In this article · 7 sections
An accident is stressful enough without discovering the policy doesn't cover a vehicle used for hire. Commercial taxi insurance is designed for cars that carry paying passengers, and choosing it carefully protects both your business and your passengers.
Types of cover
| Cover | What it pays for |
|---|---|
| Third-party (mandatory) | Injury/death of third parties and their property damage |
| Own damage | Damage to your vehicle (accident, fire, theft, natural calamities) |
| Comprehensive | Third-party + own damage |
| Passenger liability / PA cover | Passenger injury or death, as per policy |
| PA for owner-driver and paid driver | Personal accident cover |
Useful add-ons
- Zero depreciation: fuller claim on parts (valuable for newer cars)
- Roadside assistance: towing, battery jump-start, flat tyre help on highways
- Engine protection: useful in waterlogging-prone areas
- Consumables cover
- Loss of income/downtime (where available)
IDV (Insured Declared Value)
IDV is roughly the car's current market value and decides the maximum own-damage payout. A very low IDV reduces premium but also the claim amount.
Why taxi claims get rejected
- Car registered or insured as private but used for hire
- Expired permit, fitness or PUC at the time of the accident (insurer may dispute depending on the case)
- Driver without a valid transport licence/badge where required
- Driver under the influence of alcohol
- Late intimation or no FIR when required
- Carrying more passengers than permitted
Claim tips
- Inform the insurer immediately; note the claim number
- Take photos/videos of the scene and damage
- File an FIR for injuries, theft or major damage
- Don't repair before survey (unless allowed)
- Keep RC, licence, permit and policy copies in the car and on the phone
Save on premium (safely)
- No-claim bonus by avoiding small claims
- Approved anti-theft devices
- Compare renewals early through IRDAI-registered insurers or brokers
Track renewal dates with your fleet management sheet.
FAQs
Does insurance cover passengers' luggage?
Usually not by default. Ask about specific add-ons.
Can I use one policy for multiple cars?
Each vehicle has its own policy, though fleet discounts may be available.
This article is general information, not insurance advice. Read policy wording carefully.
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