Commercial Vehicle Insurance

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.

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• 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.