Overview

Commercial vehicle insurance is a type of motor insurance policy that provides coverage in case of loss or damage to a commercial vehicle and its owner-driver. It is a customized motor insurance policy which may include loss and damage due to accident, natural disaster, collision, fire etc. All businesses should purchase a commercial vehicle insurance policy for their motor vehicles such as cabs, auto-rickshaws. Tractor. , School buses, trucks, commercial vans etc.

Commercial vehicles are an important means of transportation and are heavy duty vehicles, which are used for everyday tasks. These vehicles usually include trucks, vans, trailers, buses, taxis, coaches, carriers, shovels, tractors, cranes, mobile rigs, bulldozers, etc., which 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 contribute significantly to bulk transportation for many businesses. However, such heavy-duty commercial vehicles are always prone to unexpected losses during road accidents, driving and natural disasters.

Therefore, commercial vehicle insurance is important to classify these sets of wheels against the odds. tractor insurance , insurance for freight trucks, commercial insurance for pick-up vans, etc.

Importance

Commercial vehicle insurance is beneficial for the smooth running of your moving business against any adverse conditions that may cause a major financial drain. Almost every type of vehicle used for commercial purpose such as vehicles, personal / public travel trailers, taxis, tractors, cranes, mobile rigs, bulldozers, etc., are covered under comprehensive commercial vehicle insurance for passengers goes.

Buying commercial vehicle insurance online is a quick, easy and hassle free process. Therefore, before you zero out the policy, compare commercial vehicle insurance quotes and buy a policy that fits your budget.

Remember, any accident while riding a commercial vehicle without valid commercial vehicle insurance can cause huge monetary loss and put anyone in a difficult position.

Best Commercial Vehicle Insurance Companies

The following is a list of general insurance companies that offer commercial vehicle insurance:

Disclaimer: *All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Key Features

Commercial vehicle insurance plans are loaded with some key features. The main features offered under commercial vehicle insurance are:

• Comprehensive coverage is provided to both public and private carriers, including special types of goods carrying vehicles.
• Commercial vehicle insurance scheme provides cover for liabilities in the event of any injury or accident.
• Do not worry about unwanted expenses due to having a commercial vehicle insurance plan will provide monetary compensation.
• Stay stress-free from monetary failures caused by liabilities.
• Third-party person / vehicle / property damage cover.
• A personal accident cover for the driver and owner.

Types of Commercial Vehicle Insurance

Commercial vehicle insurance is generally of two types listed below:

• Comprehensive Commercial Vehicle Insurance

Comprehensive insurance provides complete protection to your commercial vehicle under any adverse circumstances, which can lead to unwanted expenses. Protect your commercial vehicle from uncertainties like damage, fire, theft, robbery, flood, earthquake and the like. In addition, comprehensive vehicle insurance policy provides cover to third party property or person in case of loss / damage.

• Third-party Liability Commercial Vehicle Insurance

Commercial vehicle insurance third-party liability protects any third-party property, any third person or vehicle, causing death, bodily injury or any other damage. The safety of such commercial vehicles should be of utmost concern. Furthermore, the coverage coverage is more or less the same for both insurance policies.

Commercial Vehicle Insurance: Inclusions

Commercial vehicle insurance policies compensate for the personal, medical, and financial losses caused by theft, accidents, and damage resulting from natural disasters.

Most commercial vehicle insurance companies provide cashless compensation for repairs to your commercial vehicles at their registered workshops.

There are a plethora of commercial insurance companies that offer customized commercial vehicle insurance plans to meet the diverse needs of their customers.

Here is a list of benefits that a 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 cyclone, frost
• Landslide and rock slide
• Earthquakes
• Terrorist activity
• Accident (by external means)
• Personal accident claims are also covered under this policy. This includes permanent total disability / accidental death of the paid driver and owner.
• Commercial vehicle third-party insurance provides cover in the event of an accident involving your insured commercial vehicle and third-party vehicle. It will cover loss or damage caused to third party property, vehicles, bodily injuries and death.
• Option to extend the benefit of the policy to cover various add-ons at an additional premium.

Commercial Vehicle Insurance: Add-on Covers

You can also increase the scope of commercial vehicle insurance coverage by using add-on cover on payment of additional premium. Comparing add-on covers will help you make an informed decision when purchasing commercial vehicle insurance.

Following are some of the add-on covers that you can consider when purchasing commercial vehicle insurance online:

• Accessory Cover: Cover for loss of accessories.
• Legal liability includes paid drivers / conductors / non-fare passengers.
• Personal Accident Cover: Personal accident benefits to the owner / driver and any other designated person other than 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: Roadside assistance in the event of a sudden breakdown of the vehicle.
• Engine Protector: This vehicle covers the resulting damage to the engine.

Commercial Vehicle Insurance: Exclusions

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

• Wear and tear of commercial vehicle.
• Consequential loss.
• Losses during the Civil War.
• Contractual liabilities are also not included.
• Incident of accident with invalid driving license or during alcohol consumption.
• For example using a vehicle according to 'to use as boundaries', a private car is used as a taxi.
• The dangers of war, nuclear crisis.
• Electrical and mechanical breakdown, breakdown or failure.
• Electrical and mechanical breakdown, breakdown or failure.
• If the policy is not active at the time of accident or loss.

Now, we understand the various insurance plans available for each category of commercial vehicle.

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 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 ‘total loss’ category.
• Personal Accident Cover: Owner/driver is covered for personal accidental damages or loss up to a certain percentage of 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

Vehicle insurance carry goods cover against damage or damage to vehicles due to man-made and natural disasters such as theft, fire, explosion, flood, earthquake, landslide, accidental damage, personal accident and third party liability. Vehicles carrying goods help in the smooth growth of the economy by moving the country's economy within the country and globally.

