Commercial Vehicle Insurance
Commercial Vehicle Insurance is a type of motor insurance specifically for commercial vehicles used to transport goods, produce, passengers, and miscellaneous vehicles such as tractors, cranes, JCBs, and excavators. Chola MS General Insurance's commercial vehicle insurance policy provides coverage for employees, third-party property, high-risk individuals, and passengers.
This insurance offers financial protection and support in the event of natural disasters, theft, and other incidents. It also serves as a safeguard in legal disputes following accidents.
Key Features of Commercial Vehicle Insurance
A commercial vehicle insurance plan offers several key features:
- Comprehensive coverage for both public and private carriers, including special goods-carrying vehicles.
- Liability coverage for injuries or accidents.
- Financial compensation to manage unwanted expenses.
- Protection from monetary setbacks due to liabilities.
- Third-party coverage for damages to persons, vehicles, or property.
- Personal accident coverage for the driver and the owner.
These features ensure financial security and peace of mind for commercial vehicle owners.
Best Commercial Vehicle Insurance Companies in India
Some of the top insurance companies that provide commercial vehicle insurance in India are given below:
Name of the Insurer | Goods Carrying Vehicle Insurance | Passenger Carrying Vehicle Insurance | Miscellaneous Vehicle Insurance |
Chola Commercial Insurance | Yes | Yes | Yes |
EDELWEISS Commercial Vehicle Insurance | Yes | No | No |
Digit Commercial Vehicle Insurance | Yes | Yes | Yes |
Tata AIG Commercial Vehicle Insurance | Yes | Yes | No |
Shriram General Commercial Vehicle Insurance | Yes | Yes | No |
Royal Sundaram Commercial Vehicle Insurance | Yes | No | No |
SBI General Commercial Vehicle Insurance | Yes | Yes | Yes |
Reliance General Commercial Vehicle Insurance | Yes | Yes | Yes |
New India Commercial Vehicle Insurance | Yes | Yes | Yes |
Iffco Tokio Commercial Vehicle Insurance | Yes | No | No |
Future Generali Commercial Vehicle Insurance | Yes | Yes | No |
National India Commercial Vehicle Insurance | Yes | Yes | No |
MAGMA HDI Commercial Vehicle Insurance | Yes | Yes | Yes |
USGI Commercial Vehicle Insurance | Yes | Yes | Yes |
Types of Commercial Vehicle Insurance
Commercial vehicle insurance generally comes in two types:
Comprehensive Commercial Vehicle Insurance:
- Offers extensive protection against various adverse events like damage, fire, theft, robbery, floods, earthquakes, etc.
- Covers third-party property damage and injuries.
Third-party Liability Commercial Vehicle Insurance:
- Mandatory by law for all commercial vehicle owners.
- Provides protection against damages to third-party property, injury, or death of a third party caused by the insured vehicle.
- Essential for heavy-duty commercial vehicles carrying goods.
These plans ensure financial security and legal compliance for commercial vehicle owners.
Vehicles covered under Commercial Vehicle Insurance
The types of commercial vehicles covered under a Commercial Vehicle Insurance is giveen below:
- Vans
- Trucks
- Bulldozers
- Bus
- Trailers
- Coaches
- Carriers
- Taxis
- Mobile Rigs
- Cranes
- Tractors
Commercial Vehicle Insurance: Inclusions & Exclusions
Inclusions | Exclusions |
Comprehensive coverage for personal, medical, and financial losses. | Wear and tear of the vehicle. |
Compensation for damages due to fire, explosion, lightning, riots, strikes, theft, burglary, malicious acts & natural disasters. | Consequential losses. |
Cashless repairs at registered workshops. | Civil war incidents & War or nuclear risks. |
Personal accident coverage for permanent total disability | Contractual liabilities. |
Extensive protection and financial support for commercial vehicle owners | Accidents while driving with an invalid license or under the influence of alcohol. |
-- | Electrical and mechanical breakdowns. |
-- | Inactive policy at the time of the accident or loss. |
Add-ons for Commercial Vehicle Insurance
Roadside Assistance Cover: This cover provides emergency services such as vehicle pick-up, medical help, towing, battery jumpstart, minor repairs, fuel arrangement, and alternative transportation.
Parts Replacement Reimbursement: Reimbursement for parts replaced following an accident, applicable only to vehicles less than 5 years old.
