A comprehensive three-wheeler insurance guide

Posted by Priya Singh on 21-Mar-2023 11:51 AM

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A three-wheeler insurance policy is a commercial vehicle insurance coverage designed to protect and meet the demands of a three-wheeler in India.

Auto Rickshaws operate on the roadways throughout the day, putting them at a higher danger of being involved in an accident. As a result, auto-rickshaw owners should strongly consider getting their vehicles insured. Auto-rickshaw insurance protects you financially against damages to you, your vehicle, or a third party in the event of an accident.

Overview of three-wheeler insurance

A three-wheeler insurance policy, as the name implies, is a form of commercial vehicle insurance coverage designed to protect and meet the demands of a three-wheeler in India. All auto owners are required to carry at least third-party auto rickshaw insurance to safeguard their finances from third-party liabilities.

However, it is preferable to carry a comprehensive auto rickshaw coverage that will pay for any damages that may result from accidents, collisions, natural disasters, fires, and other misfortunes. It protects you from damages caused by a variety of factors such as natural catastrophes, man-made disasters, and so on.

Also Read: What Is Truck Insurance And What Does It Covers?

Types of three-wheeler insurance

There are two types of three-wheeler insurance plans available in the market: third-party insurance and comprehensive insurance.

1. Third-party three-wheeler insurance is commercial vehicle insurance that covers any legal responsibilities stemming from third-party damages caused by the insured vehicle. It provides coverage for third-party property or person damage caused by the insured vehicle or the vehicle being transported. It also includes personal accident insurance for the owner-driver.

2. Comprehensive three-wheeler insurance. - It totally protects the insured vehicle by covering both third-party liability and own vehicle damage. It covers any loss or damage to the insured vehicle caused by fire, accidents, natural disasters, vandalism, or theft, in addition to third-party person and property damage coverage. This insurance, like a third-party policy, covers the owner/driver of the goods transport vehicle for personal injuries.

How To File A Claim For Your Three Wheeler In Simple Steps

To File A Claim For Your Three Wheeler just follow the below steps:

• Notify the insurance company of the event.
• Your three-wheeler will be physically inspected by the insurance company.
• The network garage will evaluate the repair job.
• Following the completion of the repair work at the network garage, the insurer will approve the repair.
• The invoice is provided to the insurance provider following the completion of the repairs.
• Fill out the claim form and attach any relevant papers.
• The bill will be settled with the network garage directly.

Documents Needed to Claim Insurance

• Policy document
• Claim form
• Vehicles registration and a driver's license
• Certificate of Fitness
• Load Challan
• Tax Forms
• Copy of the original insurance policy.
• Copy of the Aadhar Card
• Route Permit Initial Information Report

These are the basic documents you must have to claim insurance.

Benefits of Auto Rickshaw Insurance

If you or your organization owns auto-rickshaws, you are required to purchase a Liability Only Policy. This will financially protect you and your company in the event that your rickshaw (s) causes damage or loss to third-party property, person, or vehicle.

If you use your auto rickshaw as a primary part of your business, it is recommended that you purchase a standard or comprehensive package policy to protect your vehicle and the owner-driver from losses caused by natural disasters, accidents, terrorist activities, fires, thefts, and malicious acts, among other unforeseen circumstances.

An auto-rickshaw with valid insurance also convinces your customers/passengers that you are a responsible firm that takes pride in your work. An insured auto-rickshaw ensures that your business does not suffer any unanticipated losses or downtime, allowing you to focus your money and attention on other elements of your business.

What Does Three-wheeler Insurance Cover?

1. In the event of an accident, the damages to your auto rickshaw.
2. Theft results in the loss or damage of your auto rickshaw.
3. Fire-related damage to your auto rickshaw.
4. Natural disasters may cause damage to your auto rickshaw.
5. If your auto rickshaw is involved in an accident that causes you or the driver to be injured or killed.
6. Any third-party or passenger damages caused by your rickshaw.
7. Any harm is done to your auto rickshaw while it is being pulled.

What isn't covered by your Three-wheeler Insurance?

• Third-Party Policyholder's Own Damages
• Damages to one's own vehicle are not covered under Third-Party Liability Only Insurance.
• Driving while drinking or without a license
• Any harm caused by the owner-contributory driver's negligence (for example, driving in a flood)
• Consequential Losses
• Any harm that is not directly caused by the accident/natural disaster, etc.

Factors Influencing the Insurance Premium

The following variables will impact your auto rickshaw insurance premium.

No-Claim Bonus: If you've previously had auto rickshaw insurance and are looking to renew your policy or find a new insurer, your No-Claim Bonus will be taken into account, and your premium will be reduced. A No-Claim Bonus indicates that your auto rickshaw did not have a single claim during the preceding policy term.

Type of Insurance Plan: For all commercial vehicles, including auto-rickshaws, there are essentially two types of insurance available. Your insurance premium cost will be determined by the type of plan you select. While the mandatory, liability-only plan has a lower price—it only covers third-party damages or losses made to a third party and the owner—normal package insurance may have a higher premium but would also cover damages and losses to our own vehicle and its owner-driver.

Model and Engine: When it comes to motor insurance, the model, make, and the engine is crucial in choosing an appropriate insurance rate. As a result, your auto rickshaw insurance will be mostly determined by the model and make of your rickshaw, the type of fuel used, the year it was manufactured, and other factors.

Location: Where you register and ride your rickshaw has a big impact on your insurance premium. Metropolitan areas with high traffic, crime, and accident rates will undoubtedly demand a higher insurance premium, whereas safer and smaller cities may charge a lower insurance premium.