Goods Carrying Vehicle Insurance Policy

For the people involved in transportation business, good carrying vehicles like trucks, tempos, etc. are one of the most important assets. There are different types of vehicles designed for different purposes as per their capacity, be it the amount of load or the distance coverage. Since it is a machine that gets old with time and when you are driving on the road, there are chances of meeting an unfortunate accident. In order to overcome such unforeseen losses and damages there is an insurance policy designed to protect you that is called as Goods carrying vehicle insurance policy.

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So, what is a Goods carrying vehicle insurance policy? Let us tell you about it.

What Is Goods Carrying Vehicle Insurance Policy?

The name of the policy itself suggests that it is an insurance policy that is designed to protect the commercial vehicle carrying goods from one place to another. Considering the higher risk involved with the commercial vehicle as compared to personal vehicles, this insurance policy is designed to cover the damages and losses incurred in an accident, natural calamity, fire incidents, theft, etc.

Commercial vehicles running time is usually higher than the personal vehicle running time. The conditions of the roads in India are not very good and the commercial vehicles tend to break down during long journeys. The commercial vehicle insurance takes care of these problems as well.

However, there are different types of goods carrying vehicles that require different type of coverage. They are as follows:


There are different shapes and sizes of trucks. Depending on the size and weightage of the goods they businessman utilize the vehicle. Smalls trucks are used for daily purposes within the same cities and large trucks are used to carry big size and heavy goods as well as intercity travels. Be it any type of truck, the commercial vehicle insurance covers all of them.

Three-wheeler Tempos

Three-wheeler tempos, autos and cargos are often used to transport goods in short distances. They are small in size and less prone to accidents than trucks but still you can chose to purchase goods carrying insurance policy to protect them.

Four-wheeler Tempos

Four-wheeler tempos are smaller than trucks and bigger than three-wheeler tempos. These tempos are usually used for carrying furniture and electrical appliances transportation. The insurance policy covers this type of vehicle as well.

Tipper Vehicles

These vehicles come under the heavy vehicle category and they are used to carry the construction goods. They usually have to travel from one city to another which makes them prone to break downs and accidents. This vehicle can be covered under the insurance policy.


Trailers are bigger than trucks and they are used to transport the goods from one country to another that makes them much more prone to accidents and breakdowns during transportation. The commercial insurance can be purchased to protect trailers.

Importance Of Goods Carrying Vehicle Insurance

Goods carrying vehicle are the soul of a transportation business. Hence it becomes a responsibility of the business owner to protect the vehicles with an insurance policy. The insurance policy takes off a huge burden of unforeseen damages and losses off of the policyholder’s shoulders.

With the goods carrying vehicle insurance policy the business owner can run the business smoothly. Every type of commercial, goods carrying vehicles are covered under this policy. However, it depends on the business owner to either purchase the third-party liability insurance policy or a comprehensive insurance policy.

A third-party policy will protect the liabilities arising out of third-party but a comprehensive insurance policy will provide an overall protection to the policyholder. So, let us now tell you what is covered and what is not covered under this policy?

What Is Covered Under Goods Carrying Vehicle Insurance?

Every insurance policy comes with a different set of coverage. The goods carrying vehicle insurance policy protects the policyholder for loss and damage incurred in an accident, bodily injuries, natural disasters, etc.

Many insurers provide cashless claims facility to the policyholder for getting their vehicle repaired in the cashless garages registered with insurers. You can also customize your insurance policy according to your requirements as there are many insurers that provide this feature to their customers.

Here are the things a goods carrying vehicle insurance provide.

Unforeseen Accidents

The policy will provide financial aid to the policyholder for any loss or damage caused in an unforeseen accident while carrying the goods from one place to another.

In Case Of Theft

In case of theft of the vehicle, the insurer will provide financial aid to the policyholder. Also, if the vehicle is stolen along with the good, the insurer will provide cover for that as well. To get a cover for the stolen goods, it is recommended to consult with the insurer if the policy do provide cover for it or not.

In Case Of Fire Accident

There is a particular capacity of a vehicle that carries goods. Depending on their capacity the business owner utilizes the vehicle. However, when the vehicle’s engine gets old and their capacity reduces, they become prone to breakdowns that sometimes result into engine catching fire after heating up. The insurance policy provides cover for the unforeseen fire incidents as well.

Natural Disasters Are Covered

Natural calamities like earthquakes, floods, typhoons, etc. are covered under the goods carrying vehicle insurance policy. If the vehicle gets damaged in a natural calamity the insurance company will provide cover for it.

