Beginner’s Guide - Auto-rickshaw Insurance

Running a business, which requires the usage of commercial vehicles, is a common sight in India. Besides, having the right commercial vehicle insurance is recommended and is useful to ensure the smooth operation of the business.

It is imperative to buy the right level of commercial vehicle insurance, for instance, truck insurance, taxi insurance or auto-rickshaw insurance at a cost, which suits one’s pocket specifically when the use of the vehicle is back and forth.

What is an Auto-rickshaw Insurance?

Auto-rickshaw insurance is essentially a type of commercial vehicle insurance, which is designed to cater and secure the prerequisites of a three-wheeler in India.

Besides, in India, it is mandated for all the owners of an auto-rickshaw to secure from any financial implications, which might arise from any third-party liability and buy third-party insurance.

However, it is recommended to buy comprehensive auto-rickshaw insurance and secure against own damages and against any third-party liability, which might occur due to any uncertain eventualities.

Reasons to Buy Auto-rickshaw Insurance

Below are the reasons, which will help one to comprehend and buy auto-rickshaw insurance:

  • In case, if an organization owns auto-rickshaw for the business, then under such a situation, the organization needs to buy third-party insurance as it is a legal mandate. Under any uneventful situation, if the auto-rickshaw causes damage or loss to any third-party person, property or vehicle, then under such perilous situation having this cover will take care of the finances incurred and not hamper the operation of the business.
  • Apart from buying third-party insurance, it is better to buy a comprehensive auto-rickshaw insurance plan specifically when the auto-rickshaw is used daily and is an integral part of the business. Comprehensive auto-rickshaw insurance will secure the auto and the owner-driver from any damage/loss, which may be caused due to any natural calamity, man-made calamity, any malevolent act and so forth.
  • As a social responsibility, correct auto-rickshaw insurance is required as it ensures the safety of the passengers and the business. Moreover, it depicts the seriousness and importance of the work.
  • In the world of actualities, eventualities do not come knocking. In unfortunate circumstances, if the business does face any unexpected loss then one may spend the hard-earned money and valued time towards other facets of the running business.

Apprised of While Buying Auto-rickshaw Insurance

In case, if one is intending to buy an auto-rickshaw insurance look for the following coverage and make a wise choice:

  • Cover against Accidents: In an unfortunate accident, if the damage occurs to the auto-rickshaw having this cover will secure you from such situations and not create a hole in the pockets.
  • Cover against Fire: If any damage is caused to an auto-rickshaw, in case of a fire breakdown, then this cover will not let you worry about the cost incurred.
  • Cover Against Theft: If any loss or damage occurs due to theft or robbery to the auto-rickshaw, this cover will come at the rescue of the owner-driver.
  • Cover Against Natural calamity: If the damage is caused to an auto-rickshaw under any natural calamity such as an earthquake, flood and so forth, this cover will take care of the incurred fiscal cost.
  • Cover Against Personal Accident: This is one important cover and should be necessarily taken by the owners of the auto-rickshaw as this cover takes care of the bills incurred towards any accident causing injury or demise either of the owner or the driver using the auto-rickshaw at that point of time.
  • Cover for Towing Vehicle: This cover is beneficial under circumstances when damage occurs to the auto-rickshaw in the process of auto-rickshaw being towed.
  • Cover for Third-party Losses: This cover is beneficial under situations wherein the damage is caused to a third-party or its passengers by one’s insured auto-rickshaw.

Knock! Knock! Do Not Be Surprised

As imperative it is to understand and be aware of the benefits of buying auto-rickshaw insurance likewise, it is imperative to know what is generally not included under auto-rickshaw insurance so that one is not surprised at the time of making a claim.

Let us have a look at situations, which are exclusion under auto-rickshaw insurance:

  • Illegal Driving: If one files a claim under a situation wherein the damage/loss caused to an auto-rickshaw is under the influence of alcohol or any other substance abuse then any such claim will not be entertained.
  • Unauthorized Driving: If either of the two, the owner or the river is driving on the roads of India and without a valid driving license then any loss/damage caused to the auto-rickshaw or by the auto-rickshaw will ultimately not be considered.
  • Contributory Negligence: Under a situation, if the damage is caused due to contributory negligence of the owner-driver, for instance, driving the auto-rickshaw in case of an existing flood, etc. will be spurned.
  • Own Damages for Third-party Policyholder: If one only has a third-party insurance policy, then any damage, to the owned auto-rickshaw is not covered under the plan.
  • Consequential Damage: In cases where any damage caused to the auto-rickshaw is not a direct result of the accidents, natural calamity, and so forth are a general exclusion within the auto-rickshaw insurance.

Word of Advice

While buying auto-rickshaw insurance, take care of the following and make an informed choice:

Buying Auto-rickshaw Online

It is always recommended to buy auto-rickshaw insurance online as it enables one to buy comprehensive auto-rickshaw insurance on the premise of specific requirements and customize the policy accordingly. While buying a policy, keep in mind the following and then make a decision:

  • The requirement of the customers
  • Compare the Insured Declared Value
  • Compare the claim settlement ratio of the insurance provider

Additional Coverage

Additional coverage will enhance the policy bought. It is to be noted that additional coverage comes at the cost of paying a higher premium. The following are some add-on cover that can be thought of while buying auto-rickshaw insurance:

  • Roadside assistance
  • Cashless facility
  • No Claim Bonus

Model and Variant

Remember, the base premium is calculated on the premise of the model and variant of the vehicle one is planning to buy. The rule is simple, the expensive the vehicle, higher will be the premium. Besides, the year of manufacture of the vehicle is important as it helps in assessing the Insured Declared Value and facilitating the insurance provider to determine the annual premium amount of the vehicle.

Concluding Thoughts

Before one buys the auto-rickshaw, insurance do consider the risk and frequency of use of the vehicle.

Asses the requirements, customize the policy, then only buy apt auto-rickshaw insurance, and protect the auto-rickshaw and the owner-driver as well.

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