Passenger Carrying Vehicle Insurance Policy

Everyone cannot afford to purchase a personal vehicle like car or a bike. This is why they have to depend on the passenger carrying vehicles. There are different types of passenger carrying vehicle that can also be called commercial vehicle as they are used for public transportation. However, be it any vehicle, it is important to protect it with an insurance policy. While driving/riding on the road, accidents do happen that leads to financial loss and damage.  To protect yourself from that financial burden, you can purchase a passenger carrying vehicle insurance policy.

Read more
Buy instant insurance for Goods, Passenger & Miscellaneous vehicles
  • 18+ insurers to choose from

  • Instant renewal for expired policy

  • Cover lamp, tyre Tube & bumper

Save upto 80% on Commercial Vehicle Insurance*
View free quotes
Please wait. We Are Processing..
By clicking on ''View free quotes'' you agreed to our Privacy Policy and Terms of use

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

What Is Passenger Carrying Vehicle Insurance?

The name defines itself that it is a type of insurance policy that provides cover to the passenger carrying (commercial/public transportation) vehicles. Since commercial vehicles running time is more than personal vehicles, the chances of these commercial vehicles getting involved in road accidents and break down are higher. This insurance policy makes sure to provide cover to any kind of loss or damage occurred in a road accident, fire accident, theft, natural calamity, etc.

Every vehicle has its own capacity and when it comes to commercial vehicles, they carry hundreds of people in a day in the whole city. This insurance policy provides cover to all kinds of commercial passenger carrying vehicles. They are as follows:

Bus

The government provides low-floor buses for the citizens in order to ease their transportation in cost-effective ticket prices. But people who run in a business of public transportation and have their private buses running in the city should make sure to cover them with a passenger carrying vehicle insurance policy or a commercial insurance policy.

Auto-Rickshaws

Auto-rickshaws are the most used mode of transportation by the public. It is easier to call one and hop in as well as they leave to the doorstep of your destination unlike buses. Auto-rickshaws can also be covered under this insurance policy.

Three/Four-Wheeler Tempo

Being an Indian, you must have seen three/four-wheeler tempos that are used for public transportation within the cities. You can cover them with a passenger carrying vehicle insurance.

Cabs/Taxis

For a rather comfortable and a smooth transportation experience, people tend to book cabs from their mobile phone through apps like Uber and Ola. However, these companies do not own any cabs or taxis but the ones who earn by running their taxis and cabs for intercity drives as well as within the city must cover their cabs and taxis with this insurance policy as it can protect them with unforeseen loss and damages.

Importance Of Passenger Carrying Vehicle Insurance

Passenger carrying vehicles/Commercial vehicles are the most used mode of transportation as everybody cannot afford to purchase a bike or a car. Since hundred 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.

Therefore, apart from protecting the vehicle there are other reasons to purchase a passenger carrying vehicle insurance policy. They are as follows:

Protect Vehicle From Sudden Financial Losses

Be it a road accident, theft, fire accident or a natural calamity, this insurance policy provide financial aid to the policyholder for such unforeseen losses.

Abide By The Law

If you are a policyholder then you must know that it is mandatory to cover your vehicle with at least a third-party liability insurance policy. However, this policy provides cover to the third-party loss and damages and protects you from paying hefty traffic fines in case traffic police asks you to show the insurance papers.

Owner/Driver Is Covered

This insurance policy not only protect your vehicle is case of loss or damage but also the driver/owner of the vehicle.

Protects Passengers

When you opt for passenger carrying vehicle insurance policy, you can also purchase additional cover to protect the passengers of the vehicle.

What Is Covered Under Passenger Vehicle Insurance Policy?

Passenger carrying vehicle insurance policy comes with a set of coverage that helps the policyholder get financial aid in case of any loss or damage. The policy not only covers for the damage or loss caused to the vehicle but also cover for the bodily injury treatments that the driver or passenger sustains in an accident.

There are insurance companies that provide cashless claim facility as well. With this facility the policyholder can get cashless claim for the repairing of the vehicle at the network garage of the insurance company. Also, the insurance company offers you the option of customizing your insurance plan as per your budget and requirement.

Here is a list of things a passenger carrying vehicle insurance policy covers.

Accidental Loss & Damage

In case of a road accident, this insurance policy provides cover for the loss or damage caused to the vehicle whether the vehicle is carrying the passengers or not.

Natural Disasters

This insurance policy also provides cover for the damage or loss caused to the vehicle in natural disasters like floods, typhoons, earthquakes, etc. If the vehicles get damaged in a natural disaster the insurance company will compensate for the loss.

Theft Is Covered

This insurance policy provides cover if the vehicle is stolen. Also, the insurance plan will also provide cover for the contents kept inside the vehicle. You can ask your insurer if they provide cover for the stolen contents of the car or not.

Fire Accidents Are Covered

If the vehicle catches fire due to excessive heat of the engine or by any other relevant reason then the insurance company will provide cover for it.

Third-Party Liability

Well, this insurance policy is mandatory as mentioned above. This policy provides cover for the loss or damage of the third-party liabilities. In case the vehicle owner is caught without his policy then he/she will be levied with hefty fine as mentioned in the Motor Vehicle Act, 1988.

Personal Accident Coverage

In case the driver/owner of the vehicle sustains any bodily injury while driving the vehicle whether partial/permanent or even dies then this insurance policy will provide cover.

Towing Damaged Vehicle

When the passenger carrying vehicle is carried away by the towing truck and suffers any damage or loss during that period then this insurance plan will provide cover for it.

