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Uncomplicating Motor Insurance

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Commercial Vehicle Insurance

Commercial vehicle insurance is a type of motor vehicle insurance that provides coverage if an accident is caused by or to a commercial vehicle. This motor insurance policy is customized insurance that covers losses and damages caused due to natural calamities, accidents, fires, collisions, etc. All businesses must buy a motor insurance plan for their commercial vehicles, including pick-up vans, auto-rickshaws, school buses, tractors, etc.

Commercial vehicles are important because they are used for transportation and are heavy-duty vehicles used for everyday purposes. Commercial vehicles include trucks, buses, autorickshaws, bulldozers, cranes, tractors, etc. Thus, businesses need to cover these vehicles to protect themselves against financial losses that may be caused due to accidents on the road or any natural or artificial calamities.

Why is Commercial Vehicle Insurance Important?

Commercial vehicle insurance is essential for several reasons. These include:

  • Suppose you own one or more vehicles for business purposes. In that case, commercial vehicle insurance will protect your business from any financial losses that may arise due to accidents or damages caused to or by the vehicle and the people using it.
  • As mandated by the Law, a Liability Only coverage is compulsory to drive the vehicle on the roads in India. This coverage protects you from financial losses that may arise due to damage caused to third parties by your commercial vehicle.
  • If you own a business that regularly uses vehicles, the owner and the passengers will have the assurance that they are covered for and protected.

Types of Commercial Vehicle Insurance in India

There are three types of private commercial vehicle insurance that you can buy in India. The types of insurance available include:

01

Comprehensive Commercial Vehicle Insurance Plan

A comprehensive commercial vehicle insurance plan provides coverage to the rider against its damages in addition to the third-party liability cover. The plan protects you from damages caused to your commercial vehicle due to unnatural disasters, natural disasters, theft, accident, calamities, and other similar occurrences. It also includes a personal accident cover if you incur injuries while driving on the roads in India.

02

Third-Party Commercial Vehicle Insurance Plan

As the name states, a third-party commercial vehicle insurance plan protects you from any legal obligations that may arise if you cause damage or injury to a third party. The third-party may be a vehicle or/and a person. This plan covers you against any liabilities that arise if you damage the vehicle or property of a third party. It also covers the liabilities that arise due to injuries caused to a third party in an accident.

Every vehicle plying on the roads in the country must have a third-party liability cover in place. If you are driving your vehicle without valid insurance, you might have to face fines and punishment.

03

Own Damage Commercial Vehicle Insurance

You can buy a standalone own damage cover without buying a comprehensive commercial vehicle insurance policy. An own damage cover covers explicitly the damages and losses caused to your commercial vehicle.

Thus, you can decide whether you want to buy a third-party liability-only cover or a comprehensive policy. The premium on the comprehensive policy is more than a third-party only cover so that you can choose according to your budget.

Types of Commercial Vehicles Covered and Features

There are different categories when it comes to commercial insurance. Let us understand the types of commercial vehicle insurance their features:

Passenger Carrying Vehicle Insurance

01

Passenger carrying commercial vehicles include those vehicles that carry one or more passengers, such as buses, taxis, autorickshaws, school buses, etc.

02

The vehicle has a huge responsibility as it carries passengers daily.

03

The policy provides coverage for damages caused due to artificial and natural calamities.

04

The policy provides a third-party only cover as well as a comprehensive insurance cover.

05

One can opt for cover for owner-driver and co-passengers after paying an extra premium.

06

A lot of people depend on these vehicles for their income and livelihood. Commercial vehicle insurance ensures that they are always protected in case of unfortunate events.

Goods Commercial Vehicle Insurance

  • Goods carrying commercial vehicle vehicles transport goods from one place to another. Some examples of these vehicles are trucks, lorries, tempos, etc.
  • The policy provides a third-party only cover as well as a comprehensive insurance cover.
  • You can enhance the benefits of the policy by including add-on covers.
  • If your business uses trucks to transfer goods from one place to another, you can also ensure the goods they carry under commercial vehicle insurance. You must pay an extra premium to protect against financial losses caused if the goods get damaged or lost during transit.
  • One can opt for cover after paying an extra premium.
  • A lot of people depend on these vehicles for their income and livelihood. Commercial vehicle insurance ensures that they are always protected in case of unfortunate events.

     

Miscellaneous and Special Vehicle Insurance

  • Businesses often use many other commercial vehicles for their work. Some of these vehicles are used primarily for farming, mining, or construction purposes.
  • The policy provides a third-party only cover as well as a comprehensive insurance cover.
  • You can enhance the benefits of the policy by including add-on covers.
  • Given the size and investment that these vehicles require, insuring them under commercial vehicle insurance is a good idea. This will help you reduce your losses significantly in case of damages.
  • One can opt for cover after paying an extra premium.
  • A lot of people depend on these vehicles for their income and livelihood. Commercial vehicle insurance ensures that they are always protected in case of unfortunate events.

