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Own a Commercial Vehicle? Claim Insurance Now

The Indian economy is dependent on commercial vehicles that transport goods and passengers from one place to another. These vehicles are crucial to maintaining the smooth functioning of the economy, which is why it is very important that these vehicles have insurance cover.

What is a Commercial Vehicle Insurance?

Just like Car Insurance and Bike Insurance, Commercial Insurance is an insurance policy that is taken for vehicles that transport goods or passengers for business. This policy provides coverage for any kind of damage caused by or to the vehicle or the driver/owner. The reason for a differentiated policy for commercial vehicles is their purpose, use, wear and tear and risk factors vary vastly from personal use vehicles.

Vehicles that are considered commercial vehicles:

● Trucks

● Vans

● Buses

● Trailers

● Cabs/Taxis

● Auto-rickshaws

● Travel and Tour Cars

● School Transport Vehicles

● Carriers

● Coaches

● Cranes

● Tractors

● Bulldozers

Why get Commercial Vehicle Insurance?

● Helps cover expenses during unfortunate and unforeseen situations

● Comprehensive cover is provided for public and private parties

● In case of an accident, the insurance will provide cover

● The insurance would cover expenses for the damage caused to a third-party person or vehicle

● The insurance will cover expenses for the driver and owner of the vehicle

Types of Commercial Vehicle Insurance

● Comprehensive Commercial Vehicle Insurance

     o This type of insurance is not mandatory as per law

     o Provides cover for the commercial vehicle during adverse situations that can cause unwanted expenditures

     o Provides cover to third-party person or vehicle if there is any serious damage

● Third-Party Liability Commercial Vehicle Insurance

     o This policy provides cover to a third-party person, third-party property or vehicle

     o The damage could be for an injury, the demise of a third-party person, or any property damage

     o Provides cover for the damage caused to a third-party person or vehicle. It does not cover the insured

Inclusions of Commercial Vehicle Insurance

● Loss/damage to the insured commercial vehicle caused due to:

     o Floods, storm, hurricane, earthquakes, cyclone

     o Landslide

     o Terrorist activity

     o Theft and burglary

     o Malicious acts

     o Riots and strike

     o Fire, explosion, lightning

● Personal accident claims are covered under this insurance which includes total disability or accidental death of the insured or the driver

● One can opt for add-on covers by paying an amount of premium to boost the policy benefit

Exclusions of Commercial Vehicle Insurance

● Electrical and mechanical breakdown

● Wear and tear of the vehicle

● Drunk and drive

● Loss incurred due to war

● Contractual liabilities

● Driving without a license

● Consequential loss

Insurance Plans Available:

Goods Carrying Vehicle Insurance: This insurance is meant for commercial vehicles such as cranes, tractors, trucks and trailers. These vehicles play a major part in the growth of the economy by helping transfer goods interstate as well as international

Passenger Carrying vehicle Insurance: This insurance is meant for cabs, school-vans, buses and similar vehicles that transport passengers

Auto-Rickshaw Insurance: The sub-category of the previous insurance plan where cover is provided for rickshaws

e-Rickshaw Insurance: e-rickshaw and e-carts come under the Motor Vehicles Amendments Act 2015. The insurance is similar to auto-rickshaw insurance but, only third-party insurance is available

There are various insurance plans available depending on the type of vehicle. Before choosing a plan, one must understand the purpose and requirements of their vehicle and select a suitable plan. To avail the best benefit, the option of add-on covers is available for the insured. To know more about commercial vehicle insurance and how to claim it, click here.


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