This policy offers coverage for losses or damages due to natural calamities, fires, man-made disasters, and similar events. It's imperative for all business proprietors to secure insurance for their public carrier vehicles, encompassing auto-rickshaws, cabs, school buses, and other vehicles operating on the road.
This requirement encompasses vehicles such as taxis, auto-rickshaws, commercial two-wheelers, passenger buses, school buses, commercial vans, and any vehicle transporting passengers. Having this insurance is essential for the legal operation of these vehicles on roads or any commercial premises.
• Firstly, it offers financial assistance in case your Public carrier vehicle is involved in an accident.
• Secondly, according to the law, it is mandatory to have at least a Liability Only (i.e. third-party) policy for your Public carrier vehicle.
In India, there are two types of Public carrier vehicle insurance policies available, which are:
• Comprehensive insurance policy
• Third-party insurance policy
A comprehensive policy offers coverage for damages caused by and to your Public carrier vehicle. On the other hand, a third-party insurance policy provides protection to third-party individuals or property that may have been affected by damages caused by your Public carrier vehicle.
Harm resulting from an intentional wrongdoing not committed by the owner.
Destruction due to fire, detonation, or lightning striking the insured vehicle.
The complete coverage provided by the third-party auto insurance policy.
Harm to the insured vehicle caused by an accident.
Destruction to the insured vehicle caused by terrorist actions.
Harm due to human-made disasters such as strikes, riots, vandalism, etc.
Harm incurred while the insured vehicle was being transported by water, rail, or land.
Harm resulting from environmental disasters such as earthquakes, floods, hurricanes, cyclones, landslides, hailstorms, frost, etc. Harm such as shock or fire caused by an environmental disaster is also covered.
Theft of the insured vehicle (break-in/burglary is included in this coverage). In this case, the owner is required to submit the vehicle keys and necessary paperwork.
Harm resulting from an electrical or mechanical malfunction.
Indirect losses are excluded from coverage.
Harm incurred while operating a vehicle under the influence of alcohol.
Harm incurred while driving without valid documentation.
Harm incurred while engaged in illegal activity or violating the law.
Deliberate destruction of the insured vehicle.
Several factors impact the cost of Public carrier vehicle insurance. Generally, the following factors are critical in determining the price of an auto insurance policy:
Insurance Policy Type:
The premium for a third-party policy is typically lower than that of a comprehensive policy. Generally, the broader the coverage, the higher the policy.
Deductibles come in two forms: mandatory and voluntary. The greater the deductible amount at the time of claim settlement, the lower the premium amount.
Insured Declared Value (IDV):
The IDV represents the vehicle's approximate current market value. The higher the IDV, the greater the premium amount, and vice versa.
Claim History:
Insurers offer discounts to those who do not make any auto insurance claims during the policy period. This discount can reach up to 50% for five consecutive claim-free years. The greater the No Claim Bonus discount, the lower the premium.
Car Make and Model:
The make, model, and year of manufacture of the commercial vehicle also determine the premium amount of the commercial auto insurance policy.insurance policy.
Engine Capacity:
Third-party insurance policy rates are calculated based on the vehicle's engine cubic capacity (cc) by the IRDAI. The higher the cc, the higher the premium amount.
Passenger-Carrying Vehicles:
Passenger-Carrying Vehicles (PCVs) typically include Light Commercial Vehicles, such as auto-rickshaws, cars, cabs, taxis, school buses, and also heavy vehicles like buses or coaches.
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