Auto rickshaw insurance is compulsory by law. Learn what it covers, which documents you need and how to renew on time. Get an auto insurance quote today.
Auto rickshaw insurance is a passenger-carrying commercial policy for three-wheeler autos. Third-party cover is compulsory by law. For most auto owners, comprehensive cover is worth a look, because the auto is your daily income and repairs can be costly.
What Is Auto Rickshaw Insurance?
An auto rickshaw carries passengers for money, so it is a commercial vehicle. It needs a commercial or passenger-carrying policy. A private-vehicle policy is not valid for this use.
The policy protects you from money loss if your auto causes harm to someone, or if your auto itself is damaged or stolen. You can learn more about the wider category in our commercial vehicle insurance page.
Why It Is Compulsory
Third-party insurance is compulsory for every vehicle on Indian roads under the Motor Vehicles Act, 1988. An auto is no exception.
If you drive without valid insurance, the penalty is a fine of ₹2,000 and/or up to 3 months in jail for a first offence. For a repeat offence, it is ₹4,000 and/or up to 3 months (Motor Vehicles (Amendment) Act, 2019).
Besides fines, there is a bigger risk. If your auto hurts a passenger or another person, you may have to pay a large amount from your own pocket.
What Does It Cover?
There are two main types of cover.
- Third-party only: Pays for injury, death or property damage to another person. Property damage liability is limited to ₹7.5 lakh. Injury or death liability is unlimited. It does not pay for damage to your own auto.
- Comprehensive: Includes third-party cover plus own damage cover. It pays for damage to your auto from accident, fire, theft, natural calamities like flood and earthquake, and man-made events like riots, as per policy terms.
The owner-driver also gets compulsory personal accident (PA) cover of ₹15 lakh, unless the owner already has a similar cover. It applies to the owner-driver only.
Read our simple guides on third-party insurance and comprehensive insurance to pick between them.
Cover for Passengers
Passengers in your auto are third parties. If a passenger is hurt because of your driving, the third-party part of the policy responds. This is why a passenger-carrying policy is needed. Check your policy wording to see how passengers are covered and any limits.
Add-Ons for Auto Owners
Add-ons can help you get back to work faster. Terms differ by insurer, and some are only for newer vehicles.
- Zero depreciation: Usually for newer vehicles, often up to around 5 years old. It gives a higher pay-out on replaced parts.
- Roadside assistance: Helps if the auto breaks down on the road.
- Engine protection: Useful in areas with flooded roads.
- Consumables cover: Pays for small repair items.
- NCB protection: Helps you keep your discount after a claim, within limits.
- Battery cover: Useful if you run an electric three-wheeler.
Choose only what you will really use.
Documents Usually Needed
Keep these ready for buying, renewing or claiming:
- RC copy of the auto.
- Driving licence.
- Previous policy copy.
- ID and address proof.
- Permit and fitness papers, if your insurer asks for them.
- For a claim: claim form, FIR when needed, repair estimate and bills, and photos of damage.
Having these in a folder on your phone saves time in an emergency.
How to Renew Your Auto Insurance
Renewing on time is the easiest way to avoid trouble.
- Check your expiry date. Our guide on how to check vehicle insurance status can help.
- Collect your RC, licence and old policy.
- Compare quotes and decide on cover and add-ons.
- Pay and save the new policy on your phone.
- Set a reminder for the next renewal.
Use our renew vehicle insurance page to start. Renew before the date ends. If the policy expires, your auto is uninsured from the next minute. Insurers may ask for an inspection before renewing an expired policy, and you may lose your NCB after a long gap.
NCB (No Claim Bonus) is a discount on the own-damage premium for claim-free years. It belongs to the owner, not the vehicle, and is usually kept if you renew on time. Insurers usually allow renewal within about 90 days of expiry to keep it, but check your policy.
What If You Need to Claim?
Follow these steps.
- Inform the insurer quickly.
- Also inform the police for theft, a major accident, third-party injury or death, or riot.
- Do not move or repair the auto beyond need before the surveyor checks it.
- Submit the documents and get the repair done.
For theft, file an FIR. A "non-traceable" report from the police is usually needed before final settlement. Claims can be rejected for reasons like an expired policy, drunk driving, no valid licence, late intimation or hidden facts. Our claim support page explains more.
Want to compare options? Get a quote. Rules can change and differ by insurer, so your policy document is the final word.
FAQs
Is auto rickshaw insurance compulsory?
Yes. Third-party insurance is compulsory for every vehicle on Indian roads, including autos.
Does the policy cover my passengers?
Passengers are usually treated as third parties, so the third-party part responds if they are hurt due to your driving. Check your policy wording for limits.
Can I use a private vehicle policy for my auto?
No. A private policy is not valid for commercial use. You need a commercial or passenger-carrying policy.
What happens if I forget to renew?
Your auto becomes uninsured from the next minute. You may face fines, an inspection before renewal and loss of NCB after a long gap.
This guide is for information only. Rules and policy terms can change, and the policy document is final. Please read your policy wording.