Compare & Buy Car, Bike and Health Insurance Online - InsuranceDekho
Claim, renew, manage & moreLogin

Passenger Carrying Vehicle Insurance - All You Need to Know

Updated On Oct 18, 2023

Passenger Carrying Vehicle Insurance Policy

Travelling through the bustling roads of India, passenger-carrying vehicles (PCVs) play a pivotal role in our daily commutes, tourism, and overall transportation system. Ensuring these vehicles operate smoothly, and safely, and are adequately protected against uncertainties is imperative. 

This is where the guardian angel for all passenger-carrying vehicles enters the picture - PCV insurance. This insurance doesn’t just safeguard the vehicle and its owner but extends its protective wings over the passengers and third parties involved too, making it a critical aspect of operating passenger-carrying vehicles in India.

What is Passenger Carrying Vehicle Insurance?

Passenger-carrying vehicle insurance, or PCV insurance, is a specific insurance policy designed especially for vehicles that transport passengers. These include buses, taxis, and auto-rickshaws. It acts as a financial safeguard, protecting the vehicle owner against potential losses due to accidents, damages, thefts, or third-party liabilities.

A unique aspect of PCV insurance is its comprehensive protective umbrella that covers not only the vehicle and its driver but also the passengers travelling within. This inclusivity makes it a must-have for anyone involved in the passenger transportation business. In a country as dynamic as India, where every journey on the road comes with its own set of unpredictabilities, having a robust PCV insurance policy is not just a legal necessity but a practical boon as well.

Passenger Carrying Vehicle Insurance - All You Need to Know

Types of Passenger Carrying Vehicles in India

India’s diverse and vibrant landscape is mirrored in the variety of passenger-carrying vehicles that manoeuvre through its vast network of roads. Let's take a look at some of the primary types of passenger-carrying vehicles that ferry us across cities, towns, and villages:

  1. Buses: From local city buses to luxurious inter-city coaches, buses are the lifeline of public transport, carrying a multitude of passengers across various distances.
  2. Taxis: Taxis, including app-based cabs, offer a personalised travel experience, catering to those who prefer privacy and convenience, making point-to-point travel effortless.
  3. Auto Rickshaws: A ubiquitous sight on Indian roads, auto rickshaws are versatile, navigating through busy streets and narrow lanes with ease, making them ideal for short distances.
  4. Vans and Minibuses: Commonly used for school transport, tourism, and corporate shuttles, vans and minibuses offer a balanced capacity for medium passenger loads.
  5. Tempo Travellers: Larger than vans but smaller than buses, tempo travellers are a preferred choice for group travels, long journeys, and tourist excursions.

Importance of Passenger Carrying Vehicle Insurance

Ensuring the safety and financial security of these various passenger-carrying vehicles is where the significance of PCV insurance shines brightly. Here's why it holds immense importance:

  1. Legal Compliance: Having a valid insurance policy is a legal mandate for all vehicles, including PCVs, operating on Indian roads, ensuring adherence to regulatory requirements.
  2. Financial Protection: Insurance acts as a financial cushion, protecting vehicle owners from hefty expenses arising due to accidents, damages, or thefts.
  3. Liability Coverage: It covers the legal liabilities towards third parties for injuries, damages, or loss caused by the insured vehicle, safeguarding against legal complications.
  4. Passenger Safety: A unique aspect of PCV insurance is the protection it offers to passengers, ensuring their safety and welfare while travelling in the insured vehicle.
  5. Peace of Mind: Equipped with a robust insurance policy, vehicle owners can operate with enhanced confidence and peace of mind, knowing that potential risks are well-managed and covered.

In the mosaic of Indian roads where unpredictability is the only constant, PCV insurance emerges as a trustworthy ally, ensuring that the journey remains uninterrupted, secure, and smooth.

