Does Commercial Vehicle Insurance Cover Commercial Vehicle Damages Due to Riots?

Does an Insurance Company Cover Commercial Vehicles Damages Due to Riots?

The answer to this question is yes, but only the comprehensive commercial vehicle insurance policy, not the third party. Most insurance providers cover the damages caused due to a riot but under their comprehensive vehicle insurance policies as per their policy wordings. However, there has to be a documented proof of such riots like police FIR or cutting of the newspaper if the instance has been covered by the media. Besides, there have to be no criminal charges on the policyholder for the same instance.

The insurance provider also pays for bodily injury or death of the policyholder or any other person such as occupants in the commercial vehicle, driver, as well as damages to a property that does not belong to you.

Why Are the Claims Due to Riots Paid Under the Comprehensive Commercial Vehicle Insurance Policy?

The claims that arise because of riots are paid in a comprehensive commercial vehicle insurance policy. The reason for the same is the coverage offered by it. A comprehensive commercial vehicle insurance policy has two parts – third-party insurance cover and own damage cover. If you have a comprehensive car insurance policy, then the damages to your vehicle because of riots are covered under your damage cover section. This is one of the non-compulsory types of the comprehensive commercial vehicle insurance policy that pays when your vehicle gets damaged.

While third-party liability insurance is mandatory to cover as per Indian Motor Vehicle Act. Under this type of insurance, you get coverage against losses and damages incurred only to third-party persons or property by your insured commercial vehicle. In short, third-party insurance covers only your legal liabilities for death or bodily injury to a third-party person and damage to third-party property by your commercial vehicle.   

Therefore, the amount of claim depends on the cost of repair, and it is covered up to the insured commercial vehicle's  IDV or Insured Declared Value as mentioned in the insurance policy. So, in case of total loss or when the losses are beyond recovery, the claim amount is the IDV of your commercial vehicle.

However, if the policyholder deliberately damages the insured vehicle, the claim is not payable. The claim is honored if the damages to your insured commercial vehicle happen accidentally because of riots and are not deliberately inflicted. If the insurance company finds otherwise, it will not make any type of payment related to claims.

How to Intimate About Losses and Claim Settlement?

In case of damage to your commercial vehicle due to riots, you must instantly inform the insurance provider about the riot and damages that occurred. In addition to this, if you are as well injured in the riot and hence are not able to inform the insurer instantly, then you can inform the insurer later.

The insurance company gives you the option to intimate it later. The insurer, mostly, considers the ground situation and hence allows a specific period for its policyholders to intimate it, initiate, and then file the claim.

Claim Settlement Process in Case of Damages in Commercial Vehicle During Riots

You must register the claim with your insurance provider by calling its customer support team or on its toll-free number. If the vehicle is at the spot of the incident, the survey at the spot has to be done. If the damaged commercial vehicle is moved from the spot, it should be taken to the garage for its final survey.

The list of documents that you need in case of damages due to riots in your commercial vehicle is as follows:

• Duly filled and signed claim form
• Copy of your commercial vehicle insurance policy
• Final Investigation Report or First Information Report
• Information of fire brigade, if it is called for
• Assessment or survey report for substantiating the quantum of loss because of damage to the insured commercial vehicle
• Repairs or replacement original bills
• Cutting of the newspaper wherein the riot incident has been reported

These are the documents that you should present while filing a claim for damages that are caused to your insured commercial vehicle due to riots.

Wrapping it Up!

Therefore, the insurance company covers damages caused to commercial vehicles due to riots, but you have to be careful while filing a claim and must remember the aforementioned points.