In today’s world, rising fuel costs and emissions concerns have prompted many travelers to switch to minibuses and minivans. Like other forms of road transport, minibuses must also be insured. Therefore, the whole concept of minibus insurance is slowly becoming popular.
As with any insurance policy, there are three types of minibus insurance coverage. A comprehensive minibus insurance policy would cover almost all risks, including fire, theft, injury to third parties or physical damage. All medical expenses incurred will be paid by the insurance company, if the amount is within the policy limit.
A second type of minibus insurance is related to third party insurance only. This is the minimum insurance requirement, according to the law. This covers injuries to other people, liability for death, damage to third party property, and so on.
The last type covers fire insurance, third party insurance and theft insurance. It does not cover personal medical expenses or liability for death. It is normally chosen by commercial operators and transit service operators.
Minibus insurance is also divided into five categories, based on the use of the minibuses.
Multipurpose minibuses can be insured under a separate category: Multipurpose Vehicle Insurance. This policy covers passenger injuries, cargo damage, theft and fire. Some countries require operators to opt for this type of insurance.
Taxi and shuttle operators must choose the category of taxi insurance. Travelers are insured through this policy and passenger injuries are taken care of. Liability insurance is also offered.
If an organization has a large number of minibuses, they can opt for the Fleet Insurance category. This policy is cheaper and covers passenger insurance, theft, vehicle damage, fire and third party injury or death.
If a minibus is used for personal purposes, it must be insured under the Family Insurance category. Family members are also insured against injury and theft insurance is also offered.
The last category is for charities that use a minibus. This is called Charity Minibus Insurance. Under this, theft, fire and passenger insurance are offered. The policy limit is usually higher in this category, due to legal requirements.
There are other types of minibus insurance that do not fit into any specific category. For example, a minibus used as a school van cannot be insured under the Taxi Insurance category or under the Fleet Insurance category alone. School-age child injuries fall under a very sensitive legal net. Some types of insurance also offer legal support.
There are some add-ons to insurance benefits on certain policies. These include breakdown assistance, recovery assistance and liability coverage. An important factor to consider when choosing an insurance policy is the duration of the policy.
For example, 12-month policies will not be effective for commercial and taxi operators.
In order to claim an insurance policy, there are some basic legal requirements.
If an accident has occurred and the driver in question does not have a valid or relevant driver’s license, the insurance company will not take over the case. In Europe, a green card is required for an insurance policy. In the UK, Minibus Driver Awareness Scheme (MiDAS) qualification is compulsory for any minibus driver.
Some insurance companies offer personalized insurance packages. One can choose from the benefits to meet their needs and can pay annual premiums.
