CV insurance claim-impact of route permit
As per the motor vehicle act, the Route permit is a necessity to ply any commercial vehicle on the public roads, so it also becomes the fundamental reqirement to be entitled for an insurance claim under the motor insurance policy. Insurers need to check valid period & also the place of accident falls under the geographical area of operation as mentioned in the document.
Necessity of route permit for insurance claims:
No owner of a motor vehicle shall use or permit the use of the vehicle as a transport vehicle in any public place whether or not such vehicle is actually carrying any passengers or goods save in accordance with the conditions of a permit granted or countersigned by a Regional or State Transport Authority or any prescribed authority authorising him the use of the vehicle in that place in the manner in which the vehicle is being used.
Type of route permits: There are two type of route permits, one is permit for goods vehicle & other is route permit for passenger vehicles. Both the classes of vehicles are further divided further into sub-categories which are explained hereunder:
- Goods carrier route permits:
- State level permit: this is for the commercial vehicles which is in operation within the state. This permit is valid only within a spcified state.
- All India permit or national permit: This permit is issued for the taxis, Buses, trucks & other goods & passanger carrier for inter state movement.
A national permit is issued for at least four states in continuation taking the home state into account. To obtain a national permit, the age of the goods vehicle should not be more than 12 years and the age of a multi axle vehicle should not be more than 15 years
There are different type of the routes permit in this category but we will discuss only main categories:
- Contract Carriage Permits (Chartered Buses):
A Contract Carriage Permit is the most common type of permit issued to passanger carrier mainly buses which allows the bus to be driven from one location to another on a fixed route for hire & reward.
- Stage carrier route permits:
Stage carriage permits are issued to buses that travel on a particular routes picking up passengers on the way. The route consists of stages where passengers can be picked up and dropped.
- Temporary permits:
Temporary permits are issued to vehicles to operate outside the home state for a limited period of time.
- All India Tourist Permit (AITP):
Given to the busses & taxis to ply in other than home state.
- Private Service Vehicle Permit: For the purpose of carrying passengers or goods otherwise than for hire or reward or in connection with the trade or business carried on by the applicant.
Impact on insurance claim: In case any mishappening & resultant insurance claim, the insurer need to check permit on the following parameters
- Date of validity as on the date of accident
- Place of accident fall within the states as mentioned in the permit
- Authorization for inter state operations
- Whether lumpsum yearly fees for other states paid or not
- If yearly fee not paid, whether temporary permit available
In absence of above, the claim is likely to be rejected as this is the fundamental breach of the term & conditions of the commercial vehicle insurance policy.