What is a Passenger Carrying Vehicle Insurance?

A passenger carrying vehicle insurance is a type of commercial vehicle insurance policy, designed to protect any commercial vehicles used for the purpose of transporting passengers from one place to another.

This passenger carrying vehicle insurance protects the vehicle from damages and losses that could arise in case of an accident, natural calamity or fire, amongst other unforeseen events.

The most common types of passenger carrying vehicle insurance policies include a bus insurance, van insurance, taxi/cab insurance and auto rickshaw insurance, among others.

Types of Passenger Carrying Vehicles Covered:

• Buses: Buses such as school buses, private tour buses and others used for the purpose of transporting passengers from one place to another are covered under a passenger carrying vehicle insurance policy.
• Auto Rickshaws: All auto rickshaws used for commercial purposes; transporting people from one place to another too can be covered under this policy.
• Taxis, Cabs and Commercial Cars: Cabs and commercial cars such as your daily uber, ola and other private cars used for commercial, public transportation can be covered under a passenger carrying vehicle insurance.
• Vans: Vans such as school vans and private tour minibuses used for commercial purposes too are covered under this policy.

Why should I buy a Passenger Carrying Vehicle Insurance?

• Protection from Unforeseen Losses: Whether it is due to a natural calamity, accident, collision or even a fire; a passenger carrying vehicle insurance helps compensate for these uncertain losses, and thereby protects your business from being liable to them.
• Comply with the Law: As per the Motor Vehicle Act, it is compulsory for all vehicles including ones used for commercial purposes to be insured with at least a basic, third-party motor insurance to help protect one from losses and damages caused to any third-party; such as a person, property or vehicle.
• Covers for Owner-Driver: Insuring your commercial vehicle with a passenger carrying vehicle insurance does not only protect the vehicle but, also covers for the owner-driver. 
• Passenger Protection: While buying a passenger vehicle, one can also opt to cover for their passengers; thus, being a responsible business that cares for not only oneself but for all its stakeholders involved. 

What’s covered in a Passenger Carrying Vehicle Insurance?

Accidents

Damages and losses caused to the passenger carrying vehicle in an unfortunate case of an accident.

Theft

Any damages and losses caused to the passenger carrying vehicle due to theft.

Fire

Any damages or losses caused to the passenger carrying vehicle in the case of a fire.

Natural Disasters

Any damages and losses caused to the passenger carrying vehicle due to floods, earthquakes and other natural calamities.

Personal Accident

Covers for any personal injuries or death of the owner-driver of the the passenger carrying vehicle.

Third Party Losses

Covers for losses and damages caused to a third-party vehicle, property or person due to the passenger carrying vehicle, in the case of an accident or collision.

Towing Disabled Vehicles

Covers for any damages caused to the passenger carrying vehicle in cases where it’s being towed.

What’s not covered?

Own Damages for a Third-Party Policy Holder

If you’ve purchased only a Third-Party Passenger Vehicle Insurance Policy, then own damages and losses won’t be covered for. 

Drunk Driving, or Driving Without a valid License

If during a claim, the driver-owner is found to be without a valid driver’s license or under the influence of alcohol then the claim won’t be approved.

Contributory Negligence

Any damages or losses caused to the vehicle due to contributory negligence won’t be covered. For example, if there are existing floods in the city, and one still drives the vehicle despite being recommended not to. 

Consequential Damages

Any damages or losses that aren’t due to that of an accident, natural calamity or fire can’t be covered for.