Commercial Vehicle Insurance Add-On Covers

What are Commercial Vehicle Insurance Add-On Covers?

A commercial vehicle insurance add-on is an optional coverage that increases the coverage for various uninsured vehicle components. These covers are not included in the basic commercial vehicle insurance policies but can be selected as per requirements and budget.

Anyone who opts for a comprehensive commercial vehicle insurance can opt for add-ons to safeguard expensive accessories, avoid depreciation deductions during claims, or personal accident protection for owners and drivers. Add-ons provide the much-needed layer of security which are especially useful for goods-carrying and passenger-carrying vehicles.

List of Top Add-On Covers for Commercial Vehicle Insurance

Here are some of the most common add-on covers policyholders can buy with their commercial vehicle insurance:

1. Zero Depreciation Add-On Cover

   The zero depreciation add-on cover is ideal for commercial vehicle owners who want a better reimbursement during claim settlement without any deductions for depreciation. Usually, insurers deduct depreciation cost on replaced and repaired vehicle parts, such as plastic, rubber, metal components, and more, while processing claims. The depreciation cost significantly reduces the claim amount. With this add-on, the commercial vehicle insurance company pays the entire cost of the replaced parts, ensuring that policyholders have to bear minimal expenses on their own. It is particularly beneficial for newly purchased vehicles, heavy-duty commercial vehicles, or those that are frequently used and incur wear and tear.

2. IMT 23 Cover

   The IMT 23 add-on provides coverage for parts of the vehicle that are typically excluded from standard commercial vehicle insurance. This includes uninsured body parts, such as tyres and tubes, lamps, mudguards, side parts, bonnet, bumpers, headlights, and even the paintwork of the damaged section. With this add-on, the insurer compensates for damages to these parts after deducting the applicable depreciation costs. Without this add-on, vehicle owners would have to bear the entire expense themselves. It is apt for vehicles that are at a higher risk of damage due to heavy use or rough road conditions.

3. Electrical and Non-Electrical Accessories Cover

   This add-on provides coverage for additionally-fitted electrical and non-electrical accessories. It covers damages caused to electrical accessories, such as fog lamps, air conditioning systems, entertainment units, etc. It also protects non-electrical accessories like seat covers, bumpers, or external fittings. It is a beneficial cover for passenger-carrying commercial vehicles, where such installations are common.

4. Personal Accident (PA) Cover

   This add-on offers financial compensation in the unfortunate event of injury, death, or disability of the owner-driver due to an accident involving the commercial vehicle. The add-on is very valuable due to the high risk associated with commercial vehicles. As per the IRDAI guidelines, every individual commercial vehicle owner must mandatorily opt for this cover, unless they already have a valid PA policy of at least ₹15 lakhs. The PA Cover for Owner-Driver is available only to individual vehicle owners and offers compensation in case of disablement or death resulting from a road accident.