Bus and school bus insurance in India is a must have to protect the passengers travelling in it, school children and bus operators. Bus insurance policy provides coverage against a range of risks, including accidents, theft, and natural disasters.

It also allows bus owners and operators to avoid significant financial losses and ensures they comply with legal requirements. Therefore, it is important to have a bus insurance policy in place. Know more about it here.

Bus insurance is a type of commercial vehicle insurance policy designed to protect commercial buses from potential damage and losses, such as in the case of an accident, natural calamity or fire. While the most basic plan covers third party liabilities (as required by law), a comprehensive policy also covers one’s own damages and losses, both under one combined policy.

Types of Buses Covered

Here are the types of buses covered under commercial bus insurance policy:

• School Buses: 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 Buses: 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 Buses: Buses owned by private organizations such as tour buses or buses used by offices for their employees too can be covered under this policy.
• Other Passenger Carrying Buses: 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.

Having a commercial bus insurance policy is important for financial safety and is also mandatory by law in India. Here are other reasons why you should buy a bus insurance policy:

1. 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.

2. 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 against any potential third-party damages and losses. Without one, you will be liable to pay a fine, if caught.

3. Covers for Owner-Driver

A bus insurance not only covers losses and damages to your vehicle or third-party vehicle, but also covers any bodily injuries or the like for its owner-driver.

4. 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.

Yes, of course! School buses are primarily used by schools or third-party organizations to transport kids from home to school and back. Therefore, it’s important that you at least get bus insurance that won’t only protect your organization against unforeseen losses but also covers the children and teachers traveling on these buses on a daily basis.

Yes, obtaining commercial bus insurance is crucial as it provides essential coverage for accidents, including medical expenses and damage repairs. Additionally, an insurance policy also safeguards against legal claims and financial losses. Commercial bus insurance also ensures the safety of passengers, drivers, and business.

Based on the type of bus you own or fleet of buses to be insured, we have primarily two plans to choose from:

1. Comprehensive Plan

Securing your commercial or school bus with a comprehensive commercial vehicle insurance gives you peace of mind as this plan covers your own vehicle as well as third-party liabilities against damage or loss in an unfortunate accident. Therefore, with a comprehensive bus insurance plan you are financially protected against injuries, damage, natural disasters, and theft.

The plan also allows you to further enhance your insurance coverage by offering an option to choose from suitable add-ons available.

2. Third-party Liability Only Plan

With a third-party liability only commercial vehicle insurance plan, you secure your commercial or school bus against damage, loss or injury to third-party property or person due to your vehicle. Also, it is mandatory to have at least a third-party insurance policy in India.

The Liability Only Plan doesn’t offer the option to opt for add-ons and the bus insurance price for this plan is fixed by IRDAI.

To buy bus insurance online from Digit, furnish the following documents:

• Vehicle Registration Certificate (RC)
• Previous year commercial vehicle insurance policy, if applicable
• Any document among these for KYC verification - PAN/Aadhar/DL/Voter id/Form 16/Passport

If you already have an active bus insurance policy, you can easily download the policy document by following the given steps:

• Step 1: On the Digit app, go to the ‘My Policies’ tab at the bottom. All your current active policies will be displayed.
• Step 2: Choose the policy for which you want to download the document. Check the details and then click on ‘Download Policy’.

Your bus insurance policy document will be downloaded.

To choose the right bus insurance online for your bus, it’s important to compare and evaluate the following factors:

1. Right Insured Declared Value (IDV)

IDV is nothing but the market value of your bus. Everything from your bus insurance premium to your claim payouts is dependent on the vehicle’s IDV. So, ensure that you pick an insurer that gives you the right and true IDV for your bus.

2. Service Benefits

Consider services such as 24x7 Customer Support and a wide network of cashless garages, among others. In times of need, these services really matter.

3. Review Add-Ons

Add-ons help extend the kind of coverage your bus will receive. For example, our additional endorsements include covers like Personal Accident Cover, passenger cover, compulsory deductibles, electric accessories cover, etc.

4. Claim Speed

It’s the most important aspect of any insurance. Pick an insurance company you know will settle claims quickly.

5. Best Value

After you’re done comparing all the above factors, compare bus insurance premiums and see which one gives you the best possible benefits at a good price.

There are various factors that will ultimately affect your bus insurance rates, such as:

1. Model, Engine & Make of the Vehicle

There are different types of buses in the market. Each one of them comes with its own set of features and level of risks. Therefore, your bus insurance rates will largely be affected by the make and model of your bus.

2. Location

Every city and town come with its own level of risks. Some are safer than others, while some are more expensive than others. Therefore, depending on the city you operate your bus in, your bus insurance rates will differ accordingly.

3. No-Claim Bonus

If you’ve already had a bus insurance for your bus before and are currently looking to renew your policy or get a new insurer- then, in this case, your NCB (No Claim Bonus) will also be considered, and your bus insurance premium will come at a discounted rate! A No-Claim Bonus refers to the fact that the respective bus hasn’t had a single claim in the previous policy term.

4. Type of Insurance Plan

Whether you want to go for a third-party liability insurance plan for your bus or comprehensive bus insurance; the bus insurance premium for the two will differ since the coverage benefits offered in each of these plans would be different.