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

What is Taxi Car Insurance?

Updated On Oct 18, 2023

Taxi Insurance: Coverage, Claim and Exclusions

Driving through the bustling streets of India, taxis are more than just a common sight; they are an integral thread in the colourful fabric of our daily lives. From the rushing office-goer to the enthusiastic tourist, taxis play a pivotal role in ferrying diverse passengers safely to their destinations. Just as a careful gardener tends to each plant with precision, it’s crucial to ensure that these vehicles, which drive the rhythm of our daily transit, are protected and secured. Enter the realm of taxi car insurance—a specialised armour designed to safeguard taxis and their drivers from the uncertainties that the vibrant and chaotic roads often unveil. So, let’s embark on a journey to understand this protective shield a bit more closely, shall we?

What is Taxi Insurance?

Taxi insurance is not just another policy; it’s a specialised form of vehicle insurance meticulously crafted to meet the unique needs of taxis and their drivers. Imagine it as a custom-tailored suit, designed with precision to fit the dynamic requirements of taxis operating across the varied landscapes of India.

At its core, taxi vehicle insurance aims to provide financial protection against unexpected mishaps such as accidents, thefts, or damages due to natural or man-made disasters. However, it takes it a step further, incorporating elements that resonate with the specific nature of taxis—consider aspects like enhanced liability coverage and passenger protection.

So, in essence, taxi insurance acts as a robust guardian, ensuring that the wheels of these everyday chariots keep rolling smoothly, unperturbed by the uncertainties and challenges that often intertwine with the roads of reality. In the subsequent sections, we will delve deeper, exploring the nuances that make taxi insurance a pivotal ally in a taxi's journey through the vibrant yet unpredictable pathways of India.

What is Taxi Car Insurance?

Taxi Insurance Features and Benefits

Taxi insurance, as bespoke as a well-crafted suit, comes enriched with features and benefits tailored to meet the unique rhythms of a taxi's journey. Let's unwrap some of these features to understand how they bolster the security blanket around your taxi.

  1. Comprehensive Coverage: Like a sturdy umbrella in unpredictable weather, comprehensive taxi insurance provides a wide spectrum of protection covering damages due to accidents, theft, fire, and natural or man-made disasters.
  2. Third-Party Liability: Acting as a reliable defender, this feature covers legal liabilities in case your taxi causes injury, death, or property damage to third parties.
  3. Personal Accident Cover: Prioritising the driver's well-being, this feature offers compensation in the event of an accident resulting in disability or demise of the driver.
  4. Passenger Liability: Recognising the responsibility towards passengers, some policies offer coverage protecting the passengers’ interests in case of injuries during the transit.
  5. Roadside Assistance: Like a trustworthy friend ready to help in times of need, Roadside Assistance offers invaluable support in the form of towing, minor repairs, and other emergency services during breakdowns.

Why Taxi Insurance?

"Why taxi insurance?" you might wonder. Well, let's navigate this question together, understanding why taxi insurance is not just necessary but a crucial companion in a taxi's journey.

  1. Legal Compliance: First and foremost, taxi insurance helps adhere to legal mandates. Just as we follow traffic rules, having a valid insurance policy is a legal requirement for taxis operating in India.
  2. Financial Shield: Insurance acts as a robust financial safeguard, protecting you from unexpected expenses that accidents or damages might bring along.
  3. Passenger Safety: Given the pivotal role passengers play in a taxi’s journey, insurance ensures that their interests are protected, offering peace of mind to both passengers and drivers.
  4. Operational Smoothness: With a solid insurance cover, taxis can operate with a sense of security, unburdened by the potential financial risks associated with unforeseen mishaps.
  5. Enhanced Credibility: Having insurance enhances the credibility of taxis and their operators, instilling confidence in passengers and regulatory bodies alike.

In the panorama of taxi operations, insurance emerges as a steadfast ally, helping navigate the diverse challenges that the vibrant roads of India unfurl, ensuring a journey that's secure, smooth, and shielded from uncertainties.

What is IDV?

In the world of taxi insurance, IDV or Insured Declared Value is a term that often takes the spotlight. Imagine walking into a store to sell your smartphone; the price offered to you is primarily based on the current market value, right? Similarly, IDV is the current market value of your taxi. It's the maximum amount that you can claim from the insurance company in case of theft or total loss of the vehicle due to severe accidents or disasters.

