What is Bus Insurance Policy?
A bus insurance policy is a legal contract between the insurance company and the policyholder.. Under this legal contract, the insurer provides financial coverage to the insured commercial bus for any unexpected incident on road that leads to financial loss in exchange for the yearly premium paid by the insured. Damages due to incidents such as natural calamities, accidents, fire, collisions, etc. are covered.
Apart from financial coverage for the repairing of the bus, the commercial vehicle insurance policy also covers third party liabilities arising out of the insured bus.
Types of Buses Covered Under Bus Insurance
Here are the different types of buses covered under the commercial bus insurance policy:
- School Buses: Buses that are primarily used for transporting students whether of a school, college or any other educational institute.
- Private Buses: Buses owned by private organizations that are used in the transportation of employees from one place to another such as going on an official tour, etc.
- Public Buses: Buses that run in the city are owned by the government for the transportation of the citizens within the city as well as outstation travel.
Reasons Behind Purchasing Bus Insurance
Here are some of the reasons to purchase a bus insurance policy for your commercial vehicle:
- Financial Protection: Whether third-party damage or own damage, the bus insurance policy protects the policyholder financially from any unforeseen losses.
- Owner & Driver Covered: Apart from providing coverage for the damages caused to the bus, it provides coverage to the driver as well as the owner of the car in case of bodily injury, disability or death. This coverage is offered under Personal Accident Cover.
- Comply with Law: It is mandatory as per the Motor Vehicle Act, 1988 for every vehicle owner to have at least third-party insurance policy however, it is recommended to purchase comprehensive insurance to get wider coverage from unforeseen losses.
- Avoid Hefty Challans: The bus driver has to keep valid commercial vehicle insurance documents while driving on the road, If caught by the traffic police without insurance documents,the driver will be fined a hefty amount of challan as per the state’s traffic rules.
- Protect Passengers: With the bus insurance policy, you can also purchase an additional cover to protect the passengers from any unexpected accident, natural calamity or fire accident.
What is Covered Under Bus Insurance?
Damages or losses that are covered under a commercial bus insurance policy include:
- Road Accidents: Bus insurance provides coverage in case of any damage caused to the bus in an unfortunate accident. The insurance company financially compensates for the repairing cost as per the IDV of the vehicle.
- Theft: In case of theft, the insurer provides coverage as per the insured declared value of the commercial bus insurance plan.
- Fire Accident: Coverage for loss or damage caused to the bus in a fire accident, explosion or self-ignition.
- Personal Accident: In case the driver or owner of the bus gets injured or dies, the personal accident cover provides coverage for up to Rs 15 lakh.
- Natural Disaster: Any loss or damage caused to the bus in a natural disaster such as earthquake, floods, typhoons, etc. is covered.
- Third-Party Liability: If your bus causes damage to the third-party vehicle, passenger or property then the insurer will provide coverage for the loss or damage caused to the third party.
- Towing Facility: Loss or damage caused to the bus while it's being towed away to someplace is covered.
What is Not Covered under Bus Insurance?
While purchasing this commercial vehicle insurance policy, it is equally necessary to know about the exclusions of the plan as much as it is important to know about the inclusions of the plan. Here is what a bus insurance policy does not cover:
- Own Damage: If the bus is insured only under a third-party insurance policy, the insurer will not provide coverage for the own damages sustained by the insured bus.
- Negligence: If the insured intentionally neglects any expected loss or damage is not covered. For instance, if the insured drives the bus during an ongoing flood.
- No Driving License: The insurer will not provide coverage to the policyholder if the driver is found driving without a valid driving license when the accident took place.
- Without Insurance Documents: The insurer will not provide coverage to the policyholder if the driver is found driving the bus without the commercial bus insurance documents.
- Under the Influence of Alcohol: If the driver is found driving the bus under the influence of alcohol or drugs when the accident took place, the insurer will not provide coverage for the damage caused to the bus.
