Commercial Vehicle Insurance is a type of motor insurance policy that provides coverage in case of damages or losses caused by or to a commercial vehicle and its owner-driver. It is a customised motor insurance policy that can include losses and damages in the situation of an accident, natural calamities, collisions, fire, etc. All businesses must purchase a commercial vehicle insurance policy for their motor vehicles like pick-up vans, cabs, auto-rickshaws, tractors, school buses, trucks, commercial vans, etc.

Why is Commercial Vehicle Insurance Important?

Commercial vehicles are an important mode of transportation and are heavy-duty vehicles, which are used on an everyday basis to carry out tasks. These vehicles usually include trucks, vans, trailers, buses, taxies, coaches, carriers, shovels, tractors, cranes, mobile rigs, bulldozers, etc. that are used to transport goods within the city/cities and from one state-to-another. They are also used for inter-city passenger tours and travel.

These heavy-duty commercial vehicles have an important contribution to bulk transportation for many businesses. However, such heavy-duty commercial vehicles are always prone to road accidents, unpredicted damages while driving and natural calamities.

Therefore, commercial vehicle insurance is important to covet these sets of wheels against the odds. Tractor insurance, insurance for covering goods carrying trucks, commercial insurance for pick-up vans, etc.

Buying commercial vehicle insurance online is a quick, easy, and hassle-free process. Compare commercial vehicle insurance quotes and purchase a policy that fits your budget.

Remember, any mishap while riding a commercial vehicle without valid commercial vehicle insurance can lead to a huge monetary loss and put anyone in a difficult situation.

Key Features of Commercial Vehicle Insurance

Commercial vehicle insurance plans come loaded with some salient features. The following are the salient features offered under commercial vehicle insurance:

• Comprehensive coverage is provided to both public and private carriers including special types of goods carrying vehicles.
• The commercial vehicle insurance plan provides cover for the liabilities in case of any injury or an accident.
• Do not worry about the unwanted expense as having a commercial vehicle insurance plan will provide monetary compensation.
• Remain stress-free from monetary setbacks incurred due to liabilities.
• Third-party person/vehicle/ property damage cover.
• A personal accident cover for the driver and the owner.
• Protect your most valuable assets.
• Cover driver, helper, and conductor with your vehicle’s insurance.
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Types of Commercial Vehicles Covered Under Commercial Vehicle Insurance

Commercial vehicle insurance companies in India cover a wide range vehicles used for transportation business and commercial purposes. The premium coverage and policy conditions may vary according to the vehicle type. 

Almost all vehicles used for commercial purposes require an appropriate commercial vehicle insurance policy to remain financially protected against accidents, theft, natural disasters, and third-party liabilities.

Commercial Vehicle Insurance: Inclusions

Commercial vehicle insurance policy compensates for personal, medical, and financial losses that are incurred due to damage resulting from theft, accidents, and natural disasters.

Most commercial vehicle insurance companies provide cashless compensation for getting your commercial vehicle repaired at their registered workshops.

There are a plethora of commercial insurance companies that provide customised commercial vehicle insurance plans to meet the different needs of their customers.

Here is a list of the benefits that commercial vehicle insurance policy offers:

Loss/ damage to the insured commercial vehicle resulting due to:

• Fire, self-ignition, explosion or lightning
• Riots and strike
• Theft, housebreaking, and burglary
• Malicious acts
• Flood, hurricane, tempest, storm, and typhoon
• Hailstorm, inundation cyclones, frost
• Landslide and rock slide
• Earthquakes
• Terrorist activity
• Accident (by external means)

Personal Accident claims are also covered under this policy. It includes permanent total disability/ accidental death of the paid driver and the owner.

Commercial vehicle third-party insurance provides cover in case of an accident involving your insured commercial vehicle and a third-party vehicle. It will cover the loss or damage caused to the third-party property, vehicle, bodily injuries, and death. An option to boost the policy benefit by opting for various add-on covers, at an additional premium. Prevent unnecessary losses to your business. Get instant plans for your commercial vehicle

Commercial Vehicle Insurance: Add-on Covers

You can also enhance your scope of commercial vehicle insurance coverage by opting for add-on covers on the payment of an additional premium. While buying commercial vehicle insurance comparison the add-on covers will help you to make an informed decision.

