10 Things You Should Know About Commercial Vehicle Insurance

1. What is Commercial Vehicle Insurance?

It means insurance of all types of commercial vehicles like goods carrying vehicles, passenger-carrying vehicles, Taxis, Tractors, Cranes and more. Whether you are running a small business with a van or doing transport business or any other business where commercial vehicles are used. Insurance is mandatory. The third party is mandatory in India under Motor vehicle Act.

2. What Commercial Vehicle Insurance policy cover?

Commercial Vehicle Insurance policy cover:

  • Fire Explosion
  • Third-party
  • Burglary
  • Housebreaking
  • Theft
  • Riot
  • Strike
  • Natural Disaster
  • Landslide Rockslide
  • Road Accident
  • Malicious act
  • Terrorist activity
3. Why Is Commercial Vehicle Insurance Required?

The commercial vehicle insurance policy offers comprehensive protection to your commercial vehicles. If your commercial vehicle gets involved in road accidents you have to pay the expenses of the accidental damage in case you don’t compare and buy commercial vehicle insurance or renew commercial vehicle insurance policy before expiry. It also provides coverage for Third Party liability.

4. Is Commercial Vehicle Insurance Mandatory?

Yes, Commercial insurance policy is mandatory as per the Motor Vehicles Act, 1988. The rule of the Motor Vehicle Act means that every commercial vehicle on the road has to be insured with valid third party insurance.

5. How Commercial Car Insurance Price Is Determined?

The following factors are determined the price of commercial car insurance cover.

  • IDV of the vehicle
  • Type and model of vehicle
  • Age of the Vehicle
  • Registration Place of vehicle
  • Fuel type of vehicle
6. How to Calculate Commercial Vehicle Insurance Premium?

The following steps help calculate the Commercial vehicle insurance premium –

  • IDV of the vehicle
  • Type and model of vehicle
  • Age of the Vehicle
  • Registration Place of vehicle
  • Fuel type of vehicle
  • Driving history and claim history
  • Choice of coverage
7. How to Compare Commercial Vehicle Insurance?

There are many companies doing commercial insurance; each company has a separate premium based on Maximum IDV they provide, add on covers and brand value of the company. Comparing before buying is a smart decision. Different companies come up with different discounts. Comparing will save you money. Also, you can compare the claim status, network garage and more before buying a policy.
The following steps help you to compare commercial Vehicle Insurance-

  • IDV of the vehicle
  • Type and model of vehicle
  • Age of the Vehicle
  • Registration Place of vehicle
  • Fuel type of vehicle
  • Driving history and claim history
  • Choice of coverage
8. What is not covered under Commercial Vehicle Insurance?

If a policyholder or driver is driving the vehicle under the influence of alcohol or drugs.

  • Loss and damages are not covered if it is caused due to war and nuclear danger.
  • Accidental Damages are not covered if your commercial vehicle is involved in any illegal
  • activity.
  • Losses and damages suffered while driving without having a valid license or valid policy.
  • Mechanical expenses due to consistent wear and tear.
  • Loss due to war, mutiny or nuclear risk
  • Use of the vehicle for a purpose not mentioned in the policy document.
  • Employees of the Insured other than the owner/driver of the commercial vehicle.
9. Add-on Cover in Commercial Vehicle Insurance policy?
  • Zero Depreciation Cover
  • Personal Accident Cover
  • Depreciation Waiver Cover
  • Windshield Glass Cover
  • Legal Liability to Employees
  • Legal Liability to Passengers
  • Roadside Assistance
  • No Claim Bonus Shield Cover
  • Accessories Cover
  • Coverage for Vehicle Consumables
  • Penalty Coverage
  • Additional Cost Coverage
  • Towing Charges Coverage
10. List of Companies for Commercial Vehicle Insurance?

Companies dealing in commercial vehicle insurance

  • Tata AIG General Insurance Company Limited
  • IFFCO Tokio General Insurance Company Limited
  • Royal Sundaram General Insurance
  • HDFC ERGO General Insurance Company
  • Reliance General Insurance
  • Shriram General Insurance Company Limited
  • Bajaj Allianz General Insurance
  • Bharti AXA General Insurance
  • The Oriental Insurance Company
  • The New India Insurance Co. Ltd.
  • Cholamandalam MS General Insurance

 

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