Passenger Carrying Vehicle Insurance

What is A PCV?

A passenger-carrying vehicle or PCV plays an important role in modern transportation systems. It extends its services to commuting, tourism, and group trips. These vehicles offer a helping hand to people from all walks of life - ensuring that they can get to their destination quickly and safely.

From horse-drawn carriages to electric buses, these vehicles have transformed to a great extent to fulfil the ever-changing needs of people. PCVs have become more than just a mode of transportation - they are an integral part of the community, giving people a sense of belonging.
 

Types Of PCVs

Here are the different kinds of PCVs used for specific purposes -

• Buses and coaches carry a higher number of people at the same time, providing an efficient form of transportation for the general public.
• Minibuses and taxis provide a more personalised experience, taking passengers to their destinations.
• Ride-share services and limousines provide added convenience and comfort.
• A train or a ferry is an excellent solution for navigating geographic and urban obstacles.

Uses Of PCVs

Passenger carrying vehicles (PCVs) are important for modern transportation systems, making it possible for millions of people to travel around the country.

Let's take a look at some of the uses of PCV in our day-to-day lives.

1. Urban Mass Transit
   The cities of India are well known for their vibrant energy and busy streets, and buses, metros, and trains make up the majority of public transportation. It's crucial in places like Delhi, Mumbai, and Kolkata, allowing neighbourhoods to be connected and providing access to all. The city's transit system depends on them for affordable, convenient transportation throughout the city.
    
2. School Buses
   School buses are a crucial part of PCVs, helping kids get to school safely. In addition to helping children reach their educational goals, school buses help keep neighbourhoods free of traffic congestion. Seat belts and flashing lights are often installed on these buses to keep kids safe and parents and guardians at ease.
    
3. Tourism And Travel
   Tourists can easily explore the country with the help of PCVs, which provide convenient and cost-effective transportation. Thus, they promote India's tourism industry, a key contributor to the nation's economy. Whether it's the Taj Mahal or the Poovar Lake in Kerala, tour buses help tourists discover the diverse landscapes and cultures of India. Furthermore, their fares are quite affordable, making them a good choice for budget travellers.
    
4. Urban Commuting
   Commuters in India use PCVs like taxis, auto-rickshaws, and cycle rickshaws to reach their destinations. It is easy to get to work, school, and the market without having to worry about parking in congested areas.
    

Insurance For PCV

Basically, a passenger carrying vehicle insurance policy is designed to protect commercial vehicles that transport passengers from one place to another. A passenger carrying vehicle insurance policy protects the vehicle from damages and losses that may arise from an accident, natural disaster, fire, etc. Passenger carrying vehicle insurance policies include bus insurance, van insurance, taxi/cab insurance, auto rickshaw insurance, etc.
 

Types of PCVs Covered Under Insurance

Here are the types of PCVs that are protected under the insurance policy -

1. Buses: Buses used for transporting passengers from one place to another, such as school buses, private tour buses, etc.
2. Auto Rickshaws: Auto rickshaws that are used for commercial purposes or for transporting people.
3. Taxis, Cabs and Commercial Cars: Cabs, private cars used for commercial, public transportation, like Uber, Ola, and other taxis.
4. Vans: School vans and tour minibuses for commercial use.
    

Types Of Insurance For PCVs

There are two types of insurance for passenger carrying vehicles -

1. Third-party Liability Insurance
   A third-party policy covers any liability arising out of bodily injury or property damage caused to a third party.
    
2. Comprehensive Policy
   A comprehensive policy will protect you against any damages, theft, etc. incurred by you as well as third-party liabilities involving your vehicle in  the event of an accident. In short, a comprehensive policy provides complete protection.

What Is Covered Under A Comprehensive Policy?

A comprehensive policy safeguards your vehicle against -

👉Loss or damage caused by:

1. Fire explosion, self-ignition, or lightning
2. Burglary, housebreaking, or theft
3. Riot and strike
4. Earthquake (fire and shock damage)
5. Floods, hurricanes, storms, typhoons, etc.
6. Accidental external means
7. Malicious act
8. Terrorist activity
9. During transit by road/lift/elevator/rail/ air inland-waterway
10.  Landslide, rockslide

👉Third-party liabilities

If an accident happens, the insurer will cover the -

1. Death of or bodily injury to any person caused by or arising out of the use (including the loading and/or unloading) of your vehicle.
2. Damage to third-party property due to the use (including the loading/unloading) of your vehicle.

This will be subject to the limits of liability as laid down in the policy including the claimant’s cost and expenses.
 

