Commercial Vehicle Insurance

Commercial Vehicle Insurance is a type of motor insurance policy that provides coverage in case of damages or losses caused by or to a commercial vehicle and its owner-driver. It is a customized motor insurance policy that can include losses and damages in the situation of an accident,

natural calamities, collisions, fire, etc. All businesses must purchase a commercial vehicle insurance policy for their motor vehicles like pick-up vans, cabs, auto-rickshaws, tractors, school buses, trucks, commercial vans, etc.

Commercial vehicles are an important mode of transportation and are heavy-duty vehicles, which are used on an everyday basis to carry out tasks. These vehicles usually include trucks, vans, trailers, buses, taxies, coaches, carriers, shovels, tractors, cranes, mobile rigs, bulldozers, etc. that are used to transport goods within the city/cities and from one state-to-another. They are also used for inter-city passenger tours and travel.

These heavy-duty commercial vehicles have an important contribution to bulk transportation for many businesses. However, such heavy-duty commercial vehicles are always prone to road accidents, unpredicted damages while driving and natural calamities.

Therefore, commercial vehicle insurance is important to covet these sets of wheels against the odds. Tractor insurance, insurance for covering goods carrying trucks, commercial insurance for pick-up vans, etc.

Why is Commercial Vehicle Insurance Important?

Commercial vehicle insurance is beneficial for the smooth functioning of your running business against any adverse situations that may cause a huge financial drain. Almost every type of vehicle that is used for commercial purposes such as passengers carrying vehicles, private/public travel trailers, taxis, tractors, cranes, mobile rigs, bulldozers, etc. gets covered under comprehensive commercial vehicle insurance.

Buying commercial vehicle insurance online is a quick, easy, and hassle-free process. Therefore, before you zero down on the policy, compare commercial vehicle insurance quotes and purchase a policy that fits your budget.

Remember, any mishap while riding a commercial vehicle without valid commercial vehicle insurance can lead to a huge monetary loss and put anyone in a difficult situation.

Key Features of Commercial Vehicle Insurance

Commercial vehicle insurance plans come loaded with some salient features. The following are the salient features offered under commercial vehicle insurance:

• Comprehensive coverage is provided to both public and private carriers including special types of goods carrying vehicles.
• The commercial vehicle insurance plan provides cover for the liabilities in case of any injury or an accident.
• Do not worry about the unwanted expense as having a commercial vehicle insurance plan will provide monetary compensation.
• Remain stress-free from monetary setbacks incurred due to liabilities.
• Third-party person/vehicle/ property damage cover.
• A personal accident cover for the driver and the owner.
• Protect your most valuable assets.
• Cover driver, helper, and conductor with your vehicle’s insurance.
• Get Free Quotes

Types of Commercial Vehicle Insurance

Commercial vehicle insurance is generally of two types listed below:

• Comprehensive Commercial Vehicle Insurance Comprehensive insurance offers complete protection to your commercial vehicle under any adverse circumstances, which may lead to an unwanted expense. Secure your commercial vehicle from uncertainties such as damage, fire, theft, robbery, flood, earthquake, and so on. Besides, comprehensive vehicle insurance policy provides cover to third-party property or person in case of loss/damage.
• Third-party Liability Commercial Vehicle Insurance Commercial vehicle insurance third-party liability offers protection to any third-party property, any third person, or the vehicle, which may lead to the demise, bodily injury or any other damage. The safety of these types of commercial vehicles should be of utmost concern. Besides, the scope of coverage is more or less the same for both the insurance policies.

Commercial Vehicle Insurance: Inclusions

Commercial vehicle insurance policy compensates for personal, medical, and financial losses that are incurred due to damage resulting from theft, accidents, and natural disasters.

Most commercial vehicle insurance companies provide cashless compensation for getting your commercial vehicle repaired at their registered workshops.

There are a plethora of commercial insurance companies that provide customized commercial vehicle insurance plans to meet the different needs of their customers.

