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Commercial Vehicle Insurance

Commercial vehicle insurance is a type of vehicle insurance policy, giving financial protection to commercial vehicles like trucks, tractors, buses, auto-rickshaws, and others. It covers losses or damages caused to the insured CV due to accident, theft, fire, natural calamities, etc. It also gives financial coverage to third parties involved in accidents for injury, property damage or even death, loss or damage caused by natural calamities, fire, man-made disasters, theft, etc.

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Why do you Need Commercial Vehicle Insurance?

Some of the reasons to buy a commercial vehicle insurance policy are given below:

  • Legal Obligation: As per the Motor Vehicle Act, third-party commercial vehicle insurance is mandatory to drive any commercial vehicle in India.
  • Financial Security: Commercial vehicle insurance also protects your vehicle and business against any adverse situations that may cause a huge financial drain. It also saves you from monetary losses that occur due to unanticipated events, thus giving you a peace of mind alongside financial protection. Commercial vehicle insurance further covers losses occurring to any third party.

Key Features of Commercial Vehicle Insurance

A commercial vehicle insurance policy comes loaded with some salient features. Some of them are mentioned below.

  • Comprehensive coverage is provided to both public and private carriers, including special types of goods-carrying vehicles.
  • A commercial vehicle insurance plan also covers third party liabilities and provides monetary compensation in case of any injury or an accident.
  • A separate mandatory Personal Accident (PA) Cover is also offered to cover the death or bodily injuries of the driver and the owner.

Types of Commercial Vehicles Insured Under Commercial Vehicle Insurance Policy

Commercial vehicles are an essential mode of transportation and are heavy-duty vehicles used daily to carry out tasks. Some of the most common commercial vehicles are:

  • Trucks
  • Vans
  • Trailers
  • Buses
  • Taxies
  • Coaches
  • Carriers
  • Shovels
  • Tractors
  • Cranes
  • Mobile rigs
  • Bulldozers

These commercial vehicles transport goods within the city/cities and from one state to another, as well as for intercity passenger tours and travel.

Types of Commercial Vehicle Insurance Policies

Majorly two types of commercial vehicle insurance policies are offered in India. These include:

  1. Third Party (TP) Liability Commercial Vehicle Insurance Policy

    The Indian Motor Vehicle Act of India has mandated commercial vehicle owners to purchase at least a third-party (TP) liability insurance. A TP policy protects damages caused to any third party property or person. It also provides financial coverage for third party injuries or deaths and also compensates for third-party property damage caused due to the insured commercial vehicle. Since commercial vehicles are heavy-duty vehicles carrying goods that increase their weight, covering them under third party commercial vehicle insurance is an utmost priority.

  2. Comprehensive Commercial Vehicle Insurance Policy

    Comprehensive commercial vehicle insurance offers an enhanced protection to your vehicle under any unforeseen circumstances. A comprehensive plan provides protection not only against third party liabilities but also your own commercial vehicle from uncertainties such as accidental damages, fire, theft, flood, earthquake, etc.

Coverage Under Commercial Vehicle Insurance

  • Losses due to riots, strikes, natural calamities such as earthquakes, hurricanes, cyclones, etc, are covered
  • Damages to the vehicle arising out of fire, self-ignition and explosion
  • Partial or total loss to the insured vehicle due to theft, housebreaking, and burglary
  • Loss or damage caused to the third-party property, vehicle, bodily injuries and death of the third person.
  • Damages arising out of road accidents or collisions are also covered.
  • Wear and tear/depreciation of the commercial vehicle.
  • Losses incurred during a civil war, nuclear perils.
  • Contractual liabilities of the owner/driver of the insured commercial vehicle 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 in accordance with 'limitations as to use', for instance, a private car is used as a taxi.
  • Electrical and mechanical breakdown, breakage or failure of the insured vehicle.

List of Commercial Vehicle Insurance Companies in India 2025

Following is the list of general insurance companies that offer commercial vehicle insurance:

Insurer Name Passenger Carrying Vehicle Insurance Goods Carrying Vehicle Insurance Miscellaneous Vehicle Insurance
Bajaj Allianz Commercial Vehicle Insurance No Yes No
Godigit Commercial Vehicle Insurance Yes Yes Yes
New India Assurance Commercial Vehicle Insurance Yes Yes No
Reliance General Commercial Vehicle Insurance Yes Yes Yes
SBI General Commercial Vehicle Insurance Yes Yes Yes
Shriram General Commercial Vehicle Insurance Yes Yes No
United India Commercial Vehicle Insurance Yes Yes No
Zuno Commercial Vehicle Insurance Yes Yes No

*Disclaimer: The table mentioned above is according to the alphabetical order of the insurance company. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in

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How to Calculate Commercial Vehicle Insurance Premium?