Personal Accident Coverage

If the driver/owner injures themself while carrying the goods from one place to another and sustains an injury that is partial/permanent or dies. The insurance company will provide financial aid to that person.

Third-Party Loss

Third-party liability insurance is mandatory of a person driving on the road. However, the third-party insurance only provides cover for the third-party loss or damage because of the insured vehicle during a road accident.

Towing Facility

The insurance policy provides towing facility to the insured goods carrying vehicle if the insured vehicle faces any damage while being towed. The insurer will provide cover for that loss or damage.

What Is Not Covered Under Goods Carrying Vehicle Insurance?

While purchasing an insurance policy it is equally important to know about the exclusions of the insurance plan. The exclusions of the plan vary from plan to plan, so here are some of the things that are not covered under this insurance plan.

Drunk Driving

The insurance company will not provide cover to the policyholder if the driver is found driving the vehicle under the influence of alcohol. Since driving any vehicle under the influence of alcohol is illegal so instead of getting insurance cover, the driver will be penalized as per the Motor Vehicle Act.

Driving Without License

It is illegal to drive without a valid license in the country. The insurance company will not provide cover for any damage or loss occurred during the transportation of goods if the driver is found without a valid license.

Consequential Loss

If the vehicle has been damaged and it is not a direct result of any accident, fire or natural calamity that is known as consequential loss will not be covered by the insurance company.

Contributory Negligence Cover

If the driver neglects any kind of flood or earthquakes and still goes on to transport the goods and suffers any loss or damage, the insurance company will not provide cover for any of it.

The insurance companies also provide add-on covers. You can ask your insurer if you are not satisfied with the coverage of the existing insurance policy. Let us tell you about some of those add-on covers.

Goods Carrying Vehicle Insurance Add-On Covers

The insurance policies are not limited to their existing coverage. The insurance company also provides add-on covers apart from the specified coverage. You can consult with your insurer about the add-ons and ask them to include in your goods carrying insurance policy. However, the premium rate of the insurance plan will also increase.

Here are some of the add-on covers that the insurance company provides:

  • Road Assistance Cover: If you add-on this cover then the insurer will provide you with the road-assistance in case the vehicle gets stuck somewhere on the road while transportation of the goods.
  • Zero Depreciation: You can also avail of the full value cover in case the vehicle faces any damage or loss during the transportation.

The road accidents and unforeseen incidents resulting to loss or damage are inevitable. When the policyholder faces any damage, it is necessary to know about the claiming process. So let us tell you about the claiming process and the documents required to raise them.

How To Raise Claim In Goods Carrying Vehicle Insurance?

If your approach is right then you can raise a claim against any loss or damage under this insurance policy. In order to raise the claim, it is necessary to inform your insurer about the loss or damage incurred in accident.

The policyholder now can also raise the claim online but before raising the claim it is important you read about the coverage of the policy and while raising a claim you need to provide your insurer with the following details:

  • Tell them about the time and date of the accident and where it took place.
  • Tell them your policy number for reference
  • Tell them how the accident took place?
  • You name and contact number

In order to start the process of claim, the policyholder has to submit several documents required.

Documents Required To Begin Claiming Process

To raise a claim against any loss or damage caused to the goods carrying vehicle while transportation. Those documents are as follows:

  • RC of the vehicle
  • Valid Driving License
  • Copy of FIR
  • Pollution Under Control Certificate
  • Duly filled claim form
  • Aadhar card copy
  • Insurance policy papers
  • Permit of route
  • Tax Paid receipt
  • Newspaper cutting if printed on the newspaper as a proof

There are several other benefits that the insurance company provides to the policyholder that are common in many insurance policies. Let us tell you about one of those benefits.

No Claim Bonus

No Claim Bonus is a benefit provided by the insurance company to the policyholder for not raising claim in a year. The insurance company provides additional benefit or discount in the consecutive year for not raising a claim. The IRDAI has set a specific percentage of benefit that has to be followed by all insurance companies.

Here is a list of No claim bonus percentage specified by the IRDAI:

Policy Duration Without Raising Claim

Percentage of No Claim Bonus

No claim for 1 year


No claim for 2 consecutive years


No claim for 3 consecutive years


No claim for 4 consecutive years


No claim for 5 consecutive years


There are two conditions under which the No Claim Bonus is not provided to the policyholder.

  • If the policyholder raises the claim.
  • If the policyholder does not renew the policy within 90 days of expiration.

Purchasing an insurance policy for the goods carrying vehicle can be very beneficial for the policyholder. It can provide financial aid and help in keeping the savings intact.


Written By: PolicyBazaar

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