Passenger Carrying Vehicle Insurance

This insurance is essential for anyone using a vehicle to transport passengers as part of a commercial or organised activity.

1. Commercial Passenger Vehicle Owners

If you operate vehicles like taxis, cabs (Ola/Uber), auto‑rickshaws, or buses that carry passengers for fare, you must have passenger carrying vehicle insurance. At minimum, third‑party liability cover is legally mandatory to protect against claims made by passengers or other road users.

2. Fleet Operators and Transport Businesses

Companies running multiple passenger vehicles such as bus operators, staff transport services, or tourist vehicle fleets need this insurance to cover financial exposure from accidents, injuries, or damages involving passengers.

3. School and Institutional Transport Providers

Owners of school vans, buses, or college transport vehicles must ensure proper coverage, especially for passenger liability. Since they carry multiple passengers regularly, the financial risk in case of an accident is significantly higher.

4. Employee Transport Services

Businesses that provide pick‑and‑drop facilities for employees (e.g., corporate shuttle services) need passenger carrying vehicle insurance to cover both third‑party risks and passenger-related liabilities.

5. Tourist and Contract Carriage Vehicle Owners

Vehicles used for tours, travel packages, or contract-based passenger transport (like tempo travellers) require specialized coverage suited to their usage pattern and passenger load.

Your premium is determined by the level of risk your vehicle carries, how it is used, and the coverage you opt for.

• Type of vehicle – Taxis, buses, auto rickshaws, and tempo travellers have different risk profiles, which directly impact pricing

• Seating capacity – Higher passenger capacity increases liability exposure, leading to higher premiums

• Usage pattern – Frequent trips, long-distance travel, or operating in high-traffic areas increase risk and cost 

• Vehicle age and IDV – Newer vehicles with higher Insured Declared Value have higher own damage premiums

• Geographical location – Cities with heavy traffic, accident rates, or flood risks typically attract higher premiums

• Add-ons selected – Covers like zero depreciation, passenger cover, and roadside assistance increase the premium

• Claim history and NCB – A clean claim record lowers premium through No Claim Bonus, while past claims may increase it 

• Regulatory third-party rates – IRDAI-defined liability premiums form a mandatory base component of the total cost

To buy heavy vehicle insurance online from Digit, you need these documents:

• Registration Certificate
• Previous Year Insurance Policy
• Documents for KYC Verification

While both are types of commercial vehicle insurance, they differ based on what the vehicle carries and the risks involved.

• Passenger carrying vehicle insurance is focused on risks related to transporting people, including passenger safety and liability

• Goods carrying vehicle insurance is designed around risks involved in transporting cargo and long haul movement

• Passenger vehicle policies often need additional coverage to protect passengers and handle legal liability 

• Goods vehicle policies are more focused on covering vehicle damage and risks associated with goods transport operations.