Similar to personal vehicles, it is important to protect your commercial vehicle from uncertainties. Motor insurance companies in India provide commercial vehicle insurance for different types of vehicles such as cabs, taxis, buses, trucks, and more. When you purchase an insurance policy, you create a strong wall against mishaps. Now, you must be wondering, “What exactly is commercial vehicle insurance?” and “How can I purchase it?” In this article, we’ll walk you through the meaning, benefits, types, and more details of commercial vehicle insurance.
To understand the meaning of commercial vehicle insurance, it is first important to know the meaning of commercial vehicles. Commercial vehicles are a type of vehicle that is used for earning purposes. This may include cabs, taxis, buses, trucks, and more. Now, read on to find out detailed information about commercial vehicle insurance.
What is Commercial Vehicle Insurance?
A commercial vehicle insurance plan is an insurance plan that provides coverage for damages caused to or by a commercial vehicle. Additionally, it offers protection for the loss incurred by the owner of that particular vehicle. The damages and losses that are covered under commercial vehicle insurance include accidents, collisions, and man-made and natural calamities. All businesses must purchase commercial vehicle insurance for their respective trucks, buses, auto-rickshaws, tractors, and more, up to third-party coverage.
Benefits of Commercial Vehicle Insurance
Listed below are some of the benefits of commercial vehicle insurance.
- It protects you against any type of financial burden arising due to accidental damages.
- An insurance company may also provide coverage for legal fees and lawsuits in third-party motor insurance.
- You are eligible for a no-claim bonus for not making any claims during the policy period.
- You can also claim cashless repair coverage in case of accidental damages.
Types of Commercial Vehicle Insurance
Here are two types of commercial vehicle insurance provided by motor insurance companies.
1. Comprehensive Commercial Vehicle Insurance
A comprehensive policy financially protects your commercial vehicle as well as the owner-driver who uses it. Moreover, it protects your commercial vehicle from any damages or losses caused by natural disasters, fire, theft, or accidents.
2. Third-party Commercial Vehicle Insurance
Third-party motor insurance is mandatory for all types of vehicles in India. This insurance has a reduced premium cost and tends to cover any third-party person or property damage caused by your own commercial vehicle. The owner/driver is also covered by third-party liability coverage in the event of injury or death. However, any damage that happens to your commercial vehicle is not covered under this policy.
Inclusions and Exclusions in Commercial Vehicle Insurance
Here is a list of inclusions and exclusions in commercial vehicle insurance.
What is Covered?
- Accidents and thefts
- Third-party damages or losses
- Natural disaster
- Fire
What is Not Covered?
- Damage to your commercial vehicle will not be covered in the case of a third-party insurance plan.
- Driving under the influence of any alcoholic substance.
- Damages happened due to the negligence of the driver and the overspeeding of the vehicle.
- No coverage is provided for claims that are not covered under your insurance plan.
- War or nuclear perils are not covered.
Factors Affecting a Premium of Commercial Vehicle Insurance
Listed below are some factors that may affect the premium for your commercial vehicle insurance.
- Type of Plan: If you choose third-party liability insurance, a premium will be less than that of a comprehensive plan that provides wider coverage.
- Vehicle Model and Engine Type: Engine model, year of manufacture, vehicle size, and car condition plays an important role in determining the premium of commercial vehicle insurance premium.
- No Claim Bonus: If you build up a no-claim bonus in earlier years of the insurance policy, you will receive a discounted premium. A no-claim bonus is a type of reward provided to the insured at the time of policy renewal if there has been no claim in the previous years of the policy.
- Commercial Vehicle Type: Large vehicles, such as trucks or large buses, pose more risks on the road than other commercial vehicles, such as cabs or private minibuses. Therefore, a vehicle with more danger requires paying a higher premium.
How To Purchase Commercial Vehicle Insurance Online?
Here’s a step-by-step guide to purchasing commercial vehicle insurance online.
- Visit the official website of an insurance company.
- Enter the required details and click “submit.”
- Choose the type of commercial vehicle insurance and add-ons that you want to purchase.
- Upload and submit all the necessary documents.
- Make a premium payment online to complete the procedure.
- Once the premium payment has been completed, the policy details will be shared to your registered email-id.
Wrap Up
In conclusion, many insurance companies provide commercial vehicle insurance in India. All personal and commercial vehicles must purchase an insurance policy that provides coverage up to third-party liabilities. When purchasing a motor insurance plan, make sure that you compare different insurance companies on the basis of their claim settlement ratio. The higher claim settlement ratio of the company represents higher credibility.