Taxi insurance is a commercial vehicle insurance policy that offers protection to taxi/cabs in case of third-party liability, accident, natural disasters etc. For all the cab owners or drivers, it is essential to secure your vehicle and business and for this reason, it makes sense to buy a comprehensive insurance policy and not only a liability-only policy to get protection for both own damages and third-party damages.
Taxi Insurance Features and Benefits
- The policy offers financial protection against any loss or damage that is caused to your vehicle
- It covers loss or damage resulting in third-party injuries, death, and property damage from the insured vehicle
- You can get personal accident cover
- Enhance the quantum of protection with add-on covers
- Simple process to renew and buy TAXI Insurance policy online
- Damage repair facility at network garages
- Option to avail direct claim settlement
- Hassle free claims settlement process
Why Taxi Insurance?
A Taxi Insurance policy is required for individuals and organization who own taxi or cabs. It is important to buy a commercial vehicle insurance policy as it offers protection to you and the passengers if there is any loss or damage arising due to an accident or collision. A minimum of third-party liability commercial vehicle liability insurance is required as per the Motor Vehicles Act.
If you buy a comprehensive commercial vehicle plan then you can also enhance your protection, you can opt for additional benefits like CNG kit cover, zero depreciation cover, key replacement cover and similar benefits. You do not need to run from pillar to post when an emergency strike. Moreover, you can easily buy and renew Taxi Insurance online within the comfort of your home or office.
Insured Declared Value
The sum assured amount of the insured taxi car or cab is called the IDV or Insured Declared value of the car. It is derived based on the selling price listed by the vehicle manufacturer. It also includes the cost of any extra accessories that are fitted into the vehicle. Final sum assured or IDV is obtained after subtracting the annual depreciation as per the Indian Motor Tariff schedule.
Taxi Insurance Policy Inclusions
All the commercial taxi owners and drivers are required to buy a commercial vehicle or taxi insurance policy to safeguard themselves and the pillion riders from any road emergencies. Damages covered under Taxi Insurance are as follows-
- Third-party Liability Insurance- It covers the damage resulting due to third-party death, bodily injuries and property damage from the insured commercial vehicle.
- Comprehensive Taxi Insurance- It provides the following benefits-
- Loss or Damage Cover- It covers loss or damage caused to your vehicle due to both natural and man-made disasters. It also covers any damage caused to your car during transit by rail, road, air, lifts, inland waterway and elevator
- Natural catastrophes that are covered- It covers loss or damage arising due to flood, fire, earthquake, self-ignition, typhoon, hurricane, cyclone, storm, inundation, landslide etc.
- Man-made Disasters that are covered- Taxi Insurance policy offers coverage against riots, theft, terrorist activities, malicious acts etc.
- Third Party Liability Cover- Third party liability damages are also covered. Unlimited coverage is provided in case of third-party accidental injuries or death. The amount of compensation, in this case, is decided by the court.
- Third-party property damage cover - Taxi Insurance also covers damage caused to a third-party property from the insured vehicle. Compensation is provided in case of third-party property damage.
Exclusions of Taxi Insurance
Taxi motor insurance policy doesn’t cover the following -
- Routine wear and tear, consequential losses and electrical breakdown of the insured vehicle
- Depreciation value of the parts unless nil depreciation cover is purchased
- Taxi Insurance policy will not reimburse damages resulting from reckless driving under the influence of drugs or alcohol
- Accidental loss or damage caused due to the willful negligence of the driver
- If the vehicle was found to be driven by a person who doesn’t hold a valid driving license or is not authorized to drive the insured vehicle
- Any accidental loss or damage that has taken place beyond the scope of geographical limitations
- Any loss or damage arising due to war conditions, nuclear radiations, and other related activities
- The amount of voluntary and compulsory deductibles. It is the percentage of a claim that you choose to pay from your own pocket.
Taxi Insurance Add-on Features
- Zero Depreciation Cover
- Emergency Hotel and Transportation Cover
- Multi-Car Rebate
- Personal belongings cover
- Return to Invoice Cover for new vehicles
- Key Replacement Cover
- 100% refund of vehicle value in the event of total loss of a new car
Optional Covers Available in Taxi Insurance
There are certain additional benefits to secure you and your loved ones while travelling in the insured vehicle. You can get these extensions in your cab insurance policy just by paying a nominal amount of premium-
- Personal Accident Cover- You can get personal accident cover in addition to the current limit. This coverage is applicable for the policyholder, the driver and the co-passengers
- Electrical & Electronic Accessories- It covers electronic and electrical accessories like fog lights, music system, LCD mini TV and even seat covers
- Bi-Fuel System Cover - You can avail CNG &LPG Kit cover
How to Compare Taxi Insurance Online?
By comparing different commercial tax insurance policies, you can save a substantial amount of money and select better add-on features and coverage options. Shortlist the type of coverage you want. If you only want to buy a third-party liability cover and do not want own damage cover then opt for liability insurance only. If you want to cover both 3rd party and own-damage cover then you can buy a comprehensive taxi vehicle insurance policy.
There are add-on benefits also like nil depreciation cover, no-claim-bonus protection cover, and roadside assistance in a comprehensive plan. Do not forget to compare the IDV quoted by different insurance companies. As it can have a significant effect on the commercial vehicle insurance premium amount.
