Commercial Vehicle Insurance

Commercial Vehicle Insurance Overview:

If you own a commercial vehicle, it’s imperative that you have insurance for it in order to protect you and your business in the event of your vehicle being lost/ damaged/ in an accident. Commercial Vehicle Insurance covers not only your vehicle against physical damage, but also provides cover against third-party liability and bodily injury/ death. Which means that when you have a hundred business related things on your mind, your vehicle’s security will not be one of them.

Why is Commercial Vehicle Insurance required?

Commercial Vehicle Insurance is a practical solution to the very real possibility of your precious vehicle being damaged on the road. If your vehicle gets into an accident, it doesn’t matter whether you were driving it or someone else is, you will be completely responsible for the expenses. A Commercial Vehicle Insurance will protect you financially from the third-party liability, bodily injury/ death as well as physical damage to your own vehicle.

Commercial Vehicle Insurance Policy Features and Benefits:

  • Commercial Vehicle Insurance provides coverage for a variety of situations
  • Claims can be made quickly and simply.
  • Various classes of commercial vehicles can be insured including trailers, goods carrying vehicles (both private and public carrier), passenger carrying vehicles and special types of vehicles (excavators, shovels, mobile rigs, grabs, tractors etc.)

What’s covered, what’s not under Commercial Vehicle Insurance Plan:

There are plenty of insurance companies which offer Commercial Vehicle Insurance which can be tailor-made to meet your needs. In general, following is the list of what’s covered in a commercial vehicle insurance:

  1. Loss/ damage to the insured vehicle due to:
    • Self-ignition, fire, explosion or lightning
    • Strike, riot
    • Housebreaking, burglary, theft
    • Flood, , tempest, hurricane, typhoon, storm
    • Malicious act
    • Hailstorm, inundation cyclone, frost
    • Earthquake
    • Rockslide, landslide
    • Accident (external means)
    • Terrorist activity
  2. Third-party insurance: In the event of an accident involving your insured vehicle and another vehicle, the insurance will cover any damage/ loss to the other vehicle as well as bodily injury or death of third party.
  3. Personal Accident Cover is also included in this policy. Accidental Death/ Permanent Total Disability will be compensated for in the case of the owner and the paid driver.
  4. Certain companies offer towing facilities for disabled mechanically propelled vehicles (as an add-on or as a standard deal)

The list of what is covered may seem like an extensive one (each company varies in the specifics), but remember that there is also a list of instances where your vehicle may not be covered. Here is a list of what is not covered in a Commercial Vehicle Insurance:

  1. Wear and tear of the vehicle
  2. Mechanical and electrical breakdown
  3. If the damage to the vehicle happens when it is used beyond the limitations mentioned. For example, if a private vehicle is used as a taxi.
  4. If the vehicle is used outside the defined geographical area
  5. Deductible as stated in your policy
  6. Consequential loss- only the original damage will be covered, and not any subsequent damage/ loss.
  7. Loss/ damage due to war or nuclear perils
  8. Loss/ damage due to ionizing radiation
  9. If the vehicle is driven by someone other than the driver, as stated in the 'Driver's Clause'.
  10. Claims arising out of contractual liability.

List of companies providing Commercial Vehicle Insurance are:

Following is a list of companies which offer Commercial Vehicle Insurance:

  • Reliance General Insurance
  • HDFC ERGO General Insurance
  • Bharti AXA General Insurance
  • Bajaj Allianz
  • Chola MS General Insurance
  • HDFC Bank
  • Royal Sundaram General Insurance

Commercial Vehicle Insurance Claim Process:

To make a claim, you must first report the loss/ damage of the vehicle as soon as it occurs. Most companies have toll-free numbers which you can call and make the claim. You can also log on to the company’s website and make the claim online. The service representative will guide you through the entire claim procedure.

When you contact the company to make the claim you must provide your policy number as reference. If required you can ask for towing facilities/ ambulance service. You will get an estimate for the repair.

Fill up the claim form. Attach a copy of the license of the driver and Registration Certificate.

As long as you go to a garage that is in the company’s network of garages, you can avail the 'Cashless Claims' facility. If the garage that you choose does not come in the network, you will have to get the claim reimbursed subsequently.

While making a claim, you should keep the following documents ready. This list may vary according to the company where you have purchased the insurance:

In case of Accident Damages:

  • Duly filled claim form
  • Tax Receipt (Original for verification), Copy of Registration Book
  • Proof of Insurance - Policy / Cover Note copy
  • Estimate for repairs
  • Copy of the driver’s Driving License (original also for verification)
  • FIR (In case of third-party property damage/ body injury/ death)
  • Bills of repair as well as payment receipts once it is done
  • Any other document as required by the insurer

In case of Theft Cases:

  • Original Registration Book, with Theft endorsement from the concerned RTO
  • Tax payment receipt
  • Original Policy Document
  • Policy number
  • Acknowledged letter addressed to RTO which intimates about the theft (copy)
  • Previous Insurance Details
  • Insuring office / company
  • All the sets of keys/ Warranty card/ service booklets
  • Period of insurance
  • FIR and final investigation report/JMFC report
  • Any other document as required by the insurer

Commercial Vehicle Insurance FAQs(Frequently Asked Questions):

  1. In case my vehicle gets stolen, what is the procedure I need to follow?

    The first thing that you should do in case of a stolen vehicle is to report to the police. Then you can register for a claim from the insurance company. Your claim will be affected by any delay in reporting to the police. The insurer could even deny liability.

  2. What is cashless and non-cashless / reimbursement claim?

    Cashless Claim means that the insurer will not be dealing with any physical cash while settling a claim. The insurer will pay the garage directly for the repair. This is only possible if the garage that the insurer took the vehicle to is part of the listed network of garages that the company is associated with.

    Non-Cashless / Reimbursement Claim means that the insured chose a garage that is not part of the company’s network. In this case, the insured will need to pay the cash to the garage directly and it will be reimbursed when they produce the same original bills and payment receipts to the insurer.

  3. Which are the some reliable insurers that offer Commercial Vehicle Insurance?

    Following is a list of companies which offer Commercial Vehicle Insurance:

    • Reliance General Insurance
    • HDFC ERGO General Insurance
    • Bharti AXA General Insurance
    • Bajaj Allianz
    • Chola MS General Insurance
    • HDFC Bank
    • Royal Sundaram General Insurance

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