Think of IDV as the superhero's maximum power level - it is the utmost coverage that the insurance policy offers for your taxi. It's essential to set an accurate IDV, ensuring that you’re neither over-insuring nor under-insuring your vehicle, maintaining a perfect balance for optimum protection.

Taxi Insurance Policy Inclusions

The taxi insurance policy, like a comprehensive protection shield, includes a wide array of coverages to safeguard your vehicle against the unpredictable. Here’s a glance at what’s usually included:

  1. Damage or Loss due to Natural Calamities: Covering against the wrath of nature, insurance protects your taxi against damages due to events like earthquakes, floods, cyclones, and landslides.
  2. Damage or Loss due to Man-Made Disasters: Shielding against human actions, the policy covers damages resulting from incidents like theft, riots, vandalism, or terrorist activities.
  3. Third-Party Liability: Acting as a guardian against legal hassles, this inclusion offers protection against legal liabilities arising from damages to third parties caused by the taxi.
  4. Personal Accident Cover: Placing the driver’s well-being at the forefront, this aspect covers the owner-driver against accidental injuries, disabilities, or demise.
  5. Passenger Cover: Some policies also extend their care towards the passengers, ensuring their protection against accidents or injuries during the journey.
  6. Coverage for Accessories: Enhancing protection, some policies also cover electrical or non-electrical accessories in the taxi, safeguarding against potential damages or theft.

These inclusions ensure that the journey, despite its uncertainties and challenges, remains as secure and smooth as possible. 

Exclusions of Taxi Insurance

In the realm of taxi insurance, while there is a generous blanket of inclusions, there are certain exclusions as well. These are situations where the insurance policy gently steps back, not extending its protective shield. Let’s unravel these exclusions to gain clearer insights.

  1. Wear and Tear: The natural wear and tear of the vehicle, over time, is not covered. It’s akin to expecting coverage for ageing, which is a natural process.
  2. Driving Without a Valid Licence: If the taxi is driven by someone without a valid driving licence, the insurance coverage doesn’t apply.
  3. Driving Under the Influence: In cases where the vehicle is operated under the influence of alcohol or drugs, the insurance policy won’t step in to offer protection.
  4. Mechanical or Electrical Breakdown: Failures of mechanical or electrical nature, such as engine malfunctions, are outside the purview of coverage.
  5. Usage Beyond Specified Limits: If the taxi is used beyond certain specified purposes or limits, like being used in racing, the coverage becomes non-applicable.

Taxi Insurance Add-ons

Add-ons in taxi insurance are like the extra toppings that you can choose to enhance your basic policy. They add an additional layer of protection, customising the policy to align closely with your specific needs.

  1. Zero Depreciation Cover: This add-on ensures that depreciation is not considered during claim settlements, ensuring higher claim amounts.
  2. Engine Protect Cover: Providing extra care for the engine, this add-on offers coverage for engine-related damages.
  3. Roadside Assistance: A helpful ally during breakdowns, this add-on provides services like towing, minor repairs, and battery jumpstart.
  4. Passenger Cover: Extending the care to passengers, this add-on ensures that passengers are covered for medical expenses in case of injuries during transit.
  5. Loss of Income: An empathetic add-on that compensates for the loss of income in case the taxi is not operational due to damages or repairs.

Choosing the right add-ons is like picking the perfect accessories to complement your attire, enhancing the protection and care that your taxi insurance policy extends, ensuring a journey that is as secure, smooth, and worry-free as possible.

Optional Covers Available in Taxi Insurance

Optional covers in taxi insurance are akin to a buffet of protective measures. You have the freedom to pick and choose, customising your policy to satisfy the unique appetite of your taxi's needs. Here’s a serving of some enticing optional covers you might consider:

  1. No Claim Bonus Protection: A delightful option that allows you to retain your no claim bonus even after making a specified number of claims in a policy year.
  2. Key Replacement Cover: Misplaced or lost keys are not a worry anymore. This cover takes care of the cost of replacing lost or stolen keys.
  3. Tyre Damage Cover: Roads can be unpredictable. Tyre Damage Cover ensures that your tyres are protected against damages caused by potholes or debris.
  4. Windscreen and Glass Cover: A clear vision is essential. Opt for this cover to protect the windscreen and windows against potential damages.
  5. Emergency Transport and Hotel Expenses: If you’re stranded due to unexpected events, this cover will take care of your emergency transport and hotel expenses.

How to Compare Taxi Insurance Online?