You should always compare commercial vehicle insurance online based on the insurers' offerings, premium rates, features and benefits, and claim settlement ratio.

You can use Policybazaar.com's commercial vehicle insurance calculator to get an idea of how much you will pay for a commercial vehicle insurance premium.

Additionally, you can compare different commercial vehicle insurance prices using this calculator. Commercial Vehicle Insurance Price

The following table highlights the commercial vehicle insurance price for a third party insurance policy only. The prices are exclusive of GST and will change if you opt for comprehensive insurance or coverage.

Vehicle Weight Third Party Commercial Vehicle Insurance Price
Goods Carrying Commercial Vehicles (excluding three-wheelers)
GVW not exceeding 7500 kgs ₹16,092
Weight exceeding 7500 kgs but not exceeding 12000 kgs ₹28,288
Weight exceeding 12000 kgs but not exceeding 20000 kgs ₹35,139
Weight exceeding 20000 kgs but not exceeding 40000 kgs ₹44,342
Weight exceeding 40000 kgs ₹44,457
Goods Carrying Motorized 3- Wheelers and Motorized Pedal Cycles (applicable for all Carriers except e-carts)
Public ₹4,489
Private ₹3,922
Trailers
Agricultural Tractors (applicable for those with up to 6 HP) ₹918
Other Trailers ₹2,507

Factors Affecting Commercial Vehicle Insurance Premium

Several insurance companies offer certain features at premium affordable rates that can help you make a cost-effective decision. Also, it is advised not to rely totally on the premium rate to make an affordable choice because it can hinder the coverage prospect of the plan. You can check some common reasons affecting your premium:

  1. Coverage

    The type of commercial vehicle insurance policy you opt for will directly impact your premium. While a third party commercial vehicle insurance will have a lower premium, it will only safeguard against any third party liability. Hence, to get an extended coverage, you can opt for comprehensive commercial vehicle insurance.

  2. Insured Declared Value (IDV)

    The IDV is the maximum payout or the sum insured, the insurer will pay in case your commercial vehicle is stolen or totally damaged (damaged beyond 75% of its current value) and it directly affects your premium. The IDV is decided based on the depreciation and the manufacturer's listed selling price, make and model of the commercial vehicle. However, depreciation is a major factor that affects the IDV. With age, the value of a vehicle depreciates, and based on this rate, IDV is decided. You can refer to the table below:

    Vehicle Age Depreciation Rate
    Within 6 months Nil
    Between 6 months to 1 year 5%
    Between 1 year to 2 years 10%
    Between 2 years to 3 years 15%
    Between 3 years to 4 years 25%
    Between 4 years to 5 years 35%
    Between 5 years to 10 years 40%
    Exceeding 10 years 50%
  3. Discounts (NCB/Deductibles)

    At the time of commercial vehicle insurance renewal, the policyholder should check with the insurer for any available discounts on the premium.

    A voluntary deductible is offered by several insurers. Opt for deductibles only when you can pay a portion of the claim out of your pocket. Always check for deductibles and clauses at the time of buying or renewing a commercial vehicle insurance policy.

    NCB is the most common discount available when you have not made a claim in the previous policy year. The NCB is decided as per the following:

    No Claims Made No Claim Bonus Discount (%)
    1 Year 20%
    2 consecutive years of no claim 25%
    3 consecutive years of no claim 35%
    4 consecutive years of no claim 45%
    5 consecutive years of no claim 50%
  4. Add-on Benefits

    Add-on covers are used to enhance the overall policy commercial vehicle insurance coverage. Each add-on cover will slightly increase your premium.

How to Buy Commercial Vehicle Insurance Online?

You can easily purchase a commercial vehicle insurance online using the steps mentioned below:

  • Visit the official website of Policybazaar Insurance Brokers Private Limited (Policybazaar.com).
  • From the homepage, click on the 'Commercial Vehicle Insurance' tab.
  • Fill out the given form with all the required details
  • Now click on the 'View Prices' button.From the given commercial vehicle insurance plans, select one plan you wish to purchase
  • Make premium payment via the desired online payment mode.
  • Your commercial vehicle insurance policy will be mailed to you once you have paid the premium.

