Passenger Carrying Vehicle (PCV) Insurance
Comprehensive & Third-Party cover for Taxis, Auto-Rickshaws, School Buses & Commercial Passenger Fleets.
Commercial Quote Assistance
Commercial vehicle policies require customized gross vehicle weight (GVW) and passenger seating calculations. Talk to our fleet specialist directly.
Statutory Third-Party Tariff Rates (Passenger Carrying Vehicle (PCV) Insurance)
Government regulated annual premium rates fixed by IRDAI.
| Vehicle Capacity / Specification | Annual TP Rate |
|---|---|
| Auto Rickshaw (Up to 3 passengers) | ₹2,591 / year |
| Taxi / Cab (Up to 6 passengers) | ₹6,532 / year |
| Bus / Van (7 to 18 passengers) | ₹14,210 / year |
| Heavy Passenger Bus (Above 18 passengers) | ₹21,500 / year |
Frequently Asked Questions
Clear, transparent answers to help you make informed insurance decisions.
Passenger Carrying Commercial Vehicle Insurance (PCV)
Operating commercial passenger vehicles in India carries significant legal and financial responsibility. Whether managing an app-based cab, an auto-rickshaw, or a large interstate bus fleet, vehicle owners must safeguard both their automotive asset and the lives of passengers onboard. Under Indian transport regulations, commercial passenger vehicles cannot renew RTO fitness certificates or permit licenses without active comprehensive PCV insurance. Insurance Kara Lo offers tailored PCV fleet solutions, priority claim desks, and competitive commercial rates.
Passenger Carrying Commercial Vehicle (PCV) insurance protects auto-rickshaws, app cabs, tourist taxis, staff vans, and commercial passenger buses against collisions, fire, theft, and legal passenger liabilities. Compare customized fleet quotes, secure mandatory IMT-23 endorsements, and ensure 100% cashless claims with fast-track surveyor approvals.
PCV commercial vehicle insurance is a specialized commercial motor contract designed for public and private transport vehicles carrying fare-paying passengers, providing indemnification against vehicle damage, third-party bodily injury, and legal liability to passengers under the Motor Vehicles Act.
The Critical Role of Passenger Liability and IMT-23 Endorsement
For passenger-carrying vehicles, basic third-party cover does not automatically provide comprehensive protection for passengers inside the vehicle unless Legal Liability to Passengers is explicitly purchased per registered seat. Additionally, opting for the IMT-23 endorsement covers accidental overturning and severe bodywork damage, which are standard exclusions under basic commercial commercial motor wordings.
Maintaining RTO Fitness and Permit Compliance to Prevent Claim Rejection
The number one reason for commercial insurance claim repudiation in India is an expired RTO Fitness Certificate or invalid route permit at the time of an accident. Even if your insurance policy is active, insurers will legally reject claims if the vehicle was operated on public highways without a valid fitness certificate or beyond authorized permit boundaries.
What It Covers (Inclusions)
- ✓Accidental impact, rollover, collision, and structural damages sustained during transit
- ✓Total loss, fire destruction, explosion, lightning, and vehicle theft
- ✓Severe monsoon flood submersion, landslide impact, and natural calamities
- ✓Legal liability for accidental injury or demise of fare-paying passengers based on licensed seating capacity
- ✓Legal liability to paid drivers, cleaners, and conductors under the Employee’s Compensation Act
- ✓Unlimited third-party bodily injury and third-party property damage protection up to statutory limits
- ✓Commercial add-on endorsements including IMT-23 (overturning and special perils cover)
What Is Not Covered (Key Exclusions)
- ✕Carrying passengers in excess of authorized licensed seating capacity as specified on the vehicle RC
- ✕Operating without a valid Commercial Fitness Certificate or route permit issued by the RTO
- ✕Driver operating without an active commercial badge and driving license
- ✕Operating under the influence of alcohol, liquor, or intoxicating drugs
- ✕Consequential damages, mechanical breakdown, and tyre cuts unless damaged in an accident
- ✕Vehicles operated outside permitted route boundaries without temporary road permits
Who Should Buy This Policy?
- •App-based cab owners and aggregator drivers (Ola, Uber, city rentals)
- •Three-wheeler auto-rickshaw and e-rickshaw owner-drivers
- •School bus, college transport, and corporate staff bus fleet operators
- •Interstate tourist coach operators, tempo traveller owners, and luxury bus services
Required Documents
- •Commercial Vehicle Registration Certificate (RC)
- •Valid RTO Route Permit (Tourist, Stage Carriage, or Contract Carriage)
- •Active Commercial Vehicle Fitness Certificate
- •Driver commercial driving license with transport badge endorsement
- •Previous commercial insurance policy document
- •Business KYC (GSTIN / PAN / Aadhaar of the owner or firm)
Tax Benefits & Deductions
Under Section 37(1) of the Income Tax Act 1961, 100% of the insurance premium paid for commercial passenger-carrying vehicles is fully deductible as legitimate business operational expenditure. Furthermore, GST registered transport businesses can claim Input Tax Credit (ITC) on the 18% GST charged on commercial insurance policies.
Step-by-Step Cashless Claim Workflow
Step 1: Emergency Incident Intimation — Alert our commercial claims desk immediately at +91 94515 70150 within 24 hours of any road incident.
Step 2: Police FIR & Passenger Record — File an immediate police FIR in case of passenger injury or major highway collision.
Step 3: Commercial Spot Survey — An IRDAI-empanelled commercial surveyor inspects the vehicle and verifies permit/fitness documents.
Step 4: Cashless Workshop Towing — Move the vehicle to an authorized commercial cashless workshop for expedited bodywork repair.
Step 5: Settlement & Route Resumption — Repair bills are paid directly by the insurer, minimizing commercial fleet downtime.
Comparative Policy Analysis
| Vehicle Category | Typical Seating | Passenger Liability Required | Key Recommended Endorsements |
|---|---|---|---|
| City Taxi / App Cab | 4 to 6 Seats | Mandatory per passenger seat | Engine Protector, Zero Dep, IMT-23 |
| Auto Rickshaw / E-Rickshaw | 3 to 4 Seats | Mandatory per passenger seat | PA Cover for Paid Driver, Battery Theft |
| Staff Van / Tempo Traveller | 9 to 16 Seats | Mandatory per passenger seat | IMT-23, Legal Liability to Conductor |
| Interstate Tourist Bus | 32 to 50+ Seats | Mandatory per passenger seat | Passenger Baggage, IMT-23, Fleet Priority Desk |
Frequently Asked Questions
Can commercial passenger vehicle insurance be purchased online instantly?
Yes! On Insurance Kara Lo, you can compare quotes for taxis, autos, and bus fleets online and get instant policy delivery by entering your vehicle registration and permit details.
What happens if a taxi carries more passengers than permitted on the RC during an accident?
Carrying passengers beyond licensed seating capacity violates Motor Vehicles Act regulations and policy conditions, which can lead to proportional claim deductions or full claim rejection.
Can fleet operators get customized group discounts on PCV policies?
Yes! Businesses operating 5 or more commercial passenger vehicles can unlock corporate fleet discounts, centralized policy management, and dedicated priority claims handling.
Is GST Input Tax Credit (ITC) available on PCV insurance?
Yes. Commercial transport companies and GST-registered cab operators can claim 100% Input Tax Credit on the 18% GST levied on commercial vehicle insurance premiums.
10+ years advising Indian vehicle owners and families on IRDAI-compliant insurance planning and claim settlements.
Reviewed for policy wording accuracy, cashless garage procedures, and Section 80D/80C tax rules.
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