Commercial vehicles are an important mode of transport. These vehicles usually include trucks, vans, trailers, buses, taxis, coaches, carriers, shovels, tractors, cranes, mobile rigs, bulldozers, etc., which are used to transport goods within city/cities and from one state to another. is done for. They are also used for inter-city passenger touring and travel.
Commercial vehicles are basically heavy-duty vehicles that are used for daily activities to perform vigorous tasks. They are a significant contributor to the bulk transportation of many businesses. And such heavy duty commercial vehicles are always prone to road accidents, unexpected damages while driving and also natural calamities. This is why commercial vehicle insurance is a must to cover the vehicle against those odds.
Why is commercial vehicle insurance important?
Commercial vehicle insurance properly covers road hazards that a commercial vehicle may face. It is beneficial for your business to cover damages caused to commercial vehicles that can cause a great financial pain due to accidents. As mentioned above, the vehicles that are covered under the policy are vehicles, passenger carrying vehicles, private/public travel trailers, taxis, tractors, cranes, mobile rigs, bulldozers, etc.
This policy covers Third-Party Liabilities in which there is damage to any third-party property or vehicle. In addition, a comprehensive insurance policy covers damages caused to your vehicle and third-parties. Without professional insurance, any such event can cause huge monetary loss and put one in a difficult position. You can find commercial vehicle insurance online that fits with your budget.
Key Features of Commercial Vehicle Insurance
Some of the salient features of a commercial vehicle insurance policy are listed below:
Coverage is provided to both public and private vehicle types
Protection against damage caused by natural calamities.
Protection against damage caused by man-made calamities like theft, fire, collision, etc.
Third-party person/vehicle/property damage cover.
Driver and owner cover on personal accident
Types of Commercial Vehicle Insurance
There are two types of commercial vehicles: passenger vehicles and goods vehicles. Passenger vehicles carry passengers from one place to another. Whereas goods carrying vehicles help in the smooth development of the country’s economy by transferring goods within the country and globally. Therefore, the safety of these vehicles should be of utmost concern. These commercial vehicles can be covered under Goods Carrying Vehicle Insurance and Passenger Carrying Vehicle Insurance. The scope of coverage is more or less same for both the insurance policies.
Goods Carrying Vehicle Insurance / Goods Carrying Vehicle Insurance
It covers against loss or damage to the insured vehicles due to man-made and natural calamities such as theft, fire, explosion, flood, earthquake, landslide, accidental damage, personal accident and third-party liability. Goods Carrying Vehicle Insurance / Goods Carrying Vehicle Insurance policy can be purchased for goods carrying vehicles like trucks, trailers, tractor-trailers etc.
Some of the salient features of Goods Carrier Vehicle Insurance are listed below:
The policy provides both third-party liability and self-damage/own-damage cover.
Goods carrier vehicles like trucks, trailers, tractor-trailers etc can be insured under Goods Carrier Vehicle Insurance / Goods Carrying Vehicle Insurance.
Garages registered with Goods Carrier Vehicle Insurance offer the benefit of cashless claim facility across the country
The policy can be availed with various add-on covers.
The insured vehicle is covered for damages due to accident, third-party liability, man-made calamities like theft, vandalism etc.
It covers the insured vehicles from natural calamities like floods, hurricanes, earthquakes, landslides etc.
No Claim Bonus (NCB) is paid for every claim-free year up to a specified percentage based on the policy terms.
Goods Carrying Vehicle Insurance / Goods Carrying Vehicle Insurance: Coverage
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.
Damage due to natural calamities: Damage or loss caused due to natural calamities.
Man-made Calamities: Man-made calamities such as theft, vandalism etc. are covered where the insurance company pays up to full value in case the vehicle becomes uncompetitive under the ‘total loss’ category.
Personal Accident/Personal Accident Cover: The owner/driver is covered for personal accidental loss wherein up to a certain percentage of the sum insured including treatment cost is paid. On payment of additional premium, co-travellers can also be covered.
What is NOT covered under Goods Carrying Vehicle Insurance / Goods Carrying Vehicle Insurance?
Depreciation/Depreciation: Goods carrier vehicle insurance policy does not offer coverage against depreciation/depreciation in the value of the vehicle over time.
Illegal Driving: If you do not have a valid and authorized driving license, there is no use in insuring your vehicle. If you live under the influence of alcohol or drugs
If so, you are not covered under the Goods Carrier Vehicle Insurance Policy.
Mechanical and Electrical Breakdown: Any mechanical and electrical breakdown is not covered by your Goods Carrying Vehicle Insurance plan.
Passenger Carrier Vehicle Insurance / Passenger Carrying Vehicle Insurance
This insurance policy provides coverage against accident, fire and explosion, man-made calamities like theft, natural calamities, personal accident along with third-party liability cover.
