Universal Sompo Commercial Vehicle Insurance

Universal Sompo General Insurance is one of the leading general insurance providers in India. The insurer offers tailor-made vehicle insurance plans for commercial vehicles as well. Universal Sompo General Insurance has designed Universal Sompo commercial vehicle insurance policy to cover damages caused to passenger-carrying vehicles, goods carrying vehicles, and other miscellaneous vehicles.

This commercial vehicle insurance policy covers damages caused to this category of vehicles while being used for hire, carriage of goods, or while being used by the insured and its employees for the specified purposes. Universal Sompo commercial auto insurance policy also covers damages caused to a third-party including bodily injuries, property damage or damage caused to a third-party vehicle.

In addition to this, commercial vehicle insurance also covers legal liabilities arising out of third-party death, or 3rd party property damage by the insured vehicle. However, the coverage is not provided while the commercial vehicle is being used for racing, speed testing and use for any purpose in connection with the Motor Trade.

What Type Of Commercial Vehicle Are Covered Under This Policy?

This plan covers commercial vehicles that are owned by organizations or companies for business/trade purposes. Both private and public entities can use these commercial vehicles for transportation of goods or passengers across the states or within the city. Commercial vehicles can be broadly divided into two categories:

  • Passenger Carrying Vehicles:It refers to the vehicles that are being used by people for transportation purposes. Auto rickshaw, buses, and even E-Rickshaws are referred to as passenger carrying vehicles and can be insured under Universal Sompo vehicle insurance plan.
  • Goods Carrying Vehicles: It refers to the vehicles that are used to carry goods from one place to another. Trucks, cranes, shovels, tractors, vans, etc. are referred to as good carrying vehicles and can be insured under this plan.

 Universal Sompo Commercial Vehicle Insurance Features

  • Easy to purchase commercial vehicle insurance online
  • Concession for specially designed/modified commercial vehicle for specially-abled
  • No Claims bonus for not filing a claim during the policy period
  • Discounts on higher voluntary excess
  • Discount upon installation of anti-theft devices in the insured commercial vehicle
  • Easy commercial vehicle insurance renewal
  • Depreciation, for the parts needing replacement in the accident, is defined

Universal Sompo Commercial Vehicle Insurance Coverage

The insurer will recompense the insured against loss or damage caused to the insured commercial and its accessories under the following circumstances:

  • Loss or damage caused due to fire/explosion/ self-ignition /lightning
  • terroristactivity
  • riot orstrike
  • burglary/theft/ housebreaking
  • earthquake (fire and shockdamage)
  • accident by externalmeans
  • flood/hurricane/ typhoon/ storm/inundation/ tempest/cyclone/hailstorm/frost
  • maliciousactivity
  • whilst in transit via road/rail/inland-waterway/ air/lift/ elevator
  • landslide/rockslide

Subject to a deduction for depreciation at the rates mentioned below in respect of parts replaced:

  1. For all nylon/rubber/ plastic parts, tubes, tyres, batteries, and airbags -50%
  2. For fiberglass components -30%
  3. For all the glass parts– Nil

Rate of depreciation to all the parts including wooden parts will be as per the given table:

Age of the Commercial Vehicle % of Depreciation
Not more than 6months Nil
More than 6months but less than 1 yr. 5%
More than 1 year but less than 2 yrs. 10%
More than 2 years but less than 3 yrs. 15%
More than 3 years but less than 4 yrs. 25%
More than 4 years but less than 5 yrs. 35%
More than 5 years but less than 10 yrs. 40%
More than 10 yrs. 50%

*For more details you can refer to universal Sompo goods carrying vehicle insurance policy wordings.

Universal Sompo Commercial Vehicle Insurance Optional Cover

This commercial vehicle insurance policy coverage can be further enhanced with the following coverage options:

  • Loss of accessories cover
  • Personal accident cover to the occupants
  • Legal liability cover to vehicle cleaner or a paid driver, conductor, or any workman

Personal Accident Cover For Owner-Driver

Universal Sompo Commercial Vehicle Insurance policy offers compensation in case of death or bodily injuries sustained by the vehicle’s owner-driver while travelling in the insured vehicle/while mounting/dismounting from the insured. The coverage is also provided to a co-driver, or in case of an external accident resulting in the following within six months of the injury:

Nature of Injury Scale of Compensation
Death Cover 100%
Loss of both eyes/two limbs/one limb/ sight of one eye 100%
Loss of one limb/eye 50%
Permanent total disability from injuries other than named above 100%

Commercial vehicle insurance cover is subject to:

  • The vehicle is in the name of the owner-driver
  • Commercial vehicle insurance is in the name of the owner-driver
  • The owner/driver should hold a valid driving license, as per the Central Motor Vehicles Rules, 1989, at the time of theincident

This is applicable if only:

  • It is only applicable to the owner-driver if the total liability doesn’t exceed Rs. 15 lakh during the policy term
  • The compensation is offered directly to the insured or to his/her legal representatives in case there is an injury caused to the

Personal Accident Cover to Paid Drivers, Cleaners and Conductors (applicable to all type of commercial vehicles)

The insurer will offer compensation in case of bodily injuries sustained by the paid cleaner/driver/conductor while travelling in the insured vehicle/while mounting/dismounting from the insured commercial vehicle or in case of an external accident resulting in the following within six months of the injury:

Details of Injury Scale of Compensation
Death Cover 100 percent
Loss of both eyes/two limbs/one limb/ sight of one eye 100 percent
Loss of one limb/eye 50 percent
Permanent total disability from injuries other than named above 100 percent

Universal Sompo Commercial Vehicle Insurance Third-Party Liability Cover

This vehicle insurance policy also covers any loss or damage caused to a third-party and pays off for the loss or damage caused to a third-party:

  • An accident or collision with the insured commercial vehicle resulting in the death of or bodily injury to a third-person
  • Damage caused to  a third-party property from the insured commercial vehicle/passenger carrying vehicle/goods carrying vehicle

Sum Insured, Insured’s Declared Value (IDV)

The Sum Insured is determined on the basis of the Insured’s Declared Value (IDV) of the insured commercial vehicle. The IDV is fixed at the time of policy purchase-including subsequent renewals.