What is Not Covered?

The insurer will not cover -

1. Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown, failures, breakages, damage caused by overloading or strain of your vehicle.
2. Loss of or damage to accessories by burglary, housebreaking or theft unless your vehicle is stolen at the same time.
3. Damage to tyres and tubes, except when the vehicle is damaged at the same time, in which case the insurer is only responsible for 50% of the cost of replacement.
4. Any accidental loss or damage sustained when you or any other person driving the vehicle with your permission is under the influence of alcohol or drugs.
5. Death, injury, damage caused or arising beyond any carriageway or thoroughfare while bringing the load to the insured vehicle, or removing the load from it.
6. Death or bodily injury arising out of or in the course of the insured's employment, except as required by the Motor Vehicle Act.
7. Accidental loss or damage and/or liability outside the geographic area.
8. Any claims resulting from any contractual liability
9. Any accidental loss damage and/or liability incurred if your vehicle hasn't been used as stated in 'Limitations as to Use' or if it is being driven by someone other than the driver mentioned in the driver's clause.
10.  Any accidental loss or damage to any property, or any expense or loss resulting from consequential loss.
11. Liabilities resulting directly or indirectly from ionising radiations, contamination by radioactivity, etc.
12. Any loss or damage caused by or arising from nuclear weapons material, directly or indirectly.
13. Any accidental loss, damage, or liability arising out war, invasion, foreign enemies, etc.

Why Do You Need Insurance For A PCV?

Here are some of the reasons why insurance is a must for PCVs -

1. Protects Against Any Unforeseen Financial Losses
   Driving on the road is always a risky affair. If you own a passenger car, you're putting others' lives in jeopardy too. An insurance policy will protect you from any financial losses arising out of accidents, collisions, natural disasters, etc. It also provides coverage in case of theft. Therefore, it is important to make sure you have the right insurance policy to ensure you have the protection you need.
    
2. To Abide By The Law
   Third-party insurance is a must-have for any vehicle, whether it's a private car, bike, GCV, or PCV. Without insurance, you'll have to pay a hefty fine,  face jail time, or both. So, having third-party insurance in place is not only advisable but a legal requirement in order to stay on the right side of the law.
    
3. To Avoid Third-Party Liability
   You'll be responsible for all the financial losses if you accidentally cause damage to a third party or their property - if you don't own an insurance policy. Therefore, it is important to invest in an insurance policy to protect yourself from such financial repercussions.

How To Purchase An Insurance Policy For Your PCV?

Here are the steps you need to follow to ensure a successful purchase process -

1. Before you buy commercial vehicle insurance, jot down your needs.
2. When you're done with that, go to the website of your desired insurance company or a web aggregator.
3. You'll be asked to enter your purpose of driving. In that case, select 'Commercial Use'.
4. Fill out a few details, like your RTO location, your car's make, model, variant, purchase year, previous policy information, etc.
5. Before buying an insurance policy, ensure you compare the coverage, inclusions, exclusions, price of different plans, etc. to make an informed decision.
6. You can also adjust the IDV to see how it affects your premium.
7. Before making the payment, make sure you check the coverage and read the terms and conditions of the policy.
8. Once you make the payment, you'll receive the policy in your registered email ID.       
    

Premiums

The cost of commercial vehicle insurance varies depending on a lot of factors. You can use an online commercial vehicle insurance calculator to find out how much it'll cost. It is essential to compare different insurance companies to ensure that you are getting the best deal for your premium.

Some factors that play a key role in determining your premiums -

1. Type of Insurance Policy
   A third-party policy has a lower premium than a comprehensive policy. The higher the coverage you choose, the higher your premium will be. It is important to determine your coverage needs and select a policy accordingly.
    
2. Insured Declared Value (IDV)
   IDV is the maximum amount that will be provided by the insurer if your vehicle is stolen or declared a total loss. Hence, the higher the IDV, the higher your premium will be.
    
3. Make and Model
   Your commercial vehicle's make and model, along with its year of manufacture, also determine the premium.
    
4. Engine Capacity
   The IRDAI determines third-party insurance rates based on the car's engine cubic capacity (cc). Generally, the higher the cc, the more the premium.
    
5. Deductibles
   A deductible is an amount that you are required to pay out-of-pocket, before your insurer steps in to pay the claim amount.
   These are the two types of deductibles:

1. Mandatory deductible
It is a fixed amount that you have to pay at the time of claim. This amount is decided based on the CC of your vehicle.

