Commercial Vehicle Insurance

Commercial vehicle insurance is a mandatory motor insurance policy that provides financial protection to commercial vehicles like trucks, tractors, buses, auto-rickshaws, and others. It also covers third parties involved in an accident for injury, property damage or even death. The policy also covers loss or damage caused by natural calamities, fire, man-made disasters, theft, etc.

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Key Features of Commercial Vehicle Insurance

A commercial vehicle insurance policy comes loaded with some salient features. The following are the features offered under commercial vehicle insurance:

  • Comprehensive coverage is provided to both public and private carriers, including special types of goods-carrying vehicles.
  • A commercial vehicle insurance plan covers liabilities in case of any injury or an accident.
  • Do not worry about unwanted expenses, as having a commercial vehicle insurance plan will provide monetary compensation.
  • Remain stress-free from monetary setbacks incurred due to liabilities such as third-party person/vehicle/ property damage cover.
  • A Personal Accident Cover is also offered to cover the death or bodily injuries of the driver and the owner.
why buy commercial vehicle insurance form policybazaar why buy commercial vehicle insurance from policybazaar

Types of Commercial Vehicle Insurance Policies

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

  1. Third-party Liability Commercial Vehicle Insurance Policy

    The motor law of India requires commercial vehicle owners to purchase third-party liability insurance. This policy protects any third-party property, person, or vehicle.

    This insurance plan provides financial coverage in case a third party gets injured or dies after the accident. It 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 insurance should be the utmost priority.

  2. Comprehensive Commercial Vehicle Insurance Policy

    Comprehensive commercial vehicle insurance offers complete protection to your vehicle under any adverse circumstances that may lead to an unwanted expense. This plan secures your commercial vehicle from uncertainties such as damage, fire, theft, robbery, flood, earthquake, etc.

    Besides, a comprehensive vehicle insurance policy provides cover to third-party property as well as people who got injured in the accident.

Coverage Under Commercial Vehicle Insurance

  • Losses to the insured commercial vehicle due to riots or strikes
  • Damages to the vehicle arising out of fire, self-ignition and explosion
  • Natural calamities such as earthquakes, hurricanes, cyclones, etc, cause damages to the insured commercial vehicle
  • 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.

Best Commercial Vehicle Insurance Companies

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

Insurance Provider Goods Carrying Vehicle Insurance Passenger Carrying Vehicle Insurance Miscellaneous Vehicle Insurance
Bajaj Allianz Commercial Vehicle Insurance Yes No No View Plans
Digit Commercial Vehicle Insurance Yes Yes Yes View Plans
Chola Commercial Insurance Yes Yes Yes View Plans
EDELWEISS Commercial Vehicle Insurance Yes No No View Plans
Future Generali Commercial Vehicle Insurance Yes Yes No View Plans
Iffco Tokio Commercial Vehicle Insurance Yes No No View Plans
MAGMA HDI Commercial Vehicle Insurance Yes Yes Yes View Plans
National India Commercial Vehicle Insurance Yes Yes No View Plans
New India Commercial Vehicle Insurance Yes Yes Yes View Plans
Oriental Commercial Vehicle Insurance Yes Yes Yes View Plans
Reliance General Commercial Vehicle Insurance Yes Yes Yes View Plans
Royal Sundaram Commercial Vehicle Insurance Yes No No View Plans
SBI General Commercial Vehicle Insurance Yes Yes Yes View Plans
Shriram General Commercial Vehicle Insurance Yes Yes No View Plans
Tata AIG Commercial Vehicle Insurance Yes Yes No View Plans
United India commercial vehicle insurance Yes Yes No View Plans
USGI Commercial Vehicle Insurance Yes Yes Yes View Plans
see more plans

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

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Why do you Need Commercial Vehicle Insurance?

Mentioned below are some reasons to buy a commercial vehicle insurance policy for your vehicle:

  • According to Indian motor laws, buying a commercial vehicle insurance policy is mandatory. So, if you want to drive your commercial vehicle in India legally, make sure that you have a valid insurance policy. 
  • Commercial vehicle insurance is beneficial for the smooth functioning of your business against any adverse situations that may cause a huge financial drain. Comprehensive commercial vehicle insurance covers almost every type of vehicle used for commercial purposes.
  • Buying commercial vehicle insurance online is quick, easy, and hassle-free. Therefore, before zeroing in on a policy, compare quotes and purchase a policy that fits your budget.
  • A commercial vehicle insurance policy saves you from monetary losses that your vehicle may sustain due to unanticipated events, thus giving you peace of mind.

Get complete coverage for your vehicle with

IMT 23 Nil depreciation

Types of Commerical Vehicles

Commercial vehicles are an essential mode of transportation and are heavy-duty vehicles used daily to carry out tasks. These vehicles usually include:

  • 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.