- Consequential Losses: Any loss or damage that is a result of an indirect impact will not be covered.
- Private Purposes: If the insured bus is being used for private purposes, then the insurer will not cover any damages sustained by it.
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How to Raise A Claim under Bus Insurance?
The only motive of purchasing a bus insurance policy is to get coverage for any unforeseen damage or loss. To get the coverage you have to raise the claim so here are the steps that you can follow to raise a bus insurance claim.
- Inform Insurer: You have to inform the insurer about the accident that caused the loss or damage to the bus.
- Click Pictures: It is advised to click the pictures of the scene to keep it as proof that you can show later as it will help you raise the claim easily.
- Keep Documents Ready: In order to raise a claim, you have to fill in the claim form and submit the required documents along with it. It is suggested to keep those documents ready for quick process.
- Inspection: Once you have informed the insurer, they will send a team of inspectors to inspect the damage caused. Once the inspector is satisfied, they will begin the claiming process from their end.
- Compensation: Once the inspection is done, the insurer will provide coverage for the repairing of the bus. If you have sent the bus to a network garage, then the insurer will pay on your behalf and you just have to pay the deductibles.
How to Renew Bus Insurance Online?
To get continuous insurance coverage benefits, you have to renew the bus insurance before the expiry date. Here are the steps that you can follow to renew your commercial bus insurance online.
Step 1: Visit the official website of Policybazaar Insurance Brokers Private Limited (Policybazaar.com)
Step 2: From the ‘Insurance Products’ dropdown, select the ‘Commercial Vehicle Insurance’ page
Step 3: Fill in your name and contact number to view free bus insurance quote online
Step 4: Now select your vehicle type from the table which is ‘Bus’
Step 5: On the next few pages, select details like brand, model variant, RTO and registration year of your bus
Step 6: Select your existing bus insurance policy expiry date and claim details from the popups
Step 7: You will now be able to find plans from multiple commercial bus insurance companies. You can choose the plan that suits all your requirements. At this stage, you can also select additional covers that you wish to add with your plan.
Step 8: Select the NCB discount received on your previous bus insurance plan.
Step 9: And proceed with the payment of bus insurance premium using any online payment mode.
Step 10: Once the payment is done, the insurer will send you the updated insurance policy documents to your registered email ID as well as to your registered address by post.
How does Bus Insurance Differ from Private Car Insurance?
The major difference between a commercial bus insurance policy and a private car insurance policy is the usage of vehicle. A bus insurance policy can be purchased for buses that are used for commercial business. For instance a public bus that is used for transporting public is required to have a commercial vehicle insurance policy.
Whereas a private car insurance can be bought for cars that are used for private purposes. For instance, if you are using your car for commuting to office, or for personal travelling, you are required to purchase a private car insurance policy.
However, if you have a taxi or cab that you are using for your transporting business, you can purchase a commercial car insurance policy. In such situations, a private car insurance policy won't cover you or your vehicle against any unforeseen damage.
Thus, to summarise a policyholder cannot purchase a commercial vehicle insurance for vehicles that he/she uses for personal purposes.
Ans: Yes, it is necessary to purchase a bus insurance policy because it provides coverage from any loss or damage caused to the third-party as well as its own damage. You can easily purchase a commercial bus insurance online from Policybazaar.com.
Ans: No, you cannot cover multiple buses under one insurance policy. You will require one plan for each of your bus. However, there are some insurance companies that design one bus insurance policy for multiple buses as per your requirement.
Ans: All kinds of buses such as commercial, private, mini busses, can be covered under a bus insurance policy
Ans: The commercial bus insurance cost will depend on the kind of coverage you opt for and the add-ons you purchase with a comprehensive bus insurance plan. Though you can calculate bus insurance price online with the help of Commercial Vehicle Insurance Calculator to get a fair cost estimate.
Ans: Yes, you can compare bus insurance quote online of multiple insurance companies on Policybazaar.com. And then choose the one that falls in your budget.