Here is a list of the benefits that commercial vehicle insurance policy offers:

Loss/ damage to the insured commercial vehicle resulting due to:

• Fire, self-ignition, explosion or lightning
• Riots and strike
• Theft, housebreaking, and burglary
• Malicious acts
• Flood, hurricane, tempest, storm, and typhoon
• Hailstorm, inundation cyclones, frost
• Landslide and rock slide
• Earthquakes
• Terrorist activity
• Accident (by external means)

Personal Accident claims are also covered under this policy. It includes permanent total disability/ accidental death of the paid driver and the owner.

Commercial vehicle third-party insurance provides cover in case of an accident involving your insured commercial vehicle and a third-party vehicle. It will cover the loss or damage caused to the third-party property, vehicle, bodily injuries, and death. An option to boost the policy benefit by opting for various add-on covers, at an additional premium. Prevent unnecessary losses to your business. Get instant plans for your commercial vehicle

Commercial Vehicle Insurance: Add-on Covers

You can also enhance your scope of commercial vehicle insurance coverage by opting for add-on covers on the payment of an additional premium. While buying commercial vehicle insurance comparison the add-on covers will help you to make an informed decision.

The following are some add-on covers that you may consider while buying commercial vehicle insurance online:

• Accessory Cover: Cover for loss of accessories.
• Legal Liability: Legal liability covers the paid driver/conductor/non-fare paying passengers.
• Personal Accident Cover: Personal accident benefit to the owner/driver and any other named person apart from an employee and vehicle cleaner/ conductor/ paid driver.
• Zero Depreciation Cover: To get the full value of the vehicle in case of loss or damage
• Towing Cover: Road-side assistance in case of sudden breakdown of the vehicle.
• Engine Protector: It covers the consequential damages to the vehicle engine.

Commercial Vehicle Insurance: Exclusions

The policy does not cover any claim arising out of the following situations:

• Wear and tear of the commercial vehicle.
• Consequential loss.
• A loss incurred during a civil war.
• Contractual liabilities are also not covered.
• The occurrence of an accident while driving with an invalid driving license or under the consumption of alcohol.
• Using a vehicle under ‘limitations as to use’ for instance, a private car is used as a taxi.
• War perils, nuclear perils.
• Electrical and Mechanical breakdown, breakage, or failure.
• In case, the policy is not active at the time of accident or loss.

Now, let us understand the different insurance plans available for every category of commercial vehicle.

Goods Carrying Vehicle Insurance

Goods carrying vehicle insurance covers the vehicles against loss or damages due to man-made and natural calamities such as theft, fire, explosion, flood, earthquake, landslide, accidental damages, personal accident, and third-party liability. Goods-carrying vehicles help in the smooth growth of the nation’s economy by transferring goods within the country and globally.

The goods carrying vehicle insurance can be bought for vehicles such as trucks, trailers, tractor-trailers, etc.

Salient Features of Goods Carrying Vehicle Insurance

Listed below are some of the key features of goods-carrying vehicle insurance:

• The policy offers both third-party liability and damage cover.
• Goods carrying vehicles such as trucks, trailers, Tractor-Trailer, etc. can be insured under goods carrying vehicle insurance, for example, truck insurance to cover goods carrying trucks.
• Cashless claim facility to be availed across the country at the registered garage.
• The policy benefits can be enhanced further by opting for various add-on covers.
• The insured vehicle is covered for loss or damage sustained during an accident, third-party liability, and damages due to man-made disasters such as theft, vandalism, etc.
• It covers natural calamities causing a threat to the insured vehicles such as floods, storms, earthquakes, landslides, etc.
• No Claim Bonus is to be earned for every claim-free year up to a defined percentage based on the policy terms.