Passenger Carrying Vehicle Insurance Inclusions

Navigating the roads with a passenger-carrying vehicle comes with its own set of uncertainties. A robust insurance policy, however, ensures a smooth journey by including a variety of coverages such as:

  1. Damage or Loss to the Vehicle: Protection against natural calamities like earthquakes, floods, and man-made disasters such as theft, vandalism, and terrorist activities.
  2. Third-Party Liability: Coverage for legal liabilities arising from injuries, death, or property damage caused to a third party by the insured vehicle.
  3. Personal Accident Cover: A safeguard for the driver or owner against accidental death or permanent total disability, ensuring financial protection for unforeseen personal accidents.
  4. Passenger Cover: Financial safeguard for passengers travelling in the vehicle at the time of an accident, providing necessary protection against potential injuries or accidents.

Passenger Carrying Vehicle Insurance Exclusions

While passenger-carrying vehicle insurance acts as a sturdy shield, there are certain scenarios where the coverage does not apply. These exclusions include:

  1. Normal Wear and Tear: The usual deterioration of the vehicle over time, including ageing, and mechanical or electrical breakdowns, is not covered.
  2. Driving Under Influence: Damages occurring while driving under the influence of alcohol, drugs or any intoxicating substance are excluded.
  3. Invalid or No Driving Licence: Coverage is not applicable if the vehicle is operated by someone without a valid driving licence or if the licence is expired.
  4. Outside Geographical Limits: Damages or losses incurred outside the predefined geographical limits in the policy are not covered.
  5. War and Nuclear Risks: Damages caused due to war, mutiny, nuclear risks or similar such exclusions are not covered under the policy.

Passenger Carrying Vehicle Insurance Add-Ons

Add-ons are additional coverages that you can opt for over and above your standard insurance policy to enhance protection. Here are some valuable add-ons for passenger-carrying vehicle insurance:

  1. Zero Depreciation Cover: With Zero Depreciation add-on, you can receive the full claim amount without any deductions for depreciation, ensuring that you get a higher claim amount in case of repairs.
  2. Roadside Assistance Cover: A lifesaver in emergencies, this add-on offers services like towing, minor repairs, and other assistance when your vehicle breaks down unexpectedly on the road.
  3. Loss of Earnings Cover: This add-on compensates for the loss of earnings due to the inability to use the vehicle while it is being repaired, ensuring that business continues uninterrupted.
  4. Engine and Gearbox Protection Cover: Specific protection for the engine and gearbox, guarding against expenses arising due to their damages or malfunctions.
  5. Passenger Cover: Enhance the safety of your passengers by opting for a dedicated passenger cover that offers financial protection in case of injuries or accidents during the journey.

How to Raise a Claim for Passenger Carrying Vehicle Insurance?

Raising a claim for your passenger-carrying vehicle involves a sequence of steps to ensure that the process is smooth and successful:

  1. Immediate Intimation: Inform the insurance company immediately after the incident. Quick intimation helps in smoother claim processing.
  2. FIR Filing: In the case of theft or third-party damage, file an FIR at the nearest police station and obtain a copy of the report.
  3. Document Collection: Gather necessary documents like the insurance policy, vehicle details, driving license, and details of the incident.
  4. Claim Form: Fill in the claim form available on the insurer’s website or get it from their office. Submit the duly filled form along with the required documents.
  5. Vehicle Survey: Allow the insurance company to conduct a survey to assess the damages. Cooperate and provide necessary details for an accurate evaluation.
  6. Repair and Reimbursement: After the claim is approved, get the vehicle repaired at a network garage for cashless service or opt for reimbursement after getting the repairs done.

Ensuring a thorough understanding of the add-ons and the claim process allows for maximised benefits and a streamlined experience in navigating the uncertainties that come with operating passenger-carrying vehicles.

Documents Needed for Passenger Carrying Vehicle Insurance

Ensuring your passenger-carrying vehicle is adequately insured involves a meticulous documentation process. Keeping the necessary documents ready can streamline the process, making it efficient and hassle-free. Below is a comprehensive list of documents that you'll typically require:

1. Vehicle Registration Certificate (RC)

   - The RC is a crucial document that provides detailed information about your vehicle, like its registration number, engine number, and chassis number.

