Auto Rickshaw Insurance: What is it, Benefits, How Can You Get it

Indian streets and roads are not complete without auto rickshaws on them. Auto rickshaws serve as a great convenience for the public. Although not feasible for long distances, they are the best vehicle for short distances.

But like any other vehicle, auto rickshaws need insurance. Any unforeseen situation like accidents, fires, natural disasters, and man-made disasters may affect both the driver and the owner of the auto rickshaw. 

This is exactly why, as per the Motor Vehicles Act of 1988, auto rickshaw insurance is made compulsory by the government of India.

So, if you want to protect an auto rickshaw from getting caught in trouble after misfortune hits, read this article to find out about it. 

What is Auto Rickshaw Insurance? 

Auto rickshaw insurance is a commercial vehicle insurance policy tailored for three-wheelers in India. It’s mandatory to have at least a third-party insurance to cover liabilities from damages to third parties. A comprehensive policy is advisable to cover own damages from accidents, natural disasters, and other mishaps.

Types of Auto Rickshaw Insurance 

Auto rickshaw insurance offers two main types of coverage: third-party auto rickshaw insurance and comprehensive auto rickshaw insurance policy.

Third-party auto rickshaw insurance helps pay for damages caused to someone else if you’re in an accident. It also covers legal expenses if the third party files a case against you.

Comprehensive auto rickshaw insurance policy offers extended coverage. In addition to third-party damages, it covers damages to you and your vehicle, including those caused by natural or man-made disasters. This policy allows for various add-ons to widen coverage.

Factors That Affect The Premium of Your Auto Rickshaw Insurance

   – Larger engines typically result in higher premiums, while smaller engines lead to lower premiums.

   – This is because vehicles with higher CCs are considered more powerful and may pose a greater risk of accidents.

2. Driving History:

   – Your driving record is a critical factor in determining your insurance premium.

   – Safe driving habits, including avoiding accidents and traffic violations, can result in lower premiums.

   – Conversely, a history of accidents or reckless driving may lead to higher premiums as insurers perceive higher risk.

3. Type of Coverage:

   – The type of insurance coverage you choose influences your premium amount.

   – Opting for a basic third-party insurance policy generally means lower premiums.

   – However, comprehensive coverage, which offers broader protection and optional add-ons, may result in higher premiums.

4. Vehicle Usage:

   – How you use your auto rickshaw affects your insurance premium.

   – If you primarily use your vehicle for shorter commutes or within a limited area, your premium may be lower.

   – On the other hand, frequent long-distance trips increase the risk of accidents and may lead to higher premiums.

5. Locality:

   – The area where you live also impacts your insurance premium.

   – Residing in areas with high crime rates or frequent accidents may result in higher premiums.

   – Conversely, living in safer neighbourhoods or regions with lower incidences of theft or vandalism can help reduce your insurance costs.

So this is all you need to know about Auto Rickshaw Insurance. If you want to know more aboutv the different types of insurance, keep observing NewsCanvass.