Goods Carrying Vehicle Insurance: Inclusions

The list of inclusions for goods carrying vehicle insurance includes:

• Third-Party Liability Cover: The policy covers the insured vehicle for any liability arising out of accidental injury, bodily damage, or death of a third party.
• Loss Due to Natural Disasters: Damage, loss, or damage due to natural calamities are covered. For example, if your goods-carrying pick-up van gets damaged due to a cyclone, your pick-up van insurance will cover the losses incurred.
• Man-made Calamities: Man-made disasters such as theft, vandalism, etc. are covered, where the insured pays up to the full value in case the vehicle is untraceable, under the ‘total loss’ category.
• Personal Accident Cover: The owner/driver is covered for personal accidental damages or loss up to a certain percentage of the Sum Insured, including the treatment cost. On payment of an extra premium, even co-passengers can be covered.
• Loss Due to Natural Disasters: Damage, loss, or due to natural calamities are covered. For example, if your goods-carrying pick-up van gets damaged due to a cyclone, your pick-up van insurance will cover the losses incurred.

Goods Carrying Vehicle Insurance: Exclusions

The list of exclusions for goods carrying vehicle insurance includes:

• Illegal Driving: If you do not have a valid and authorised driving license, your goods-carrying vehicle insurance is of no use. If you drive under the influence of alcohol or drugs, then you are not covered under goods goods-carrying vehicle insurance policy.
• Mechanical and Electrical Breakdown: Any mechanical and electrical breakdowns are not covered by your goods-carrying vehicle insurance policy.
• Depreciation: The goods-carrying vehicle insurance plan does not offer coverage against depreciation in the value of the vehicle over the period.

Passenger Carrying Vehicle Insurance

Passenger-carrying vehicle insurance provides coverage against accidental damages, fire and explosion, man-made calamities such as theft, natural calamities, and personal accidents, along with third-party liability cover. The passenger-carrying vehicles are intended for the carriage of passengers.

Passenger Carrying Vehicle Insurance Features

Below are the key features of passenger-carrying vehicle insurance:

• This insurance can be bought for various passenger-carrying vehicles such as buses, taxis, passenger-carrying vans, etc.
• The policy premium is decided based on the type of vehicle, cubic capacity, the zone of registration, Licensed Carrying Capacity of the vehicle, Gross Vehicle Weight, etc.
• The policy covers the insured vehicle for the damages due to man-made and natural calamities.
• No Claim Bonus is to be earned for every claim-free year.
• Some insurers offer discounts on premiums depending on the mode of buying.

Passenger Carrying Vehicle Insurance Inclusions

The inclusion list of passenger-carrying vehicle insurance includes:

• Cover for Accidental Damages: The policy covers the vehicle in case of an accident leading to damages or injuries.
• Cover to Natural Calamities: Natural calamities may take a toll on the vehicle. Do not worry, it is covered as well.
• Fire & Explosion: Total or partial loss of the vehicle due to fire or explosion is covered.
• Personal Accident Cover: Cover to owner-driver and co-passengers (with an extra premium) is offered in case of an accident leading to injury, disability, or death.
• Liability Insurance: In the case of third-party liability any accidental injury, damage, or death of a third party, damage to the third-party property where the insured vehicle is at fault, is covered.

Passenger Carrying Vehicle Insurance Exclusions

Passenger-carrying vehicle insurance does not cover the following:

• Illegal Driving: In case you do not possess an authorised driving license, your passenger-carrying vehicle insurance cannot help you. If you drive your vehicle under the influence of alcohol or drugs is not covered under the plan.
• Mechanical and Electrical Breakdown: Any mechanical or electrical breakdown is not covered under your passenger-carrying vehicle insurance policy.
• Depreciation: Depreciation in the value of your vehicle over a period also remains uncovered. Thus, while claiming your passenger-carrying vehicle insurance, your insurer will compensate up to the IDV (insured declared value or current market price) of the vehicle after deducting the cost of depreciation.

Auto Rickshaw Insurance

Auto Rickshaw Insurance is a subcategory of Passenger Carrying Vehicle Insurance. The Motor Vehicle Act in India mandates a buy liability-only policy if auto-rickshaws are owned by an organisation.

This will provide a cover for business if the rickshaw causes loss or damage to the third-party property, person, or vehicle.

