All You Need To Know About Commercial Vehicle Insurance

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In the event of a car-related emergency, commercial vehicle insurance might be quite helpful. Owners of commercial vehicles who purchase this type of insurance might avoid paying a large amount of money for damage repairs resulting from unanticipated events. Among the various kinds of commercial vehicles are school vans, autorickshaws, trucks, lorries, buses, and taxis.

This guide provides comprehensive information on business vehicle insurance in India and shows readers how to invest their hard-earned money in a commercial auto insurance policy and save a ton of money.

What is Commercial Vehicle Insurance?

A business vehicle insurance policy is a specific type of insurance meant to pay for any harm a commercial vehicle may inflict on itself. It also pays for damages incurred by the commercial vehicle’s owner-driver. Natural and man-made disasters, collisions, and accidents are among the losses and damages.

All businesses in India are required to insure their commercial vehicles, including trucks, buses, autorickshaws, tractors, and commercial vans, at the very least with a third-party insurance policy that covers third parties against any potential harm your commercial vehicle may cause.

Vehicles Covered in Commercial Vehicle Insurance

Passenger vehicles: These are any kind of vehicle that can typically accommodate one or more passengers, including taxis, rickshaws, school buses, private buses, and many more.

Good Vehical: Vehicles used primarily for transporting goods from one location to another include vans, lorries, minitrucks, and tempos. These cars come with a higher level of danger because of their size.

Special Vehicles: Special vehicles, like trucks, taxis, buses, and cabs, that are frequently used for business or commercial purposes. Typically, these vehicles are employed in construction, farming, or mining operations.

Types of Commercial Vehicle Insurance

Commercial vehicles operating in India are required to have third-party commercial vehicle insurance; otherwise, they are not permitted to operate on Indian highways. This policy, which typically covers damages from your own business vehicle to any third-party person or property, has a reduced premium cost. The owner’s injury and death are also covered by the third-party liability policy.

Nevertheless, it only pays for losses or damages to third parties; it does not cover losses or damages to your car.

Purchasing a comprehensive package policy for your business vehicle is strongly advised, as it will provide financial protection for both the owner-driver and the vehicle itself. This policy covers any losses or damages to your commercial vehicle and offers 360-degree protection.

Benefits of Commercial Vehicle Insurance

  • It shields you from any financial strain that may result from unintentional harm.
  • In the unlikely event that your car causes harm to a third party or their property, your third-party policy will also pay for the lawsuit and associated costs.
  • The no-claim bonus is given out at the time of policy renewal if there are no claims filed throughout the policy’s duration.
  • The CV insurance coverage qualifies as a tax deduction and can be written off in the books as a “business expense.”
  • In the event of an accident, cashless repair coverage for damage is also provided.

What is Covered in Commercial Vehicle Insurance?

  • Accidents: The harm that any type of collision, in the event of an accident, does to commercial vehicles.
  • Damages/Losses to Third Parties: Any harm your commercial vehicle causes to a third party.
  • Natural Disaster: Any harm done to a commercial vehicle as a result of a landslide, flood, or other natural disaster.
  • Accidents: The harm that any type of collision, in the event of an accident, does to commercial vehicles.
  • Theft: theft-related loss or damage to a commercial vehicle.
  • Fire: The harm a fire causes to a commercial vehicle.
  • Damages/Losses to Third Parties: Any harm your commercial vehicle causes to a third party.
  • Natural Disaster: Any harm done to a commercial vehicle as a result of a landslide, flood, or other natural disaster.

Add-ons Available with Commercial Vehicle Insurance

A separate premium is required for a number of optional add-on covers, which offer further benefits and coverage. The policyholder may purchase these extras in accordance with their preferences and needs. Let’s examine a few of the extra riders that are available for purchase with a comprehensive insurance policy.

  • Engine and gearbox are protected.
  • Zero depreciation cover
  • Parts depreciation protects.
  • Consumable cover
  • Breakdown assistance
  • EMI protection cover
  • Return to invoice
  • Key and lock replacement

What is Not Covered in Commercial Vehicle Insurance?

  • The coverage will not cover damages to your commercial vehicle if it is a third-party liability policy.
  • drunk driving while in possession of a void license.
  • Nuclear dangers and war.
  • any losses, including lost wages, that arise indirectly from an accident or natural disaster.
  • Any losses brought on by the driver’s carelessness, such as operating a car in an area that is already experiencing flooding,.
  • There is no coverage for claims that are not covered by the agreement.
  • There is no protection against mechanical or electrical failure.

Factors Affecting Commercial Vehicle Insurance Premium

  • Place or Registration Zone: Since every place in the nation has unique dangers, location is a key factor in determining the premium for your commercial vehicle. For example, premium properties will be more in demand in zone 1, which is mostly home to metro areas and larger cities like Delhi or Mumbai, than in zone 2.
  • The vehicle’s make and engine model are: A number of factors, like the vehicle’s size, age, condition, and engine type, might have a significant impact on your premium.
  • No-Claim Bonus: If you have accrued a no-claim bonus from prior years of insurance coverage, you will get a premium at a discounted cost. A no-claim bonus is a type of payment offered to the insured at policy renewal time in the event that no claims have been filed in the policy’s prior years.
  • Type of Plan Select: The price for a basic, third-party liability insurance plan will be significantly lower than that of a comprehensive, full-scope plan with more coverage.
  • Type of Commercial Vehicle: Compared to other commercial vehicles like taxis or private minibuses, large vehicles like trucks and big buses pose a greater risk when driving on public roadways. Greater risk necessitates paying a higher premium.

List of Top Insurers Providing Commercial Vehicle Insurance

  • HDFC ERGO General Insurance.
  • Reliance General Insurance.
  • Bajaj Allianz General Insurance
  • Royal Sundaram General Insurance.
  • Chola MS General Insurance.
  • Kotak General Insurance.
  • Go to Digit General Insurance.
  • Acko General Insurance.
  • ICICI Lombard General Insurance.
  • IFFCO TOKIO General Insurance.
  • SBI General Insurance.
  • Tata AIG General Insurance.
  • The New India Assurance.
  • The Oriental Insurance.
  • Universal Sompo General Insurance.

How Can I Purchase Online Commercial Auto Insurance?

Step 1: Go to the website of the insurance provider and enter the required information.
Step 2: At this point, select the “purchase commercial vehicle policy” option.

Step 3: Carefully choose the coverage and add-ons, then send in the necessary paperwork.

Step 4: Use any online payment method to pay the premium amount.

Step 5: You will receive a share of the updated policy via WhatsApp or your registered email address.

Step-By-Step Guide To File A Claim For Commercial Vehicle Insurance

Step 1: Contact the insurance company’s official website or call their toll-free helpline number if your commercial vehicle is stolen or damaged.
Step 2: Take a few photos or videos of the damage, if you can, and send them to the insurance provider.
Step 3: Within 24 hours of the loss, the insurance company will designate a surveyor or claim inspector who may visit the location of the damage.

Step 4: Send the surveyor the pertinent paperwork, and the surveyor will send the insurance company the final report.

Step 5: The insurance company’s claims department will examine the final survey report and confirm the paperwork.

Step 6: The insurance company will start the regular insurance claim settlement procedure, and you will get paid shortly if everything checks out.

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