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Commercial Vehicle Insurance
Commercial vehicle insurance covers losses and damages to or by a commercial vehicle in case of an accident, making it a tailored motor insurance plan. All businesses must get commercial vehicle insurance, including auto-rickshaws, pick-up vans, school buses, tractors, and other vehicles.
Some commercial vehicles are significant since they are heavy-duty vehicles utilised daily for transportation. Examples include trucks, buses, autorickshaws, bulldozers, cranes, tractors, and other commercial vehicles. As a result, businesses must ensure these cars safeguard themselves against financial damages caused by road accidents or natural or man-made disasters.
Why do you need Commercial Vehicle Insurance?
Commercial vehicle insurance is essential for various reasons. You may require commercial vehicle insurance if.
- Assume you have one or more vehicles you use for business. In that instance, commercial car insurance will cover your company from any financial losses incurred due to accidents or damage to the vehicle or its occupants.
- To operate a vehicle on Indian roads, you must have Liability Only coverage, as required by law. This policy protects you from financial losses caused by third-party harm caused by your commercial vehicle.
- It’s crucial to stay free from stress and continue to anchor your business. Buying car insurance for your commercial vehicle can bring relief.
Benefits of Buying Commercial Vehicle Insurance Online
When you use an online platform to get commercial car insurance, you get a lot of benefits by comparing pricing and services before making a decision. Here are some of the prime features and benefits of purchasing commercial car insurance.
01
Mandatory by Law
Buying commercial vehicle third-party liability insurance in India is compulsory in the eyes of the law. The risk of driving a commercial vehicle is high, especially for a vehicle carrying a high volume of passengers.
02
Coverage Against Own Damage
In a situation where your vehicle is damaged can lead to paying more money for repair. Buying commercial car insurance can protect your savings by financing the cost of repair.
03
Third-party Losses are Covered
The harm or injury caused to a third party by a commercial vehicle might be significant. However, commercial vehicle insurance can work as a safety net against monetary loss.
Different Types of Commercial Vehicle Insurance in India
Depending on the business, you can select two types of commercial vehicle insurance in India. Both plans have different features, so let us look at them.
Comprehensive Commercial Vehicle Insurance Plan
In addition to third-party liability coverage, a commercial vehicle insurance package protects the rider against damages. The plan covers you for damages to your commercial vehicle caused by natural catastrophes, theft, accidents, calamities, and other similar situations. It also offers personal accident cover if you are injured while driving on Indian roadways. Though it is not mandatory as per the law, buying comprehensive commercial vehicle insurance is advisable to gain the maximum.
Third-Party Commercial Vehicle Insurance Plan
A third-party business car insurance plan protects you against legal issues that may appear if you cause injury or damage to a third party. Every vehicle on the road must have third-party liability insurance. You may risk fines and penalties if you drive your vehicle without valid commercial car insurance.
Different Types of Commercial Vehicles Covered
When discussing commercial vehicle insurance, there are various classifications. Let us look at the many types of commercial car insurance and their features:
Passenger Carrying Vehicle Insurance
In this type of commercial vehicle insurance plan, you get coverage against fire, accidental damages, natural calamities, and third-party liability cover. The vehicles covered are
- Bus
- Taxi
- Passenger-Carrying Vans
The premium figure is based on the size of the vehicle, Gross Vehicle Weight, Cubic Capacity etc. One can choose to cover for owner-driver and co-passengers after paying an extra premium. Many individuals rely on these automobiles for their income and survival. Commercial car insurance ensures that they are constantly protected in the event of a mishappening. You also get NCB for a claim-free year.
Goods Commercial Vehicle Insurance
Goods carrying commercial vehicles transport goods from one place to another. The policy includes both third-party only and comprehensive insurance coverage. The list of Vehicle covered is
- Trailers
- Trucks
- Lorries
- Tempo
Goods carrying commercial vehicles transport goods from one place to another. The policy includes both third-party only and comprehensive insurance coverage. The list of Vehicle covered is
Auto Rickshaw Insurance
It is a sub-category of Passenger Carrying Vehicle Insurance. If a rickshaw causes an accident to a third party, the vehicle insurance will provide a cover for the business. The auto-rickshaw insurance also assures the passengers/ customers that you have an accountable business.
E-Rickshaw Insurance
E-rickshaws and e-carts are officially registered under the Motor Vehicles Amendment Act of 2015. Third-party insurance is required for battery-powered three-wheeled vehicles. The policies and rules are the same as auto-rickshaw insurance.