Similarly, do not forget to compare the claim settlement procedure of each Taxi Insurance policy. Once everything is decided, you can easily compare taxi insurance quotes online and make an informed decision.
Buy Taxi Insurance Online
You no longer need to run from pillar to post to buy a Taxi Insurance policy. Once you are done comparing taxi insurance price online, you can simply buy the policy that meets most of your requirements.
To generate a taxi car insurance price quote or check taxi cab insurance rates all you need to do is fill your vehicle and personal information as elucidated below-
Personal Information of the Proposer:
- Full name
- Mobile Number
- Email Address
- Other areas ( if applicable)
- City where taxi was registered (RTO)
- Engine Capacity
- Fuel Type
- Year of Manufacture
- Seating Capacity
- Type of Body
- Current Insurance Policy Type
- Policy Term
- Transfer of Ownership (Yes/No)
- Cover for Accessories Installed In Vehicle
- NCB Applicable
Taxi Insurance Renewal Process
Usually, the taxi insurance aggregators send a reminder to all the customers regarding insurance renewal. However, it’s your responsibility to renew the policy before the expiry date. Here’s how you can renew taxi insurance policy online-
You can get taxi car insurance renewal online by submitting the following information-
- Policy Number
- Mobile Number
- Registration Number or Engine Number or Chassis Number
After filling the above-mentioned information, simply click on renew. You will receive your taxi insurance renewal quote on your id and can even download a copy online.
- Make sure that you have the following Information ready with you at the time of claim Intimation
- Time & date of the accident
- Name of the driver and contact details along with driving license details
- Taxi Insurance Policy number
- Estimated loss
- A brief description of the incident
- Survey location to support the investigation process
- Insured contact details.
- Claim intimation should be provided at the customer help desk. They will take you through the claim process
- Once you have informed, taxi insurance customer support team will provide you the claim reference number
- Upon claim registration, a surveyor will be assigned for your case
- Furnish all the documents to the assessor, such as vehicle type and severity of the damage
- You also need to inform about the requirement of the claim processing team to settle own damage claim
- You can coordinate with the surveyor in case of re-inspection of the vehicle is required
- Claim settlement survey will be done
Documents Required for Filing a Claim
Keep the following documents ready while registering a claim -
- Copy of Police FIR
- Claim form duly signed by the policyholder
- Fitness Certificate for commercial vehicles
- Driving License
- Vehicle Registration Certificate (RC)
- Insurance documents with the endorsement
Taxi Insurance will settle your claim within a week from the date of submission of all the required documents.
Taxi Insurance FAQs
If you buy a taxi insurance online-
- You can easily compare various taxi insurance policies online from top motor insurance companies
- There are several discounts that are available online
- Hassle-free claim settlement and claim-intimation process
Ans: NCB varies from one insurer to another. For all the years that you have not made any claim, no-claim-bonus will be accrued to your account. NCB is provided on taxi insurance premium is provided to the policyholder at the time of policy renewal.
Ans: You can transfer the No-claim-bonus that has been accrued to your account while switching your taxi insurance company. They will issue an NCB certificate that you need to provide the new insurer. It depends on the number of years for which you have not made any claim. You cannot earn No-claim-bonus on third-party damages.
You can opt for the following add-on covers in taxi insurance policy-
- Personal Belongings Cover
- Zero Depreciation Cover
- Reimbursement of Emergency Hotel and Transport Expenses
- Multi-Car Rebate
- Return to Invoice ( valid on new cars only)
- In the event of total loss of new vehicle 100% reimbursement of car value is provided
- Key Replacement Cover
Ans: At the time of policy purchase or renewal, you can opt for zero depreciation as an add-on cover in your comprehensive taxi insurance policy. At the time of claim, the insurer will reimburse the entire cost of damage without any deductions.
Ans: IDV is the fixed amount of sum assured that the insurer will reimburse you at the time of claim. Simply put, IDV is the current market value of a vehicle that is derived after adjusting the depreciation value. Depreciation is calculated both on the factory and non-factory fitted vehicle parts.
Ans: Yes, you can opt for emergency transport & hotel expenses reimbursement cover. You will get immediate help in the event of a taxi breakdown, engine failure, and similar faults. The insurer will compensate the cost incurred on emergency transportation and hotel expenses.
Ans: If you buy a comprehensive taxi insurance plan, it will offer you protection against accidental damages, collision, and theft. The insurer will also compensate you for any damage resulting due to floods, earthquake etc. Coverage is also provided for third-party damages.
While calculating taxi insurance premium, the following factors are taken into consideration-
- Cubic Capacity of the Engine
- IDV (Insured Declared Value)
- Depreciation of Parts
- Gross weight of the insured vehicle
- Vehicle Age
- Place of Vehicle Registration
Shriram Motor Insurance policy will not compensate for any accidental damage if the insured was found to be driving without a valid driving license
- Any accidental damage resulting while driving under the influence of drugs or alcohol
- Taxi car insurance policy will not cover loss or damage arising due to a deliberate attempt
- Any loss or damage that has taken place beyond the geographical scope as mentioned in the policy documents
- Taxi Car Insurance policy will not cover routine wear and tear
- It will not cover consequential losses or vehicle depreciation
- Electrical breakdown is also not covered
- Damage resulting due to war conditions, nuclear weapons or radioactivity
Written By: PolicyBazaar - Updated: 15 January 2021