Beginner’s Guide- Commercial Vehicle Insurance

Commercial vehicle insurance essentially protects goods carrying vehicle and passenger-carrying vehicle.

Commercial vehicle owners are a common sight on the roads of India, which includes trucks, buses, tractors, cranes, shovels, bulldozer, and so on.

These heavy-duty vehicles commute hundreds of passengers daily on average, transport goods across the country, and so on. Besides, if you run a business, which requires the smooth functioning of the commercial vehicles

To ensure the smooth functioning of your business, with appropriate commercial vehicle insurance cover.

Having the right commercial vehicle insurance cover will secure your commercial vehicle against various external damages, alongside personal and third-party liabilities.

Understanding Commercial Vehicle Insurance

All the owners of the commercial vehicle who wish to cover any damage/loss incurred to or by the vehicle and the owner-driver respectively should buy commercial vehicle insurance.

Uncertainties do not come with prior information. In India, accidents/mishap happens regularly. Likewise, the damage could occur to or by your commercial vehicle, for instance, accidents, collision or any other external reason on, which you do not have control.

Therefore, it becomes cardinal to secure your business and vehicle against any such liability as these vehicles are high-valued assets and definitely, expenses incurred during any uncertainty may lead to creating a dent in your pocket.

Requisite for Commercial Vehicle Insurance

When your business operates on the smooth functioning of your commercial vehicle and is a source of your bread and butter, then probably having a commercial vehicle insurance cover suffices it all.

However, some other reasons to understand the requirements for commercial vehicle insurance mentioned below, which are:

When you own or run a business, which requires the use of commercial vehicles it is better to have a commercial vehicle insurance cover, as it will primarily protect you from any incurred loss/damage caused to and by your priced possession along with the people using it.

If your running business involves vehicles such as cab service or a school bus, then having commercial vehicle insurance cover will assure the safety of the fellow-passengers providing cover for the equivalent.

Last and not least, as a legal mandate, it is compulsory to have a third-party liability insurance policy, which will secure any third-party against any loss/damage that could be incurred by your commercial vehicle.

Classification of Commercial Vehicle Insurance

To get your wheels on the country without taking much of stress, it is advisable to buy commercial vehicle insurance depending upon the type ad use of your commercial vehicle. Besides, depending on the requirement of the commercial vehicle, you can customize the plan with appropriate commercial insurance vehicle cover.

In India, commercial vehicle insurance is classified into three categories, which are:

  1. Passenger Carrying Vehicle Insurance: Passenger carrying vehicle insurance is designed for those vehicles, which carry passengers from one place to another and shield them against any loss/damage under any eventuality. Passenger carrying vehicle is those vehicles, which are used by a majority mass in the country, for instance, auto-rickshaws, e-rickshaws, cabs, private buses, taxis and so on. These vehicles have huge responsibility specifically vehicles like buses and cabs as they carry a passenger every day.
  2. Goods Carrying Vehicle Insurance: Goods carrying vehicle insurance is designed for those vehicles, which transport goods from one place to another. Essentially, the good carrying vehicles are bulky in size, for instance, trucks, lorry, etc., which make it more prone to perils. Buying good carrying vehicle insurance will secure the owner-driver from any adverse situations whether man-made, natural or any other.
  3. Miscellaneous/ Special Vehicle Insurance: Various other vehicles are used for mining, farming, construction and so forth. Such vehicles are counted in the category of special vehicles. To secure such vehicles from any unforeseen event is the responsibility of the owner making special vehicle insurance necessary buy.

Do Not Let the Journey Halt

Now, that you have decided to buy commercial vehicle insurance considering its importance look for the following cover under the plan you are intending to buy. It is better to buy a comprehensive commercial insurance policy.

In case if you already have one, make sure that you have these under your commercial vehicle insurance cover, which are:

  • Cover against Natural Calamity: If any damage/loss is caused to the commercial vehicle in case of any natural calamity, such as earthquake, typhoon, flood, etc.
  • Cover against Man-made Calamity: If any damage/loss is caused to the commercial vehicle in case of any man-made calamity which includes theft, robbery, fire and ignition, etc.
  • Cover for Malevolent Acts: If any damage/loss incurred to the commercial vehicle under any malevolent act such as riots, strike, and so forth.
  • Towing Disabled Cover: If any damage is caused to the disabled mechanically propelled vehicle in the process of towing the commercial vehicle.
  • Personal Accident Cover: In an unfortunate mishap, any damage leading to the injury/demise/permanent disability of the driver or the owner will be compensated.
  • Third-party Loss Cover: When the damage has been caused to the third-party by the insured commercial vehicle.

Tips to Save Money- Commercial Vehicle Insurance Premium

While buying commercial vehicle insurance, you can save on money. Below listed are some tips, which will help you, save on commercial vehicle insurance premium, which are:

  • Check the driving records of the driver whom you are planning to hire. Hire those drivers who hold good driving records.
  • If you feel the need, you may arrange additional training session for the drivers and with this, you will get a fair idea about their driving skills and then it will help you in making a wise choice.
  • Keep a regular check and maintain your commercial vehicle.
  • Buy commercial vehicle insurance online to avail maximum benefits and discounts respectively.
  • If you have a fleet of commercial vehicles to be insured, take the benefit of multiple insurance discounts by a single insurer.
  • While buying a commercial vehicle, look for the maximum safety measures or likewise get them installed by self.
  • Park your commercial vehicle at a safe place like a garage or so.

At Your Own Risk

If any damage/loss occurs under given circumstances, no protection will be provided.

  • In case of, contributory negligence wherein driving in case of a flood, etc.
  • Drunk driving
  • Driving without a driving license
  • Any damage which is not a direct result of any man-made/natural calamity, etc.
  • Wear and tear of the vehicle
  • Policy lapse
  • War/Nuclear perils
  • Using the vehicle otherwise for private affairs

Wrapping it Up

Commercial vehicle insurance cover provides not just to your vehicle but also ensures the function of your business.

Commercial vehicles are more prone to risks, so the premium charged for the same is mostly on a higher side. Before you zero down the policy, it is good to understand what all is covered and accordingly make an informed decision.

Stay committed to the roads with commercial vehicle insurance cover.

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