There is always an element of risk involved in driving but this risk becomes even more when the car being driven belongs to someone else. But it is a very good choice for a professional career for people who love to drive cars. However, because of the ever prevalent risks involved, it is also necessary for a chauffeur to have all the relevant insurances in place. This will not only help him to minimise his financial loses but also ensure that he is able to bounce back from any set back suffered pretty soon.
The type of insurance that a chauffeur will need depends on the requirements of the state from where he needs to get his license. There are some legally mandatory insurance policies which the chauffeur needs to have in order to get his license. There are also other important insurance policies which he needs to have as a precaution for any accidents that might occur, if at all. Even though there are no legal compulsions to these policies, having them in the kitty is pure common sense since they help the chauffeur in ways which need to be experienced to understand the benefits.
Some of the important insurance policies that a chauffeur needs to have are:
• Motor insurance: This is a legal necessity for any person who drives vehicles on roads and public highways. This insurance provides protection for cars and other vehicles which ply on the roads. The main aim of this insurance is to provide protection in case the vehicle suffers any physical damage as a result of a collision or an accident. It also makes provisions for any other liabilities that could arise from these accidents.
• Public liability insurance: Irrespective of whether a person drives his own car or someone else’ car, getting a public liability insurance is vitally important for him. This is because it protects the chauffeur from costly claims and settlement demands which might arise from any:
o Accidental damages caused to third party or client property,
o A client, customer of third party getting physically hurt or suffering bodily injuries,
o Need to contest a claim or fight a litigation case in the court of law whereby all legal fees incurred are paid by this insurance,
o Instances wherein a chauffeur is unable to carry out his duties for the short period of time as required when he is convalescing from an injury or from some sickness.
• Employer’s liability insurance: This, again, is a legally important insurance to have for those self-employed chauffeurs who have employees working for him. In fact not having this insurance can incur punishment in the form of cash penalties etc. This insurance also helps to provide monetary coverage for employees either hurt in an accident or fall ill during the course of their jobs.
• Personal accident and sickness insurance: As the name suggests, this insurance takes care of self-employed professionals who are not able to work for the time being because of either:
o Physical injuries or bodily harm suffered in an accident or
o Are otherwise sick enough to have to temporarily skip working for some time.
It achieves this by way of a weekly benefit which it provides to the insured chauffeur so that he is able to pay his utility bills, take care of his daily needs etc. In instances wherein the chauffeur might be unable to resume his duties permanently due to a debilitating injury or illness, a lump sum amount is given to the insured person.
• Legal expenses insurance: The job of a chauffeur is quite vulnerable to legal actions being taken.
Thus in order to cope up with and contest the many different types of legal actions that can be taken against them, legal expenses insurance is a must. It cover all the legal expenses incurred till such time as the case is subjudice and does not come to a satisfactory conclusion.
Other insurances like the property insurance, the equipment and tools insurance etc., are all optional. Thus the chauffeur will commit to the same if he feels like it. However, care must be taken to select the correct type of insurance after taking into account both the coverage offered and the premium to be paid so that he is able to continue the same in the future.