2.  Voluntary deductible
As the name suggests, it is an amount chosen by you voluntarily. Higher deductible means a lesser premium. Remember, you need to pay the voluntary deductible along with the mandatory deductible every time you submit a claim.
 

How To Calculate A Commercial Vehicle Insurance Premium?

A commercial car insurance premium calculator can help you figure out how much your insurance policy will cost. By entering the relevant information into the calculator, you can easily estimate your insurance policy costs in a matter of minutes.

Here's what you need to do to calculate your commercial vehicle insurance premiums -

1. Enter a few details of the vehicle, such as the vehicle model, purchase date, previous policy details, etc.
2. Choose your insurance plan and tailor it to suit your unique needs by adding optional covers.
3. Once you are done with these steps, click on ‘Calculate’ to see how much the insurance policy will cost.

Things To Consider While Buying Insurance For PCV

Here are some of the key things to keep in mind before you sign up for the policy -

1. It is important to compare the different plans available in the market because each plan may have different levels of coverage, deductibles, exclusions, etc. You want to make sure you are getting the best coverage for your money and that the policy fits your needs.
2. Make sure the insurance company is reputable and provides good customer service. Check customer reviews, as they can provide insight into the quality of service you can expect.
3. Ensure you read the fine print on the policy to make sure it covers what you need and that you understand any exclusions or limitations.

 How Do You Make A Claim?

To file a claim, you've got to contact your insurance company first. The claim process differs across insurers. Basically, there are two kinds of claims - Cashless Claim and Reimbursement Claim.

Cashless Claim

Under a cashless claim, the vehicle can be repaired only at a network garage that has a tie-up with your insurer. Here are the steps you need to follow to file a cashless claim -

1. First, take your vehicle to the network garage.
2. Next, submit the necessary documents to the insurance company to initiate the claim.
3. A surveyor from the insurance company will inspect the car at the garage.
4. Once the surveyor confirms that the damage is covered, you can proceed with the repairs.
5. The garage will give the insurance company the repair invoice once your vehicle is fixed.
6. After verifying the documents, the insurance company will settle the claim and transfer the bill amount to the garage.

Note: In case a major accident happens, you can move your vehicle from the accident site only after you receive an approval from the insurer or the surveyor assigned by them.

Reimbursement claim:

You can submit a reimbursement if you want your car to get repaired at a garage that doesn’t have a tie-up with your insurance company.

Steps to file a reimbursement claim -

1. First, you need to notify the insurance company.
2. Once the insurer gets your intimation, they will assign a surveyor.
3. The surveyor will verify the damage. Once he approves, the repair work can start.
4. After the repair work is done, you need to make the full payment upfront and claim a reimbursement from the insurer later.
    

Here is a list of documents you will need for making a claim request -

• Duly filled claim form
• Registration copy
• Aadhar card copy
• Copy of insurance
• Tax paid receipt
• Driving licence copy of the driver at the time of the accident
• Estimate of repair (signed and stamped by the garage)
• Invoice copy (signed and stamped by the garage)
• Copy of permit
• Copy of fitness certificate
• FIR copy
• Cancelled cheque/passbook (In case of reimbursement claim)
• Any other documents requested by the insurer.
   

How Do You Renew Your Insurance Policy?

The online renewal process is super easy and hassle-free. With just a few simple steps, you can conveniently renew your policy online, saving you time and effort.

Follow these steps for easy renewal -

1. First, fill in your vehicle details or your policy number on your current insurance company's profile.
2. You'll see your renewal details on the screen. Double-check your details to ensure accuracy and move forward.
3. If you want to change your insurer, you can go to the website of your desired insurance company or any web aggregator or broker. Next, fill in some details like make, model, registration number, RTO, etc.
4. According to the entered data, a list of quotations from various insurance companies will be displayed.
5. You can select the one that fits your needs and proceed with the renewal.
    

Cancellation of PCV Insurance

Cancellation of the insurance policy for your PCV is possible if you are selling your vehicle or purchasing a new policy. You'll get a full refund if you cancel your policy before coverage starts. The refund will be prorated if the cancellation happens after the policy coverage starts.

To cancel your policy, here's what you need to do -

1. First, write an email to the insurance company stating the valid reason.
2. The insurance company will ask you to submit documents depending on the reason for your cancellation.
3. If you're cancelling your policy because you’re selling the vehicle, you'll need to submit Form 29 of RTO or the Sale Deed as proof of sale.
4. If you're cancelling your policy because you've bought a new policy, you'll have to submit the new policy copy.
5. Some insurers refund the amount to the source account through which you bought the policy, but others need a cancelled check in the owner's name.