Protect Your Bus, Ensure Safe Journeys!
-
Save up to 70%
Unlock Savings of Up to 70%!
-
Minimal Documentation
Hassle-Free Coverage with Minimal Documentation
-
Simple Process
Proctect your bus in few minutes
What is Bus Insurance?
Bus insurance is a specialized commercial vehicle insurance designed for buses that transport passengers for hire. It offers coverage for a wide range of risks, including accidents, damage, theft, fire, and third-party liabilities. This type of insurance ensures the vehicle, driver, passengers, and the operator are financially protected in the event of an unfortunate incident.
Types of Buses Included in Bus Insurance
The following are the types of buses typically covered under bus insurance policies:
Private Buses
Buses owned by private organizations, such as those used for tours, events, or employee
transport, are also covered. These buses may be used for specific purposes like sightseeing or
transporting employees to and from work.
Public Buses
Buses that are owned and operated by the government for transporting passengers within the
city or between cities fall under this category. They are covered by insurance policies that ensure
protection against accidents, liabilities, and other risks.
School Buses
Buses used by educational institutions, such as schools or colleges, primarily for student
transportation are covered under this policy. These buses are typically designed with safety features to
ensure the well-being of students during transit.
Factors Affecting Bus Insurance Premium
Here are the key factors that influence the premium of a bus insurance policy:
Age and Engine Type
The age of the bus and its engine type significantly impact the premium. Older buses tend to have higher premiums due to their increased risk of mechanical failure and higher repair costs. Similarly, buses with larger or more powerful engines may attract higher premiums due to the increased risk associated with their operation and higher repair costs.
No-Claim Bonus (NCB)
A no-claim bonus is offered to policyholders who have not made any claims during the policy period, often resulting in a lower premium for the renewal.
Coverage Type
The level of coverage selected, whether it’s third-party liability, comprehensive, or own damage, will affect the premium. More extensive coverage will result in higher premium.
Location
The area where the bus operates can influence the premium. Buses in high-traffic or high-risk areas may incur higher premiums due to the increased likelihood of accidents.
Why Should You Buy Bus Insurance?
Bus insurance is essential for anyone operating a commercial bus service, whether it’s for public
transportation, private tours, or employee transport. Here are some key reasons why you should invest in bus
insurance:
- Passenger Safety: Whether you operate a school bus, a private tour bus, or a
city bus, passenger safety is a top priority. Bus insurance provides coverage for injuries sustained by
passengers, ensuring they are covered in case of an accident.
- Protection Against Accidents: Accidents can happen anytime. With bus insurance,
you are protected from financial losses due to damages caused by accidents. The insurance covers the cost of
repairs, medical expenses, and legal liabilities.
- Comply with the Law: Under the Motor Vehicles Act, it is compulsory for all
vehicles, particularly those used for commercial purposes, to have at least a third-party commercial bus
insurance policy. This coverage safeguards against potential third-party damages and losses. Failing to obtain
such insurance could result in penalties if caught.
- Coverage for Owner-Driver: Bus insurance policies often include coverage for
the owner-driver, providing financial protection in case of accidents or injuries. This coverage helps cover
medical expenses, legal liabilities, and other costs arising from accidents where the owner-driver is at fault
or injured.
Documents Needed to PurchaseBus Insurance:
To purchase commercial bus insurance, make sure you have the following documents ready:
-
Vehicle Registration Certificate (RC):
This document proves ownership of the vehicle and contains important details such as the make, model, and registration number of the taxi.
-
PAN Card:
A copy of the PAN card is required for identity verification.
-
Aadhar Card
A copy of the Aadhar card or any other valid government-issued identity proof of the taxi owner is typically needed for verification.
-
Previous Insurance Policy (if applicable):
If you’re renewing or transferring your insurance, providing a copy of the previous insurance policy will help the insurer understand your coverage history.
What’s Covered in Bus Insurance Policy?
Bus insurance provides a range of protections depending on the type of policy. Generally, the coverage includes:
Fire and Explosion
Covers the bus in the event of damage due to fire, explosion, or self-ignition.
Third-Party Liability
Covers damage or injury caused to a third party (person, vehicle, or property) in the event of an accident.
Theft
Provides compensation in case the bus is stolen.
Third-Party Liability
Covers damage or injury caused to a third party (person, vehicle, or property) in the event of an accident.
Damage to the Bus
Covers the repair or replacement of the bus if it’s damaged due to an accident, fire, natural disaster, or vandalism.
Towing Facility
Loss or damage caused to the bus while being towed to another location is typically covered under comprehensive bus insurance policies.
What is Not Covered in a Bus Insurance?
While bus insurance provides extensive coverage, there are certain exclusions and situations where claims may not be covered. Common exclusions include:
-
Driver Negligence:
If the damage or accident is caused due to the driver’s reckless or negligent behavior, such as driving under the influence of alcohol or drugs, the insurance may not cover the claim.
-
Driving Without a Valid License:
If the driver does not have a valid driving license or is not authorized to drive the vehicle, the insurance may not be valid in the event of a claim.
-
Consequential Losses:
Losses resulting from an incident, like loss of income due to the bus being out of service, are generally not covered unless specified in the policy.
-
Drunk Driving:
If the driver is found to be under the influence of alcohol or drugs, most bus insurance policies do not cover the damages or liabilities resulting from an accident.
Documents Needed to Purchase Bus Insurance
To purchase commercial bus insurance, make sure you have the following documents ready:
- Vehicle Registration Certificate (RC)
- Previous Insurance Policy (for renewals)
- Any of the following documents for KYC verification: PAN, Aadhar, Driving License (DL), Voter ID or
Passport
FAQ's
Yes, bus insurance is mandatory for all commercial passenger transport vehicles under the Motor Vehicles Act. It ensures that the vehicle is legally compliant and protects the bus operator from financial liabilities.
No Claim Bonus (NCB) is a discount given on the premium for each claim-free year. If you don’t make any claims during the policy period, you can avail of this bonus when you renew your insurance.
Yes, the seating capacity of a bus does affect its insurance premium. Buses with more seats are considered higher risk because they carry more passengers. In case of an accident, the potential for more injuries or fatalities increases, leading to higher claims. As a result, buses with larger seating capacities usually have higher insurance premiums compared to those with fewer seats.
Factors like the type of bus, its age, engine size, passenger capacity, usage, driving history, and the level of coverage selected will all affect the insurance premium. The bus's location and safety features also play a role.
Yes, old buses can be insured. However, the premium for an older bus may be higher due to the increased risk of mechanical failure and higher repair costs.
Yes, comprehensive bus insurance typically covers theft, fire, and other damages caused by unforeseen events like natural disasters or vandalism. However, it's important to confirm the specific coverage details with your insurer.
Comprehensive bus insurance provides complete coverage, including protection for third-party liabilities and damages to your own bus. It typically covers accidents, theft, natural disasters, fire, vandalism, and damage to third-party property.
Bus insurance policies can cover a wide range of buses, including school buses, private buses, commercial buses, minibuses, and other specialized vehicles used for passenger or goods transport.
Generally, you cannot cover multiple buses under a single insurance policy. Each bus typically requires its own plan. However, some insurance companies offer customized policies that allow coverage for multiple buses under one plan, tailored to your specific requirements.
If you forget to renew your bus insurance, your coverage will lapse, leaving your bus uninsured. This can lead to legal penalties, including fines or impoundment of the vehicle, as insurance is mandatory for commercial vehicles. Additionally, you'll be financially responsible for any accidents or damages. A gap in coverage may also result in higher premiums upon renewal, and claims during the lapse period may not be covered
