Commercial Car insurance or Taxi insurance comes in two types:
Third Party Insurance Cover
Comprehensive Insurance Cover
Third Party Car Insurance
According to the Motor Vehicles Act of 1988, third-party (liability-only) policy is the absolute minimum. It must be held by the person who owns or drives a taxi or commercial vehicle at all times. The responsibility resulting from a third-party accident is protected by liability only insurance. It provides limitless liability coverage for third-party death/injury claims resulting from the insured's vehicle.
Third-party property loss indemnity is limited to a maximum of INR 7.5 lakhs. Any claim amount that reaches the upper limit must be charged by the third-party auto insurance policyholder.
Built-in personal accident insurance is available for vehicle owners under third-party liability insurance plans, and personal accident insurance for the vehicle's paying driver and cleaner can be obtained separately under a comprehensive auto insurance policy.
Comprehensive Car Insurance
The better form of auto insurance is comprehensive insurance, which is optional but strongly recommended. Experts recommend it because it offers compensation for accidents to your own taxi or commercial vehicle, which is not available with third-party insurance.
In the case of an accident, your taxi or commercial vehicle would almost certainly be damaged. This damage can be major, and if your insurance does not cover your personal taxi or commercial vehicle, you may be in deep financial trouble. Comprehensive commercial vehicle insurance protects your vehicle from damage caused by collisions, natural disasters, and man-made disasters.
Comprehensive Commercial Car or Taxi Insurance coverage
Own damage to the vehicle caused due to:
Accident by external means
Housebreaking, burglary or theft
Fire, self-ignition,explosion, lighting
Riots, terrorism, strike or malicious act
Damage in transit by road, rail, inland waterway, lift
Flood, earthquake, landslide,storm, rockslide
Personal Accident Cover
Personal Accidental Coverage for the vehicle's owner is mandatory. You may also pay an extra amount to cover passengers in a commercial vehicle, taxi, or hired driver, as well as the cleaner.
Third Party Legal Liability
Accidental death or injury to any third party
Any damage to property owned by third party
Meanwhile, if you are looking for the best commercial vehicle insurance policy, you can click here to check out some of the best deals from the top motor insurance providers in India.
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