Consumables Coverage: Covers consumables like oil filters, engine oil, and grease, with no 5-year vehicle age limit.
RVB (Reinstatement Value Basis): Covers your vehicle and declared accessories, calculated by subtracting registration charges and road tax from the original invoice value.
How to Buy Commercial Vehicle Insurance
You can purchase commercial vehicle insurance offline by visiting the insurer's office, but buying it online is more convenient. Here's how:
- Assess your needs before visiting the insurer’s website.
- Choose 'Commercial Use' for vehicle purpose and provide details such as location, vehicle make and model, variant, purchase year, and previous policy information.
- Compare plans to understand coverage, inclusions, exclusions, and costs.
- Adjust the Insured Declared Value (IDV) to see its effect on the premium. Review coverage and terms.
- Pay online to receive the policy instantly via email.
Commercial Vehicle Insurance Claim Process
Absolutely, filing a commercial vehicle insurance claim can indeed be smoother with the right approach. Promptly notifying your insurance provider or agent about any loss or damage is crucial for a hassle-free claim process. Here's a breakdown of the steps you can take:
Notify Your Provider or Agent: As soon as you're aware of any loss or damage to your commercial vehicle, inform your insurance provider or agent. Time is of the essence in such situations.
Choose a Communication Channel: You can register a claim either by calling the toll-free helpline number provided by your insurance company or by writing to them via their customer helpline email ID. Choose the method that is most convenient for you.
Online Claim Forms: Many insurance providers now offer the convenience of online claim forms. These forms can be filled out and submitted electronically, streamlining the process further.
Cross-Check Insurance Details: Before filing a claim, double-check all the relevant details in your commercial vehicle insurance policy. This ensures accuracy and helps prevent any discrepancies during the claim process.
Required Information: When filing a claim, make sure to provide all necessary details accurately. These typically include:
- Time and date of the loss or damage incident.
- Policy number for reference, ensuring your claim is properly linked to your policy.
- Location where the incident occurred, providing specific details to aid in assessment.
- A brief but clear description of the incident, outlining what happened and the extent of the damage.
- Your name and contact number as the person filing the claim, facilitating communication with the insurance company.
By following these steps and providing accurate information, you can increase the likelihood of a successful commercial vehicle insurance claim process. Remember to keep communication lines open with your insurance provider or agent throughout the process for any further assistance or clarification needed.
Documents Required to Claim Commercial Vehicle Insurance
Below is a list of documents required to submit a claim request for commercial vehicle insurance. Please note that the specific documents needed may vary based on the type of claim:
- Commercial Vehicle Insurance Policy Certificate
- Completed claim form
- Driver's Driving Licence
- Vehicle Registration Certificate
- Vehicle Fitness Certificate
- First Information Report (FIR), if applicable
Keep in mind that these documents are essential for processing your claim, and it's important to provide them accurately and promptly to expedite the claim process.
What are the benefits of purchasing commercial vehicle insurance?
Some important benefits are:
- Legal Requirement: According to Indian motor laws, the insurance is mandatory for any commercial vehicle to run on Indian roads, and having insurance is a necessity.
- Business Protection: A commercial vehicle policy is intended to give you professional compensation in the event of a catastrophic loss. Comprehensive policies are tailor-made to meet a wide range of vehicles used for commercial purposes.
- Ease of Purchase: Buy commercial vehicle insurance online with little or no hassles. Thus, it can assure on time and budget transportation for all fleet sizes.
- Money Security: It provides protection for losses due to unfavorable events, ensuring peace and smooth running of different operations.
Things to Consider before Buying Commercial Car Insurance
Consider the following factors when purchasing or renewing a commercial vehicle insurance plan:
- Coverage: Evaluate the coverage, inclusions, exclusions, and terms and conditions of the policy thoroughly.
- Insured Declared Value (IDV): Select an appropriate IDV for your commercial vehicle, as it determines the amount you receive in case of total loss.
- Claim Settlement Ratio: Prioritize insurance providers with a high claim settlement ratio for reliable claims processing.
- Premium: Utilize an insurance premium calculator to find a policy offering optimal benefits at a reasonable cost.
- No Claim Bonus (NCB): Inquire with the insurer about NCB discounts when renewing your policy.
- Add-Ons: Consider opting for add-ons that enhance the coverage of your policy as per your requirements.
- Deductibles: Review both compulsory and voluntary deductibles, and opt for voluntary deductibles after careful consideration of the terms and your financial capability.