How to File a Claim Against Commercial Vehicle Insurance?

You can easily file a claim against your commercial vehicle insurance using the following steps:

  • Intimate the Insurer: Immediately notify your insurance provider of the damages caused to your vehicle. You can register a claim by calling either a toll-free helpline number or writing to the customer helpline email address.
  • Damage Assessment: The damages sustained by the insured commercial vehicle will be assessed by a surveyor appointed by the insurer.
  • Submit Documents: After the assessment you will be required to submit the necessary documents for claim verification. So, make sure to keep all the documents handy.
  • Repairs: The insured commercial vehicle will now be repaired in the network garage.
  • Claim Settlement: Once the repairs are complete, the insurer will directly settle the claim with the network garage.

Documents Required to Claim Commercial Vehicle Insurance

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

*Note: The above-mentioned commercial vehicle insurance claim documents may vary from insurers to insurers. Hence, check it with the respective insurance company for successful claim settlement.

Commercial Vehicle Insurance FAQ's

  • Q1. What is IDV in my commercial vehicle insurance policy?

    Ans: The IDV, or the Insured Declared Value of a commercial vehicle is the current market value of a particular brand or model when renewing the policy. This value is paid when the commercial vehicle suffers total loss which means damages are beyond repair.
  • Q2. How is my commercial vehicle insurance premium calculated?

    Ans: Factors that affect commercial vehicle insurance costs are Insured Declared Value, Make and Model of the vehicle, age, engine type, vehicle type, Cubic Capacity (CC) of the vehicle, NCB, etc
  • Q3. What does Constructive Total Loss (CTL) mean?

    Ans: If a vehicle is damaged beyond 75% of its current market value (or IDV) in case of an accident, it is declared as a constructive total loss. If your commercial vehicle is declared as a constructive loss, you must surrender it to your insurer.. In such a case, you will be paid your vehicle's Insured Declared Value.
  • Q4. How do you make an accidental claim on commercial vehicle insurance?

    Ans: To file for an accidental claim against your commercial vehicle insurance, you must first report the case to your insurer. Once informed, fill out, and submit all the required documents such as claim form, policy copy, identity proof, receipts, etc. A surveyor will be assigned to assess the damages and approve the claim. Once finalised, your commercial vehicle will be sent for repairs and claim will be either settled.
  • Q5. What is a cashless and non-cashless/reimbursement claim under commercial vehicle insurance?

    Ans: In a cashless claim, the insurer will directly pay the cost to the garage while settling a claim. This is only possible if your commercial vehicle is repaired at a listed network garage with which the insurer is associated. Whereas, a reimbursement claim means that the insured chose a garage that is not part of the company’s network. In such a case, you will have to bear the repair costs initially and then the insurer will reimburse to the insured based on the final bills and receipts.
  • Q6. Which commercial vehicle insurance cover should I buy? Why is comprehensive commercial vehicle insurance more expensive than a liability-only insurance policy?

    Ans: You must at least buy a third party (TP) commercial vehicle insurance as it is mandatory for all commercial vehicle owners under the Motor Vehicle Act of India. However, since a TP insurance is only a liability policy and does not cover damages caused to your own vehicle, opting for a comprehensive commercial vehicle insurance is a financially better choice. Since comprehensive commercial vehicle insurance offers better and extended coverage, it is slightly more expensive.
  • Q7. What is commercial vehicle insurance policy validity?

    Ans: Usually, a commercial vehicle insurance policy is valid for one year. However, a few insurance companies may also offer policies of up to two or three years. Therefore, you should check with your insurance provider about the various policy tenure options offered under their commercial vehicle insurance.
  • Q8. Can I continue the commercial vehicle insurance in the name of the earlier owner even after the vehicle has been transferred to my name and the same has been updated in the RTO records?

    Ans: No you cannot have a commercial vehicle insurance policy in the name of the previous owner. The policy owner and the vehicle owner must be the same along with the right address in order to file a claim as per law. You should immediately get the policy name transferred as soon as the vehicle ownership is transferred.
  • Q9. What documents must be submitted for a commercial vehicle insurance claim?

    Ans: At the time of filing a commercial vehicle insurance claim, usually you will have to submit the documents such as RC, driving license, claim form, policy document, FIR (if applicable), Aadhaar Card, challans and receipt, etc. However, it may vary from insurer to insurer, so check it with the claim settlement team of your insurer.
  • Q10. Can a person be covered by a commercial vehicle insurance policy if he uses his own vehicle on the job?