Inclusions in Commercial Vehicle Insurance

Commercial vehicle insurance compensates you for financial losses arising from damages caused by or to your vehicle. Most commercial insurance companies provide cashless compensation if you get your vehicle repaired at one of the network garages.

Numerous insurance companies offer plans that are

01

Death of Third Party:

This insurance policy covers the death of the third party due to an accident with the insured vehicle. The death case will be directly reported to the MACT (Motor Accident Claims Tribunal), and the claims have no limits. It is necessary to include the driver's license number and the name and details of the witnesses while lodging the FIR.

02

Damage to the property:

TPL (Third-Party Liability) insurance also covers the property damage of the third party. In this case, the insurer will pay for any kind of damage to the property of a third party by the insured.

03

Loss or damage to third-party leading to disability:

The policy covers the loss or damage to the third party which causes any disability by the insured vehicle. The compensation is different in terms of any partial disability or total disability.

04

Owner cover:

It also covers the owner of the vehicle who drives the commercial vehicle in case of an accident.

05

Natural and Manmade Calamities including:

  • Fire, explosion, and self-ignition or lightning
  • Burglary or theft
  • Riot and strike
  • Earthquake
  • Accidental external means
  • Malicious activity
  • Terrorist activity
  • While in transit by rail, road, air, inland waterways/ lift elevator.
  • Landslide or rockslide
  • Flood, typhoon, hurricane, tempest, inundation, storm, frost, cyclone, hailstorm

Exclusions under the Commercial Vehicle Insurance Policy

The insurance company will not be liable to make any payment in respect of the following:

  • Gradual wear and tear of the commercial vehicle or its parts.
  • Damage to tyres or tubes due to oil leakage.
  • Any accidental loss or damage when the insured is under the influence of alcohol or drugs.
  • Consequential loss or damage to the vehicle
  • If a private commercial vehicle is used for commercial purposes.
  • Driver without a valid driving license.
  • Damage to the commercial vehicle due to nuclear war, radiation, etc.
  • Any loss or damage when the policy is not in force.

Add-ons in Commercial Vehicle Insurance Plans

When you buy a commercial vehicle insurance policy, various insurance companies offer a wide range of add-on covers. Add-on covers enhance the scope of protection under the insurance policy and compensate you for losses other than the basic ones mentioned in the policy. An add-on cover gives more comprehensive coverage from chances of mishaps or any unfortunate events in the future.

Add-on covers can vary from insurer to insurer, and you can decide the add-on covers you wish to buy with your commercial vehicle insurance plan. The add-on covers that can be availed while purchasing or renewal of commercial vehicle insurance include:

01

Personal Accident Cover

You must include a personal accident cover in your commercial insurance policy plan as having a personal accident cover is compulsory by Law. The cover provides coverage for bodily injury or death of the owner-driver if there is an unfortunate incident on the road.

02

Zero Depreciation Cover

Zero Depreciation Cover is one of the most popular covers that you must consider. Zero Depreciation plays a vital role in reimbursements of policy as well as claim settlements. This add-on cover offers the total claim amount to the policyholder without any deduction made for Depreciation (rearranged this). It allows the policyholder to claim the entire amount for any replaced commercial vehicle parts damaged in the accident.

03

Passenger cover

The passenger cover is a way to ensure that the people sitting in your commercial vehicle are covered. This covers the cost incurred by the occupants of your vehicle in case of an accident, provides disability liability cover, and offers financial assistance in case of the passenger's death.

04

Roadside Assistance

While buying two-wheeler insurance, one can opt for roadside assistance cover. This cover helps in case of occurrences like a flat tyre, towing, minor repairs, etc.

05

Engine Protection Cover

Going by the name of the add-on cover, this cover protects the engine, which is the heart and soul of your commercial vehicle. The insurer will compensate you for the cost spent on the repair of the engine. The reasons for damage include:

  • Leakage of lubricating oil
  • Damage to gearbox
  • Water ingression
  • Hydrostatic lock – the blockage in the engine of your commercial vehicle that occurs due to flooding or water ingression.

Things To Consider While Buying Commercial Insurance

You need to consider some things while buying a commercial insurance policy so that you buy a policy that suits your business needs. The things that you must consider are:

01

Type of commercial vehicle insurance policy:

There are three types of commercial vehicle insurance that you can buy: a third-party liability plan, standalone own damage cover, or a comprehensive insurance plan. People who want a full-proof commercial insurance policy can purchase a comprehensive insurance plan that covers their own damages as well as third-party liabilities.

