Auto Rickshaw Insurance

A comprehensive guide to features, benefits, and application process of auto rickshaw insurance.
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Auto rickshaw insurance
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3 mins
25-July-2023

Auto rickshaw is a type of commercial vehicle, widely used for commuting in urban and rural areas of India. Auto rickshaw is not just a mode of transportation but also a source of livelihood for thousands of people in the country. Like any other vehicle, it is important to insure your auto rickshaw to safeguard you and your passengers against any unfortunate incidents on the road.

Here's a complete guide on the features, benefits, and application process of auto rickshaw insurance.

What is an auto rickshaw insurance?

Auto rickshaw insurance provides coverage for three-wheeler vehicles, commonly used for public transportation. It offers financial protection against damages, accidents, theft, and third-party liabilities. This insurance ensures that auto rickshaw owners and drivers have the necessary coverage to handle unexpected events and legal obligations on the road.

Why should you buy insurance for your auto rickshaw?

Having insurance for your auto rickshaw gives you peace of mind and ensures financial protection against unforeseen circumstances. Auto rickshaws face a higher risk of accidents and damages due to the nature of their usage and the traffic conditions in India. In such cases, having insurance can protect you against the hefty expenses of repairing the vehicle or third-party damages. In addition, auto-rickshaw insurance is mandatory under the Motor Vehicles Act, 1988. Therefore, if you get caught without valid insurance, you can face heavy fines and even legal proceedings.

Features and benefits of auto rickshaw insurance

Auto rickshaw insurance offers a range of benefits to the vehicle owner, passengers, and third-party individuals. The coverage varies depending on the insurance provider and the type of policy. Here are some common features and benefits of auto rickshaw insurance:

Comprehensive coverage:

This covers loss or damage to the auto rickshaw due to accidents, fire, theft, natural calamities, and other unforeseen circumstances.

Third-party liability coverage:

This covers the expenses of third-party individuals who suffer injuries or damages due to your auto rickshaw. The insurance provider pays compensation up to the coverage limit specified in the policy.

Personal accident cover:

This offers compensation to the driver/owner in case of accidental death or permanent disability.

Add-on covers:

You can opt for add-on covers such as engine protection, zero depreciation, consumable expenses, and more, by paying an additional premium. These covers enhance the scope of coverage and provide greater financial protection.

Get the best coverage options for your auto rickshaw with add-on cover for your three-wheeler insurance policy. You can protect your vehicle against third-party liability, personal accident, and damage or loss from unforeseen circumstances. There is a range of affordable auto rickshaw insurance plans available online that offer additional coverage options to suit your needs.

Types of auto rickshaw insurance plans

Here are the different types of auto rickshaw insurance plans available:

  • Third-party liability insurance: This type of three-wheeler insurance covers damages or losses caused to third parties in case of accidents. It is mandatory by law for all vehicles to have this insurance.
  • Comprehensive insurance: A comprehensive auto rickshaw insurance plan covers losses and damages caused to the vehicle as well as third parties. It also covers natural disasters such as floods and storms.
  • Personal accident cover: A personal accident cover provides financial assistance in case of accidental death or disability of the driver or passengers.
  • Add-on covers: These are additional covers that can be added to any auto rickshaw insurance policy to enhance its coverage. Some popular add-ons include zero depreciation, engine protection, and roadside assistance.

What does auto rickshaw insurance cover?

Here are some of the common coverages offered on auto rickshaw insurance.

Accidental damages:

This includes the repair expenses of the auto rickshaw due to collisions and other accidents.

Theft:

If the auto rickshaw gets stolen, insurance providers offer compensation based on the IDV (Insured Declared Value) of the vehicle.

Fire or natural calamities:

This covers the expenses of damages to the auto rickshaw due to fire, floods, earthquakes, or other natural calamities.

Third-party liability:

This covers the expenses of injury or damages caused to third-party individuals or properties due to the auto rickshaw.

What does auto rickshaw insurance not cover?

Here are some of the common exclusions of auto rickshaw insurance.

  • It does not cover normal wear and tear of the vehicle due to regular usage.
  • It does not cover mechanical or electrical breakdowns due to faulty parts or maintenance issues.
  • It does not cover damages incurred due to driving under the influence of alcohol or drugs.
  • It does not cover damages if driving without a valid licence or in restricted areas.
  • It does not cover damage or loss due to war, terrorism, or nuclear risks.

Importance of three-wheeler insurance

  • Legal compliance: Three-wheeler insurance is mandatory by law, ensuring that your auto rickshaw operates legally on the roads.
  • Financial protection: It provides financial coverage in case of accidents, theft, or damage to your three-wheeler, saving you from unexpected financial burdens.
  • Third-party liability cover: Protects you from liabilities arising due to third-party injuries or property damage, shielding you from legal complications.
  • Personal injury coverage: It offers coverage for personal injuries sustained during an accident, supporting medical expenses for you and your passengers.

Also, learn more about car insurance.

How to apply for auto rickshaw insurance online?

Applying for auto rickshaw insurance online is quick, convenient, and hassle-free. Here are the steps to apply for auto rickshaw insurance online:

  • Visit the website of the insurance provider and select the type of policy – third-party or comprehensive.
  • Enter the required details such as the registration number, personal information, and vehicle details.
  • Choose the level of coverage, add-on covers, and deductible amount as per your choice.
  • Pay the premium online using debit/credit cards, net banking, or other payment modes.
  • Your auto rickshaw insurance policy gets activated instantly, and you will receive the policy document via email.

Read more: Complete guide on motor insurance policy.

How to renew auto rickshaw insurance online?

Here are the steps to renew auto rickshaw insurance online:

  • Visit the website of the insurance provider and select the option to renew your policy.
  • Enter the registration number of your auto rickshaw and your personal details.
  • Review the policy coverage and add-on covers.
  • Pay the premium online using the available payment modes.
  • Your policy gets renewed instantly, and you will receive the updated policy document in your email.

Auto rickshaw insurance is an essential requirement for all auto rickshaw owners to stay financially equipped for any mishap. When choosing auto rickshaw insurance, it is important to evaluate the policy features, benefits, inclusions, and exclusions to make an informed decision. You can conveniently buy and renew auto rickshaw insurance online to save time and effort.

Frequently asked questions

What is the cost of auto rickshaw insurance for 1 year?

The cost of auto rickshaw insurance for one year depends on the type of policy chosen, coverage limit, and the insurance company. Generally, third-party liability insurance for an auto rickshaw starts from Rs. 1,000 to 1,500 per year, while a comprehensive insurance policy can range from Rs. 3,000 to 4,000 or more per year.

What is covered under auto rickshaw insurance?

Auto rickshaw insurance covers damages caused to the vehicle due to accidents, theft, fire, natural calamities, and third-party liabilities. It also provides financial coverage for medical expenses incurred during accidents, injuries caused to the rider and passengers, and loss or damage caused to the vehicle due to theft or damage.

What is not covered under auto rickshaw insurance?

Auto rickshaw insurance policies do not typically cover regular wear and tear of the vehicle, loss or damage caused due to mechanical or electrical breakdown, accidents caused due to drunken driving or driving under the influence of drugs, and damage caused when the vehicle was being used for illegal activities.

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