It is very important that your taxi car has the right taxi car insurance , as the continuous increase in the number of cars on the road in every nook and corner of the world is growing year by year , the higer the risk will be for accidents . This practice of insuring vehicles in general originated in the United Kingdom during the 19th century. The global automobile industry is the industry and area of commerce in which automobile models are planned, designed, manufactured, and marketed. The automobile industry is apprehensive about factors such as profits and competition; with consumer demands for attributes like style, safety, and competence; and last but not lease - manufacturing efficiency. When it comes to the issue of safety, then obviously insurance comes in to picture.

Taxi car insurance insures damage to the vehicle and its accessories, property damage - liability, demise of or any kind of harm to the assured himself or spouse. It also insures the taxi car against risk or liability, or demise of, third parties caused by the negligence of the driver. The insurance of cars against damage is not made mandatory, but the insurance of third party liability arising out of the use of cars in public places has been made mandatory.

The categories of cars that usually are insured by insurance companies include all vehicles used for private, professional or pleasure purposes. Also, cars of private type including station wagons, used for social, domestic and pleasure purposes and for the business or professional purposes. Three wheeled cars including cabin scooters used for private purposes are also eligible for insurance. In fact, insurance is legally compulsory.

Various risks are covered under the taxi car insurance policy and these vary from one organization to other. A few taxi car insurance covers include death or injury to any person including occupants carried in the car provided such occupants are not carried for hire or reward. Damage to the car is covered and the same is restricted to the terms set by the insurance organization.

There are a few conditions according to which the taxi car insurance works. The insured should provide a notice of loss of the car to the insurer immediately after the occurrence of the accident. The insured is supposed to assist the insurer in performing his or her duty by providing all the required information and documents. Each and every letter or document received in respect to the accident should also be forwarded to the insurer. In case of any prosecution or inquiry, the insurer should be informed about the same.

The insurer can either opt for repairing, reinstating, or replacing the vehicle or can pay the compensation in cash. This should be in accordance with the condition of indemnity where the owner of the vehicle should not make any profit out of the loss. At the same time, the liability of the insurer should not exceed the insured's estimate of the value of the car.

Taxi car insurance thus has got numerous benefits and hence it is mandatory for every car owner to have one.

All the above aspects that have been discussed make it pretty evident that the demand for taxi cars is increasing by the day.