Auto Rickshaw Insurance

An auto rickshaw insurance is a type of commercial vehicle insurance policy designed to protect and suit the needs of a three-wheelers in India. It is mandatory for all auto rickshaw owners to have at least a third‑party insurance policy, which covers liabilities arising from injury, death, or property damage caused to others. For broader protection, you can choose a comprehensive auto rickshaw insurance policy, which also covers damage to your own vehicle due to accidents, theft, fire, or natural disasters.

• Yes, according to the Motor Vehicles Act in India, it is compulsory for all vehicles to have at least a Liability Only Policy in place. Without this, it would be illegal to ride an auto rickshaw in India.
• However, if you’re using your auto rickshaw as a primary source of income or, as part of a business, then it is advised to have the Standard Package Policy, as that not only covers the damages caused to third parties by your auto rickshaw but, also covers for damages caused to your own vehicle and the owner-driver against damages caused due to accidents, collisions, natural calamities, fires and other such mishaps.

Passenger coverage in auto rickshaw insurance depends on the policy type and selected covers, as not all plans automatically include full protection for passengers. 

• Third-Party Liability Cover: Typically includes legal liability for injury or death caused to third parties, which can also extend to passengers as per policy terms and seating capacity.

• Passenger Liability Coverage: In many cases, liability towards passengers may need to be explicitly included or is limited based on regulator-defined limits.

• Unnamed Passenger Personal Accident (PA) Cover: This is an optional add-on that provides compensation to passengers in case of injury, disability, or death. 

• Owner-Driver PA Cover: Covers the auto rickshaw owner-driver, but does not extend to passengers.

• Paid Driver / Legal Liability Cover: If a hired driver operates the vehicle, this cover protects against legal liabilities related to that driver.

In short: Auto rickshaws carry passengers, so passenger liability is a key part of the insurance decision. Do not compare auto rickshaw insurance only by premium; also check passenger cover, legal liability, seating capacity, and permit compliance.  

Digit also offers optional covers for 3‑wheeler insurance that enhance your policy coverage. These add‑ons help you handle specific risks better and reduce out‑of‑pocket expenses during claims, based on your usage and needs.

• Personal Accident Cover: Provides financial compensation to the owner‑driver in case of accidental death or permanent disability.

• Unnamed PA Cover: Offers protection for passengers in the auto rickshaw in case of accidental injury, disability, or death during travel.

• Legal Liability Cover: Covers legal liabilities arising towards employees, paid drivers, or other third parties associated with the vehicle. 

• IMT 23 Cover: Covers damage to commonly excluded or partially covered parts such as tyres, tubes, batteries, and lamps.

• Electrical Accessories Cover: Covers additional electrical fittings installed in the auto, such as music systems or extra lights.

• Non-Electrical Accessories Cover: Covers non-electrical additions like seat covers and other interior fittings.

• Special Exclusions & Compulsory Deductibles Cover: Helps reduce the financial burden by covering certain exclusions and lowering the compulsory deductible amount during claims. 

The following are the factors that will affect your Auto rickshaw insurance premium.

• Engine Capacity (CC): The engine size of your auto impacts the premium. Vehicles with higher engine capacity generally attract higher premiums, as they are associated with higher risk and repair costs.

• Location: The place you register and choose to ride your rickshaw matters a lot when deciding your insurance premium. Metropolitan cities with a lot of traffic, crime and accident rates would obviously charge a higher premium, while safer and smaller cities may charge a lesser insurance premium.

• No-Claim Bonus: If you’ve already had auto rickshaw insurance before and are currently looking to renew your policy or get a new insurer- then in this case your ncb will also be considered, and your premium will be at a discounted rate.

• Age of the Vehicle: As your auto rickshaw gets older, its IDV decreases, which can lower your premium. However, older vehicles may also carry higher maintenance risks, which insurers factor into pricing.

• Fuel Type: The type of fuel your auto uses (petrol, diesel, CNG, LPG, or electric) can slightly impact your premium, as it affects both performance risk and repair costs.

• Add-On Covers: Optional add-ons like zero depreciation, engine protection, or passenger cover increase your premium, but also enhance your coverage and reduce out-of-pocket expenses during claims.