Key Features of Passenger Carrier Vehicle Insurance:
This insurance can be purchased for various passenger-carrying vehicles like buses, taxis, vans etc.
The policy premium is decided on the basis of vehicle type, cubic capacity (CC), area of registration, passenger carrying capacity of the vehicle, gross vehicle weight etc.
The policy covers the insured vehicle on damages due to man-made and natural calamities
Claim Bonus (NCB) is earned for every claim-free year.
Some insurers offer discounts on deepening premiums on the way you buy.
Passenger Carrying Vehicle Insurance / Passenger Carrying Vehicle Insurance: Coverage
Coverage for Accidental Damage: The policy covers the vehicle due to damages or injuries caused by an accident.
Coverage for Natural Calamities: Natural disasters can take a toll on the vehicle. Don’t worry, it’s included.
Fire and Explosion: There is total or partial damage to the vehicle due to fire or explosion.
Personal Accident Cover / Personal Accident Cover: The owner, driver and co-passengers (with an additional premium) are covered in case of accidental injury, disability or death.
Liability / Liability Insurance: In case of third party liability due to accidental injury, damage or death of a third party, where the insured vehicle is at fault, the third party is covered.
What is NOT covered under Passenger Carrying Vehicle Insurance / Passenger Carrying Vehicle Insurance?
Illegal Driving: Your Passenger Carrier Vehicle Insurance / Passenger Carrying Vehicle Insurance may not help you if you do not have an authorized driving license. Not covered under the plan if you drive your vehicle under the influence of alcohol or drugs.
Mechanical and Electrical Breakdown: Any mechanical or electrical breakdown is not covered under your Passenger Carrier Vehicle Insurance / Passenger Carrying Vehicle Insurance policy.
Depreciation/Depreciation: Depreciation/depreciation is also not covered in the value of your vehicle over a period of time.
Auto Rickshaw Insurance:
Auto rickshaw insurance is a sub-category of passenger carrier vehicle insurance. It is mandatory for auto rickshaw to buy a third-party liability policy in India under the Motor Vehicles Act. If the auto rickshaw causes damage or loss to any third-party vehicle, person or property, it will provide a cover for the same.
Following are the salient features of auto rickshaw insurance policy:
It protects your auto and the owner/driver from any damages arising out of natural calamities, terrorist activities, fire, accidents, malicious acts and theft among other unfortunate incidents.
Auto Rickshaw Insurance assures passengers/customers that yours are safe
Auto Rickshaw Insurance Plan: Coverage
Coverage for Accidental Damage: This policy covers the auto in case of an accident causing loss or injuries.
Coverage of Natural Calamities: Natural calamities can take a toll on your auto. there is nothing to worry about; An auto rickshaw insurance plan provides coverage for natural calamities.
Fire: Total or partial damage caused to the auto-rickshaw due to fire is also covered.
Personal Accident Cover: Provided to the owner-driver and co-passengers in case of accident causing death, disability or injury.
Third-Party Loss: Any loss or damage caused to passengers by the third-party or your auto-rickshaw is also covered.
Theft: This policy also covers your auto-rickshaw in case of any loss or damage due to theft.
Towing the handicapped: Auto rickshaw insurance policy provides coverage against any damage to your auto in case it is being towed.
What is not covered under auto rickshaw insurance policy?
Driving without a license or driving while intoxicated
Own damage for third party insurance
E-rickshaws as well as e-carts are now registered and come under the Motor Vehicles Amendment Act 2015. The Insurance Regulatory and Development Authority (IRDA) makes third-party insurance mandatory for battery-operated 3-wheelers.
The insurance criteria and procedures of e-rickshaw insurance are similar to that of auto rickshaw insurance policy. However, only third-party insurance is available for e-rickshaws. The amount of premium depends on the capacity of the vehicle.
Commercial Vehicle Insurance: Conclusion
Commercial vehicle insurance policy covers personal, medical and financial losses that occur due to damages resulting from theft, accidents and natural calamities. Most of the insurance companies provide cashless compensation/claim by getting your vehicle repaired at their registered workshops.
There are a number of insurance companies that offer customized commercial vehicle insurance policies to meet the varied needs of their customers. Here is a list of the benefits that a commercial vehicle insurance policy offers:
Loss/damage due to insured commercial vehicle:
fire, self-ignition, explosion or lightning
riots and strikes
Theft, Housebreaking, and Theft
flood, storm, typhoon, storm and typhoon
hail storm, flood cyclone, frost
landslides and stone pelting
Accident (by external means)
Personal accident claims are also covered under this policy. This includes cover on permanent total disability/accidental death of the driver and owner.
Third-party insurance cover in case of an accident involving your insured commercial vehicle and third-party vehicle. It will cover loss or damage caused by third-party vehicle, bodily injuries and death.
Option to extend the policy benefits by availing various add-on covers at additional premium.
