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.
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 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.
Commercial vehicle insurance plans come loaded with some salient features. The following are the salient features offered under commercial vehicle insurance:
Commercial vehicle insurance is generally of two types listed below:
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 of the 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:
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.
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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:
The policy does not cover any claim arising out of the following situations:
Now, let us understand the different insurance plans available for every category of commercial vehicle.
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 smooth growth of the nationās economy by transferring the goods within the country and globally.
The goods carrying vehicle insurance can be bought for vehicles such as trucks, trailers, tractor-trailers, etc.
Listed below are some of the key features of goods carrying vehicle insurance:
The list of inclusions for goods carrying vehicle insurance includes:
The list of exclusions for goods carrying vehicle insurance includes:
Passenger carrying vehicle insurance provides coverage against accidental damages, fire and explosion, man-made calamities such as theft, natural calamities, personal accident, along with third-party liability cover. The passenger-carrying vehicles are intended for the carriage of passengers.
Below are the key features of passenger carrying vehicle insurance:
The inclusion list of passenger carrying vehicle insurance includes:
Passenger carrying vehicle insurance does not cover the following:
Auto Rickshaw Insurance is a subcategory of Passenger Carrying Vehicle Insurance. The Motor Vehicle Act in India mandates buying liability only policy if auto-rickshaws are owned by an organization.
This will provide a cover for business if the rickshaw causes loss or damage to the third-party property, person, or vehicle.
Following are the salient features of auto-rickshaw insurance policy:
Auto rickshaw insurance covers the following:
The following are not covered under the Auto Rickshaw Insurance Policy:
E-Rickshaw 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 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.
To claim commercial passenger vehicle insurance or goods carrying vehicle insurance, you will need to furnish the following documents:
While renewing or buying a commercial vehicle insurance policy, you should focus on the following aspects:
Note: While buying commercial vehicle insurance online, it is important to browse the web, compare commercial vehicle insurance quotes and avail the best deal.
The following parameters are considered while determining the price of commercial vehicle insurance e.g. goods carrying vehicle insurance or passenger carrying vehicle insurance:
The IDV of a commercial vehicle/car/taxi is derived on the basis of the selling price listed by the manufacturer for a particular brand or model at the time of buying or renewing the policy. It is then adjusted for depreciation as per the age of the vehicle.
Factors that affect/reduce car insurance quote are:
At the time of renewal, some motor insurance providers add an extra cost of your car insurance premium in the form of Loading. Usually, it comes into effect when the risk associated with an auto insurance policy owner is declared as higher than normal.
The vehicle is declared as a constructive total loss if the cost of accidental loss or damage repair is more than the current market value.
When a constructive total loss claim is filed then you would need to surrender your commercial vehicle to your motor insurance provider. Vehicle ownership is also transferred to the insurer.
The insurance provider will pay the Insured Declared Value of your vehicle after adjusting the cost of deductibles. Once your claim is settled your motor insurance policy will stand canceled. Once you get the final payment, you are no longer required to pay the premium amount until the policy is renewed.
The IDV of a commercial vehicle/auto is derived on the basis of the selling price listed by the manufacturer for a particular brand or model at the time of buying or renewing the policy. It is then adjusted for depreciation as per the age of the vehicle.
Cashless Claim means that the insurer will not be dealing with any physical cash while settling a claim. The insurer will pay the garage directly for the repair. This is only possible if the garage that the insurer took the vehicle to is part of the listed network of garages that the company is associated with.
Non-Cashless / Reimbursement Claim means that the insured chose a garage that is not part of the company’s network. In this case, the insured will need to pay the cash to the garage directly and it will be reimbursed when they produce the same original bills and payment receipts to the insurer.
You need to insure your commercial vehicle to the amount equivalent to its Insured Declared Value or the IDV. Under commercial vehicle insurance, the IDV amount refers to the maximum amount up to which an insurance company will cover the partial/ total damage sustained on the vehicle. You cannot opt for coverage of more than the IDV of your commercial vehicle. Moreover, you can estimate the IDV of your car by reducing the depreciation amount from the ex-showroom price of your vehicle model.
You should buy an auto insurance policy that at least offers liability only policy coverage. This is because buying a liability only policy is mandatory for all auto rickshaw owners under the Motor Vehicle Act of India. However, you have the freedom to opt for a comprehensive auto insurance policy that offers broader coverage including damage/ loss due to fire, natural disasters, accidents, theft as well as own damage cover in addition to the liability only cover.
While a liability only auto rickshaw insurance policy only covers third-party liabilities, a comprehensive policy also covers damages caused to the driver and the vehicle due to external factors besides the third-party liabilities. As a result, a comprehensive auto insurance policy is more expensive than a liability only policy.
Usually, a commercial auto insurance policy covers the insured vehicle for a period of one year. Few insurance companies may also offer policies with tenure of up to 2 years or 3 years. Therefore, you should check with your insurance provider about the various policy tenure options offered under their commercial auto insurance.
No. You cannot continue with the commercial vehicle insurance in the previous owner’s name if you are the new owner of the vehicle and the information has been updated in the RTO records. This is because the policyholder and the vehicle owner should be the same person with the same address. You will have to get the policy transferred to your name in order to continue the insurance coverage on your vehicle. Not getting the policy transferred is a punishable offence. Moreover, such a policy will be equivalent to zero insurance coverage as all your insurance claims will be denied by the insurer.
At the time of filing a commercial vehicle insurance claim, you will have to submit the following documents in support of your claim:
No. If a person uses his personal vehicle on the job, he will not be covered under the commercial auto insurance policy. Whether he uses his private vehicle to attend a business meeting or to run a business errand, it will not be covered under the commercial vehicle insurance.
You can cancel your commercial vehicle insurance plan, provided the policy has not expired and no claims have been made on it. If you satisfy both of these conditions, then you need to inform your insurance provider about your wish to cancel the policy. Submit the documents or information required by your insurance provider. Once you submit the details, your insurance company will cancel your commercial vehicle insurance policy within a couple of weeks.