While carrying passengers in a taxi, the vehicle is exposed to various risks and complications which can add to your financial liability. Thus, to cover all such risks, you need a taxi insurance, which is a part of commercial vehicle insurance. The taxi insurance will ensure protection against accidents and any damage to the vehicle.
Let us see how a taxi insurance is classified and what all it covers:
According to the Motor Vehicles Act, 1988, this is the minimum coverage which every taxi owner must have. However, now this is a mandatory coverage which every vehicle insurance should include. Under this, the taxi owner needs to pay compensation to the third party, in case of any accident or damage. This insurance scheme covers
Indemnity for third party property damage
Personal accident cover for the policyholder
This provides higher level of benefits to both the car owner and the third party involved in the accident. This policy covers the following:
Damage to your own car caused due to fire, explosions, burglary, riots, strikes and accidents
Personal accidental cover for the car owner is mandatory provided by the insurance provider. The policyholder might also include passengers, paid driver and cleaner within the insurance
Accidental damage, deaths and injuries to the third party car