Add-on cover provided in a commercial motor insurance policy
You can increase your coverage by opting for add-on cover on paying additional premium. Some of the add-ons you can choose from are as follows:
Auxiliary cover: Coverage for loss of baggage
Legal liability cover to paid drivers / conductors / non-fare passengers
Personal Accident Cover: Personal Accident Benefit to the owner/driver and any other nominee other than an employee and vehicle cleaner/conductor/paid driver
Zero Depreciation Cover / Zero Depreciation Cover: To get the full value of the vehicle in case of loss or damage
Towing cover: Roadside assistance in case of sudden vehicle breakdown
Engine Protector: To cover the consequent damage to the vehicle engine
Commercial Vehicle Insurance Policy: Exclusions
The policy does not cover any claim arising out of:
breakdown on vehicle
damage during the civil war
Does not include contractual liabilities
An accident while driving under the influence of alcohol or with an illegal driving license
Use of vehicle as per ‘use by limits’ (in case of private car being used as taxi)
war crisis, nuclear crisis
Electrical and mechanical breakdown, breakage or failure
If the policy is not active at the time of accident or loss
Top Insurance Providers Offering Commercial Vehicle Insurance
The following is a list of general insurance companies that offer commercial vehicle insurance:
goods carrier insurance
passenger carrier vehicle insurance
HDFC General Insurance
universal shampoo general insurance
Bajaj Allianz General Insurance
F. G. I General Insurance
Commercial Vehicle Insurance Claim / Claim Process
Making a claim/claim for commercial vehicle insurance is easy with the right approach. In order to get reimbursed claim amount without any hassle, it is important that you inform your insurance provider about the loss or damage immediately.
You can lodge a claim by calling them on their toll-free helpline number or write to them on your customer helpline email id.
Nowadays, most commercial vehicle insurance providers also provide claim forms online. While filing a claim, the following details are required from the end of the insured:
Time and date of loss
Policy number for reference
the place where the incident took place
Brief description of the event
Name and contact number of the person filing the claim
Documents required to claim commercial vehicle policy
To claim commercial passenger vehicle insurance or freight vehicle insurance, you need to submit the following documents:
vehicle registration certificate
Driving License (original)
Duly filled claim form and signature
copy of FIR
copy of aadhar card
original insurance policy documents
Load challan of your commercial vehicle
commercial vehicle insurance policy renewal
The vehicle carrying the passenger or baggage needs to be renewed in time to ensure the benefit of the policy. Renewal of policy is also possible online. All you need to do is visit the official website of the insurer and complete the renewal formalities online. Pay the premium online and renew the policy instantly.
Factors to be considered while buying/renewing commercial vehicle insurance
While renewing or buying a commercial vehicle insurance policy, you should consider the following aspects:
Coverage: It is important to have adequate coverage while buying a commercial vehicle insurance policy. A comprehensive/comprehensive vehicle insurance policy is important for those who want to protect their business.
Insured Declared Value / IDV : One of the most important things that needs to be considered at the time of renewal / purchase is choosing the right IDV in your motor insurance policy, in case of total damage, the indemnity amount will be equal to the IDV.
Discount/NCB: At the time of renewal, the policyholder should definitely check with the insurer for the discount available on motor insurance premium.
Add-on Benefits: Select add-on cover to increase the overall policy coverage.
Cashless network garages: Always ask the insurance provider for a list of network garages and find one in your vicinity. This will ensure convenient and timely repair of the vehicle.
Deductibles: Opt for deductibles only if it is possible for you to pay a portion of the claim from your own pocket. Always check deductibles and clauses at the time of renewal. Opt-A for Deductibles
Ut if it’s not working well for you.
commercial vehicle insurance value
The subject to deduction of depreciation, commercial vehicle insurance value or IDV is prescribed at the commencement of the policy. The IDV is decided on the basis of the listed selling price of the manufacturer and the brand of the vehicle. However, depreciation is a major factor that contributes greatly to commercial vehicle insurance. With age, the value of a vehicle decreases and based on this rate, the IDV is fixed. like this:
within 6 months
Between 6 months to 1 year
Between 1 year to 2 years
Between 2 years to 3 years
Between 3 years to 4 years
Between 4 years to 5 years
Between 5 years to 10 years
more than 10 years
Commercial Vehicle Insurance Pricing Factors
The following parameters are considered while determining the price of commercial vehicle insurance e.g. Carriage of vehicle insurance or passenger vehicle:
age of vehicle
area of registration
Vehicle type and model
vehicle fuel type
How to calculate commercial vehicle insurance premium?
You should not buy a policy out of compulsion or haste. Before buying a policy, you should compare the policies available online based on premium rates, features and benefits and claim settlement ratios of the insurers. You can visit aggregator websites such as Policybazaar.com, where you can compare various commercial vehicle insurance quotes. Also, by using motor insurance calculator, you can get idea how much premium you are going to pay