Taxis are counted as commercial vehicles as well as are the essential mode of public transportation that assists people in traveling. Therefore, it is obligatory that taxi drivers follow all traffic laws and regulations to ensure the vehicle’s and its passenger’s safety.
According to the Motor Vehicle Act, 1988, the Indian government has imposed the rule of having minimum third-party taxi insurance in order to drive the vehicle peacefully and without any hassle. If any driver is found violating the law, he will have to pay the penalties. The traffic officials are also allowed to take legal action against that person. Hence, to save yourself from all these problems, you should have taxi insurance. The taxi insurance price is determined by the coverage plan you purchase, but it is recommended that you should not consider the taxi insurance price while acquiring it and instead go for the policy that covers the most protection.
However, several firms provide taxi insurance, but you may have to choose the most trustworthy brand for a smooth experience and enjoy several features such as 24/7 claim assistance, an online facility for your insurance renewal, cashless settlement, and so on.
Types of Taxi Insurance
Two types of taxi insurance are listed below:
The government of India has made third-party taxi insurance mandatory. Anyone who wants to drive his taxi should have this type of coverage. Third-party taxi insurance will principally protect you against financial ramifications resulting from losses or damages to a third party or their property.
A comprehensive taxi insurance coverage will protect you against accidents, theft, and natural disasters. A taxi insurance coverage could be your most astounding savior in the event of an unforeseen catastrophe that results in damage or loss to you or your commercial vehicle. Third-party liability is also covered by comprehensive taxi insurance. Therefore, most insurers recommend that you should select this coverage for your vehicle.
In addition to your taxi insurance protection plan, you may also choose add-on coverages like Zero-depreciation, Engine protection, Roadside assistance, Return to invoice protection, and so on to enhance the value of your insurance policy and gain additional advantages.
Types of Add-on Coverages in Taxi Insurance
Here is the list of add-on covers that you can obtain in addition to your taxi insurance protection plan:
The zero depreciation add-on will assist you in recouping the cost of repairing the vehicle’s depreciated parts. This is a highly popular add-on cover and is best purchased if the replacement of the vehicle parts is pricey. However, this coverage is likewise limited to vehicles that are less than five years old.
You can purchase the roadside assistance add-on to help yourself in emergencies such as towing, battery jump starting, fuel arrangements, minor repairs, alternate transportation, accommodation, etc. If your taxi breaks down in the middle of the road and cannot be towed to the nearest garage, you can call the insurer for help. The company will ensure that you get the service at the earliest, and if needed, the insurer will also provide accommodation to you.
Return to Invoice
The return to invoice protection cover guarantees that if your taxi is lost or stolen, you will receive the total amount of the vehicle (the on-road price of the taxi at the time of purchase).
This add-on coverage will be your savior if your taxi’s engine gets damaged by water seepage.
Personal Accident Cover
If your taxi is being used by someone else, you may get optional personal accident insurance for any driver other than yourself. The coverage covers any damage or loss that may occur while accessing or vaulting the vehicle.
Before deciding on a plan, compare the taxi insurance policies offered by several businesses. The comparison will help in making an informed selection.