The digital era has simplified insurance comparison, making it as effortless as browsing through a menu. Here’s a step-by-step guide on how to compare taxi insurance online:

  1. Visit Insurance Comparison Websites: Begin your journey at insurance comparison websites. They are like your online marketplace, offering a variety of options to explore.
  2. Enter Vehicle Details: Just as you’d specify your preferences in a dish, enter details about your taxi such as model, make, and registration year.
  3. Specify Coverage Needs: Determine whether you want a third-party policy, a comprehensive cover, or a policy adorned with specific add-ons.
  4. Review and Compare: Explore the offerings. Look at the premiums, coverages, and terms and conditions, comparing them to find the one that resonates with your needs.
  5. Read Customer Reviews: Customer reviews are like feedback on a dish. They give you insights into the experience and satisfaction levels of other policyholders.
  6. Make an Informed Choice: With all the information at your fingertips, make a choice that aligns with your requirements and budget, ensuring that your taxi journeys through the roads of India with optimum protection and peace of mind.

How to Buy Taxi Insurance Online?

Buying taxi insurance online is as simple and convenient as online shopping. Here’s a guide to seamlessly purchasing taxi insurance with just a few clicks:

  1. Choose Your Preferred Insurer or Comparison Site: Start by visiting the website of an insurance provider or a comparison platform. It's like choosing your favourite online store.
  2. Fill in Vehicle Details: Provide necessary details about your taxi, such as the make, model, year of manufacture, and other relevant information. It's similar to choosing the specifications of a product you wish to buy.
  3. Select the Type of Cover: Decide whether you want comprehensive coverage, third-party coverage, or any specific add-ons. Think of this as selecting the variant or version of a product.
  4. Get Premium Quotes: Based on the details and coverage chosen, you will receive quotes for the premium. Consider these as the price tags.
  5. Review and Finalise: Evaluate the offerings, and once you find a plan that aligns with your needs, proceed towards purchasing.
  6. Make Payment: Complete the transaction by making the payment online through secure payment gateways.

Taxi Insurance Renewal Process

Renewing taxi insurance is like replenishing your supplies; it ensures uninterrupted protection. Here’s how you can smoothly renew your taxi insurance:

  1. Reminder: Set a reminder for the expiry date of your existing policy to avoid any lapses. It’s always good to be proactive!
  2. Visit the Insurer’s Website: For renewal, you can directly visit the website of your existing insurer, or you may choose a new insurer if you wish to switch.
  3. Enter Policy Details: Provide details of your existing policy such as policy number, and other required information.
  4. Review Policy Details: Check and review the policy details, ensuring everything is up-to-date. Make necessary modifications if needed.
  5. Check for Discounts or No Claim Bonus: Don’t forget to check if you are eligible for any discounts or no claim bonus, ensuring you get the best deal.
  6. Make Payment: Conclude the renewal process by making the payment. Once the transaction is successful, you will receive the renewed policy, ensuring your taxi continues to roll on the roads with a protective shield of insurance.

Remember, timely renewal is key to maintaining uninterrupted coverage and peace of mind as you navigate through the vibrant and dynamic roads of India.

What is the Claims Process?

Navigating through the claims process in taxi insurance doesn’t have to be a bumpy ride. Here’s a simplified roadmap to guide you through:

1. Immediate Actions:

   - Report the Incident: Whether it’s an accident, theft, or damage, ensure you report the incident promptly to the police and your insurance provider.

   - Document the Incident: Take photographs, collect witness contacts, and gather as much information as possible to paint a clear picture of the incident.

2. Initiating the Claim:

   - Contact Your Insurer: Reach out to your insurer at the earliest, informing them about the incident and expressing your intent to claim.

   - Fill in the Necessary Forms: Complete the required claim forms, attaching necessary documents such as FIR, photographs, and any other relevant proofs.

3. Survey and Damage Assessment:

   - Cooperate During the Survey: An insurance surveyor may visit to assess the damages. Ensure you cooperate fully, providing all necessary details.

   - Submit Repair Estimates: Obtain and submit repair estimates from authorised service centres to facilitate the claim processing.

4. Claim Settlement:

   - Review the Settlement Offer: Once the survey is done, the insurer will provide a settlement offer. Review it thoroughly.

   - Complete the Formalities: If you agree with the settlement, complete the required formalities, and the claim amount will be disbursed.

