Auto Rickshaw Insurance: Protecting Three-Wheelers on Indian Roads

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Updated On: 04-Nov-2023 06:47 AM

Three-wheeler insurance provides coverage for your commercial vehicle, ensuring financial protection in the event of accidents, theft, or damage. This article will give information about three-wheeler insurance, its types, price and coverage policy.

In this article, we'll explore the importance of 3-wheeler insurance, type of commercial vehicle insurance, three-wheeler auto rickshaw insurance prices, and commercial vehicle insurance renewal.

Three-wheelers, also known as Auto Rickshaws, are a very important part of urban transportation and e-commerce business growth. These three-wheeler vehicles are ideal for navigating crowded streets and carrying passengers and goods. However, like any other vehicle, they require insurance to protect both the drivers and the vehicle.

Three-wheeler insurance is important for owning and operating an auto rickshaw, as it provides essential coverage against damages caused to or by the insured vehicle in the event of an accident.

Also Read: A comprehensive tractor insurance guide

Types of three-wheeler insurance

There are two primary types of auto rickshaw insurance plans available in the market: third-party insurance and comprehensive insurance. Each type serves a specific purpose and offers distinct coverage to Three-Wheeler owners.

Third-Party Three-Wheeler Insurance:

Third-party insurance is the most basic and mandatory form of insurance for three-wheeler tempos in many countries. This type of insurance primarily protects the vehicle owner from financial losses arising out of damages or deaths to third parties involved in an accident where the insured three-wheeler is at fault.

In the unfortunate event of an accident, if the insured three-wheeler causes injury, death, or property damage to another person or their property, the insurance policy will cover the associated legal and financial liabilities. It provides the necessary compensation to the affected third parties, ensuring that the vehicle owner is not burdened with the financial consequences of such incidents.

Comprehensive Three-Wheeler Insurance:

Comprehensive insurance, as the name suggests, offers a broader scope of coverage and goes beyond the protection provided by third-party insurance.

In addition to covering third-party liabilities, a comprehensive insurance plan also extends coverage to the insured three-wheeler itself. This means that it provides protection against damages incurred by the insured three-wheeler in accidents, regardless of fault.

The coverage typically includes compensation for repairs or replacement of the three-wheeler in case of accidents, theft, vandalism, natural disasters, and other unforeseen events. This offers peace of mind to the owner by ensuring that their asset is protected.

Vehicle owners should carefully consider their insurance needs, taking into account the value of their three-wheeler, their budget, and the potential risks they may face on the road when choosing between these two insurance options.

What does three-wheeler insurance cover?

Three-wheeler insurance covers a wide range of incidents, including:

Accidents: Damages to or caused by the insured three-wheeler in an accident are covered.
Fire: Loss or damages to the insured vehicle due to a fire accident are included in the coverage.
Theft: If your three-wheeler is stolen, you can file a claim under this policy.
Natural Calamities: Coverage extends to complete loss or damages resulting from natural disasters like floods, storms, and lightning.
Third-Party Losses: In the case of goods-carrying three-wheelers, the policy covers third-party property damages up to 7.5 lakh and provides unlimited coverage for injuries or deaths.

What is not covered by three-wheeler insurance?

Three-wheeler insurance provides coverage for your commercial vehicle, ensuring financial protection in the event of accidents, theft, or damage. However, it's important to be aware of what's not covered by your insurance policy.

Normal wear and tear, which occurs over time due to regular use, is not covered by three-wheeler insurance.
Any loss or damage to the insured vehicle resulting from war, invasion, acts of foreign enemies, or nuclear warfare is typically excluded from coverage.
Three-wheeler insurance usually does not cover expenses related to mechanical or electrical breakdowns.
Insurance policies specify a geographical area of coverage. Any loss or damage that occurs outside of this defined area may not be covered.
Like most insurance policies, three-wheeler insurance does not compensate for the usual depreciation of the vehicle's value over time. In the event of a claim, the payout is typically based on the current market value of the vehicle.
Driving Without License
Non-accidental losses, such as damage caused intentionally or through negligence, are generally excluded from coverage.
Accidents or damages that result from drunk driving are generally excluded from coverage.

To ensure you have the necessary coverage and protection, it's important to read your policy carefully, ask questions, and consider optional add-ons that may address specific exclusions if needed.

How to Process a Claim for Your Three-Wheeler in 7 Easy Steps

Accidents and unforeseen incidents can happen to anyone, and when they involve your three-wheeler, it's essential to know how to file the insurance claim efficiently. Here's a step-by-step guide to help you process your claim smoothly.

Step 1: Inform the Insurance Company
Step 2: Physical Inspection of Your Three-Wheeler
Step 3: Repair Work Evaluation at the Network Garage
Step 4: Approval of Repair Work
Step 5: Submission of Repair Invoice
Step 6: Fill Up the Claim Form and Submit Required Documents
Step 7: Settlement with the Network Garage

By following these seven easy steps, you can ensure a hassle-free claims process for your three-wheeler.

Autorickshaw Insurance Price

Autorickshaw insurance is essential to protect your vehicle. The price of your autorickshaw insurance policy can vary, and it's crucial to understand the factors that influence this cost. One of the key determinants of your autorickshaw insurance premium is the Insured Declared Value (IDV). The premium you pay while purchasing and renewing the policy determines the amount or cost of the policy.

The vehicle's Insured Declared Value, or IDV, is one of the most important elements influencing the autorickshaw's premium and insurance cost. This is the amount you will receive if your autorickshaw is damaged or stolen.

When buying an autorickshaw insurance coverage, you can select from a number of different IDVs before finalizing your purchase. This allows you to choose the coverage for your vehicle as well as the premium cost.

Autorickshaw Insurance Premiums

Factors affecting autorickshaw insurance premiums include:

Geographical Location: Risk-prone areas, high-traffic cities, and locations with a higher likelihood of theft or accidents can lead to higher premiums.
Age of the Vehicle: Older autorickshaws have higher premiums due to wear and tear and increased risk.
Insured Declared Value (IDV): Higher IDV leads to higher premiums, while lower IDV results in lower premiums but reduced payout in case of total loss or theft.
No Claim Bonus (NCB): Safe drivers can benefit from discounted premiums by not filing claims.
Add-on Covers: Optional add-ons come at an extra cost, increasing the premium for enhanced coverage.
Engine Capacity: Premiums increase with higher engine capacity.
Safety Installations: Installing safety devices can reduce risk and lower premiums.
Claim History: Multiple claims or a history of accidents and traffic offences can lead to higher premiums.
Other minor and variable factors may also impact premiums, subject to policy terms and conditions.

Also Read: Commercial Vehicle loans: Benefits, types, process, eligibility and other details

Conclusion

Three-wheeler insurance and commercial vehicle insurance are essential for auto rickshaw owners and drivers. These policies offer legal compliance, financial protection, and peace of mind. When it comes to pricing, various factors influence the cost of coverage, making it essential to shop around for the best deals.

Additionally, staying on top of commercial vehicle insurance renewal ensures continuous protection and compliance with legal requirements. In the growing world of three-wheeler transportation, having the right insurance is a smart and responsible choice.