Motor Insurance 964 views April 8, 2021

Taxi insurance comes under commercial vehicle insurance where the insurer covers your taxi against third-party liability, accidents, natural disasters, etc. A Taxi Insurance Policy can be purchased by individuals and organizations who own taxis. You need to buy a commercial vehicle insurance policy for your Taxi, as it offers protection to you and the passengers as well. As per the Motor Vehicles Act, you should have at least third-party liability insurance for your taxi. Continue reading this post to know more about taxi insurance.

Types of Taxi Insurance (Under Commercial Insurance)

Insurance Companies provide the following two types of Taxi Insurance to customers –

Third-party Liability Taxi Insurance – Under this type of cover, the damage resulting due to the third-party’s death, bodily injury and property damage from your taxi shall be covered. The third-party liability coverage is provided to you in case of third-party accidental injury/death and property damage. The amount of compensation in this taxi insurance is decided by the court.

Comprehensive Taxi Insurance – If you purchase this type of Taxi Insurance, you will get a loss or damage cover for your taxi during transit by rail, road, air, lifts, inland waterway and elevator, natural catastrophes like – flood, fire, earthquake, self-ignition, typhoon, hurricane, cyclone, storm, inundation, landslide, man-made disasters – riots, theft, terrorist activities, malicious acts, etc.

Benefits of Buying Commercial Taxi Insurance (Under Commercial Insurance)

If you purchase taxi insurance (Under Commercial Insurance), you will get the following benefits –

Saves You on the Legal Front: As you know from above that as per the Motor Vehicles Act, 1988, every vehicle that commutes on Indian roads should have valid insurance. And if you don’t have insurance, you will get into legal trouble. So, if you have commercial insurance for your taxi, you can prevent yourself from getting into any illegal driving in respect of the Motor Vehicles Act.

Liability Coverage: Taxi insurance ensures you don’t need to pay from your pocket in case of accidents and injuries. Because in such cases, your insurer will cover your losses by compensating the damages/losses caused to third-party or property. So, taxi insurance helps you maintain the cash flow even if you face lawsuits or other liabilities.

Coverage for Loss: If you face situations like theft, accidents, etc. during the policy tenure, you can stay afloat and recover from such catastrophic losses with the taxi insurance. The insurer pays you up to the Insured Declared Value (IDV) of the taxi prevailing at the time of policy purchase.

Cover Bank Loans: Most people purchase taxis on bank loans. So, if you have comprehensive commercial taxi insurance, this will keep you protected from a bank loan in case your vehicle suffers a total loss or gets stolen.

How to Choose Taxi Insurance (Under Commercial Insurance)?

You can select a suitable Taxi Insurance (Under Commercial Insurance) by comparing different policies. This way, you can save a substantial amount of money and get better coverage under your insurance plan. So, shortlist the type of coverage you want from the below-mentioned list of taxi insurance policies.

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