- Cashless Garages: Confirm with the insurer whether they offer a cashless repair facility through their network of garages.
Commercial Vehicle Insurance Price in India
Commercial vehicle insurance prices are influenced by various factors. Utilising an online commercial vehicle insurance calculator can provide an estimated insurance cost. However, one crucial determinant of commercial auto insurance cost is the Insured Declared Value (IDV). IDV is calculated based on the age of the vehicle or the depreciation rate. Below is a table illustrating the rate of depreciation for commercial vehicles:
Commercial Vehicle’s Age | Rate of Depreciation |
Up to 6 months | Nil |
6 months to 1 year | 5% |
1 year to 2 years | 10% |
2 years to 3 years | 15% |
3 years to 4 years | 25% |
4 years to 5 years | 35% |
5 years to 10 years | 45% |
Over 10 years | 50% |
Factors that are Determine the Price of Commercial Vehicle Insurance
Factors that can decide the price of a commercial vehicle insurance scheme are given below:
- Type of Insurance Policy: The premium for a Third-party policy is typically lower compared to a Comprehensive Policy. Generally, the broader the coverage, the higher the premium.
- Deductibles: Deductibles come in two forms: Mandatory deductibles and Voluntary deductibles. A higher deductible amount during claim settlement usually results in a lower premium amount.
- Insured Declared Value (IDV): IDV represents the approximate current market value of the vehicle. A higher IDV leads to a higher premium amount, and vice versa.
- Claim History: Insurers provide discounts for not making any insurance claims during the policy period, known as the No Claim Bonus. This discount can reach up to 50% for five consecutive claim-free years. A higher No Claim Bonus discount results in a lower premium.
- Make and Model of the Vehicle: The make, model, and manufacturing year of the commercial vehicle also play a role in determining the premium amount.
- Engine Capacity: Third-party insurance policy rates are set by the IRDAI based on the vehicle’s engine cubic capacity (cc). A higher cc results in a higher premium amount.
FAQs on Commercial Vehicle Insurance
- How are a commercial vehicle insured?
Commercial vehicle insurance can be obtained through an insurance company’s app or website of your choice. If all goes as planned, the entire process can be finished in less than five minutes. You can also visit the BankBazaar website to get your commercial vehicle insured.
- How are commercial vehicle insurance rates determined?
The insurance premium is determined by considering several variables, including the vehicle's IDV, the owner's claim history, the year of manufacture, the make and model, etc.
- In my commercial vehicle insurance coverage, what does IDV mean?
The Insured Declared Value is referred to as IDV. It is the car's estimated current market value. This sum must be disclosed by the vehicle owner when purchasing a comprehensive insurance policy. IDV plays a significant role in figuring out how much commercial vehicle insurance will cost.
- Can commercial auto insurance be paid for with EMIs?
No, Equated Monthly Instalment (EMI) is not a viable method for paying commercial vehicle insurance rates. Insurers will not take on any risk until the commercial vehicle insurance premium is paid in advance, according to Section 63VB of The Insurance Act, 1938. Consequently, there isn't an EMI option for auto insurance.
- In a commercial automobile insurance policy, what does loading mean?
Some auto insurance companies increase the cost of your auto insurance premium upon renewal in the form of loading. It usually takes effect when the owner of a vehicle insurance policy is found to be at a higher risk than usual.
- What is meant by Constructive Total Loss?
If the cost of repairing damage or accidental loss exceeds the vehicle's current market worth, it is deemed a constructive complete loss.
- How much does my business vehicle need to be insured for? What connection does it have to the car's IDV?
Your business vehicle must be insured for a sum equal to its insured declared value, or IDV. More coverage beyond your commercial vehicle's IDV is not an option. Additionally, you can calculate your car's IDV by deducting the depreciation from the model's ex-showroom price.
- How can I get my commercial auto insurance policy cancelled?
If your commercial car insurance coverage hasn't expired and no claims have been filed against it, you can cancel it. You must notify your insurance company of your desire to cancel the coverage if you meet both requirements. Send in the paperwork or data that your insurance company requires. Your insurance provider will cancel your commercial vehicle insurance policy within a few weeks after receiving the information.
Disclaimer
Credit Card:
Credit Score:
Personal Loan:
Home Loan:
Fixed Deposit:
Copyright © 2025 BankBazaar.com.