For many years, auto rickshaws have been in great demand in India due to their reasonable cost, easy access, and trustworthiness as a way to travel. If you own an auto-rickshaw fleet, choosing the right business insurance is necessary as it provides financial security when required.
Keep reading to learn the types of business insurance your auto rickshaw fleet must have to remain secure in case of unexpected events.
Types of Auto Rickshaw Insurance
Today, the market comes with various insurance providers. However, they provide two primary kinds of commercial vehicle insurance plans, which are:
- Third-party Auto Rickshaw Insurance
This insurance policy provides third-party liability coverage against damage caused to a third party in an accident for which you are held responsible. It also covers any legal expenses that may accrue due to claims made by the third party for the damages suffered.
This policy protects against damage to or loss of third-party property and injuries to or fatalities of third-party individuals.
- Comprehensive Auto Rickshaw Insurance Policy
A comprehensive auto rickshaw insurance offers a wider coverage. This is not limited to third-party damages but also damage to your vehicle. This insurance protects against all disasters.
This policy can also be combined with other available add-ons so that an insurance customer can opt for coverage according to a specific requirement. However, comprehensive policies usually charge higher premiums than third-party coverage.
Advantages of Buying Auto Rickshaw Insurance
Here are 5 key benefits of obtaining auto rickshaw insurance:
- Financial Protection Against Accidents
In case of an accident, the insurance restores damages to your vehicle and medical expenses due to injuries to your body or third parties. You can confidently continue to operate the business without facing any hefty expenses.
- Comprehensive Coverage Options
Most auto rickshaw insurance plans provide extensive insurance coverage apart from basic liability coverage. This can include theft cover, fire cover, vandalism cover, and cover against natural disasters. With a comprehensive policy, you can protect your investment against various risks so that your rickshaw remains protected in all possibilities.
- Legal Compliance
As per the Motor Vehicle Act of 1988, all auto rickshaws must have insurance coverage. With proper insurance coverage, you are legally compliant, which keeps you away from fines and possible legal issues. This keeps your business operations legitimate and enables you to cater to services uninterrupted by law troubles.
- Protection for Passengers and Third Parties
Auto rickshaw insurance generally provides coverage for liability to injury, meaning that passengers and third parties would automatically be covered in case of an accident. Suppose someone gets injured while sitting in your auto rickshaw or any other vehicle is damaged. Your insurance covers all the medical bills and repair costs, thus saving you from any monetary loss.
- Access to Additional Services
Many insurance providers offer extra services and benefits in addition to auto rickshaw insurance. These include roadside assistance, rental car coverage, and 24/7 customer support. Such add-ons render your general experience more fulfilling and help during critical times.
Inclusions Under Auto Rickshaw Insurance Policy
The following are the factors covered under the terms and conditions of an auto rickshaw insurance policy:
- Accidental Loss & Damages: This policy ensures the monetary loss or damage to the vehicle in case of accidents while carrying passengers.
- Natural Disasters: The auto rickshaw insurance covers damage or loss caused by natural causes such as typhoons, floods, and earthquakes.
- Theft: Due to their open nature, auto-rickshaws are vulnerable to theft. This insurance policy offers protection against theft, although one must check with the insurer to determine what cover is available.
- Fire Accidents: With age, the engines of auto rickshaws may overheat and catch fire if not serviced. Fire accidents are usually unpredictable; thus, this policy will encompass losses due to such accidents.
- Third-Party Losses: Third-party commercial auto-rickshaw insurance is compulsory and addresses third-party liability arising from any loss or injury caused by the auto-rickshaw to others.
- Towing Disabled Auto-Rickshaw: This insurance policy also covers the loss or damage to the auto-rickshaw when it is being towed.
- Personal Accident: While driving an auto-rickshaw, if the driver or owner meets with an accident and sustains partial or permanent injuries, or if a passenger meets with an accident and sustains partial or permanent injuries, then the medical expenses are reimbursed.
Exclusions Under the Auto Rickshaw Insurance Policy
Here are the factors that are not covered under the terms and conditions of the auto-rickshaw insurance plan:
- Driving an Auto Rickshaw Without a Valid DL: Driving without a valid license is illegal on Indian roads. Suppose the insurance companies find evidence that the driver did not possess a valid license when he was involved in the accident while driving the auto. In that case, they will not compensate the company for losses or damages.
- Intoxicated Driving: If the insurance company determines that the auto-rickshaw driver was drunk during the accident, they will not compensate for any loss or damages. Moreover, it is illegal to drive in an inebriated state, and driving in such a condition attracts heavy fines under the Motor Vehicle Act of India.
- Loss Due to Negligence: The insurance company will not compensate for that loss or damages if the driver ignores that natural phenomena or the engine condition is not in a good state and continues driving, leading to severe damage.
- Consequential Loss: If an auto-rickshaw is partially damaged and caused by any reason other than fire, road accidents, or natural calamities, then the insurance company will not compensate for those incidents.
Documents Required to Claim Auto Rickshaw Insurance
Following are the essential documents required to be furnished at the time of claiming auto rickshaw insurance:
- Insurance policy papers
- Copy of FIR
- Vehicle Registration Certificate
- Driving License
- Copy of Aadhaar Card
- Pollution Under Control Certificate
- Completed claim form
- Tax paid receipt
- Newspaper cutting, if published as proof
Having the right commercial vehicle insurance becomes very important in commercial fleets of auto rickshaws. This coverage area helps us understand what it takes to mitigate risks and makes for a long-term, viably sustainable transportation business.
The right insurance means driving your business forward while being confident and protected against the unexpected.
Also Read: 5 Common Myths About Four Wheeler Insurance
