All About Goods Carrying vs Passenger Carrying Vehicle Insurance
- Details Written by PolicyBazaar -
Updated 16 January 2020
Commercial vehicles are heavy-duty vehicles, which have been in use to carry out vigorous tasks. The commercial vehicle may fluctuate from undertaking to the task and for every the business needs.
Commercial vehicles are a typical sight out and about. The business vehicle, by and large, incorporates truck, tractor, bearer, crane, bulldozer, and so on. These vehicles are generally used to transport goods from one city to the other. In like manner, these substantial heavy vehicles are also used when one has to transport good from one state to the other state.
Aside from transportation, commercial vehicles are likewise utilized for between city or state visit and travel.
What Is Commercial Vehicle Insurance
Commercial vehicle insurance provides coverage against any road peril that a vehicle might face. Any damage/loss to your commercial vehicle may end up creating a hole in your pockets during any unforeseen event.
Therefore, to secure your pockets, it is always recommended to buy a commercial insurance plan and safeguard yourself and your vehicle against any financial liability.
Moreover, the Motors Act has already made a legal mandate to buy third-party insurance wherein any damage//loss to a third-party because of your insured vehicle will get covered. Though it is recommended buying a comprehensive commercial vehicle insurance plan as it will not just provide coverage for the third party but eventually will provide coverage for your vehicle as well.
Features of Commercial Vehicle Insurance
Having commercial vehicle insurance ensures a hassle-free operation of your business without any stress or anxiety. Some features of commercial vehicle insurance are enlisted below:
- It provides cover for damage/loss incurred due to natural disasters such as earthquake, typhoon, floods, etc
- It provides cover against any man-made calamity like theft, robbery, burglary, fire, etc.
- On the off chance, if the owner or driver demises or undergoes through a permanent disablement in an accident compensation will be provided for the same the owner or to the driver.
- Regardless of whether a public carrier or private carrier coverage will be provided to both the kind of vehicles, which also includes the special types of goods carrying vehicles.
- It also provides cover to damage/loss third-party vehicle, person or the property.
Types of Commercial Vehicle Insurance
Depending upon the nature and purpose of the work, a commercial vehicle can be divided into two types for which the insurance can be availed:
- Goods Carrying Vehicle: Under goods carrying vehicle insurance plan, it provides coverage to good carrying vehicles such as trucks, trailers, etc. This plan essentially provides coverage to the insured vehicle against any kind of man-made or natural calamity such as theft, burglary, earthquake, fire, etc.
- Passenger Carrying Vehicle: Under a passenger carrying vehicle insurance plan, it provides coverage against man-made calamities such a theft, burglary etc., natural calamities, accidental damages, personal accident, fire and explosion and third-party liability cover.
Features of Goods Carrying Vehicle Insurance
Some of the key features of goods carrying vehicle insurance are as follows:
- The plan provides coverage for own damage as well as any third-party liability.
- You can easily avail the cashless claim facility at selected and registered garages all across the country.
- You may always benefit from opting add-on cover and enhance your policy.
- It allows you to earn the no claim bonus for every claim year up to a defined percentage based on the policy terms.
- It provides cover against both man-made calamities and natural calamities.
What is Covered under Goods Carrying Vehicle Insurance
Here is the list below of all the coverage benefits you can avail buying goods carrying vehicle insurance:
- The plan provides cover against any natural calamity such as a hurricane, typhoon, flood, etc. which leads to a damage/loss.
- The plan provides cover against any damage/loss against a man-made calamity such as theft, fire, ignition, etc. Moreover, if the vehicle remains very untraceable then under the total loss category the insured is paid up to the full value.
- Any liability arising from an accidental injury or bodily damage and demise of the third-party a cover shall be provided within such circumstances.
- If in case you meet with an incident, by then either the proprietor or the driver will be verified under, the proportionate with a particular degree of the absolute ensured which will fuse the cost of your treatment. In any case, the co-explorers will in like manner be verified given an extra premium ought to be paid.
Things Excluded under Goods Carrying Vehicle Insurance
While it is important to understand what is included under the plan, now have a look below as what is not covered by the plan:
- If there is devaluation in the estimation of your vehicle over the period then the proportional will not be secured.
- If you do have an approved driving grant or in case you meet with a mishap influenced by intoxication or substance then under such conditions, you are not equipped for the cover.
- If the vehicle is not working due to some mechanical or electrical breakdown then under such conditions it remains uncovered.
Features of Passenger Carrying Vehicle Insurance
Some of the key features of passenger-carrying vehicle insurance are as follows:
- The premium of the policy is chosen premise the cubic limit, the heaviness of the vehicle, and so forth.
- Depending on the mode of buying, some insurers might give you a discount also on the premium.
- Damages because of man-made or natural calamities both can be secured under this plan.
- No claim bonus can be earned for every year you do not file a claim.
What is Covered under Passenger Carrying Vehicle Insurance
Here is the list below of all the coverage benefits, you can avail buying passenger carrying vehicle insurance:
- If any case emerges because of incidental damage, demise or substantial harm of an outsider then the policy will cover for the equivalent. Likewise, any misfortune or harm happens because of any normal cataclysms like tremor, wave, and so on then, it is secured.
- If the vehicle has been taken and is under complete misfortune classification at that point considering the equivalent the guaranteed settles up to the full worth.
- In the case if you meet with a mishap, at that point either the proprietor or the driver will be secured under, the equivalent with a specific level of the whole safeguarded which will incorporate the expense of your treatment. Be that as it may, the co-travellers will likewise be secured given an additional excellent should be paid.
- On the remote possibility, if the insured vehicle is harmed in a mishap this plan will cover for the equivalent.
Things Excluded under Passenger Carrying Vehicle Insurance
Given below is the list of what is not covered under passenger carrying vehicle insurance:
- If there is downgrading in the estimation of your vehicle over the period then the corresponding will not be secured.
- If you do have an authorized driving permit or on the off chance that you meet with an accident affected by inebriation or substance then under such conditions, you are not liable for any cover.
- If the vehicle is not working because of some mechanical or electrical breakdown then under such conditions it will remain uncovered.
In The End
Your vehicle is the backbone of your business. Regardless of whether it is used for carrying goods or carrying passengers, it is your utmost responsibility to save the wheels against any odds.
Be it a good carrying vehicle or a passenger-carrying vehicle both of them helps and contributes to the development. Moreover, the scope of coverage for goods carrying vehicle insurance and passenger carrying vehicle insurance is pretty much the equivalent.
Regardless of whether you are solopreneur or have a growing business, nobody will understand better than you the coverage required for the smooth working of your business ensuring accomplishment over the long haul.
Be Safe while you ride!
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