The following are some add-on covers that you may consider while buying commercial vehicle insurance online:

• Accessory Cover: Cover for loss of accessories.
• Legal Liability: Legal liability covers the paid driver/conductor/non-fare paying passengers.
• Personal Accident Cover: Personal accident benefit to the owner/driver and any other named person apart from an employee and vehicle cleaner/ conductor/ paid driver.
• Zero Depreciation Cover: To get the full value of the vehicle in case of loss or damage
• Towing Cover: Road-side assistance in case of sudden breakdown of the vehicle.
• Engine Protector: It covers the consequential damages to the vehicle engine.

Commercial Vehicle Insurance: Exclusions

The policy does not cover any claim arising out of the following situations:

• Wear and tear of the commercial vehicle.
• Consequential loss.
• A loss incurred during a civil war.
• Contractual liabilities are also not covered.
• The occurrence of an accident while driving with an invalid driving license or under the consumption of alcohol.
• Using a vehicle under ‘limitations as to use’ for instance, a private car is used as a taxi.
• War perils, nuclear perils.
• Electrical and Mechanical breakdown, breakage, or failure.
• In case, the policy is not active at the time of accident or loss.

Now, let us understand the different insurance plans available for every category of commercial vehicle.

How to File a Commercial Vehicle Insurance Claim

In case of an accident or loss, follow these steps to file a commercial vehicle insurance claim:

Step 1: Claim Intimation

Register your claim by informing the insurance company immediately about the incident. 

Step 2: Survey and Inspection

A surveyor will be appointed by the insurance company to inspect and assess the damage to your vehicle. 

Step 3: Document Submission

Submit the required documents, such as the claim form, driving licence, registration certificate, insurance policy, and FIR (if applicable).

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Step 4: Claim Settlement

After verification and approval, the insurance company settle the claim as per the terms and conditions of the policy. 

Common Reasons Commercial Vehicle Insurance Claims Get Rejected

Commercial vehicle insurance claims may be rejected under certain circumstances, including:

• Expired or invalid route permits. 
• Expired or invalid fitness certificate.
• Expired policy due to non-renewal.
• Driving without a licence or under possession of alcohol.
• Providing incorrect information or misrepresentation while purchasing the policy
• Using the vehicle for purposes not permitted under the policy terms

Goods Carrying Vehicle Insurance

Goods carrying vehicle insurance covers the vehicles against loss or damages due to man-made and natural calamities such as theft, fire, explosion, flood, earthquake, landslide, accidental damages, personal accident, and third-party liability. Goods-carrying vehicles help in the smooth growth of the nation’s economy by transferring goods within the country and globally.

The goods carrying vehicle insurance can be bought for vehicles such as trucks, trailers, tractor-trailers, etc.

Salient Features of Goods Carrying Vehicle Insurance

Listed below are some of the key features of goods-carrying vehicle insurance:

• The policy offers both third-party liability and damage cover.
• Goods carrying vehicles such as trucks, trailers, Tractor-Trailer, etc. can be insured under goods carrying vehicle insurance, for example, truck insurance to cover goods carrying trucks.
• Cashless claim facility to be availed across the country at the registered garage.
• The policy benefits can be enhanced further by opting for various add-on covers.
• The insured vehicle is covered for loss or damage sustained during an accident, third-party liability, and damages due to man-made disasters such as theft, vandalism, etc.
• It covers natural calamities causing a threat to the insured vehicles such as floods, storms, earthquakes, landslides, etc.
• No Claim Bonus is to be earned for every claim-free year up to a defined percentage based on the policy terms.

