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Taxi Insurance Online

Taxi insurance is a type of commercial vehicle insurance that offers financial protection to taxis in case of any accidental damages, third-party liabilities, etc. If you own a taxi or a fleet of taxis, you must secure them with adequate taxi insurance. It will ease the monetary burden of damage repairs during any unfortunate or unforeseen events like theft, accidents, natural calamities, etc. Read on to know more about taxi insurance in India.


Lately, commercial car services in India have been a flourishing sector. More and more people are enlisting their vehicle for commercial use. Not only it puts the motor vehicle to better use but also earns a profit. Besides this, for some people, it is a straight-up business where even the brand new cars purchased are used for commercial reasons.

 Driving or owning a taxi has several things that one needs to consider - including entrusting someone else to drive the vehicle responsibly. Therefore, whether it is a single taxi or a fleet of vehicles for commercial use, taxi insurance is a must-have.

But before you buy the policy, here’s everything you need to know about taxi insurance in India.

What is a Taxi Insurance?

Whether it is a private car or taxi, it is bound to be vulnerable to road accidents and other complications. Any unfortunate event can put the driver and the passengers at risk and can add a financial burden in case of vehicle damages. A taxi insurance plan is ideally a type of commercial vehicle insurance plan. The policy protects the vehicle financially against accidental damages or any other risk.

Types of Taxi Insurance

There are two types of taxi insurance plans available in India -

  1. Third Party Insurance

  2. Comprehensive Insurance

Let us understand the two in detail -

Third Party Taxi Insurance - Much like third party car insurance plans, the policy is mandatory by law under the Motor Vehicles Act, 1988. The third party taxi insurance plan will cover the cost incurred in damage/injury of third party property/person. Moreover, it also provides personal accident cover to the policyholder.

Comprehensive Taxi Insurance - Similar to comprehensive car insurance plan, the policy offers extensive coverage to the policyholder. Along with third-party coverage, comprehensive taxi insurance covers the vehicle against accidental damages, theft, and loss due to man-made or natural disasters. Furthermore, it also provides personal accidental cover to the policyholder. Depending on the insurer, the personal accidental coverage can be extended to the passengers, other designated drivers, and cleaners as well.

Features and Benefits of Taxi Insurance

Some of the key features and benefits of taxi insurance in India are as follows -

  • The policy provides financial security in case there is damage/loss to a third-party property because of the insured taxi.

  • The policy compensates for the injuries or death of other people due to the insured taxi.

  • The driver of the taxi gets a personal accidental cover.

  • With comprehensive taxi insurance, the policyholder can enhance the scope of the plan with add-on covers.

  • The taxi insurance buying and renewal process are simple and hassle-free.

  • The insurer offers a wide range of network garages across the country.

  • The insurer also provides cashless claim settlement and hassle-free reimbursement claim facilities.

Why Is Taxi Insurance Needed?

As explained earlier, taxi insurance is necessary for people who drive or own a taxi in India. Since it is a type of commercial vehicle insurance, the policy is known to protect the driver and passengers in case of any mishap.

At least, every commercial vehicle should have third-party insurance coverage as it is mandatory by law. However, since the third-party coverage is limited, taxi owners and companies can invest in comprehensive insurance plans as well. Along with third-party coverage, comprehensive taxi insurance offers enhanced benefits with add-on covers.

So, depending on your affordability and necessity, select a taxi insurance plan and cover yourself and your passengers when travelling.

Taxi Insurance IDV

The Insured Declared Value (IDV) in taxi insurance is calculated based on the market selling price of the vehicle. Moreover, the amount also includes any additional accessories fitted into the taxi for the convenience and comfort of passengers. The final IDV in taxi insurance is derived after eliminating the depreciation value of the car based on the Indian Motor Tariff schedule.

Taxi Insurance - Inclusions

Taxi insurance offers coverage for the following things -

  • Third-party liabilities: Whether it is third party insurance or comprehensive insurance, the policy will, by default, cover all the third-party liabilities.

  • Own Damage Cover: The comprehensive taxi insurance plan covers damage/loss incurred by the taxi in an accident, theft, and natural or man-made disasters.

  • Personal Accidental Cover: Third party, as well as comprehensive taxi insurance plans, provide personal accidental cover to the drivers, passengers, and cleaners of the taxi.

Besides this, the comprehensive taxi insurance plans allow the policyholder to enhance the scope of the plan with rider benefits. Based on the add-ons chosen, the policy will extend coverage for the following things -

  • Electrical and non-electrical components

  • Additional personal accidental cover for the driver(s)

  • Legal liabilities of the driver with respect to the vehicle

  • Headlights, bonnets, and bumpers expenses

  • Legal liabilities of the non-paying passengers of the taxi (if needed)

However, check all the inclusions of the taxi insurance with the insurer before buying the policy in India.

