Commercial Vehicle Insurance is a mandatory policy that offers financial protection for vehicles used for business purposes, such as trucks, tractors, buses, and auto-rickshaws.
It covers damages to your vehicle and third parties involved in an accident, including injuries, property damage, or death. Additionally, the Commercial Vehicle Insurance policy covers losses from natural disasters, fire, theft, and other man-made incidents.
Key Features of Commercial Vehicle Insurance
- Comprehensive Coverage: Protects both public and private carriers, including special goods-carrying vehicles.
- Liability Coverage: Covers third-party liabilities for injury, property damage, or accidental death.
- Monetary Compensation: Helps manage unexpected expenses and financial losses.
- Personal Accident Cover: Provides coverage for bodily injuries or death of the driver and owner.
Types of Commercial Vehicle Insurance Policies
- Third-Party Liability Insurance: Required by Indian law, this Third Party Insurance policy covers damages to third-party property, vehicles, or individuals caused by your commercial vehicle. It’s crucial for heavy-duty vehicles due to their increased risk and potential impact.
- Comprehensive Insurance: Offers full protection against damages from various risks, including accidents, theft, fire, natural disasters, and more. It also covers third-party liabilities.
Coverage Under Commercial Vehicle Insurance
Covered Events:
- Damage from riots, strikes, or vandalism
- Fire, self-ignition, or explosion
- Natural calamities like earthquakes and floods
- Theft, burglary, or housebreaking
- Third-party property damage or injury
Not Covered:
- Regular wear and tear or depreciation
- Damages during civil war or nuclear events
- Accidents while driving under the influence or without a valid license
- Using the vehicle beyond its intended use, such as using a private car as a taxi
- Mechanical or electrical breakdowns
Why Do You Need Commercial Vehicle Insurance?
- Legal Requirement: It’s mandatory under Indian motor laws to have insurance for your commercial vehicle.
- Business Protection: Safeguards against significant financial losses from unexpected events.
- Easy Online Purchase: Compare policies and purchase online quickly and easily.
- Financial Security: Provides peace of mind by covering potential monetary losses from unforeseen incidents.
Types of Commercial Vehicles
Being essential to the global economy, there are many different types of commercial vehicles. They include:
- Trucks
- Vans
- Trailers
- Buses
- Taxis
- Carriers
- Tractors
- Cranes
- Mobile rigs
- Bulldozers
These vehicles transport goods and passengers within and between cities, facilitating essential business operations.
How to Calculate Commercial Vehicle Insurance Premium?
When selecting a policy, compare options based on premium rates, features, and claim settlement ratios. Use an insurance aggregator or calculator to estimate premiums and find the best policy for your needs.
Factors Affecting Premium:
- Insured Declared Value (IDV): Set at the policy’s start, based on the manufacturer’s price and depreciation.
- Depreciation: Affects the vehicle’s value and insurance cost over time.
Vehicle Age | Depreciation Rate |
Within 6 months | Nil |
6 months to 1 year | 5% |
1 to 2 years | 10% |
2 to 3 years | 15% |
3 to 4 years | 25% |
4 to 5 years | 35% |
5 to 10 years | 40% |
Over 10 years | 50% |
Claim Process
To file a claim, follow these steps:
- Notify the Insurer: Report the incident immediately through their helpline or email.
- Damage Assessment: An appointed surveyor will assess the damages.
- Submit Documents: Provide necessary documents for claim verification.
- Repairs: Get your vehicle repaired at a network garage.
- Claim Settlement: The insurer will settle the claim directly with the garage.
Documents Required:
- Vehicle registration certificate
- Original driving license
- Signed claim form
- FIR copy (if applicable)
- Tax paid receipt
- Aadhar Card copy
- Fitness certificate
- Original policy papers
- Load challan and route permit
Frequently Asked Questions
We are here to help you do your job so that we can help you get the most out of your time.
Q1. What is Commercial Vehicle Insurance?
Commercial Vehicle Insurance provides financial protection for vehicles used for business purposes, covering damages to the insured vehicle and third-party liabilities in case of accidents or other covered events.Q2. Is Commercial Vehicle Insurance mandatory in India?
Yes, it is mandatory under Indian motor laws for all commercial vehicles to have at least third-party liability insurance to legally operate on the roads.Q3. What types of vehicles are covered under Commercial Vehicle Insurance?
The policy covers a wide range of vehicles, including trucks, buses, taxis, vans, trailers, tractors, cranes, and other heavy-duty vehicles used for commercial purposes.Q4. What are the key benefits of having Commercial Vehicle Insurance?
The policy offers coverage for:- Third-party liabilities (injuries, property damage, death)
- Self-vehicle damage caused by nature, theft, fire, and accidents.
- Personal accident cover for the driver and owner
Q5. What is the difference between Third-Party and Comprehensive Insurance?
- Third-Party Insurance: Covers damages to third parties only, including injury or death and property damage.
- Comprehensive Insurance: Provides complete protection, covering both third-party liabilities and own vehicle damages due to various risks.
Any Questions?
Do you have any inquiries about your insurance policy? We offer a policy for you whether you want short-term protection, long-term security, or a mix of both. Please get in touch with us right off the bat if you're eager to learn more about our products, we'll be pleased to assist you!
Any Query ? Reach Us
Do you have any inquiries about your insurance policy? We offer a policy for you whether you want short-term protection, long-term security, or a mix of both. Please get in touch with us right off the bat if you’re eager to learn more about our products, we’ll be pleased to assist you!