Miscellaneous and Special Vehicle Insurance
Businesses often use many other commercial vehicles for their work. Given these vehicles’ size and investment, insuring them under commercial vehicle insurance is a good idea, and this will reduce your losses significantly in case of damages.
Inclusions Under Commercial Vehicle Insurance
Commercial vehicle insurance reimburses you for financial losses caused by or to your vehicle. Most business insurance carriers offer cashless claims if you have your vehicle fixed at one of the network garages. Comprehensive commercial insurance coverage will cover the following:
Personal Accident Cover
This pays the expense of medical treatment for the driver’s injuries. You can also get coverage for the car’s occupants for an extra premium
Own Damage
caused by a natural or man-made calamity such as an accident, fire, theft, lightning, explosion, flood, storm, riot, strike, earthquake or malicious act. The comprehensive commercial insurance will cover it all.
Third-Party Legal Liability Cover
It recompenses for the third party’s accidental death, injury, or property damage. In this case, the car insurance company will pay for any kind of damage to the property of a third party by the insured.
Exclusions Under Commercial Vehicle Insurance
The insurance company will not be obligated to pay in case of the following events:
- Damage due to mechanical or electrical breakdown
- Drunk driving
- Wear and Tear of the vehicle
- Loss due to war
- Intentional Offer to the insured commercial vehicle
- Driving without a valid driving license
- Concurrent losses are not covered.
- If a private commercial vehicle is used for commercial purposes.
Add-ons Under Commercial Vehicle Insurance
Various commercial vehicle insurance providers offer a variety of add-on covers when you purchase the insurance policy. Add-on coverage extends the extent of your insurance policy’s protection and compensates you for losses not covered by the policy’s basic coverage.
Personal Accident Cover
Personal accident coverage must be included in your commercial insurance policy plan since it is required by law. The policy covers the owner-driver for bodily harm or death in the event of an accident on the road.
Passenger Cover
The passenger cover ensures that the people in your business vehicle are protected. This covers the costs paid by your vehicle’s occupants in the event of an accident, provides disability liability coverage, and gives financial support during the passenger’s death.
Parts Depreciation Cover
Because of wear and tear, the value of your car and its parts might degrade over time. This add-on assures that any replaced car parts will be covered in the event of an accident.
Roadside Assistance
One can opt for roadside assistance cover while buying two-wheeler insurance. This cover helps in case of occurrences like a flat tyre, towing, minor repairs, etc.
Engine Protection Cover
In this add-on, the heart of the commercial vehicle will be covered. The insurer will compensate you for the cost spent on repairing the engine.
Towing Expenses
When your vehicle is involved in an accident, it must be hauled to a garage for repairs. The car insurance company will pay any additional fees you may incur while your car is relocated from the accident scene under this add-on.
Comprehensive Commercial Vehicle Insurance Vs Third-Party Commercial Vehicle Insurance
This table compares Third-Party Commercial Vehicle Insurance to Comprehensive Commercial Vehicle Insurance.
| THIRD-PARTY COMMERCIAL VEHICLE INSURANCE | COMPREHENSIVE COMMERCIAL VEHICLE INSURANCE |
|---|---|
| Coverage for third-party property harm caused by the insured person | Coverage for accidental damages due to man-made & natural calamities |
| No option to include add-on covers | Option to add valuable add-on covers |
| Coverage for the third party damage and accidental death | Options to incorporate add-on covers |
| Low premiums | Offers an array of coverage options |
| No coverage in case of accidental injuries to the insured vehicle due to theft of fire | Coverage for losses because of a total loss, fire and theft |
| Coverage only for the 3rd party claims | Coverage for accidental injuries to a third party and own damage |
Things To Consider While Buying Commercial Vehicle Insurance Online
When purchasing commercial vehicle insurance coverage online, you must examine several factors to ensure that you get a policy that matches the requirement of your business. You must consider the following:
Cashless Network Garages
When purchasing commercial vehicle insurance coverage, it is critical to research the network garages in your area. This will assist you in filing cashless claims in an unfortunate situation.
Type of commercial vehicle insurance policy
You can purchase different types of commercial vehicle insurance: third-party liability, standalone damage cover, and comprehensive insurance. People who desire complete coverage can buy a comprehensive commercial insurance policy covering their damages and third-party liabilities.
Deductibles
Only use deductibles if you can pay a portion of the claim out of your cash. Read the terms and conditions about deductibles before purchasing coverage to avoid complications later.
Add-On Covers
Before purchasing a commercial vehicle insurance policy, you should look at the add-on covers or supplemental coverage. Several covers are available, but you must assess your needs and incorporate them into the policy.