Goods Carrying Vehicle Insurance: Inclusions

The list of inclusions for goods carrying vehicle insurance includes:

• Third-Party Liability Cover: The policy covers the insured vehicle for any liability arising out of accidental injury, bodily damage, or death of a third party.
• Loss Due to Natural Disasters: Damage, loss, or damage due to natural calamities are covered. For example, if your goods-carrying pick-up van gets damaged due to a cyclone, your pick-up van insurance will cover the losses incurred.
• Man-made Calamities: Man-made disasters such as theft, vandalism, etc. are covered, where the insured pays up to the full value in case the vehicle is untraceable, under the ‘total loss’ category.
• Personal Accident Cover: The owner/driver is covered for personal accidental damages or loss up to a certain percentage of the Sum Insured, including the treatment cost. On payment of an extra premium, even co-passengers can be covered.
• Loss Due to Natural Disasters: Damage, loss, or due to natural calamities are covered. For example, if your goods-carrying pick-up van gets damaged due to a cyclone, your pick-up van insurance will cover the losses incurred.

Goods Carrying Vehicle Insurance: Exclusions

The list of exclusions for goods carrying vehicle insurance includes:

• Illegal Driving: If you do not have a valid and authorised driving license, your goods-carrying vehicle insurance is of no use. If you drive under the influence of alcohol or drugs, then you are not covered under goods goods-carrying vehicle insurance policy.
• Mechanical and Electrical Breakdown: Any mechanical and electrical breakdowns are not covered by your goods-carrying vehicle insurance policy.
• Depreciation: The goods-carrying vehicle insurance plan does not offer coverage against depreciation in the value of the vehicle over the period.

Passenger Carrying Vehicle Insurance

Passenger-carrying vehicle insurance provides coverage against accidental damages, fire and explosion, man-made calamities such as theft, natural calamities, and personal accidents, along with third-party liability cover. The passenger-carrying vehicles are intended for the carriage of passengers.

Passenger Carrying Vehicle Insurance Features

Below are the key features of passenger-carrying vehicle insurance:

• This insurance can be bought for various passenger-carrying vehicles such as buses, taxis, passenger-carrying vans, etc.
• The policy premium is decided based on the type of vehicle, cubic capacity, the zone of registration, Licensed Carrying Capacity of the vehicle, Gross Vehicle Weight, etc.
• The policy covers the insured vehicle for the damages due to man-made and natural calamities.
• No Claim Bonus is to be earned for every claim-free year.
• Some insurers offer discounts on premiums depending on the mode of buying.

Passenger Carrying Vehicle Insurance Inclusions

The inclusion list of passenger-carrying vehicle insurance includes:

• Cover for Accidental Damages: The policy covers the vehicle in case of an accident leading to damages or injuries.
• Cover to Natural Calamities: Natural calamities may take a toll on the vehicle. Do not worry, it is covered as well.
• Fire & Explosion: Total or partial loss of the vehicle due to fire or explosion is covered.
• Personal Accident Cover: Cover to owner-driver and co-passengers (with an extra premium) is offered in case of an accident leading to injury, disability, or death.
• Liability Insurance: In the case of third-party liability any accidental injury, damage, or death of a third party, damage to the third-party property where the insured vehicle is at fault, is covered.

Passenger Carrying Vehicle Insurance Exclusions

Passenger-carrying vehicle insurance does not cover the following:

• Illegal Driving: In case you do not possess an authorised driving license, your passenger-carrying vehicle insurance cannot help you. If you drive your vehicle under the influence of alcohol or drugs is not covered under the plan.
• Mechanical and Electrical Breakdown: Any mechanical or electrical breakdown is not covered under your passenger-carrying vehicle insurance policy.
• Depreciation: Depreciation in the value of your vehicle over a period also remains uncovered. Thus, while claiming your passenger-carrying vehicle insurance, your insurer will compensate up to the IDV (insured declared value or current market price) of the vehicle after deducting the cost of depreciation.

Auto Rickshaw Insurance

Auto Rickshaw Insurance is a subcategory of Passenger Carrying Vehicle Insurance. The Motor Vehicle Act in India mandates a buy liability-only policy if auto-rickshaws are owned by an organisation.

This will provide a cover for business if the rickshaw causes loss or damage to the third-party property, person, or vehicle.