2. Fitness Certificate

   - A fitness certificate is essential, especially for commercial passenger vehicles, to certify that the vehicle is fit to be on the road and meets all necessary regulatory and safety standards.

3. Driving Licence

   - A valid driving licence is essential to prove the eligibility of the driver operating the passenger-carrying vehicle.

4. Previous Insurance Policy Details (if any)

   - Details of the previous insurance policy, such as the policy number, coverage details, and claim history, if any, are essential for reference and continuity.

5. PUC Certificate (Pollution Under Control)

   - A valid PUC certificate is mandatory to ensure that the vehicle adheres to environmental standards and emission norms.

6. Invoice and Sale Certificate

   - The invoice and sale certificate of the vehicle are necessary for a clear understanding of the vehicle's purchase details, essential for policy issuance.

7. Passenger Carrying Permit

   - A valid permit that authorises the vehicle to legally carry passengers for commercial purposes is a must-have document.

8. Detailed Application Form

   - A completed application form that includes all necessary details, personal and vehicle-related, as required by the insurance provider.

9. No Objection Certificate (NOC) (if applicable)

   - An NOC is required in cases where there's a change of ownership or other specific circumstances as per the insurer’s guidelines.

Having these documents in place ensures a smoother and more streamlined insurance application process, enabling you to secure the necessary protection for your passenger-carrying vehicle efficiently. It aids in facilitating thorough and comprehensive insurance coverage, ensuring that you and your vehicle are well-prepared to navigate the diverse terrains and uncertainties of Indian roads.

What to do if you have Passenger Carrying Vehicle Insurance Fake Papers?

Discovering that you possess fake insurance papers for your passenger-carrying vehicle is a daunting scenario, but it's essential to address this situation promptly and effectively. Here’s a guideline on how to handle such an occurrence:

1. Verify the Authenticity:

   - Double-check the documents and verify their authenticity by contacting the insurance company directly. Make use of the company’s official contact information available on their legitimate website.

2. Report the Incident:

   - If confirmed that the papers are indeed fake, report the incident to the police. An FIR (First Information Report) should be filed, documenting the details of the fraud.

3. Contact the Insurance Regulatory Authority:

   - It is advisable to report the incident to the Insurance Regulatory and Development Authority of India (IRDAI). They can take appropriate action against the fraudulent entities.

4. Search for a Genuine Policy:

   - Start searching for a genuine insurance policy from a reputable insurance provider. Make sure to perform thorough research, verify the credentials, and opt for a well-known and established company.

5. Purchase from Official Sources:

   - Always ensure to purchase insurance from official sources, such as the insurer's official website or authorised agents and brokers.

How to Buy Passenger Carrying Vehicle Insurance Online?

Buying insurance online has become a convenient and popular choice. Here’s a step-by-step guide to purchasing passenger-carrying vehicle insurance online:

1. Research and Choose a Reputable Insurer:

   - Conduct thorough research and select a reputable insurance company. Reviews and ratings can be a helpful guide in making an informed choice.

2. Visit the Official Website:

   - Go to the official website of the chosen insurance company. Avoid third-party websites to reduce the risk of fraud.

3. Select the Desired Insurance Product:

   - Navigate through the available insurance products and select the one that suits your passenger-carrying vehicle's needs and requirements.

4. Fill in the Necessary Details:

   - Complete the application process by filling in the necessary details, such as vehicle information, personal details, and any other required information.

5. Customise your Policy:

   - Opt for add-ons or customise the policy based on the specific needs of your passenger-carrying vehicle. Ensure that the chosen policy offers comprehensive coverage.

6. Make the Payment:

   - Proceed to make the payment through a secure payment gateway. Multiple payment options like credit/debit cards, net banking, and UPI are usually available.

7. Download and Save the Policy Document:

   - After successful payment, download the policy document and save it for future reference. It’s also advisable to print a copy for physical records.

Following these steps will ensure that you navigate through the online purchasing process smoothly, securing a genuine and comprehensive insurance policy for your passenger-carrying vehicle.

