Why Bus Insurance is Most Important Bus insurance is a type of commercial vehicle insurance policy to protectcommercial buses from potential damages and losses, such as in the case of an accident, natural calamity or fire. While the most basic plan covers for Third-Party liabilities (as required by law), a comprehensive policy also covers for one’s own damages and losses, both under one combined policy.
School Bus: Buses that are part of an educational institution such as a school or a college and are used primarily for student transportation can be covered under this policy.
Public Bus: Buses owned and run by the government, used to transport passengers within the city or, from one city to another too can be covered under this policy.
Private Bus: Buses owned by private organizations such as tour buses or buses used by offices for their employees too can be covered under this policy.
Passenger Carrying Bus: All other types of commercial buses and vans used for the purpose of transporting passengers from one place to another are covered under this policy.
Protection from Unforeseen Losses: Whether it’s due to damages to a third-party or your own bus, a bus insurance ensures you’re covered for it all, thus preventing business losses and avoiding any troubles that may come in the way of your daily logistical operations.
Comply with the Law: As per the Motor Vehicle Act, it is mandatory for all vehicles, especially those used for commercial purposes to at least have a third-party commercial bus insurance policy to protect for any potential third-party damages and losses. Without one, you will be liable to pay a fine, when caught.
Covers for Owner-Driver: A bus insurance not only covers for losses and damages to your vehicle or third-party vehicle, but also covers for any bodily injuries or the like for its owner-driver.
Passenger Protection: As part of every commercial vehicle insurance, you can opt for an additional endorsement to cover for your passengers too, in case of any unfortunate situation such as an accident, fire or natural calamity.
Accidents Damages and losses caused to your bus due to an accident.
Theft Any damages and losses caused to your bus in the case of a theft.
Fire Any damages or losses caused to your bus in an unfortunate case of fire.
Natural Disasters Any damages and losses caused to your bus due to floods, earthquakes and other natural calamities.
Personal Accident Covers for any personal injuries or death of the owner-driver of the bus.
Third Party Losses Covers for losses and damages caused to a third-party vehicle, property or person due to your bus, in the case of an accident or collision.
Towing Disabled Vehicles Covers for any damages caused to the bus in cases where it's being towed.
It is equally important to know what’s not covered in your commercial bus insurance policy so that there are no surprises when you make a claim. Here are some such situations:
Own Damages for Third-Party Policy holder If you’re only going for a Third-Party Commercial Insurance for your bus, then own damages and losses won’t be covered.
Drunk Driving, or Driving Without a valid License If during a claim, the driver-owner is found to be driving the bus without a valid driver’s license or under the influence of alcohol then the bus won’t be covered.
Contributory Negligence Any damages or losses caused to the bus due to contributory negligence won’t be covered for. For example, if there are existing floods in the city, and one still drives the bus despite that.
Consequential Damages Any damages or losses that aren’t a direct result of an accident, natural calamity or fire can’t be covered for.