Taxi Car Insurance Companies in India

India’s insurance market is vibrant with numerous companies offering taxi insurance. Each comes with its unique offerings and strengths. Here’s a curated list of companies where you might consider insuring your taxi:

  1. New India Assurance Co. Ltd.: Renowned for its comprehensive policies, New India Assurance offers robust taxi insurance plans that cater to a wide array of needs.
  1. United India Insurance Company: With customer-centric plans, United India Insurance stands out for its reliable services and vast network.
  1. Oriental Insurance Company: Known for its simplified claim process and efficient services, Oriental Insurance is a trusted name in the sector.
  1. HDFC ERGO General Insurance: HDFC ERGO is praised for its quick claim settlements and innovative, tailor-made insurance solutions for taxis.
  1. Bajaj Allianz General Insurance: With a strong reputation for customer satisfaction, Bajaj Allianz offers comprehensive and flexible taxi insurance plans.
  1. Reliance General Insurance: Reliance is prominent for its easy-to-understand policies, transparent processes, and efficient customer services.

Taxi Car Insurance Price

The price or premium for taxi insurance varies, influenced by several dynamic factors such as:

  1. Type of Coverage: A comprehensive plan will cost more compared to third-party liability coverage.
  2. Make and Model of the Taxi: High-end or luxury taxis attract higher premiums.
  3. Geographical Location: Operating in metro cities might entail a higher premium due to increased risks.
  4. Claim History: A clear claim history could reduce the premium, and vice versa.

Why get Taxi Insurance Online?

Purchasing taxi insurance online is a convenient and efficient option. Here’s why:

  1. Comparison: Online platforms like Insurance Dekho allow for easy comparison of various insurance plans and premiums.
  2. Convenience: Buying insurance online is convenient as it can be done from anywhere, anytime.
  3. Cost-Effective: Direct dealing with insurance companies online often leads to cost savings as it eliminates middlemen.
  4. Information: Detailed information about policies, inclusions, and exclusions is readily available online, enabling informed decisions.

Buying taxi insurance online ensures that your vehicle is protected with a few clicks, making the process seamless and user-friendly. It is advisable to review and compare different policies to choose one that best fits your requirements and budget.

Final Thoughts

Taxi insurance is a steadfast companion in your journey through the vibrant yet unpredictable roads of India. It's not just a legal mandate but a protective shield, guarding against the financial bumps that accidents, damages, or thefts could bring along. With thoughtful features, a spectrum of add-ons, and a streamlined claims process, it ensures that your journey, and those of your passengers, is secure, smooth, and peaceful. So, buckle up, choose the right insurance, and navigate the roads with confidence and tranquillity!


  1. What exactly is taxi insurance?

Taxi insurance is a type of vehicle insurance specifically designed for taxis. It provides coverage against damages, theft, and liabilities that might occur during the operation of the taxi, ensuring protection for the vehicle, driver, and passengers.

  1. Is taxi insurance mandatory in India?

  Yes, having at least a third-party liability insurance is legally mandatory for taxis operating in India. It ensures coverage against liabilities arising due to damages or injuries to third parties.

  1. What is the significance of IDV in taxi insurance?

IDV, or Insured Declared Value, is the current market value of the taxi. It represents the maximum amount that the insurer will compensate in case of total loss or theft of the vehicle.

  1. Can I purchase and renew taxi insurance online?

Yes, most insurance companies offer the convenience of purchasing and renewing taxi insurance online through their websites or trusted insurance platforms.

  1. What are the typical inclusions in a taxi insurance policy?

 A taxi insurance policy usually includes coverage for natural and man-made calamities, third-party liabilities, personal accidents, and damages to the vehicle and its accessories.

  1. Are there any specific exclusions in taxi insurance?

Common exclusions include damages due to wear and tear, driving under the influence of alcohol or drugs, driving without a valid licence, and mechanical or electrical breakdown.

  1. What are some popular add-ons available for taxi insurance?

Popular add-ons include zero depreciation cover, engine protect cover, roadside assistance, and passenger cover.

  1. How is the premium for taxi insurance determined?

The premium is influenced by factors such as the type of coverage, IDV, model and age of the taxi, geographical location, and the claim history of the driver.

  1. What is the process to file a claim for taxi insurance?

  To file a claim, you need to inform your insurer immediately after the incident, submit a duly filled claim form along with necessary documents, and cooperate during the survey and damage assessment.

  1. Can I switch my insurance provider at the time of renewal?

 Absolutely, if you find a better deal elsewhere or are unhappy with your existing provider, you are free to explore other taxi car insurance companies at the time of renewal. To prevent losing advantages like the No Claim Bonus, make sure the policy is intact.


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.
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