What Is Not Covered Under Passenger Carrying Vehicle Insurance?

While purchasing an insurance policy, you should always read it thoroughly to learn what it covers and what is does not. The inclusions and exclusions depend of the type of insurance plan and vary from different insurance company. Let us tell you what Passenger carrying vehicle insurance policy does not cover.

Without License Driving

The insurance company does not provide to the policyholder for the damage or loss caused to the vehicle or the injury sustained by the driver and passenger of the vehicle if they found the driver was driving the vehicle without valid license.

Consequential Loss

If the insured vehicle suffers damage indirectly that means the vehicle has been damaged but without a direct impact in an accident, natural calamity or fire is known as consequential loss. The insurer will not provide cover for the damage.

Drink & Drive

Drinking and driving is illegal as per the Motor Vehicle Act, 1988 and if the insurer finds out that the driver was driving the vehicle under the influence of alcohol when the accident took place then there will be no cover provided to the policyholder.

Intentional Negligence (Contributory)

If the vehicle owner/driver neglects the threat like a flood or earthquake and still drive the vehicle that leads to loss or damage to the vehicle, himself or the passenger then the insurer will not provide cover for it.

The insurance companies do not limit their policies to a specified coverage but also provide add-on cover (riders) that the policyholder can purchase if not satisfied with the existing coverage. Here are some of the riders that a policyholder can purchase separately.

Passenger Vehicle Insurance Add-Ons

You can talk to your insurance company as ask them if they provide riders that you can purchase to enhance your coverage. You should also know that adding a rider to your existing insurance policy will increase the premium rate of the policy.

The insurance companies usually offer the below mentioned riders for their policyholders to purchase:

  • Road-side assistance: The insurance company offers road-side assistance cover to the policyholder of the passenger vehicle insurance policy. You can purchase this add-on by paying an extra premium amount.
  • Zero-Depreciation Cover: If your vehicle suffers any kind of loss or damage then the insurer will provide full value cover to the policyholder.

When your vehicle meets a road accident, fire accident, theft, etc. that leads to loss or damage then it is important to know about the claiming process and how you can initiate it. Let us tell you about it.

How To Raise Claim In Passenger Carrying Vehicle Insurance?

To get the claim for damage or loss caused to your vehicle in an accident, you can either do it offline or online. Before you begin the process you have to inform your insurer about the accident that led to the damage.

Before you raise a claim it is recommended to read the policy and check if it provides cover for that particular thing or not so that your efforts do not go to waste. While raising the claim you will have to tell you insurer about the things mentioned below:

  • Time, date and location of the incident that caused the damage
  • Policy number for reference
  • How did the incident take place
  • Name and contact details

To begin with the insurance claiming process, you need to submit some documents to the insurer.

Document Required

In order to raise the claim and begin the claiming process, you need to submit several documents. Here are those documents:

  • Vehicle’s Registration Certificate
  • Copy of FIR
  • Driving License Copy
  • Filled Claim Form
  • Aadhar card copy
  • Tax paid receipt
  • Insurance policy papers
  • PUC
  • Newspaper cutting if printed in any

Apart from the coverage the insurer provides to the policyholder, they also provide some additional benefits depending on condition. Let us tell you about one such benefit that you can avail of.

No Claim Bonus Benefit

This is a type of benefit provided by the insurance company to the policyholder for not raising claim in a year. The insurer provides a specified percentage of benefit to the policyholder for not raising a claim in one year as well as for the consecutive years. The percentage of benefit increases every year without raising claim. The percentage of benefit is specified by the IRDAI:

Here is a list of No claim bonus percentage:

Policy Duration Without Raising Claim

Percentage of No Claim Bonus

1 year without raising claim

20%

2 consecutive years without raising claim

25%

3 consecutive years without raising claim

35%

4 consecutive years without raising claim

45%

5 consecutive years without raising claim

50%

However, there are two conditions under which the insurer will not provide the No claim bonus to the policyholder. They are as follows:

  • When the policyholder raise a claim.
  • When the policyholder does not renew the policy within the specified 90 days of expiration.

Purchasing an insurance policy for your passenger carrying vehicle is a smart move that can keep the financial burden off of your shoulder and you can stay tension-free.

FAQs

Written By: PolicyBazaar

Commercial Vehicle Insurance Articles

Beginner’s Guide - Auto-rickshaw Insurance

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. Read...
All you need to Know about Third Party Commercial Auto Insurance

All you need to Know about Third Party Commercial Auto Insurance

A third-party commercial vehicle insurance policy covers risks arising due to third party liabilities such as third-party vehicle damage, third-party bodily injury. It offers the desired protection in the event of any legal liability related...
All about Commercial Vehicle Insurance in India

All about Commercial Vehicle Insurance in India

Compared to old times today the business operates efficiently as we have excellent modes of transportation. If a vehicle is providing you with an income of livelihood you definitely will not want in anything happening to your vehicle, as any...
7 Things You Should Know About Commercial Vehicle Insurance

7 Things You Should Know About Commercial Vehicle Insurance

When you own a business, you already have a lot on your plate to think about which leads to anxiety and stress. Buying commercial vehicle insurance will secure you from any commercial vehicle perils that may happen. Secure yourself and your...
List of Motor Add-On covers Proposed to be filed with IRDA

List of Motor Add-On covers Proposed to be filed with IRDA

The insurance companies in India offering motor insurance policies need to adhere to the guidelines formulated by the Insurance Regulatory and Development Authority. If you anticipating buying motor insurance, it is of prime importance that your...