    Ans: No, private vehicles cannot be insured under commercial vehicle insurance. You must have the vehicle registered under the business name. If a person uses his personal vehicle on the job, he will not be covered under the commercial vehicle insurance policy.
  • Q11. How can you check the status of your insurance cover?

    Ans: You can check the status of your commercial vehicle insurance using the official website of the insurer. Fill in the required details such as the registration number, mobile number, etc, and submit to check the status of your insurance cover.
  • Q12. What is the process for renewing a commercial vehicle insurance plan?

    Ans: You can easily renew your commercial vehicle insurance online. To renew it,visit the official website of Policybazaar.com. Go to the policy renewal option and fill out the form with all the required details. Click on submit and all the available plans will be displayed on your screen. Compare & choose the plan as per your requirements, select the add-ons if required, and finalise the plan. Pay the premium amount online and your policy will be sent to your registered email address.
  • Q13. How to cancel a commercial vehicle insurance plan?

    Ans: You can only cancel your commercial vehicle insurance plan, if your policy has not expired, and no claims have been made. If you fulfil both of these conditions, you must inform your insurance provider about your wish to cancel the policy. Submit the documents or information required by your insurance provider. Once you submit the details, your insurance company will cancel your commercial vehicle insurance policy within a specified time frame.
  • Q14. How to find the best commercial vehicle insurance for your business?

    Ans: To find the best commercial vehicle insurance policy, you must check the coverage offered and premium charged by different insurance companies in India. To choose the best policy, go for the insurer providing maximum coverage for your vehicle for the best premium amount. You can easily compare commercial auto insurance plans offered by different insurance companies at websites such as Policybazaar.com.
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Disclaimer: The list mentioned is according to the alphabetical order of the insurance companies. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in
Average Rating
(Based on 225 Reviews)

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Commercial Vehicle Insurance Reviews & Ratings
4.6 / 5 (Based on 225 Reviews)
(Showing Newest 10 reviews)
Avesh
Kannur, June 30, 2022
Great features
Commercial vehicle insurance was given through Policybazaar, and the personnel was quite helpful. I urge that everyone check the plans on Policybazaar website before obtaining insurance. They provide a lot of great features at an affordable price.
Deepak
Warangal, June 29, 2022
Accessory add on
I ordered a legal liability and accessory add on for my commercial vehicle. Policybazaar.com provided it to me. On the website, I calculated the package that would be most beneficial for me and ordered it accordingly.
Mahendra
Bhilai, June 28, 2022
Helped with expenses
My vehicle ran out of gas while hauling stuff. I had to pull over in the middle of the road and ask for assistance, which I got. The coverage I bought from Policybazaar helped me meet expenses.
Kunal
Tanur, June 27, 2022
Low cost policies
My commercial vehicle insurance, which I acquired from Policybazaar, contains enticing incentives. Policybazaar provides low cost policies. They provide a variety of solutions to make it easy for middle-class consumers to get insurance. From here, I was able to find a good strategy for myself.
Virat
Bokaro, June 26, 2022
Great plans
After reviewing the many perks and features, I decided to get insurance for my vehicle. Policy bazaar was where I purchased my policy. I have also incorporated some optional options. I only had to pay a small fee, and it significantly improved my plan.
Rishabh
Faridabad, June 25, 2022
Painless processes
For my vehicle, which I recently purchased, I wanted to get commercial vehicle insurance. While acquiring the plan, I went through a painless process. I reviewed many insurance rates before deciding on the best plan for me.
Hardik
Kannur, June 24, 2022
Amazing assistance
The policy bazaar offers the best commercial vehicle plan. This policy covers a wide range of facilities. The same provides coverage for lost accessories. The policy bazaar provides quite amazing services. Thank you to the staff for their assistance.
Mayank
Bikaner, June 23, 2022
Handles everything
Policybazaar was where I purchased my commericial insurance policy. I got a terrific insurance with outstanding coverage, and the consumer does not have to worry about anything because the policy firm handles everything. It is very simple and quick to get vehicle insurance insurance online from policy bazaar.
Sahil
Amritsar, June 22, 2022
Roadside assitance
I got help, roadside assitance for changing tyres. All thanks to my inusrance.
Jitendra
Bareilly, June 21, 2022
Got them under the insurance
I recently insatlled some accsorries for protecting my tyres and rear views. I was able to get them under the current insurance with a add on.
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