Commercial Vehicle Insurance

What is a commercial vehicle insurance?

Commercial vehicles insurance policy is a customized motor insurance policy that gives coverage for the losses & damages caused in a road mishap. It can be taken for any passenger or goods carrying vehicle such as auto-rikshaws, school buses, trucks, taxis and other miscellaneous vehicles like tractor, crane and. trailers. Third Party Insurance is a statutory requirement under the Motor Vehicles Act, 1988.

Importance of Commercial Vehicle policy

Commercial vehicle insurance policies offer comprehensive coverage to your commercial vehicles. If your commercial vehicle is involved in an accidents & you do not have an active commercial vehicle policy, you will have to bear all the expenses of the damages & losses caused.
A comprehensive commercial vehicle insurance policy will protect you financially against physical damage to your insured commercial vehicle as well as third-party liability. A third-party commercial vehicle insurance coverage will protect you from property damage, bodily harm, and death caused by a third-party on the road.

Why do you need a Commercial Vehicle Insurance?

1. If you have a business & you owns more than one commercial vehicles, it’s essential to get a commercial vehicle insurance that will financially protect and cover your business from any losses and damages caused to and by your vehicle (s) and the people using it.

2. If your major business involves the use of vehicles, such as a taxi service or a private school bus, commercial vehicle insurance will ensure that your stakeholders and passengers are always protected and covered.

3. It is required by law to have at least a Liability Only policy in place, which covers third-parties against any damages and losses caused by your commercial vehicle.

Types of commercial Vehicle insurance

Comprehensive Commercial Vehicle Insurance:

Comprehensive insurance provides total coverage for your commercial vehicle in the event of an unanticipated expense. Protect your commercial vehicle against unforeseen events such as damage, fire, theft, robbery, flood, earthquake, and so on. Furthermore, comprehensive automobile insurance policies protect third-party property or people in the event of loss or damage.

Third-party Liability Commercial Vehicle Insurance

Third-party liability commercial vehicle insurance protects any third-party property, any third person, or the vehicle, which may result in death, physical harm, or other harm. The safety of these business vehicles should be of the utmost importance. Furthermore, the scope of coverage for both insurance policies is similar.

What is covered in Commercial Vehicle Insurance?

A commercial vehicle insurance coverage pays for personal, medical, and financial damages caused by theft, accidents, and natural catastrophes. Most commercial vehicle insurance providers offer cashless compensation for having your business vehicle fixed at one of their registered facilities.

Add-ons covers for commercial vehicle insurance

You can also expand the scope of your commercial vehicle insurance coverage by paying an additional premium for add-on coverage. When purchasing a commercial vehicle insurance, compare the add-on covers to make an informed decision.
Following are some of the add-on covers offered by various insurance companies:

Consumables Cover

A consumable cover gives your commercial vehicle an additional layer of protection. It covers the cost for all the nitty-gritties, such as the engine oils, screws, nuts and bolts, grease, etc in a situation of an accident.

Accessories cover

Opting this add-on will insure your commercial vehicle accessories and will reduce the burden in case of any loss or damage.

Legal Liability Cover

It covers the losses occurred to the driver, conductor or passengers.

ZERO DEPRECIATION

To nullify the depreciation charges & get full settlement of repairs, costs during a claim regardless of any write-offs.

Towing Cover

This cover gives your roadside assistance in case of a sudden breakdown or in case of an accident.

Engine Protector

It covers consequential damages & losses occurred to the vehicle engine

What is not included in the insurance policy?

Gradual wear & tear if commercial vehicle
Any loss occurred when you are involved in drink & drive case
Using vehicle for the cause other than mentioned in the policy
Own damages in case of a third-party liability only policy
Policy Not in force
Driving without a valid license

Types of Commercial Vehicles Covered

Passenger Carrying Vehicle Insurance:

Passenger carrying vehicle insurance covers unintentional damages, fire and explosion, man-made calamities such as theft, natural catastrophes, personal accident, and third-party liability. The passenger-carrying vehicles are designed to transport passengers. Taxis, cabs, auto rickshaws, school buses, private buses, and other vehicles that commonly carry one or more passengers are covered by this insurance.

Features:

1. The policy premium is determined by the type of vehicle, cubic capacity, registration zone, Licensed Carrying Capacity, Gross Vehicle Weight, and other factors.

2. The policy protects the insured vehicle against damage caused by both man-made and natural disasters.

3. Every claim-free year will earn you a No Claim Bonus.

4. Some insurers provide discounts on premiums based on the manner of purchase.

Goods Carrying Vehicle Insurance:

Goods-carrying vehicles are often huge in size and pose a significant risk as a result. A commercial vehicle insurance policy not only protects third-party damages and losses, but it also protects the owner-driver and the vehicle from losses caused by accidents, natural disasters, or other unpleasant circumstances. Vehicles that typically carry goods to be transported from one place to another. These primarily include trucks, tempos and lorries.

Features:

1. The policy offers both third-party liability and own-damage cover.

2. Cashless claims will be available at registered garages around the country.

3. The policy's benefits can be boosted even further by selecting from a variety of add-on coverage.

4. Earn a No Claim Bonus for each claim-free year up to a certain percentage dependent on the insurance terms.

Goods Carrying Vehicle Insurance:

Goods-carrying vehicles are often huge in size and pose a significant risk as a result. A commercial vehicle insurance policy not only protects third-party damages and losses, but it also protects the owner-driver and the vehicle from losses caused by accidents, natural disasters, or other unpleasant circumstances. Vehicles that typically carry goods to be transported from one place to another. These primarily include trucks, tempos and lorries.

Frequently asked questions about commercial vehicle insurance?

The IDV of a commercial vehicle/car/taxi is calculated using the manufacturer's selling price for a specific brand or model at the time of purchase or renewal of the policy. It is then corrected for depreciation based on the vehicle's age.

1. It is mandatory by law to atleast a third-party vehicle insurance policy.

2. To protect you from unplanned financial expenses causes due to the losses or damages occurred in a road mishap.

Factors to determine the premium are:

  • Cubic Capacity of the vehicle
  • Insured Declared Value
  • Vehicle model
  • City of registration
  • Coverage type(comprehensive/third party)
  • Add-on covers taken
  • No-Claim Bonus
  • Age

  • Owner & driver of the vehicle
  • Usage of vehicle
  • Type & weight of vehicle
  • Required business liability limits