Damage/Loss Due to natural disasters
Rockslide, landslide, explosion, fire, self-ignition or lightning, flood, hurricane, frost, hailstorm, storm, earthquake, typhoon, cyclone, deluge, etc.
Man-Made Disasters
Terrorist action, burglary, theft, strike, malicious act, any harm done during travel – road, rail, inland canal, lift, elevator, or air.
Factors that influence the cost of commercial vehicle insurance
When deciding the price of commercial vehicle insurance, the following factors are taken into account:
- Age of the commercial vehicle
- IDV
- The City of Registration
- Model and Type of the vehicle
- Fuel Type
What is the Online Process of Commercial Vehicle Insurance Comparison?
Well, there are a few websites that commercial vehicle insurance comparisons online with the relevant information but, with InsureNow, brand name under Advance Life Insurance Brokers Pvt. Ltd, the process is quite simple.
- Visit InsureNow
- Enter details about the commercial vehicle like the model, year of manufacture, etc.
- Examine Deductibles and IDV
- Inspect claim settlement history
- Choose add-ons as per your requirement
- Select the car insurance provider
Why Choose InsureNow?
All of the information you need about the numerous commercial vehicle insurance policies offered by multiple insurers is available on one platform through InsureNow. Some of the advantages of visiting the InsureNow website are as follows:
Appropriate Listings
You will find the latest up-to-date policy information on the website. Because the information is updated regularly, you can stay up to date on insurance market movements.
Easy Comparison
When you visit the website, you will find numerous commercial vehicle policies that will assist you in finding the most suitable car insurance policy for you.
Latest Information
The quality and relevance of the listings supplied are the most important aspects when comparing commercial vehicle insurance. For the advantage of our customers, we keep the most recent and up-to-date information.
Customer-Focused
Our customer service team is here to answer any questions you may have about buying commercial vehicle insurance online with great expertise.
Documents Required for Commercial Vehicle Insurance Renewal
When renewing a policy, you can compare different commercial insurance policies available in the market. You can check the plans offered by visiting the InsureNow website and submitting all the needed information. Going online saves time as well as effort, and several facilities are being provided online for potential customers to understand the policy thoroughly. Comparing and evaluating these plans helps you make an informed decision on the plan that is most suitable for you.
- Registration Certificate.
- Driving License
- Previous year insurance policy
- Any other documents that the insurer might need
* To make the renewal process even swifter, one must keep the documents mentioned above ready. Having these documents handy will help fill out the details required for renewal and make the payment.
Documents Required to Buy Commercial Vehicle Insurance Online
Because of technological improvements, purchasing commercial vehicle insurance online is one of the most convenient options. To purchase the insurance, you’ll need the following documents:
- Invoice of the commercial vehicle
- Registration Certificate
- Valid driving license
- Address Proof
- Credit/Debit card details
Online Claim Process for Commercial Vehicle Insurance
Claiming for commercial vehicle insurance can be a lengthy process but with online services, it has become quite convenient. The insured must provide the following information when filing a claim:
- A copy of the claim notification to be sent to the commercial vehicle insurance company.
- Policy number
- Completely filled claim form
- Copy of valid driving license
- Copy of RC
- In the event of an accident, a copy of the police report is required.
- Fitness certificate
- Verification of road tax
- Photograph of the incident/ damaged vehicle
- Location of the accident
Documents Required to File a Claim
To file a claim successfully, you will need to submit the following documents:
- Claim Form
- RC of the commercial vehicle
- Valid driving license
- Commercial car insurance policy documents
- Copy of FIR
- Identification documents
- Route Permit
- Load Challan of the commercial vehicle
- Receipt of Tax
Thus, these are the documents you need if you wish to file a commercial vehicle insurance claim. While filing a claim, keep these documents handy to make your claim filing process smooth and convenient.
Renew Commercial Vehicle Insurance
It is critical to renew your commercial car insurance policy on time to reap its benefits. Driving your commercial vehicle on the road without a valid third-party liability insurance policy is also prohibited, and you could be fined if you do so. As a result, update your commercial car insurance policy regularly.
In order to renew the commercial car insurance policy, you will need a Registration certificate, Driving license, Previous year’s commercial car insurance policy, and other related documents.
Commercial Vehicle Insurance FAQ’s
Disclaimer: The information published in this article is for the reader′s reference only. This information provides an overview of your motor insurance needs and should not be relied upon for personal, medical, legal or financial decisions. You should consult an appropriate professional for specific advice. It makes no representations about the suitability, reliability, timeliness, and accuracy of the information, services, or other items mentioned on this subject for any purpose whatsoever.