02

Cashless Network Garages:

While buying a commercial vehicle insurance policy, checking the network garages available in your vicinity is essential. This will help you file cashless claims in case there is an unfortunate incident.

03

Add-On Covers:

Before buying a policy, you must check the add-on covers or optional coverage that comes with it. There are different types of covers that you can buy, but you must evaluate your requirements and then include them in the policy.

04

Deductibles:

Only opt for deductibles if you can pay some amount of the claim from your own pocket. Before you buy a policy, read the terms and conditions regarding deductibles so that you do not face problems later.

05

Policy Coverage:

When buying a new commercial vehicle insurance policy, always make sure that the insurance policy should cover:

06

Damage/Loss Due to natural disasters:

Rockslide, landslide, fire, explosion, self-ignition or lightning, flood, earthquake, frost, hailstorm, storm, typhoon, hurricane, tempest, cyclone, deluge, etc.

07

Damage/Loss Due to human-made disasters:

Accident by outside means, terrorist activity, burglary, theft, riot, strike, malicious act, any damage done during transit -road, rail, inland waterway, lift, elevator, or air.

While buying a policy, it is essential to research, compare, and then buy a policy that you think will fit your requirements. Also, keep the points mentioned above in mind so that there are no problems.

Things To Consider While Buying Commercial Insurance

With the enhancement in tech, you can conveniently compare different policies and choose the one you think is suitable. Going to various commercial vehicle insurance sites or offices just to pick up their sales brochure is history now. With a site like RenewBuy, you will find all the information you need on a single page. The immense ease of use and enhanced user experience is a crucial strength of RenewBuy and why people use this site to compare commercial vehicle insurance plans.

These are the key elements that are considered while comparing a commercial vehicle insurance policy:

01

Commercial Vehicle Make. Model and Variant:

This information is essential when you compare a commercial vehicle insurance policy. Depending upon this information, the premium that you pay is calculated.

02

Year of Manufacture:

The year of manufacture will help the insurance company decide the commercial vehicle's IDV (Insured Declared Value). This will help the underwriter calculate the amount of premium that you need to pay. The more the IDV, the higher the premium you have to pay for the policy.

03

Add-On Covers:

There are some add-on covers that you can buy to cover the electric and non-electrical accessories in your commercial vehicle. Companies provide this at an extra premium.

04

Registration Zone:

The place where your vehicle is registered also influences the premium you pay towards a policy.

Thus, these are points that you must include when you compare different policies. You have to put inaccurate information so that you get the right policies according to your vehicle.

Why Choose RenewBuy?

01

Relevant listings:

The idea is to have a transparent system of listing commercial insurance providers as per specific customer needs, so all the details about terms, rates, and unique details are available to you. This makes the buying decision simplified for those who use it.

02

Updated Information:

The main characteristic of your commercial vehicle insurance comparison process is the accuracy and relevance of the listings provided. We keep the latest and most up-to-date information for the benefit of our customers.

03

Ease of Comparison:

The intuitive layout and clutter-free interface help speed up the time you take to compare the insurances. You can easily compare commercial vehicle insurance plans from multiple providers on one single screen.

04

Customer-Centric Servicing:

The focus is on delivering all-around convenience to you is well-known. Our customer support is accessible for any query you may have on any facet of buying insurance online. One of the primary benefits of comparing commercial vehicle insurance is that it adds tremendous value to your online insurance purchase requirement.

Process of Commercial Vehicle Insurance Comparison

  • Go online and log on to the RenewBuy website (www.renewbuy.com).
  • Select your city and details about the commercial vehicle like its year of manufacturing, make, model, and variant.
  • Check the IDV and deductibles
  • Check claim settlement history of the provider
  • Select any add-ons you want to opt for
  • Select one of the providers that offer value for money pricing based on your preferences

The process is simple, and you will get the results in a few minutes. You can check the list of policies and decide the policy that suits your requirements.

Renew Commercial Vehicle Insurance

Renewing your commercial vehicle insurance policy on time is essential so that you can enjoy the benefits of the policy. Also, driving your commercial vehicle on the road without a valid third-party liability insurance cover is illegal, and you might have to face punishment if you do that. So, always renew your commercial vehicle insurance policy on time.

Documents Required for Commercial Vehicle Insurance Renewal

When renewing a policy, you can compare different commercial insurance policies available in the market. You can check the plans offered by visiting the Renewbuy website and submitting all the needed information. Going online saves time as well as effort, and several facilities are being provided online for potential customers to understand the policy thoroughly. Comparing and evaluating these plans helps you make an informed decision on the plan that is most suitable for you.