Key Features of Auto Rickshaw Insurance

The following are the salient features of an auto-rickshaw insurance policy:

• It protects your auto and the owner/driver from any losses arising out of natural calamities, terrorist activities, fires, accidents, malicious acts, and theft, amongst other unfortunate events.
• Auto rickshaw insurance also assures passengers/customers that you have a responsible business.

Auto Rickshaw Insurance: Inclusions

Auto rickshaw insurance covers the following:

• Cover for Accidental Damages: This policy covers the auto in the case of an accident that leads to damage or injury.
• Cover Against Natural Disasters: Natural disasters may take a toll on your auto. There is nothing to worry about; an auto-rickshaw insurance policy offers coverage against any Natural Disasters.
• Fire: Total or partial loss caused to the auto-rickshaw due to fire is also covered.
• Personal Accident Cover: Coverage to the owner-driver and co-passengers is provided in case of an accident leading to death, disability, or injury.
• Third-Party Loss: Any losses or damages caused to a third party or the passengers by your auto-rickshaw are also covered.
• Theft: This policy also covers your auto-rickshaw in case of any loss or damage caused due to theft.
• Towing Disabled Vehicles: An auto rickshaw insurance policy also offers coverage against any damage caused to your auto in the case where it is being towed.

Auto Rickshaw Insurance: Exclusions

The following are not covered under the Auto Rickshaw Insurance Policy:

• Drunk riding or driving without a License
• Own damages for the third-party insured
• Consequential damages or losses
• Contributory negligence

E-Rickshaw Insurance

E-rickshaws, along with e-carts, are now registered and come under the Motor Vehicles Amendment Act 2015. The Insurance Regulatory and Development Authority (IRDA) mandates third-party insurance for battery-operated 3-wheeled vehicles.

The insurance norms and procedures of e-rickshaw insurance are similar to those of an auto-rickshaw insurance policy. However, only third-party insurance is available for e-Rickshaws. The amount of premium is based on the seating capacity of the vehicle.

Documents Required to Claim Commercial Vehicle Insurance

To claim commercial passenger vehicle insurance or goods-carrying vehicle insurance, you will need to furnish the following documents:

• Registration certificate of the vehicle
• Driving license ( original copy)
• Claim form duly signed and filled out
• Copy of FIR
• Tax paid receipt
• Copy of Aadhar Card
• Fitness certificate
• Original insurance policy papers
• Load the challan of your commercial vehicle
• Route Permit

Factors To Be Considered While Buying/Renewing Commercial Vehicle Insurance

While renewing or buying a commercial vehicle insurance policy, you should focus on the following aspects:

• Coverage: It is important to have adequate coverage when buying a commercial vehicle insurance policy. A comprehensive commercial vehicle insurance policy is recommended for those who wish to safeguard their business and want to enjoy and have peace of mind.
• Insured Declared Value: One of the most important things that one needs to consider at the time of renewal/buying is choosing the correct IDV in your motor insurance policy, as the compensation amount will be equal to the IDV in case of total damage or theft.
• Discount/NCB: At the time of renewal, the policyholder should check with the insurer for any available discounts on the motor insurance premium.
• Add-on Benefits: Select add-on covers to enhance the overall policy commercial vehicle insurance coverage.
• Cashless Network Garages: Always ask the commercial vehicle insurance agent or provider about the list of network garages and find one within your vicinity. It will ensure convenient and timely repair of the vehicle.
• Deductibles: Opt for deductibles only when it is possible to pay a portion of the claim from your pocket. Always check for the deductibles and clauses at the time of renewal. Opt out of deductibles if they are not working well for you.

Note: While buying commercial vehicle insurance online, it is important to browse the web, compare commercial vehicle insurance quotes and avail the best deal.

What are the Factors That Determine Commercial Vehicle Insurance Prices?

The following parameters are considered while determining the price of commercial vehicle insurance e.g. goods-carrying vehicle insurance or passenger-carrying vehicle insurance:

• IDV of the vehicle
• Age of the vehicle
• Zone of Registration
• Type and model of the vehicle
• Fuel type of vehicle.