What is Taxi Insurance?
All motorised taxi are required by law to have insurance. Falling under the General Insurance product category, it helps protect people against accidents that take place on the road. Active taxi insurance shields the vehicle owner from any unforeseen occurrences like an accident or any serious damage to the motor vehicle.
Why is it important?
In India, the rate of accidents on roads is high. The percentage of taxi involved in accidents also is high. If your taxi is involved in an accident and you do not have insurance, then you will have to pay heavily for vehicle damages and also to the families of the dead victims or to those who have been injured due to your vehicle. The law is strict and it could lead to your imprisonment for varying periods.
Hence it is advisable to have Taxi Insurance to protect you from such incidents. It offers third-party liability coverage as well as ‘own damage’ and ‘personal accident’ covers. This means it covers you, your taxi and third-parties from all possible damages.
Types of Taxi Insurance
In India, there are basically 2 types of Taxi Insurance you can buy: Third-Party Liability Cover and Comprehensive Taxi Insurance. A Third-Party Liability only protects the third-party person or property damage or injury caused by your vehicle. Comprehensive provides third-party coverage plus it covers vehicle theft and other damages.
The most important differentiator is InsureMile’s ‘Buy A Policy, Feed A Child’ mission
For every policy you buy, InsureMile on your behalf contributes 25 meals to a child.
You are thus becoming part of a Social Movement to eradicate hunger among children in India.
There is no additional amount to be paid for the social cause. It is part of the premium.
You can claim tax benefits for the donation you have made.
Five reasons why taxi insurance is different from your car insurance
1) A taxi is likely to cover more distance during its lifetime than the average car. Due to this factor, the two cannot be in the same category of motor insurance.
2) Due to the time spent by taxi drivers on the road and in congested city traffic, the risk of an accident is higher and this has to be reflected in the taxi insurance policy.
3) Taxis like passenger vehicles, often carry more passengers and generate revenue unlike regular cars. This factor should be considered when comparing an online taxi insurance planand a car insurance policy.
4) In most instances taxi drivers not driven by the owners. The best taxi insurance policies cover the car, the driver, the passengers and third parties such as pedestrians, other drivers and passengers in case of an accident. This affects the premiums of the insurance and therefore cannot be similar to a regular car insurance.
5) In general, taxis have a higher probability to claim compensation than private car due to higher risks including theft, malicious damage and accidents.