Taxi Insurance - Exclusions

Some of the standard exclusions in taxi insurance are as follows -

  • The wear and tear, consequential losses, and electrical breakdown of the taxi.

  • Depreciation value of the insured vehicle (unless zero depreciation cover is taken beforehand)

  • No compensation will be paid for the damages caused due to reckless driving or under the influence of intoxicants

  • Accidental damage expenses incurred by the taxi due to sheer negligence of the driver are not covered

  • Any damage or loss caused by an individual with an invalid driving licence

  • Any damage/loss occurring due to war-like situations, riots, and other malicious activities

Taxi Insurance Add-On Covers

The following are a few add-on benefits that policyholders can generally opt for when buying taxi insurance -

  • Zero Depreciation Cover

  • Emergency Stay/Transportation Cover

  • Multi-Car Rebate

  • Personal Belonging Cover

  • Return to Invoice Cover

  • Key Replacement Cover

  • Additional Personal Accidental Cover

  • Electrical and Electronic Accessories Cover

  • Bi-fuel System Cover

How to Compare Taxi Insurance Online?

We have several insurers providing taxi insurance to individuals and companies. As one wants to find the right motor insurance plan for their private motor vehicle, selecting the appropriate taxi insurance is just as important.

Start by evaluating your expectations from the taxi insurance plan. Then, based on the affordability and features offered, shortlist a couple of policies you like. When comparing taxi insurance online, consider factors such as coverage of the policy, premiums, exclusions, add-on benefits, claim settlement process, etc. Also, remember to compare the IDV quoted by different insurers.

Evaluating all these pointers will help you make an informed decision when buying taxi insurance in India. Once you find your ideal coverage, proceed to buy the policy online.

How to Buy Taxi Insurance Online?

Here’s what you need to do when buying taxi insurance online in India -

  1. Visit the insurer’s website and take a taxi insurance quote.

  2. Fill out personal and vehicle details

  3. Choose the type of coverage you need and add-on benefits.

  4. Review the policy details before paying the premium

  5. Pay the premium amount online. It is a secure process.

  6. After this, the insurer will issue taxi insurance in no time.

How to Renew Taxi Insurance?

Just like the taxi insurance application process, you can renew the policy online as well. Here’s what you need to do -

  • Just visit your insurer’s website

  • In the renewal section, provide policy and personal details

  • Check whether the renewal taxi insurance quote is acceptable and the details provided in the previous step are correct

  • Proceed to pay the premium amount

  • Once the premium is paid, the insurer will send across the renewed policy on your registered email address

How to Claim Taxi Insurance?

Follow the steps below to make a successful claim on your taxi insurance plan in India -

  1. Initiate the claim process by registering for it online on your insurer’s website or app.

  2. If you are unable to do so, get in touch with an executive to guide you through the claim process.

  3. Fill the claim application form along with incident details.

  4. Upload the claim supporting documents.

  5. Once the application is submitted, the insurer will assign a surveyor to assess your case.

  6. The surveyor will investigate the damage incurred and the incident.

  7. Based on his/her decision, the claim decision will be made.

  8. If the claim is approved, the expenses incurred will be directly settled with the garage in case of cashless claim settlement or reimbursed into your bank account soon.

Documents Required for Filing a Taxi Insurance Claim

Keep the following documents handy when claiming on your taxi insurance plan -

  • Police FIR in case of any mishap

  • Duly filled claim application form

  • Fitness certificate

  • Driving licence

  • Vehicle registration certificate

  • Taxi insurance documents

The insurer will assess your claim application once all the necessary documents are submitted.

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✔️Why should I buy taxi insurance online?

Buying taxi insurance online has several benefits -

  • You can readily compare different taxi insurance plans online

  • Usually, there are several offers and discounts on premiums when the policy is purchased online

  • The claim settlement process is hassle-free and less time-consuming

✔️How do insurers calculate the taxi insurance premiums?

When calculating taxi insurance premiums, the insurers take into consideration the following factors -

  • Engine cubic capacity

  • IDV

  • Depreciation of the vehicle

  • Vehicle age

  • Vehicle registration region

✔️Does taxi insurance have No Claim Bonus discount?

Yes. Many insurers offer No Claim Bonus (NCB) rewards for every claim-free year. The reward percentage may vary from insurer to insurer, but it can be used to avail discounts on the taxi insurance premiums at the time of renewal.