research and compare different insurance providers and their policies to find the one that best suits your needs and budget.
• Visit the website of the chosen insurance provider and go to the “School Bus Insurance” section.
• Enter the necessary details about the vehicle, such as its make and model, registration number, and year of manufacture.
• Choose the type of insurance policy you want to purchase, such as comprehensive or third-party liability insurance.
• Select the coverage and add-ons you require, such as personal accident cover, roadside assistance, and zero depreciation cover.
• Enter the details of the school or institution that owns the vehicle and the driver’s information.
• Review the policy details and premium amount before making the payment.
• Make the payment using a secure payment gateway, such as net banking, credit/debit card, or mobile wallet.
• Once the payment is confirmed, you will receive a confirmation message with the policy details and a copy of the policy document in your email.
• Print a copy of the policy document and keep it in a safe place for future reference.

How To Renew School Bus Insurance

• Visit the website of the insurance provider from whom you had purchased the policy or a reputable insurance aggregator site.
• Go to the “Renew School Bus Insurance” section.
• Enter the policy number and expiry date of your existing insurance policy.
• Verify the details of the school bus and the driver, if required.
• Select the type of insurance policy you want to renew, such as comprehensive or third-party liability insurance.
• Review the policy details, coverage, and add-ons before making the payment.
• Make the payment using a secure payment gateway, such as net banking, credit/debit card, or mobile wallet.
• Once the payment is confirmed, you will receive a confirmation message with the renewed policy details and a copy of the policy document in your email.
• Print a copy of the policy document and keep it in a safe place for future reference.

List Of Add-Ons In School Bus Insurance

• Zero Depreciation Cover
• IMT 23 Cover
• Paid Driver Cover
• Owner Driver Cover
• Cover to other employees such as conductor or coolie
• No Claim Bonus Protection Cover

Policy Limits

All school bus insurance plans comes with some limits which are very important to be aware of before buying it policy online or offline. Below are the limits in school bus policy coverage

1. In a restricted TPPD policy the damages to third party properties are only covered up to 6000 Rs. Any damage claim of more than 6000 Rupees is to be paid by bus owner.
2. In a basic Liability coverage school bus insurance policy limits third party property damages by 750000 Rupees so any third party property damage claim of more than 7.5 lac will be paid from bus owner’s side.
3. School Bus Insurance policy does not provide coverage if at the time of accident vehicle is found being used for other purposes other than mentioned in the policy schedule.
4. In case of bus driver found to be influence of alcohol or any other drug abuse all claims will be rejected by insurer.
5. At all times school bus should only carry children/staff up to registered sitting capacity of vehicle and not more than that as carrying extra passengers leads to rejection in claims because of overloading.

Things You Should Know Before Buying School Bus Insurance Online

1. Know Your Insurance Provider – Learn more about your school bus insurance company’s claim settlement ratio over the years, how quickly they can settle your claim & how much depreciation you need to pay if you make any claim in future.
2. Availability Of Cashless Claims – Before finalizing your school bus policy make sure to check if your insurer has tie ups with local garages in your city for cashless claims benefits. Cashless claims are more effortless and are light on insured’s pocket.
3. Cost – There are many websites in India you can compare school bus insurance cost and save a lot on premiums. Consider giving it a quick google search to check if there are other better quotes available for your school bus insurance.
4. Towing Facility – We all have faced situations when our vehicle breaks down all of a sudden and to get it towed to nearest garage we have to pay a lot of charge to towing companies and when it comes to school buses this charge can be significant. Check if your insurer covers the towing charges at the time of a breakdown as it can help you big time.
5. Liability Coverage Of School Bus Driver, Conductor & Cleaner – School buses comes under passenger carrying vehicle category and required trained paid drivers with valid commercial driving license hence one should always consider including the liability of school bus driver & other operation staff.
6. Personal Accidental Insurance For School Children – School children travelling in a school bus are not eligible for personal accidental claims in a school bus insurance policy and separate insurance is required for the same.

Follow these simple steps to file an insurance claim for your school bus

• First, inform the insurance company about the accident or incident that led to the claim.
• Provide all necessary details about the incident, including the location, time, and cause of the accident, as well as the names and contact information of all parties involved.
• In case of injury or damage to property, report the incident to the nearest police station and obtain a copy of the FIR (First Information Report).
• Provide the insurance company with all relevant documents, such as the policy document, driving license, vehicle registration certificate, and insurance certificate.
• The insurance company will send a surveyor to assess the damage and determine the amount of compensation.
• Once the surveyor’s report is submitted, the insurance company will either approve or reject the claim based on the terms and conditions of the policy.
• If the claim is approved, the insurance company will either make a cash payment or arrange for the repairs to be carried out at a network garage.
• In case of a dispute over the compensation amount or claim rejection, the policyholder can file an appeal with the insurance company or approach the insurance ombudsman for resolution.
• Finally, it is important to keep all receipts, bills, and other documentation related to the claim for future reference.

Documents Required To File A Claim

Following documents are required while filing a claim in school bus insurance policy –

• Copy of Registration Certificate (RC) of school bus.
• 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) 

List Of School Bus Insurance Companies In India

Following is the list of general insurance companies you can choose to buy third party or comprehensive insurance plan for school buses

• Reliance General Insurance Co.
• SBI General Insurance Company Ltd
• Shriram General Insurance Co.
• Tata AIG General Insurance Company Ltd.
• United India Insurance Company

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All the prices shared on the webpage are sourced from IRDA’s latest motor insurance premium rate list for 2022-2023.