Why Should You Buy Taxi Insurance Online & What are the Benefits?

Taxi insurance is a commercial vehicle insurance policy that covers damages and losses to the vehicle resulting from an accident, fire, theft, or natural disaster. Moreover, it is a legal requirement to operate commercial vehicles on public roads. Therefore, taxi owners must ensure that their vehicles are always insured and renew the policy promptly to avoid any legal issues.

Nowadays, thanks to digital platforms, owners can purchase taxi insurance online by comparing different insurers and policies. Read on to learn the top benefits of availing taxi insurance online!

Why Should You Buy Taxi Insurance Online?

Here are the top 3 benefits of buying taxi insurance online:

Zero Paperwork Hassles: When you buy taxi insurance online, you don’t need to submit hard copies of your documents. Instead, you can simply upload the soft copies, which saves you time from arranging and carrying a bunch of papers to the insurance office.
No Dependency on the Insurance Agent: When you buy a commercial taxi insurance policy online, you can check the policy terms, coverage, and other details on your own. There’s no room for dependency on an insurance agent, enabling you to make your decision without being manipulated by anyone.
Get Insured from Anywhere: Last but not least, when you buy taxi insurance online, you don’t need to visit the office, as per the insurer’s decision. You can get your vehicle insured from anywhere and at any time without interrupting your comfort or schedule. A stable internet connection is all you need to purchase taxi insurance online.

How to Purchase Taxi Insurance Online?

Here are the steps to follow while purchasing taxi insurance online:

Step 1: Enter your cab or commercial taxi’s registration number and contact number on the insurer’s website to check the pricing.

Step 2: Choose your preferred plan, IDV, and add-ons, then select “Continue”.

Step 3: Provide your required details, vehicle information, and nominee details.

Step 4: Select the “Pay Now” option.

Step 5: Make the payment after completing the Know Your Customer (KYC) verification procedure.

Step 6: Once done, you will receive the taxi insurance policy documents via WhatsApp, email, or SMS.

What are the Benefits of Insuring Your Taxi with Commercial Vehicle Insurance?

According to the Motor Vehicles Act of 1988, every vehicle in India must be insured with a minimum third-party insurance cover. However, third-party taxi insurance only compensates for third-party liabilities. Vehicle owners can maximise their insurance benefits by choosing a comprehensive insurance policy, as it covers both own and third-party damages.

Here are the benefits of purchasing a taxi insurance policy:

Third-party protection insures you financially if your taxi damages another person’s car or property.
Own damage cover provides financial protection against the cost of repairing or replacing parts if your taxi is damaged in an accident, theft, fire, or natural disaster.
Comprehensive insurance typically includes personal accident cover for the driver. If you suffer serious injury, permanent disability, or death due to an accident involving your taxi, you or your nominee can claim compensation.
When purchasing taxi insurance, consider adding optional covers, such as consumables protection. This add-on covers costs for small but necessary items such as nuts, bolts, engine oil, and brake oil, minimising out-of-pocket repair expenses after an accident.
Cashless claim settlement is available with many insurers, wherein the insurance firm pays the garage repair bills directly, saving you from making upfront payments.
You can select any of the listed network garages approved by the insurer and receive quality service without any surprise charges.

What are the Inclusions of a Taxi Insurance Policy?

Commercial taxi owners can avail of the following coverage under their commercial vehicle insurance policy:

Accidents: The insurance coverage covers accidental damage to your cab.
Theft: The taxi insurance policy covers damages or loss of your taxi due to theft.
Natural Disasters: If natural disasters like earthquakes or floods cause damage to your vehicle, you can file an insurance claim.
Fire: If your taxi is damaged due to fire, you can claim insurance coverage against the losses.
Third-Party Losses: All third-party obligations arising from your car are covered by taxi insurance.
Personal Accident: Commercial insurance will cover damages if the cab is involved in an accident, resulting in serious injury or death to the owner-driver.
Damages Caused While Towing: The taxi insurance policy will cover losses if your vehicle is damaged while being towed or after being towed.

What are the Exclusions of a Taxi Insurance Policy?

Taxi insurance does not cover the following:

Drunk Driving: If the driver was intoxicated or operating a vehicle without a legal license at the time of the collision, insurance claims will be denied.
Own Damages: If you have only a third-party liability policy, damages to your own taxi will not be covered. It only protects against harm caused to others.
Consequential Damages: Damages that are not directly caused by the accident are excluded. For instance, the cab will not be covered if its engine is damaged as a result of misuse following an accident.
Contributory Negligence: Contributory negligence, such as driving in hazardous conditions like floods, can lead to denying claims since the driver’s negligence contributed to the damage.
Add-ons Not Purchased: Certain situations require add-on covers; if you haven’t purchased them, damages related to those specific risks won’t be compensated.

What to Consider While Buying a Commercial Taxi Insurance Policy?

Here are some of the things to keep in mind while insuring your taxi:

Coverage: Choose comprehensive coverage for own damage, theft, and third-party liabilities.
IDV: Learn how Insured Declared Value is determined based on depreciation.
Comparison: Compare the policies of various insurers online to check the premium amount, coverage, and benefits.
Add-ons: Consider add-ons for additional protection.
Claim Process: Verify the claim settlement process and the necessary documents for a smooth claim filing.

Thus, buying taxi insurance online offers quick policy comparison, instant purchase, and access to discounts, making the process convenient and cost-effective. Online platforms also facilitate hassle-free renewals and expedite claim settlements, providing comprehensive protection for your taxi business.