Passenger Carrying Vehicle Insurance

What is Passenger Carrying Vehicle Insurance?

Passenger carrying vehicle insurance is a type of commercial vehicle insurance policy that provides coverage to commercial passenger carrying vehicles against unforeseen events that may result in a financial loss. It covers vehicles involved in commercial or public transportation against any kind of loss or damage that occurred in a road accident, fire accident, theft, natural calamity, third party liabilities, etc.

Types of Passenger Carrying Vehicles in India

There are several types of commercial passenger carrying vehicles available in India. They are as follows:

1. Bus

   Buses are used to transport the general public from one place to another. Schools also use buses for transportation. Since the risk involved is quite high, it is very important to get a bus insurance for any bus plying on the road.

   Given the frequent usage of buses, the owner must cover them under a passenger carrying vehicle insurance policy. You can purchase a school bus insurance to cover school buses against unforeseen adversities and purchase a bus insurance for all other passenger carrying bus.

2. Auto-Rickshaws

   Auto-rickshaws are one of the most used modes of public transportation in India. They are widely used in India to pick and drop passengers. People who own auto-rickshaws can insure their vehicle with the help of an auto rickshaw insurance policy.

3. Three/Four-Wheeler Tempo

   Three/four-wheeler tempos are widely used for public transportation, especially in smaller cities and rural India. Such commercial vehicles can be easily covered under a passenger carrying vehicle insurance policy and you can buy a tempo insurance to avoid any financial burdens due to any mishap.

4. Cabs/Taxis

   Cabs or taxis are widely available throughout India for a comfortable and smooth transportation experience. In metro cities, people tend to book cabs from their mobile phones through apps like Uber and Ola. Although these companies do not own any cabs or taxis, the actual owner of these taxis and cabs can buy a taxi insurance policy or commercial vehicle insurance for cabs to protect them against unforeseen loss or damages.

Importance of Passenger Carrying Vehicle Insurance

Passenger carrying vehicles are the most used mode of transportation as everybody cannot afford to purchase a bike or a car. Since hundreds and thousands of people travel through public transportation every day, it becomes the responsibility of the vehicle owner to protect the vehicle with an insurance policy. Besides, commercial vehicles spend more time running on the road and thus, are more prone to road accidents & breakdowns.

Here are some of the reasons why passenger vehicle owners need to purchase a passenger carrying vehicle insurance policy:

• Protects the Vehicle from Sudden Financial Losses: Be it a road accident, theft, fire accident or a natural calamity, this commercial vehicle insurance provides financial aid to the policyholder in case these unforeseen events cause damages or losses to the vehicle.
• Helps to Abide by the Law: In India, it is mandatory to cover every commercial vehicle with at least a third-party liability insurance policy. Thus, buying a passenger carrying vehicle insurance policy helps the owner to abide by the law and prevents him/her from paying hefty traffic fines in the absence of insurance papers.
• Offers Coverage for Owner/Driver: This commercial vehicle insurance policy not only protects the passenger carrying vehicle from any unforeseen loss or damages but also the driver/owner of the vehicle. In case the owner-driver of the insured vehicle suffers bodily injuries or dies in a road accident, the insurance company will provide compensation under the policy.
• Protects Passengers: When buying a passenger carrying vehicle insurance policy, vehicle owners can also purchase an additional cover to protect the passengers of the vehicle. This cover will compensate the passengers for any accidental injuries sustained while travelling in the commercial vehicle.

Passenger Carrying Vehicle Insurance Add-ons

All commercial vehicle insurance companies offer add-on covers to enhance the coverage of a basic passenger carrying vehicle insurance policy. These add-ons can be purchased for a higher premium price. Some of the most common add-on covers available under a passenger vehicle insurance policy below:

• Roadside Assistance Cover: Under this cover, the insurance company offers roadside assistance to the policyholder in case the passenger carrying vehicle breaks down in the middle of the road.
• Zero Depreciation Cover: With this policy, depreciation on the commercial vehicle or its parts is not considered while paying the claim and thus, you get the full value of the vehicle in case of a total loss.
• Passenger Cover: This add-on provides personal accident cover to the passengers travelling in a commercial vehicle in case an accident of the vehicle leads to accidental death or disability.
• Tyre Protect Cover: This add-on ensures that the insurance company covers any non-accidental damages sustained by the tyres of the commercial passenger carrying vehicle.

How to Raise a Claim Under Passenger Carrying Vehicle Insurance?

You can raise a claim for any unforeseen damage or loss caused to the passenger carrying vehicle using the steps mentioned below.

• Inform the Insurer: Intimate your insurer regarding the mishap immediately.
• Fill Up the Documents: After the intimation, you must fill up the required documents for the insurance company.
• Damage Assessment: The insurer will then send a surveyor to assess the damages.
• Submit the Documents: Once the surveyor approves the damages, your passenger vehicle will be sent for repairs at the network garage.
• Once your insured vehicle is repaired and the necessary documents are submitted, the insurer will settle the claim.

Documents Required to Raise a Passenger Carrying Vehicle Insurance Claim

At the time of raising the claim, the policyholder needs to submit the following documents:

• Registration Certificate (RC) of the insured vehicle
• Copy of FIR, if applicable
• Driving license copy
• Filled claim form
• Aadhar card copy
• Tax receipts
• Insurance copy
• PUC Certificate

NCB Benefit Under Passenger Carrying Vehicle Insurance

The NCB or the No Claim Bonus is a renewal discount provided by commercial vehicle insurance companies to policyholders for not raising a claim in the previous policy year.

The insurer provides a specified percentage of NCB discount to the policyholder for not raising a claim every year. The NCB can be used to reduce the passenger carrying vehicle insurance renewal premium and keep on increasing for every consecutive claim-less year. However, you are only eligible for the NCB discount when you have timely renewed your policy, the ownership has not been transferred, and there has been no claim filed.

Here is a list of No claim bonus percentage granted for every claim-free year as fixed by the Insurance Regulatory & Developmental Authority of India (IRDAI):