Goods carrying vehicle insurance can be purchased for vehicles such as trucks, trailers, tractor-trailers, etc.

Salient Features

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

• The policy offers both third-party liability and own-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 registered garages
• The policy benefits can be enhanced further by opting for various add-on covers.
• The insured vehicle is covered for loss or damages sustained during an accident, third-party liability, damages due to man-made disasters such as theft, vandalism etc.
• It covers natural calamities causing a threat to the insured vehicles such as flood, storm, earthquake, landslide etc.
• No Claim Bonus to be earned for every claim-free year up to a defined percentage based on the policy terms.

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 carrying vehicle insurance policy.
• Mechanical and Electrical Breakdown: Any mechanical and electrical breakdowns are not covered by your goods carrying vehicle insurance policy.
• Depreciation: 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, personal accident, 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 bus, taxi, 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 to be earned for every claim-free year.
• Some insurers offer discounts on premium deepening 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 over 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) are 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 authorized driving license, your passenger-carrying vehicle insurance cannot help you. If you drive your vehicle under the influence of alcohol or drugs are 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 sub-category of passenger carrying vehicle insurance. The Motor Vehicle Act in India mandates a policy of purchasing liability only if the auto-rickshaw is owned by an organization.

If the rickshaw causes loss or damage to the property, person or vehicle of the third party then it will provide a cover for the business.

Key Features of Auto Rickshaw Insurance

Following are the salient features of 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 damages or injuries.
• Cover Against Natural Disasters: Natural disasters may take a toll over your auto. There is nothing to worry about; an auto-rickshaw insurance policy offers cover 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 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: 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 third-party insured
• Consequential damages or losses
• Contributory negligence

e-Rickshaw Insurance

e-Rickshaw 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 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.

Claim Process for Commercial Vehicle Insurance

Claiming commercial vehicle insurance can be an easy victory with the right approach. To get the claimed amount reimbursed without a hassle it is important that you immediately notify your commercial vehicle insurance provider about the loss or damage. In case, if you bought it through commercial vehicle insurance agent notify the agent.

You can register a claim by calling them on their toll-free helpline number or write to them on their customer helpline email id.

Nowadays, most of the commercial vehicle insurance providers offer claim forms online as well. It is important to cross-check commercial vehicle insurance details. While filing a claim, the following details are required from the insured’s end:

• Time and date of loss
• Policy number for reference
• The location where the incident took place
• A brief description of the incident
• Name & contact number of the person filing the claim

Required Documents

To claim commercial passenger vehicle insurance or goods carrying vehicle insurance, you will need to furnish the following documents:

• Registration certificate of the vehicle
• Driving license ( original copy)
• Claim form duly signed and filled
• Copy of FIR
• Tax paid receipt
• Copy of Aadhar Card
• Fitness certificate
• Original insurance policy papers
• Load challan of your commercial vehicle
• Route permit

Importance for Renewal

Goods carrying vehicle insurance or passenger carrying vehicle insurance needs to be renewed on time to ensure the policy benefits continuously.

Commercial vehicle insurance renewal can be done online as well. You just need to visit the official website of the insurer and fulfill the renewal formalities online. Before, making the payment check commercial vehicle insurance details and accordingly pay the premium online and get the commercial vehicle insurance policy renewed instantly.

Factors

While renewing or buying a commercial vehicle insurance policy, you should focus on the following aspects:

• Coverage: It is important to have adequate coverage when buying a commercial vehicle insurance policy. A comprehensive commercial vehicle insurance policy is recommended for those who wish to safeguard their business and want to enjoy and have peace of mind.
• Insured Declared Value: One of the most important things that one needs to consider at the time of renewal/buying is choosing the correct IDV in your motor insurance policy, as, the compensation amount will be equal to the IDV in case of total damage or theft.
• Discount/NCB: At the time of renewal, the policyholder should check with the insurer for any available discounts on the motor insurance premium.
• Add-on Benefits: Select add-on covers to enhance the overall policy commercial vehicle insurance coverage.
• Cashless Network Garages: Always ask the commercial vehicle insurance agent or provider about the list of network garages and find one within your vicinity. It will ensure convenient and timely repair of the vehicle.
• Deductibles: Opt for deductibles only when it is possible to pay a portion of the claim from your pocket. Always check for the deductibles and clauses at the time of renewal. Opt-out for deductibles if it is not working well for you.

Note: While buying commercial vehicle insurance online, it is important to browse the web, compare commercial vehicle insurance quotes and avail the best deal.

Renewal Process

A commercial vehicle insurance policy can be renewed online as well as offline. If you want to renew your policy offline, you can contact an agent of your insurance company or visit their nearest branch. In case you want to renew your commercial vehicle insurance plan online, you can follow the procedure mentioned below:

• Visit the official website of your insurance provider
• Go to the policy renewal option
• Enter the required details, such as the policy number
• Submit the details
• Pay the premium amount online

Cost of Commercial Vehicle Insurance

Subject to deduction of depreciation, commercial vehicle insurance price or IDV is fixed at the commencement of the policy. The IDV is decided based on the manufacturer’s listed selling price and brand of the vehicle.

However, depreciation is a major factor that contributes a lot to commercial vehicle insurance. With age, the value of a vehicle depreciates and based on this rate, IDV is decided. Here is how:

How to Calculate?

You should not buy a policy under compulsion or hurry. Before signing on the dotted line, you should compare commercial vehicle insurance online based on the offerings, premium rates, features and benefits and claim the insurers settlement ratio.

You can contact an aggregator website such as where you can compare various commercial vehicle insurance quotes. Also, using a motor insurance calculator, you can get an idea of ??how much you are going to pay for a commercial vehicle insurance premium.