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Commercial Vehicle Insurance

Commercial vehicles are an important mode of transportation and are used to transport goods within the city/cities and from one state-to-another. They are also used for inter-city passenger tour and travel. Commercial vehicles are basically heavy-duty vehicles that are used on a daily basis to carry out vigorous tasks. They have an important contribution to bulk transportation for many businesses. And such heavy- duty commercial vehicles are always prone to road accidents, unpredicted damages while driving and also natural disasters.

Commercial Vehicle insurance precisely covers road perils that a commercial vehicle might face. It is beneficial for your business and your commercial vehicles as it covers most of the unforeseen expenses. The vehicles that are covered under the policy are passengers carrying vehicles, private/public travel trailers, coaches, carriers. It also offers coverage to shovels, tractors, cranes, mobile rigs, bulldozer, etc. The policy covers third-party liabilities wherein the damage is caused to a third person, his/her property or vehicle. And a comprehensive insurance policy covers damage that is caused to your vehicle and a third-party. Without commercial insurance, any such incident can lead to huge monetary loss and put anyone in a difficult situation. There are different commercial insurance plans that are available and you can choose one that is offering optimum coverage at an affordable premium cost. Key Features and Benefits of Commercial Vehicle Insurance

It offers financial cover to you and your commercial vehicle from –

  • Coverage is provided to both public and private carriers including special types of goods carrying vehicles
  • Protection from damage caused due to natural disasters
  • Protection from damage caused due to man-made calamities such as theft, fire, collision, etc.
  • Third-party person/vehicle/ property damage cover
  • Personal accident cover to the driver and the owner

What is Covered Under Commercial Vehicle Insurance Policy?

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 of the insurance companies provide cashless compensation for getting your vehicle repaired at their registered workshops.

There are plenty of insurance companies that provide customized 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:

1. 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 rockslide
  • Earthquakes
  • Terrorist activity
  • Accident (by external means)

2. Personal Accident claims are also covered in this policy. It includes permanent total disability/ Accidental Death of the paid driver and the owner.

3. Third-party insurance cover in case of an accident involving your insured commercial vehicle and a third-party vehicle. It will also cover loss or damage caused to another vehicle, third-party bodily injuries and third-party death.

4. Roadside Assistance as an add-on benefit

Add-on Covers Provided in Commercial Motor Insurance Policy

You can also enhance your coverage by paying an additional cost of the premium. Some of the add-ons that you can opt for as follows:

  • Coverage for loss of accessories
  • Legal liability cover to the paid driver/conductor/non-fare paying passengers
  • Personal accident benefit to the owner/driver and any other named person apart from an employee
  • Personal accident benefit to the vehicle cleaner/ conductor/ paid driver

What is not Covered Under a Commercial Vehicle Insurance Policy?

The Policy does not cover any claim due to:

  • Wear and tear of the commercial vehicle
  • Consequential loss
  • Vehicle Breakdowns
  • A loss incurred during a civil war
  • Contractual liabilities are also not covered
  • An accident resulting when driving with an invalid driving license or after the consumption of alcohol
  • Usage of vehicle otherwise than in accordance with 'limitations as to use' (the e.g. private car being used as a taxi)
  • War perils, nuclear perils
  • Electrical and Mechanical breakdown, breakage or failure

List of Insurance Providers Offering Commercial Vehicle Insurance

Following is a list of General Insurance companies that offer Commercial Vehicle Insurance:

  • HDFC ERGO General Insurance
  • Reliance General Insurance
  • Chola MS General Insurance
  • TATA AIG General Insurance
  • Bharti AXA General Insurance
  • Bajaj Allianz General Insurance
  • Royal Sundaram General Insurance

You can buy a plan that meets most of your requirements.

Commercial Vehicle Insurance Claim Process

To get claim reimbursement for your commercial auto insurance policy, it is important that you immediately notify your insurance provider about the loss or damage.

You can register a claim by calling them on their toll-free helpline number and you can also email them on their customer helpline email id.

Nowadays, most of the commercial car insurance providers offer claim forms online as well. While filing a claim following details are required form 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

Documents Required for Reimbursement and Cashless Claims

  • 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

Commercial Auto Insurance Policy Renewal Tips

While renewing a commercial vehicle insurance policy there are some tips to at the time of renewal:

  • Coverage: It is important to have adequate coverage when buying a commercial vehicle insurance policy. A comprehensive auto insurance policy is recommended for those who wish to safeguard their business and want to enjoy their peace of mind.
  • Insured Declared Value: One of the most important things that one needs to consider at the time of renewal 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 definitely 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 coverage.
  • Cashless Network Garages: Always ask the insurance 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’s possible to pay a portion of the claim from your own pocket. Always check for the deductibles and clauses at the time of renewal. Opt out of deductibles if it’s not working well for you.
Q:

What is IDV in my Commercial Taxi or Vehicle Insurance policy?

Ans:

The IDV of a commercial vehicle/car/taxi is derived on the basis of the selling price listed by the manufacturer for a particular brand or model at the time of buying or renewing the policy.  It is then adjusted for depreciation as per the age of the vehicle.

Q:

How is my Commercial Vehicle Insurance premium calculated?

Ans:

Factors that affect/reduce car insurance quote are​:

1.Cubic Capacity (CC) of the vehicle

2. Insured Declared Value

3. City of Registration

4. Vehicle Model

5. Age

6. Coverage type ( comprehensive insurance/third party liability only policy)

7. Add-on benefits like roadside assistance, fuel assistance, etc.

8. No-Claim Bonus

Q:

What does Constructive Total Loss mean?

Ans:

The vehicle is declared as a constructive total loss if the cost of accidental loss or damage repair is more than the current market value.

When a constructive total loss claim is filed then you would need to surrender your commercial vehicle to your motor insurance provider. Vehicle ownership is also transferred to the insurer.

The insurance provider will pay the Insured Declared Value of your vehicle after adjusting the cost of deductibles. Once your claim is settled your motor insurance policy will stand canceled. Once you get the final payment, you are no longer required to pay the premium amount until the policy is renewed.

Q:

What is loading in Commercial vehicle insurance policy?

Ans:

At the time of renewal, some motor insurance providers add an extra cost of your car insurance premium in the form of Loading. Usually, it comes into effect when the risk associated with auto insurance policy owner is declared as higher than normal.

Q:

How should I fix the IDV of my vehicle in the auto insurance policy

Ans:

The IDV of a vehicle is fixed after deducting the cost of depreciation on its parts from the selling price. The value of any extra accessories will be deducted separately. In the case of total constructive loss, the rates that will be applicable will be as mentioned in the table below.

Depreciation Schedule for Fixing the Insured Declared Value of the Commercial Vehicle:

Age of the Commercial Vehicle     

Depreciation (in percentage)

Up to six months

5

From six months to one year

15

From one year to  two years

20

From two years to  three years  

30

From three years  to four years  

40

From four years  to five years

50

Vehicles that are older than 5 years their IDV can be fixed mutually by the insured and the insurer.

Motor Insurance Reviews
Karan
Ahmedabad
May 17, 2016
Fantastic plan

Fantastic tata aig commercial vehicle insurance. Plan available for both heavy and light commercial vehicle. Simple and hassle free process with minimal documentation. In the event where the vehicle is immobilized due to any accident, TATA AIG surveyor visits the accident site and tow facility is also available. Comprehensive Coverage for Partial Loss & total loss arising out of accident, Fire & allied perils, burglary & theft, riots and strikes, damage in transit by air, rail, road and sea. Attractive Discounts on no claim and installation of anti theft device.

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