Key Features of Auto Rickshaw Insurance

The following are the salient features of an auto-rickshaw insurance policy:

• It protects your auto and the owner/driver from any losses arising out of natural calamities, terrorist activities, fires, accidents, malicious acts, and theft, amongst other unfortunate events.
• Auto rickshaw insurance also assures passengers/customers that you have a responsible business.

Auto Rickshaw Insurance: Inclusions

Auto rickshaw insurance covers the following:

• Cover for Accidental Damages: This policy covers the auto in the case of an accident that leads to damage or injury.
• Cover Against Natural Disasters: Natural disasters may take a toll on your auto. There is nothing to worry about; an auto-rickshaw insurance policy offers coverage against any Natural Disasters.
• Fire: Total or partial loss caused to the auto-rickshaw due to fire is also covered.
• Personal Accident Cover: Coverage to the owner-driver and co-passengers is provided in case of an accident leading to death, disability, or injury.
• Third-Party Loss: Any losses or damages caused to a third party or the passengers by your auto-rickshaw are also covered.
• Theft: This policy also covers your auto-rickshaw in case of any loss or damage caused due to theft.
• Towing Disabled Vehicles: An auto rickshaw insurance policy also offers coverage against any damage caused to your auto in the case where it is being towed.

Auto Rickshaw Insurance: Exclusions

The following are not covered under the Auto Rickshaw Insurance Policy:

• Drunk riding or driving without a License
• Own damages for the third-party insured
• Consequential damages or losses
• Contributory negligence

E-Rickshaw Insurance

E-rickshaws, along with e-carts, are now registered and come under the Motor Vehicles Amendment Act 2015. The Insurance Regulatory and Development Authority (IRDA) mandates third-party insurance for battery-operated 3-wheeled vehicles.

The insurance norms and procedures of e-rickshaw insurance are similar to those of an auto-rickshaw insurance policy. However, only third-party insurance is available for e-Rickshaws. The amount of premium is based on the seating capacity of the vehicle.

Documents Required to Buy Commercial Vehicle Insurance

Keeping the required documents ready can make the process of buying commercial vehicle insurance online quicker and smoother. The commonly required documents include:

• Registration Certificate (RC) of the vehicle.
• Valid driving licence of owner/driver.
• Details of previous insurance coverage, if any.
• Commercial vehicle permit papers.
• Fitness certificate for vehicle.
• Proof of identity and address if needed by insurance. 

Before purchasing or renewing your policy, it is advisable to complete a vehicle fitness validity check to ensure that the fitness certificate is active and valid.

You can also understand the New Vehicle Registration Process in India and their significance before purchasing insurance for your commercial vehicle.

Factors Affecting Commercial Vehicle Insurance Premiums

Commercial vehicle insurance premium depends on several factors. Before determining the premium amount Insurance companies evaluate the risks associated with the vehicle. 

• Vehicle Age: The premium amount depends on the vehicle type whether it's a truck, taxi, bus, or tractor. 
• Vehicle Type: Premiums vary depending on whether the vehicle is a truck, taxi, bus, or tractor.
• Insured Declared Value (IDV): The premium is calculated totally on the basis of Insured Declared Value (IDV). 
• Claim History: If you have a claim history of frequent claims, the premiums will be higher. 
• Location: Depending on the location of the vehicle and the hazards associated with it the premium charge may differ. 
• Add-on covers: The total premium will increase if you buy more covers.
• Frequency of Use: If you use your vehicle often or drive long distances your premium may be higher. The more the exposure to dangers the higher the premium.

Important Compliance Requirements for Commercial Vehicle Owners

There are certain legal requirements that commercial vehicle owners need to adhere to in order to be able to drive their vehicles in the Indian road network. Failure to adhere to regulations could lead to fines and insurance claim problems. The key considerations are:

• Good condition of VIN Certificate.
• Fitness certificate.
• Appropriate commercial permits.
• Valid Pollution Under Control (PUC) certificate.
• Active commercial vehicle insurance policy. 

Vehicle owners can also find vehicle details using registration number to verify registration and ownership details whenever required.

Regular vehicle fitness validity checks and maintaining all mandatory documents can help avoid penalties and ensure a smooth claim settlement process.