How to Calculate Commercial Vehicle Insurance Premium?

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

You can use an aggregator website such as Policybazaar.com to compare different commercial vehicle insurance quotes. Moreover, you can use a motor insurance calculator to get an idea of how much you will pay for a commercial vehicle insurance premium.

Ascertaining Commercial Vehicle Insurance Price

Subject to depreciation deduction, the 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 the vehicle's brand.

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

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%

Factors To Be Considered While Buying/Renewing Commercial Vehicle Insurance

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 have peace of mind.
  • Insured Declared Value: One of the most important things 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 you can pay a portion of the claim out of your pocket. Always check for deductibles and clauses at the time of renewal. Opt out of deductibles if they are not working well for you.
  • Claim Settlement Ratio: Once you have picked the right insurance plan that fits your requirements, make sure to note the insurance company's claim settlement process to ensure that it is seamless.
  • Premium Amount of Policy: Several insurance companies offer certain features at 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 commercial insurance plan.

How to Buy Commercial Vehicle Insurance Online?

Purchasing commercial vehicle insurance is a simple process. Follow these steps to buy a commercial vehicle insurance policy online:

  • Visit the official website of Policybazaar Insurance Brokers Private Limited (Policybazaar.com)
  • From the homepage, click on the “Commercial Vehicle Insurance” tab
  • Enter your full name and mobile number on the given form
  • Now click on the "View Prices" tab
  • Enter your vehicle reg number or Proceed without the vehicle number option
  • Now, choose your vehicle type from the list of vehicles
  • Select the vehicle make and model along with its variant
  • Next up, select the vehicle registration year and proceed
  • Select vehicle RTO
  • From the given commercial vehicle insurance plans, select the 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.

Commercial Vehicle Insurance Claim Process

Claiming commercial vehicle insurance can be an easy victory with the right approach. Follow these steps to claim under your commercial vehicle insurance policy:

  • Intimate the Insurer: Immediately notify your commercial vehicle insurance provider of the damages caused to your vehicle. You can register a claim by calling their toll-free helpline number or writing to them at their customer helpline email address.
  • Damage Assessment: The damages sustained by the insured commercial vehicle will now be assessed by a surveyor appointed by the insurer. 
  • Submit Documents: The required documents will now be submitted to the surveyor 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

Commercial Vehicle Insurance FAQ's

  • Q: What is IDV in my commercial vehicle insurance policy?

    Ans: The IDV, or the insured declared value, of a commercial vehicle/car/taxi is derived based on the selling price listed by the manufacturer for a particular brand or model when buying or renewing the policy. It is then adjusted for depreciation according to the vehicle's age. This value is paid when the commercial vehicle suffers total loss or damage beyond repair.
  • Q: How is my Commercial Vehicle Insurance premium calculated?

    Ans: Factors that affect commercial vehicle insurance costs are​:
    • Insured Declared Value
    • Cubic Capacity (CC) of the vehicle
    • City of Registration
    • Vehicle Model
    • Age
    • Coverage type ( comprehensive insurance/third party liability only policy)
    • Add-on benefits like roadside assistance, fuel assistance, etc.
    • No-Claim Bonus
  • Q: What does Constructive Total Loss mean?

    Ans: The vehicle is declared a constructive total loss if the accidental loss or damage repair cost exceeds the current market value.

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

    The insurance provider will pay your vehicle's Insured Declared Value after adjusting the deductible. Once your claim is settled, your motor insurance policy will be cancelled. Once you get the final payment, you are no longer required to pay the premium until the policy is renewed.

  • Q: How do you make an accidental claim on commercial vehicle insurance?

    Ans: Here is how you can raise a claim under a commercial vehicle insurance policy:
    (a) Report the loss/damage of the vehicle immediately to the insurance company's toll-free no. or on their website. Provide policy no. as a reference.
    (b) Complete the claim form and attach a copy of the driver’s license and Registration certificate or any other required document.
    (c) A cashless claim facility can be available in the company’s registered garages
    (d) If the garage is outside the company network, a reimbursement claim with proper documents is taken afterward.
  • Q: What is cashless and non-cashless/reimbursement claim Under Commercial Vehicle Insurance?

    Ans: A Cashless Claim means the insurer will not deal with any physical cash while settling a claim. The insurer will pay the garage directly for the repair. This is only possible if the garage where you took the vehicle for repairs is part of the listed network of garages with which the company is associated.

    A non-cashless / Reimbursement Claim means that the insured chose a garage that is not part of the company’s network. In this case, the insured will need to pay the cash to the garage directly, and the garage will reimburse the insured when they produce the same original bills and payment receipts to the insurer.

