All about Commercial Vehicle Insurance in India
- Details Written by PolicyBazaar -
Updated 09 January 2020
Compared to old times today the business operates efficiently as we have excellent modes of transportation. If a vehicle is providing you with an income of livelihood you definitely will not want in anything happening to your vehicle, as any damage hinder the operation and movement of your business.
Buying commercial vehicle insurance is the answer to shield your vehicles and taking care of the bills as it provides coverage from any damage caused to the vehicle in the event of a mishap.
Advantages of Commercial Vehicle Insurance
When you buy a commercial vehicle then it is worth buying commercial vehicle insurance. Have a look below at the advantages of buying commercial vehicle insurance:
- Adhering Law: A third-party liability policy is a legal mandate in India. In case if you do not have commercial vehicle insurance you will be charged penalties for overruling the lay moreover your vehicle can also get seized by the traffic police.
- The Array of Vehicles: If you operate a business, which requires an array of commercial vehicles, then you do not need to manage different insurance policy. Moreover, commercial vehicle insurance is insured for in bulk so they have better negotiation ability.
- Coverage for Third-party: In any uneven circumstance if the damage incurs to a third-party person, vehicle or property by your insured vehicle then you do not have to worry about the incurred expenses as having commercial vehicle insurance provides the cover.
- Towing Disabled Vehicles: Commercial vehicle insurance provides for any damage that may incur while your disabled vehicle is being towed mechanically.
- No Financial Stress: The important aspect of commercial vehicle insurance is to protect you from any expenses incurred and provide you cover for damage/loss caused due to a natural calamity such as earthquake, floods, etc man-made calamities which include theft, robber, fire, any malicious act or terrorist activity. Having commercial vehicle insurance ensures you to focus primarily on the business and not on the fiscal cost incurred.
- Quick Repair: Buying commercial vehicle insurance and post the completion of the necessary formalities you can easily get the vehicle repaired without losing on time. This will not only save your time moreover, but it also will not influence your running business.
- Personal Accident Cover: On the off chance, if any misfortunate mishaps occur which leads to the demise or permanent disability of the driver or the owner the insurer will reimburse the amount.
- Peace of Mind: In case if your vehicle is stolen and the vehicle was bought on loan then having comprehensive commercial vehicle insurance will provide cover for the equivalent.
Important Facet under Commercial Vehicle Insurance
It is recommended to carefully understand the policy and get the best deal out of it. There are certain facets, which you will have to consider while buying commercial vehicle insurance, which are:
- Claim Settlement Ratio: The golden rule while buying an insurance policy is to choose a company, which has the highest ratio of claim settlement. This ratio essentially depicts the percentage at which an insurance company has settled claims.
- Turn around Time: The time taken by the insurance company in responding to a claim is termed as the turnaround time. Opt for a company, which settles the claim in the least possible turnaround time.
- Cashless Cover: There are some insurance companies, which provide a cashless repair of vehicles at designated workshops of the insurance company. While you are buying commercial vehicle insurance, it is better to inquire about the same.
- Flexibility in Coverage: It is advisable to check the flexibility being provided under the commercial vehicle insurance policy to optimise your premium payment and benefits. The requirement of every vehicle is different therefore it is your responsibility to maintain a balance with optimum premium payment.
Vehicles Covered Under Commercial Vehicle Insurance
It is important to know the vehicles registered with the Regional transport office have limitation to the category of vehicles being used. Moreover, let us have a look and understand the types of vehicles, which are covered under commercial vehicle insurance:
- Goods Carrying Commercial Vehicle: Vehicles which help to transport goods from place to another for example tempos, trailers, etc are considered to be under goods carrying commercial vehicle.
- Passengers Carrying Commercial Vehicle: Vehicles that are used to carry the passengers from one place to the other with the intent of earning a livelihood, for example, a bus, auto-rickshaws, taxi, cabs, etc. fall under the category of passenger carrying vehicle.
- Heavy Commercial Vehicle: When it comes to heavy vehicles, it is important to note that the liabilities are on a higher side. Vehicles, which are, used for construction, mining, loading of heavy goods for example truck; crane, etc fall under the category of heavy vehicles.
When You Do Not Have Commercial Vehicle Insurance
It is recommended not to put your commercial vehicle under any perilous situation if you do not have commercial vehicle insurance. In case, if you do so you will have to bear the consequences. The following are some consequences, which you might have to face which are as follows:
If you do not possess commercial vehicle insurance, you are not abiding by the law. Moreover, if you get caught the consequence s can be severe for example your commercial vehicle will get seized besides you will have to pay heavy penalties and getting into unnecessary problems which will adversely affect your business.
If your business demands of moving the commercial vehicle crossing state boundaries legally it will not be allowed.
The damage or loss to a commercial vehicle can be huge and it can easily create a dent in your pocket. If you cannot bear a massive loss and are incapable of paying the bills in all likelihood you will avail no kind of financial help which will be a burden on your shoulder and constant source to be stressed and anxious.
Wrapping it up
Never let any journey take a halt. It is important to understand that any unwanted financial expense can interrupt the journey.
Run your business smoothly and secure each commercial journey by buying commercial vehicle insurance.
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