What is School Bus Insurance?

School bus insurance is a legal contract between the insurer and the policyholder that provides coverage for any unforeseen incident resulting in loss or damage to the students and staff traveling inside it. School buses make countless trips every academic year, transporting students securely, efficiently, and economically. Therefore, if you own a bus that is commercially used for the transportation of students and staff from various neighborhoods, purchasing school bus insurance is necessary and a smart choice.

School bus insurance provides coverage against any loss or damage incurred during unforeseen events such as accidents or mishaps. It is also referred to as staff bus insurance.

The safety of students and staff traveling on the bus is of the highest significance when operating a business that transports them. Every academic year, school buses make numerous journeys, delivering kids safely, quickly, and economically. Thus, if you own a bus that is professionally utilized for student transportation, purchasing school bus insurance is both required and prudent.

Key Exclusions in School Bus Insurance

It is important to know what is not covered in your commercial/school bus insurance policy to avoid surprises or confusion when making a claim. Here are some common exclusions:

• Unethical Driving: If the driver is found to be driving under the influence of alcohol or without a valid driving license, claims may be denied.
• Consequential Loss: Damage resulting from specific actions by the insured or a third party, such as driving in a landslide or flooded area, will not be covered.
• Own Damages for Third-Party Policyholders: Deliberate damage and losses are not covered under third-party commercial insurance.
• Known Wear and Tear: Damage due to known issues, such as a damaged gearbox or engine leakage, will not be covered.
• State of War: Any damage or loss due to war, civil war, or mutiny will not be covered.

Coverage Details by Parts

• Glass Parts: 100% coverage at the time of claim.
• Fiberglass Components: 70% coverage at the time of claim.
• Rubber/Nylon/Plastic Parts, Tires, Tubes, and Batteries: 50% depreciation at the time of claim.

Why School Bus Insurance is Critical

School bus insurance is essential because it provides appropriate protection against unforeseen incidents. Additionally, having this insurance protects the safety of the bus’s drivers and passengers.

A school bus is often owned, leased, or contracted by a school and is always in use transporting students to and from school or school-related activities. It requires a hired bus driver and adequate liability coverage for drivers, passengers, and the school.

Furthermore, a school bus differs from many other vehicles for several reasons:

• The buses are classified as passenger-carrying vehicles rather than personal vehicles.
• A school bus must have a commercial driver’s license due to its capacity.
• Any bus with a seating capacity of more than 14 passengers is classified as a commercial passenger-carrying vehicle, requiring commercial vehicle insurance if not utilized for student transportation.

School bus Insurance Main Features

Third Party School Bus Insurance vs Comprehensive School Bus Insurance

School buses are one of the most convenient modes of transportation for students. There are two primary types of school bus insurance:

Comprehensive School Bus Insurance

Comprehensive school bus insurance offers complete protection for your vehicle. It covers any damage or loss incurred to your bus and also protects the interests of third parties involved in an accident. This type of insurance is highly recommended over third-party liability insurance for school buses.

Third Party School Bus Insurance

Third-party insurance provides coverage for losses incurred by other individuals or property that may have been damaged due to the insured vehicle in the event of an accident. While it is less expensive than comprehensive coverage, it does not cover damages to your own bus.

Documents Required to File a Claim for School Bus Insurance

To file a claim for your school bus insurance policy, you will need to provide the following documents:

• Copy of FIR
• Registration Certificate of the Vehicle
• Original Copy of Driving License
• Copy of Aadhar Card
• Fitness Certificate of the Vehicle
• Duly Completed and Signed Claim Form
• Original Bus Insurance Papers
• Receipt of Tax Payment
• Route Permit

What's Covered in a School Bus Insurance?

• Accidents: ACCIDENTS School Bus Insurance covers the repairing cost of partly damaged bus or even the total loss of the school bus in case of an accident involved with your school bus.
• Theft:School Bus Insurance provide the coverage in case the school bus is stolen. The IDV value always come in effect in theft claims so one should always keep their vehicle IDV as high as possible and should not take less IDV just to get lower premiums.
• Fire: In unforeceseen incedent of a school bus get damaged or lost totally in the case of fire the school bus insurance policy covers the losses for the insured. Hense its always advisable to buy comprehesive insurance to have such benefits.
• Third Party Damages: All damages to third party property like vehicle or injuries or death claims of third parties are covered in school bus insurance.

Available Add-ons

As a school bus is used for continuous operations sometimes a normal school bus insurance policy does not provide adequate coverage for them. There the add-on coverage becomes effective by enhancing the current coverage provided by the policy in exchange for an added premium. The following is a list of some of the optional add on plans provided by most school bus insurance companies in India

Best School Bus Insurance Companies

School buses are a vital part of the Indian education system, making it essential to provide them with adequate protection. After analyzing numerous companies, we've determined the top school bus insurance providers based on factors like coverage options, unique features, and overall reliability. Here are our recommended insurance companies for individual buses or entire fleets:

• Reliance General Insurance: Reliance is one of the leading general insurance companies in India. They have a huge customer base that includes individuals like you, corporates and SMEs. With 139 offices and more than 28,900+ intermediaries across India, you can easily reach out and enjoy their services at your own convenience. It is also Economic Time’s Best Brands for the Year 2020. .
• ICICI Lombard General Insurance: A top private sector general insurance company with a Gross Written Premium (GWP) of ₹135.92 billion for the year ended March 31, 2020, and over 1.86 million claims settled.
• Tata AIG General Insurance: Ltd. is one of the leading private sector general insurance companies in India with a Gross Written Premium (GWP) of ₹135.92 billion for the year ended March 31, 2020. The company issued over 26.2 million policies and settled over 1.86 million claims as of March 31, 2020. .
• Shriram General Insurance: was started as a joint venture between Shriram Capital Ltd. and Sanlam Limited (South Africa), established in 1918 and the Group demutualized in 1998. As of September 2012, the stake of Sanlam Limited (South Africa) has been transferred to Shriram Capital Ltd. The Group’s vision is serving the underserved and creating value at the bottom of the Pyramid. SGI has also been awarded the “Excellence In Growth Award” for 2 consecutive years (2011 & 2012)
• Chola MS General Insurance Company Limited is a Joint Venture between the Murugappa Group and Mitsui Sumitomo Insurance Company Limited, Japan. In FY 2020-21, the company achieved a Gross Written Premium (GWP) of ₹43,882 million. Chola MS currently has 132 branches and over 50,000 intermediaries across the country. Chola MS has also been recognized as The Economic Times Best Brands 2020..
• Royal Sundaram General Insurance: The first private sector general insurance company in India, known for introducing in-house Motor Assessors (IMAs).
• IFFCO Tokio General Insurance: Focused on rural insurance, this company has established Bima Kendras to improve insurance access in underserved areas.
• HDFC ERGO General Insurance: Awarded for excellence in financial reporting, it is known for its reliable services in the non-life insurance sector.
• Go Digit General Insurance: Founded in 2016, Go Digit aims to simplify the insurance experience for clients from purchase to claims.
• SBI General Insurance: With a vast network, SBI General operates in over 110 cities and has a significant presence through National Bank Group branches.