  • Q: What is the amount to which I need to insure my commercial vehicle? How is it related to the IDV of the vehicle?

    Ans: You need to insure your commercial vehicle to the amount equivalent to its Insured Declared Value or the IDV. Under commercial vehicle insurance, the IDV amount refers to the maximum amount up to which an insurance company will cover the partial/ total damage sustained on the vehicle.

    You cannot opt for coverage of more than the IDV of your commercial vehicle. Moreover, you can estimate the IDV of your car by reducing the depreciation amount from the ex-showroom price of your vehicle model.

  • Q: Which commercial vehicle insurance cover should I buy? Why is comprehensive commercial vehicle insurance more expensive than a liability-only insurance policy?

    Ans: You should buy an auto insurance policy that at least offers liability-only policy coverage. This is because buying a liability-only policy is mandatory for all commercial vehicle owners under the Motor Vehicle Act of India.

    However, you have the freedom to opt for a comprehensive auto insurance policy that offers broader coverage, including damage/ loss due to fire, natural disasters, accidents, and theft, as well as own damage cover in addition to liability-only cover.

    While a third-party commercial vehicle insurance policy only covers third-party liabilities, a comprehensive policy also covers damages caused to the driver and the vehicle due to external factors besides third-party liabilities. As a result, a comprehensive auto insurance policy is more expensive than a liability-only policy.

  • Q: What is the period of a commercial vehicle insurance policy?

    Ans: Usually, a commercial auto insurance policy covers the insured vehicle for one year. Few insurance companies may also offer policies with tenures 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 auto insurance.
  • Q: 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 continue with the commercial vehicle insurance in the previous owner’s name if you are the new owner of the vehicle and the information has been updated in the RTO records. This is because the policyholder and the vehicle owner should be the same person with the same address. You will have to get the policy transferred to your name to continue the insurance coverage on your vehicle. Moreover, such a policy will be equivalent to zero insurance coverage, as all your insurance claims will be denied by the insurer.
  • Q: What documents must be submitted for a commercial vehicle insurance claim?

    Ans: At the time of filing a commercial vehicle insurance claim, you will have to submit the following documents in support of your claim:
    • Vehicle registration certificate or RC
    • Original copy of the driving license
    • Duly signed claim form
    • Policy document in original
    • Copy of the FIR
    • Copy of Aadhaar Card
    • Load challan of the vehicle
    • Receipt of paid tax
    • Certificate of fitness
    • Route permit
    • Original loss estimate
    • Original vehicle repair receipt
    • Vehicle keys (in case of theft)
  • Q: Can a person be covered by a commercial auto insurance policy if he uses his own vehicle on the job?

    Ans: No. If a person uses his personal vehicle on the job, he will not be covered under the commercial auto insurance policy. Whether he uses his private vehicle to attend a business meeting or to run a business errand, it will not be covered under commercial vehicle insurance.
  • Q: How can you check the status of your insurance cover?

    Ans: To check the status of your commercial vehicle insurance cover, you can follow the steps given below:
    • Visit the official website of your insurance company
    • Enter the required details, such as the vehicle registration number. Do not enter any special characters while entering the registration number.
    • Submit the details required to view the status of your insurance cover
  • Q: What is the process for renewing a commercial vehicle insurance plan?

    Ans: A commercial vehicle insurance policy can be renewed online and 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
    • Your insurance policy will be renewed and you will receive the policy document
  • Q: How to cancel a commercial vehicle insurance plan?

    Ans: You can cancel your commercial vehicle insurance plan, provided the 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 two weeks.
  • Q: How to find the best commercial auto insurance for your business?

    Ans: To find the best commercial auto insurance policy for your business, you need to analyze the coverage offered and premium charged by different insurance companies in India. The best policy provides maximum coverage for your vehicle for the minimum possible premium amount.

    You can easily compare commercial auto insurance plans offered by different insurance companies at websites such as Policybazaar.com. Moreover, you can also buy the most suitable commercial vehicle insurance plan for your business at Policybazaar.

    .
  • Q: Why should you buy or renew commercial vehicle insurance online (goods carrying) from Policybazaar.com?

    Ans: You can buy or renew a commercial vehicle insurance policy from Policybazaar.com because it allows you to compare different insurance plans and buy the best policy for your vehicle in one place. At Policybazaar, you can easily check the level of coverage offered by different insurance providers in India under the various commercial vehicle insurance plans.

    It eliminates the need to visit the website of every insurance provider before finalizing one policy. Moreover, you can also get insurance premium quotes at Policybazaar which in turn helps you to choose the best policy within your budget. Thus, buying or renewing your commercial vehicle insurance is effortless if you do it from us.

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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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