  • Registration Certificate.
  • Driving License
  • Previous year insurance policy
  • Any other documents that the insurer might need

* To make the renewal process even swifter, one must keep the documents mentioned above ready. Having these documents handy will help fill out the details required for renewal and make the payment.

How to Buy a Commercial Insurance Policy Online?

Commercial vehicles are an essential part of any business. Buying new commercial vehicle insurance online is not a complicated process; in fact, it is easy. Anyone can buy a policy online by entering a few details, making the payment, and you can get the policy instantly in a few clicks. To buy an insurance policy, all you need is a smartphone or a laptop with an internet connection.

Required Documents

Buying a policy online is one of the most convenient things due to advancements in technology. You need the below-listed documents to buy commercial vehicle insurance:

01

Registration Certificate

02

Invoice of the vehicle

03

Valid Driving License

The steps for buying commercial vehicle insurance online include:

01

Fill in the make and model of the vehicle

02

Fill in the purchase year of the vehicle

03

Click on the Instant Quote Button

04

You can also customize the policy according to the add-on covers that you wish to buy.

05

Compare plans, select, and pay for your desired policy

Commercial Vehicle Insurance Claim Process

Third-party Claims

In case of injuries or death occurring to third-party in an accident, the insurance company bears the liability. The victims (injured in case of injury / Dependents in case of death) must approach the respective Motor Accident Claims Tribunal (MACT) to file a legal recourse for compensation which will be duly taken care of and settled by the insurance company directly.

Claims in Case of an Accident

  • Inform your insurance company about the damage that happened to your commercial vehicle immediately.
  • Inform the police and file FIR if your commercial vehicle has sustained multiple impacts, bodily injuries, and casualties to anyone in the accident.
  • You may refer to the insurance company's website or reach RenewBuy claim support to know your nearest cashless garage. The commercial vehicle is then taken to one such Network garage under the Insurance company. After taking the commercial vehicle to the garage, a repair estimate was made post commencement of the survey.
  • A surveyor from an insurance company visits and discusses the estimate with the workshop.
  • Once the surveyor finalizes the estimate and consents to his approval post, the garage will proceed with repairs accordingly.
  • The duration of claim settlement is decided by the insurance companies and varies from company to company.
  • Depending on the policy the opted the Policyholder liability varies

In Case of Theft of the Commercial Vehicle

  • Immediate information to police authorities- In case the commercial vehicle is stolen, one has to inform and file a complaint with the nearest police station or where the incident has happened.
  • Intimation to the insurance company- After informing the police station, one must inform the insurance company about the incident.
  • Investigation- The insurance company appoints an investigator who verifies the claim's facts and authenticates the same.
  • Two sets of keys- Two sets of keys are required for claiming a stolen commercial vehicle. If one key is only presented, the insurance company presume that the other key was left in the vehicle at the time of theft.
  • Original RC copy- One needs to have the original RC Copy for making a theft claim.
  • Intimation to RTO authorities for RC cancellation - To avoid any fraudulent activity that may happen from your registered RC of your stolen commercial vehicle, the RTO needs to be kept informed for the same.
  • Insured statement- The victim has to give a detailed insured statement to the insurance company, which includes the details like- where was the commercial vehicle parked, the time and date on which the commercial vehicle was seen for the last time, date of theft, etc. as asked by the insurance company.

It is always advisable to go for a comprehensive motor insurance policy with sufficient add-on covers like depreciation waiver, Engine protection, consumables, etc., for 360-degree protection for damages caused to your vehicle due to accident, theft, or any natural disaster.

Documents Required to File a Claim

  • Claim form (filled and signed)
  • Original Driving License
  • Registration Certificate of the Commercial Vehicle
  • Copy of FIR
  • Receipt of the Tax Paid]
  • Copy of identity proof like Aadhar Card
  • Insurance Document
  • Route Permit’
  • Load Challan of the commercial vehicle

Thus, these are the documents you need if you wish to file a commercial vehicle insurance claim. While filing a claim, keep these documents handy to make your claim filing process smooth and convenient.

Bottom Line

A commercial vehicle insurance policy is essential to protect your business from financial losses that may arise due to the damages caused by your vehicle to a third-party or damages caused to your own vehicle. A third-party liability cover is compulsory if you wish to drive your vehicle on the roads in India. Thus, after careful comparison, reading the terms and conditions, and considering the extra covers that you wish to buy, you can purchase a commercial insurance policy for yourself.