• Insured Declared Value (IDV): IDV is the current market value of your auto rickshaw and the maximum amount you can claim in case of total loss or theft. A higher IDV increases your premium, but ensures you receive a better payout during claims. Setting the right IDV is important to balance cost and coverage.
• Type of Coverage Chosen: The kind of policy you select plays a major role, third-party insurance comes at a lower cost but only covers damages caused to others, whereas a comprehensive policy offers wider protection, including damages to your own vehicle, theft, fire, and natural disasters, resulting in a higher premium.

Given the number of options available today, it is important to pick an insurance that is simple, reasonable, protects and covers you and your business in all possible situations and most importantly, guarantees to settle claims as soon as possible. After all, that’s the most important part of an insurance! 

Here are a few tips that will help you pick the right motor insurance for your three-wheeler:

• Right Insured Declared Value (IDV): IDV is the manufacturer’s selling price of the auto you want to insure (including its depreciation). Your premium will be dependent on IDV. While looking for the right auto rickshaw insurance online, make sure your IDV is stated correctly.
• Service Benefits: Consider services such as 24x7 Customer Support and a wide network of cashless garages, among others. In times of need, these services matter.
• Review Add-Ons: While picking the right auto rickshaw insurance for your three-wheeler, consider the add-ons available to ensure maximum benefits.
• Claim Speed: It’s the most important aspect of any insurance. Pick an insurance company you know will settle claims quickly.
• Best Value: From the right premium and after services to claim settlements and add-ons; pick an auto rickshaw insurance that conveniently covers everything you think you will need at the best possible value.

While comparing auto rickshaw insurance quotes online, it’s easy to focus only on the lowest price. However, the cheapest policy may not always offer the protection or support you need. To make a smart choice, you should compare policies based on coverage, service quality, and claim efficiency, not just the premium. 

Here are the key factors you should always evaluate before choosing a policy:

• Service Benefits: Good service becomes critical during emergencies like accidents or breakdowns. Look for insurers that offer strong support systems, such as 24×7 customer assistance, a wide network of cashless garages, and simple claim processes. These services can make a significant difference when you need help the most.

• Claim Settlement Speed: Insurance is only useful if claims are settled quickly and without hassle. Choose an insurer known for fast and transparent claim settlements. A paperless process (like zero-hardcopy claims) can further speed up approvals and reduce delays.

• Check the IDV (Insured Declared Value): Many policies may offer a lower premium by reducing the IDV, but this directly impacts your claim payout in case of theft or total loss. Always ensure the IDV is realistic and matches your auto rickshaw’s market value. Ideally, choose an insurer that allows you to customise the IDV based on your preference.

• Overall Value for Money: Instead of picking the cheapest option, look for a policy that balances premium, coverage, and service. The right insurance plan should offer adequate protection, dependable service, and smooth claims, at a fair price.

You can easily register a claim by calling us at 1800-258-5956 or emailing us at hello@godigit.com. To ensure a smooth and quick process, keep key details handy such as your policy number, accident location, date and time of the incident, and the contact number of the

Understanding why claims get rejected helps you avoid mistakes and ensures a smoother claims experience.

• Driving Without a Valid Licence: If the driver does not hold a valid or appropriate driving licence at the time of the incident, the claim may be denied.

• Policy Lapse: Claims made when the policy has expired or was not renewed on time are not covered.

• Violation of Policy Terms: Using the auto rickshaw outside its permitted use (for example, private use instead of commercial passenger transport) can lead to rejection. 

• Driving Under the Influence: Claims arising from accidents where the driver was under the influence of alcohol or drugs are not admissible.

• Delay in Claim Intimation: Not informing the insurer about the accident within the specified time can impact claim approval.

• Unreported Modifications: Any unauthorised modifications to the vehicle that are not declared in the policy can result in claim rejection.

• Concealment or Incorrect Information: Providing false or incomplete information at the time of purchase or claim filing can invalidate the claim. 

• Consequential Losses: Damages that occur as a result of continued use after an accident or due to negligence are usually not covered.