Is it Possible to Switch Commercial Vehicle Insurance?

When Can You Switch Your Commercial Vehicle Insurance Provider?

You can generally switch your commercial vehicle insurance provider at the time of policy renewal. Try to compare premiums, coverage benefits, claim services and policy terms before switching to a new insurer. If you want to change insurers before your current policy expires, you must check the existing policy terms and conditions and if any cancellation is allowed or not.

Why Switch Your Commercial Vehicle Insurance Company?

You can switch your commercial vehicle insurance company for some of the common reasons mentioned below:

• High Premium: If the premium of your policy is higher as compared to other providers for the same or lesser coverage.
• Poor Claim Settlement Ratio (CSR): If the current insurer has a lower CSR as compared to other providers due to delays in claim processing or unsatisfactory customer support, you can consider another insurer.
• Limited Coverage: If you want to change and choose a different provider as the coverage is not justified by the commercial vehicle insurance premium, you may choose a policy that better suits your vehicle type, usage or business needs.
• Cashless Service: You can change your insurer to one with a better network of cashless garages, as it helps reduce out-of-pocket expenses during an accident or claim.

How to Switch Your Commercial Vehicle Insurance Provider?

You can use the steps given below to switch to a new provider out of the available commercial vehicle insurance companies on Policybazaar.com:

1. Review the Existing Policy: Check the expiry date, policy type, coverage details, insured declared value (IDV), add-ons and the No Claim Bonus (NCB) of your existing commercial vehicle insurance.
2. Compare Different Plans: Compare the premiums, coverage, compulsory deductibles, claim process, etc., offered by different insurers while renewing your commercial vehicle insurance to choose a new insurer.
3. Check Vehicle Details: Cross-check and verify your registration number, vehicle details and existing policy information before you renew your commercial vehicle policy and switch your provider.
4. Choose the New Insurer: Select the policy that meets the requirements of your commercial vehicle, check the IDV of your commercial vehicle, select the NCB slab, verify the details, and click on the policy you want to buy.
5. Complete the Payment: Submit the required information and documents, pay the premium and complete any inspection and KYC (Know Your Customer) to finalise the new policy.
6. Policy is Issued: The new policy will be sent to the registered email address. You must ensure that there is no break in the coverage, as driving without third-party commercial vehicle insurance is a punishable offence.

Documents Required to Switch Commercial Vehicle Insurance

Here are some of the common documents you will need when switching your commercial vehicle insurance provider:

• Vehicle Registration Certificate (RC) for KYV (Know Your Vehicle)
• Existing commercial vehicle insurance policy
• Identity and address proof for KYC
• Vehicle photographs and videos for self-inspection, if applicable
• NCB certificate of the insured commercial vehicle to get the discount

What Should You Check Before Switching Insurers?

Compare the following things before finalising a new commercial vehicle insurance policy:

How to Transfer NCB When Switching Commercial Vehicle Insurance?

For every claim-free year, you get a reward from your insurance provider, which is the NCB in commercial vehicle insurance. You may get up to 50% of discount for 5 consecutive claim-free years. The NCB is linked to the policyholder and not the insured vehicle. Therefore, while switching insurers, you will not lose the accumulated no claim bonus, but can transfer it to the new policy. The insurer generally verifies your accumulated NCB with the NCB certificate from your previous insurer. However, always remember that the discount only applies to the own-damage component in comprehensive commercial vehicle insurance. It is not a discount on the third-party premium.

How to Switch Commercial Vehicle Insurance Before Renewal?

You may not be able to switch your commercial vehicle insurance before its expiry. If your provider allows cancellation of an existing policy, only then you can change your provider. You should review the existing policy's cancellation provisions, any applicable refund conditions and the requirements before buying a new policy.