What You Need to Know About Insurance Before Taking a Cab

Did you know that by law each vehicle is required to possess commercial insurance, if the said vehicle is running as a taxi or a rental car? However, some Rideshare companies and Rental Car operators do not adhere to this in Sri Lanka and many other countries. While some services may cover the passenger for a minimum amount, this may not be sufficient to cover the full extent of damage, injury or hospitalization. Finding out what you need to know about insurance before taking a cab or getting into a rideshare could save money and your life

Commercial vehicles are required to have at minimum a

  1. 3rd Party
  2. Private Insurance
  3. Hiring Insurance – Commercial transport of passengers / cargo. Required for Taxi, Tourist Cars, Goods Transport Vehicles running with drivers.
  4. Rent a car Insurance – Legally required for self drive hire of vehicles, or vehicles given for use/driven by 3rd parties

Whenever possible, it is recommended that you carefully assess the insurance cover provided to passengers/ renters to determine how well you are protected. It is also imperative to ascertain if your own insurance policy could be invalidated by travelling in an uninsured vehicle.

If you happen to be in a car accident while travelling in a taxi or Rideshare vehicle, it is important to establish if the vehicle & it’s passengers are covered by a valid insurance policy and to what degree you will be compensated. While nobody anticipates being in accidents and however minor your injury may be, it is an enormous inconvenience to worry about paying for hospitals in the absence of insurance.

Nobody really needs the hassle of worrying about medical bills while they are on holiday. Doing your research to know more about insurance before taking a cab or renting a car can truly help. So check before you rent and enjoy your peace of mind!

Saturday February 12, 2022