The IDV of the commercial vehicle and its accessories is fixed as per the manufacturer’s selling price for that particular brand and model.

The Schedule of Depreciation for Fixing IDV of the Vehicle   

The table below mentions age-wise depreciation for total loss/constructive total loss claims only:

Age of the vehicle Depreciation ( for IDV)
Not more than 6months 5%
More than 6months but less than 1 yr. 15%
More than 1 year but less than 2 yrs. 20%
More than 2 years but less than 3 yrs. 30%
More than 3 years but less than 4 yrs. 40%
More than 4 years but less than 5 yrs. 50%

No Claim Bonus 

This vehicle insurance policy offers No-claim-bonus to the Goods Carrying Vehicle for not filing a loss or damage claim during the policy term. The percentage of No-claim-bonus is given below:

Claim-free Period No-Claim-Bonus
No claim lodged within one-year of policy purchase 20 percent
No claim lodged for 2-consecutive years of policy purchase 25 percent
No claim lodged for 3-consecutive years of policy purchase 35 percent
No claim lodged for 4-consecutive years of policy purchase 45 percent
No claim lodged for 5-consecutive years of policy purchase 50 percent

Universal Sompo Commercial Vehicle Insurance Exclusions/Limitations

Universal Sompo motor insurance will not offer compensation for claims arising due to the following reasons or under the following circumstances:

  • Any accidents outside the Geographical Area
  • Any claim arising due to normal wear and tear is also  excluded
  • If found driving without a valid license
  • If found to be driving under the influence of liquor/drugs at the time of the accident
  • Consequential losses are also not  covered
  • Any kind of contractual liabilities
  • Intentional acts, self-inflicted injuries, or suicidal attempts
  • Vehicle being used beyond the scope of coverage or being used for any other purpose
  • Damage caused to tubes and tyres unless there is damage caused to the vehicle as well. The insures liability in such cases shall be limited to 50% of the replacement cost
  • Any  damage/accidental loss/ liability resulting or caused directly or indirectly due to nuclear weapons/material
  • Any type of consequential loss
  • Mechanical or electrical breakdown
  • Depreciation, or wear and tear
  • Failures or breakages due to strain or overloading the commercial vehicle
  • Loss of or damage to accessories by housebreaking, burglary, or theft unless the vehicle also gets stolen

Universal Sompo Commercial Vehicle Insurance FAQs

  • 1. What is a commercial vehicle insurance policy?

    Ans: A commercial vehicle/auto/motor insurance policy covers risks like loss or damage caused to the insured vehicle due to an accident or collision. It also covers death cases or bodily injuries whilst driving or travelling in the insured vehicle. In addition to own damages, a commercial vehicle insurance policy also covers third-party liabilities, third-party bodily injuries, and third-party property damage. The types of vehicles that can be insured include goods carrying vehicles and passenger carrying vehicles.

  • 2. Can I buy commercial vehicle insurance online?

    Ans: It is easy to buy and compare commercial vehicle insurance online at Policy Bazaar. You can even go for commercial vehicle insurance renewal on our site.

  • 3. What is personal accident cover for paid Drivers, cleaners and conductors? Is it applicable to all types of the commercial vehicles?

    Ans: Universal Sompo commercial auto insurance policy offers compensation to the drivers, cleaners, and conductors (hired by the owner of the commercial vehicles) against bodily injuries/ external accident while travelling in the insured commercial vehicle for the specified purpose only. The policy offers 100% compensation in case of death, loss of both limbs or eyesight, and permanent total disabilities. 50% of the sum insured is reimbursed in case of loss of one eyesight or limb.

  • 4. Does Universal Sompo vehicle insurance policy provide towing service to a disabled insured vehicle?

    Ans: The insurer tows the insured vehicle in case it is disabled or mechanically propelled and is not being towed for reward purposes.

  • 5. What are the benefits of buying Universal Sompo commercial vehicle insurance policy?

    Ans: This auto insurance plan for commercial vehicles offers the following coverage benefits:

    • Loss or damage to the insured vehicle due to natural disasters like flood, earthquake, fire, and also accidental damages
    • Coverage is provided in case of third-party liabilities such as third-party injury, death and property damage
    • The coverage is further extended to personal accident cover for owner/driver and also to a paid driver/conductor/cleaner
  • 6. What are the limitations of the Universal Sompo commercial vehicle insurance policy?

    Ans: Universal Sompo commercial vehicle insurance policy does not pay for the loss or damage under the following circumstances:

    • Any wear and tear of the vehicle
    • Any kind of consequential loss
    • Damage to tubes and tyres unless the vehicle is damaged
    • Drink and driving
    • Driving without a valid driving license
    • Driving for any other purpose than specified in the policy wordings
Written By: PolicyBazaar - Updated: 07 September 2020

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