Commercial Vehicle Insurance

A commercial motor vehicle (CMV) is any vehicle used to transport goods or passengers for the profit of an individual or business.

Commercial motor vehicles get passengers and goods where they need to go for any given business. The transport itself may be to get people to personal destinations or to get employees to workplaces; goods may be moved from one business location to another or directly to individual customers.

The other words this insurance covers all vehicles that are not used for personal use. His type of insurance covers all those vehicles which are not used for personal purposes. Trucks, Buses, Heavy commercial vehicles, Light commercial vehicles, Multi Utility Vehicles, Agricultural vehicles, taxis/cabs, Ambulances, auto-rickshaws, etc. are covered under this insurance.

A commercial vehicle helps run your business smoothly, and any damage/theft to the vehicle may lead to huge financial loss to your business. In order to cope-up with this uncertainty, you need to have the right insurance for your commercial vehicle. Commercial Vehicle Insurance is specially designed to provide cover against damage/ loss to your vehicle, or any third-party liability that may occur due to the fault of your vehicle. Getting commercial vehicle insurance is also mandatory on legal grounds under the Motor Vehicles Act, of 1988.

Why should I Buy Commercial Vehicle Insurance?

Legal Protection: Having valid commercial vehicle insurance confirms that you are abiding by the law. By buying suitable commercial vehicle insurance, you stay protected against any third-party liability that may arise due to bodily injury/ property damage caused to the other vehicle.

No Financial Worries: By choosing commercial vehicle insurance, you do not have to pay for the third-party liability or costs that may incur due to your bodily injury or any damage caused to your commercial vehicle. Buying comprehensive commercial vehicle insurance provides you complete coverage and lets you drive your business vehicle worry-free. There are times when business vehicles carrying precious goods are wrecked or robbed during transit. Commercial vehicle insurance provides coverage against the financial loss that occurred in such scenarios.

Employee Protection: Your commercial vehicle insurance helps you pay for your employees, in case your employee becomes injured driving the business vehicle during working hours. It covers legal liability against death and/or injury caused to the passengers by your own vehicle.

Pays for Vehicle Repairs: With commercial vehicle insurance, you can get costly repairs for your vehicle all at an affordable cost or free of cost under the scope of your policy. By getting vehicle repairs on time, you can easily maintain the resale value of your vehicle.

Exclusions in Commercial Vehicle Insurance?

Commercial vehicle insurance does not provide cover under the following circumstances:

  • Mechanical and electrical breakdown
  • Failure or breakage
  • Wear & tear
  • Consequential loss
  • Any accidental loss, damage, or liability incurred outside the permitted geographical region
  • Loss/Damage when driving under the influence of alcohol
  • Loss/Damage when driving with an invalid driving license
  • Loss due to war, mutiny, or nuclear risk
  • Claims that don’t come under the terms of the insurance contract
  • Use of vehicle for a purpose not mentioned in the policy document
  • Employee(s) of the Insured other than the owner/driver of the commercial vehicle

What kinds of Commercial Vehicle Insurance can I opt from?

Liability Only Policy/ Third Party Commercial Vehicle Insurance: Liability Only Policy/ Third Party Commercial Vehicle Insurance This commercial vehicle insurance provides cover against any liability towards property damage and bodily injury/ death caused to a third party. Some Insurers also provide cover for Owner/driver in case of accidental death and personal total disability.

Comprehensive/ Package Commercial Vehicle Insurance: You never know when a vehicular accident may occur and for this, you need to ensure that you are completely covered against any loss/damage. With a Package of Commercial Vehicle Insurance, your vehicle is covered for.

Is there any Add-on Cover/Rider with Commercial Vehicle Insurance?

Add-on covers/Riders are additional benefits provided over and above your base insurance policy. Following are the add-on covers, that are available with commercial vehicle insurance.

Legal Liability to Employees: This add-on provides coverage against accidental death and permanent total disability to the employees (both paid and unpaid).

Legal Liability to Passengers: This add-on provides coverage against bodily injury/death caused to the passengers (fare and non-fare paying passengers) present in your commercial vehicle at the time of the accident.

Zero depreciation: When you raise claims, insurers usually pay for the depreciated value of the replaced vehicle parts. However, by choosing the zero depreciation (Nil Depreciation) cover, you become eligible to receive the full claim amount for the damaged vehicle parts. With this add-cover, there is no need to worry about the depreciation component.

Roadside Assistance: Have you ever faced a situation with your commercial vehicle running out of fuel, breakdown, or having other technical issues? You are stuck there when there is no service center or any other assistance. Choosing roadside assistance coverage with your vehicle insurance is the answer. This add-on cover provides you the swift services such as fuel refill, battery jump-start, flat tire change, towing, spare key arrangement, and many more.

Personal Accident Cover: This add-on provides cover for the owner and driver in case of accidental death, Permanent Total Disablement, Permanent Partial Disablement, and Temporary Total Disablement.

No Claim Bonus: Shield Cover No claim bonus is a reward given by the insurer to the policyholder in case of a claim-free policy period. By choosing no-claim bonus shield cover, you do not lose NCB benefits even if you make a claim in a policy year for your commercial vehicle.

Consumables: Engine oil, nut, bolt, washers, etc. are utilized for repairing the vehicles. By choosing this add-on cover, you are reimbursed for the cost of these consumables.

Penalty Coverage: By choosing this add-on cover, the insurer will pay for the penalty imposed on you by your client in case of damage to goods or delay in delivery of goods caused due to the accident of the vehicle.

Towing Charges Coverage: In case your business vehicle met with an accident in a manner that it cannot be driven on its own and requires towing, then the cost incurred in towing is covered under this add-on cover.

(Add-on covers may vary from insurer to insurer and are available at an extra cost)

Motor insurance claim Process
  • A claim under a motor insurance policy could be for personal injury or property damage related to someone else.
  • This person is called a third party for the claim purpose as the premium is also charged accordingly.
  • For damage to your own insured vehicle called an own damage claim and you are eligible for this if you are holding a comprehensive policy.
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