Passenger Carrying Vehicle Insurance: An Overview

Nothing is more appealing than driving or owning your commercial vehicle with confidence. This is possible with passenger carrying vehicle insurance (read commercial vehicle insurance), which keeps you covered against various risks.

This type of insurance is important and legally mandatory for commercial vehicle owners. It financially protects you and your fleet of cabs and buses against unforeseen events. Let’s break down what this insurance covers, what it doesn’t, and more aspects for clarity.

What is Passenger Carrying Vehicle Insurance in UAE?

Passenger carrying vehicle insurance is a kind of commercial vehicle insurance that financially protects vehicles that carry passengers — this could be buses, cabs, and more. These vehicles, just like standard personal ones, are covered in case of loss or damage due to collision, fire, theft, or vandalism.

What Counts as a Passenger Carrying Vehicle in the UAE?

Ideally, passenger carrying vehicles include automobiles like -

Buses - Private, public, and school
Cabs - Cars and commercial taxis

Why Do You Need a Passenger Carrying Vehicle Cover?

A passenger carrying vehicle insurance policy is important for your business if you own a business or fleet of buses for commercial purposes. While this insurance is mandatory, it also has some value-added benefits, including -

The vehicle remains protected from sudden financial losses. Any damage, be it theft, fire, collision, or a third-party liability, is covered under your passenger carrying vehicle insurance policy.
Adheres to the UAE Federal Law requirement. This insurance policy complies with the UAE’s mandatory requirement. Absence of this insurance can lead to legal consequences like a fine of AED 500 and vehicle impoundment.
Protects passengers! The main reason to buy this type of commercial vehicle insurance is to financially protect its occupants. By including an add-on of personal accident cover for the passengers, you can financially protect passengers and their families in case of unforeseen circumstances.
Your vehicle is financially protected. Since you own a fleet of passenger carrying vehicles, you should definitely buy this insurance policy. It will financially protect your business in case of an accident, theft, or fire.

Types of Passenger Carrying Vehicles Insurance in UAE

Just like commercial vehicle insurance plans or even standard motor policies, there are two main types of passenger carrying vehicle insurance. Here are more details on the same -

Third-Party Insurance	Comprehensive Insurance
It is legally mandatory in the UAE	The plan is optional, but highly recommended
It covers third-party liabilities like damage to vehicles and property in case your vehicle causes a collision	It covers both third-party liabilities and damage to your own vehicle
The premium is affordable	The premium is more expensive

What is Covered and Not Covered Under Passenger Carrying Vehicle Insurance? (ft. Comprehensive Insurance)

Here’s what is covered and not covered under the passenger carrying vehicle cover -

What is Covered	What is Not Covered
✅ Accidents ✅ Thefts ✅ Third-party damages ✅ Third-party bodily injury ✅ Medical Expenses ✅ Vandalism ✅ Damage to own vehicle	❌ Driving under the influence ❌ Civil war ❌ Regular wear and tear ❌ Engaging in criminal activities ❌ Intentional damages

What is Covered

What is Not Covered

✅ Accidents

✅ Thefts

✅ Third-party damages

✅ Third-party bodily injury

✅ Medical Expenses

✅ Vandalism

✅ Damage to own vehicle

❌ Driving under the influence

❌ Civil war

❌ Regular wear and tear

❌ Engaging in criminal activities

❌ Intentional damages

What are the Add-ons Offered Under Passenger Carrying Motor Insurance?

With passenger carrying vehicle insurance, you get a few add-on options. You can get them for your policy as per your business’s specific requirements. Here are the major add-ons -

Roadside assistance
Agency repair

Documents for Buying Passenger Carrying Vehicle Insurance in UAE

To purchase passenger carrying motor insurance, you have to submit a few documents to the insurer. Here are the major document requirements -

Emirates ID
Driving licence of the vehicle owner/driver
The company’s trade licence
Mulkiya
Valid passport with a valid resident visa
Details of previous vehicle insurance plan (if applicable)

Why Should You Buy Passenger Carrying Vehicle Insurance from Policybazaar.ae?

Policybazaar.ae is your one-stop digital portal for all types of commercial vehicle insurance from the leading providers in the UAE under one roof. Since a passenger carrying vehicle is a commercial policy, here’s what you get when you buy a commercial vehicle insurance policy from us -