A Quick Note on NCB (No Claim Bonus)

No Claim Bonus (NCB) is a significant aspect of passenger-carrying vehicle insurance that every policyholder should be knowledgeable about. NCB is essentially a reward that an insurance company offers to the policyholder for not making any claims during the policy term. It's a discount on the premium, encouraging safe driving habits and cautious usage of the vehicle.

Here’s what you need to know about NCB:

- Accumulation: NCB starts accumulating from the very first year of purchasing the policy and continues to increase each year, provided no claim has been made.

- Transferability: NCB is transferable. If you decide to switch your insurance provider or purchase a new vehicle, the NCB can be transferred to the new policy or vehicle.

- Discount: NCB provides a substantial discount on the premium, ranging from 20% to a maximum of 50% over successive claim-free years.

- Loss of NCB: If a claim is made during the policy term, the NCB discount available for the next policy term is usually lost or reduced.

Understanding NCB and its benefits can lead to significant savings on the insurance premium, making it a notable feature to consider while managing and renewing your passenger-carrying vehicle insurance policy.

Final Thoughts

Understanding the nuances of a passenger-carrying vehicle insurance policy can seem like an uphill battle. However, armed with comprehensive knowledge, from understanding the types of coverages available to the specific inclusions and exclusions, the journey becomes smoother and more manageable.

Embrace the digital advantage by opting to purchase and manage your policy online at Insurance Dekho, ensuring that you always choose genuine and reputable insurance providers. Keeping essential documents ready, understanding the significance of NCB, and knowing the steps to raise a claim are paramount in optimising the benefits of your insurance policy.


  1. What is insurance for passenger-carrying vehicles?

Passenger Carrying Vehicle Insurance is a speciality insurance policy that covers automobiles like buses, taxis and autorickshaws that are utilised for commercial passenger transportation. It protects against obligations resulting from mishaps, burglaries, or harm to the car or other people.

  1. Is insurance required in India for a vehicle used for transporting passengers?

Yes, all cars operating on Indian roads, including those transporting passengers, are required by law to carry at least third-party liability insurance.

  1. What categories of coverage fall under this particular insurance category?

The policy's primary coverage is for third-party liability; comprehensive coverage, which guards against theft, fire, natural catastrophes, and other damages, is also an option.

  1. Can I buy passenger-carrying vehicle insurance online?

Yes, many insurers allow you to purchase passenger-carrying vehicle insurance online directly from their official websites. 

  1. What are some common add-ons available with passenger-carrying vehicle insurance?

Common add-ons include zero depreciation cover, roadside assistance, engine and gearbox protection, and passenger cover.

  1. What should I do if I possess fake insurance papers?

In case of fake insurance papers, immediately report to the police and contact the Insurance Regulatory and Development Authority of India (IRDAI). Subsequently, purchase a genuine policy from a reputable insurer.

  1. What is the No Claim Bonus (NCB) in the context of passenger-carrying vehicle insurance?

NCB is a discount on the premium awarded to policyholders for every claim-free year. It’s a reward for safe driving and can accumulate over the years.

  1. How is the premium for passenger-carrying vehicle insurance calculated?

The premium is calculated based on various factors such as the type and age of the vehicle, geographical location, engine capacity, and the chosen coverage and add-ons.

  1. What documents are needed to purchase passenger-carrying vehicle insurance?

Key documents include a Vehicle Registration Certificate (RC), fitness certificate, previous insurance policy details (if any), and a valid passenger-carrying permit.

  1. How do I raise a claim in case of an accident or damage to my passenger-carrying vehicle?

To raise a claim, immediately inform the insurance company, file an FIR if necessary, and submit the required documents such as a claim form and proof of damage to the insurer for processing.


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Explore more before buying Car Insurance

    must dotmust graphics

    Why to buy from InsuranceDekho?

    • Instant policy # within 5 mins
    • More than 45 Lac happy customers
    • Claim Support available all 7 days of the week

    People Also Read