Buying a commercial vehicle insurance policy is essential if you want to transport goods or people by road. It is also necessary if you engage in farming, construction, or other activities using these vehicles. You can purchase commercial vehicle insurance online from various insurance providers.
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Buying third-party insurance is mandatory for all vehicles in India. An additional complete commercial vehicle insurance policy will provide better protection to your vehicle in case of unfortunate incidents. Read on to know everything you need to buy a commercial vehicle insurance policy.
What is commercial vehicle insurance?
Commercial vehicle insurance policies provide financial protection against loss or damage to commercial vehicles due to accidents, theft, fire, natural disasters, etc. This is in addition to the legally required third party liability cover. Moreover, a comprehensive policy also protects the vehicle driver and the people injured in an accident.
Inclusions
A commercial vehicle insurance policy provides financial protection in case the following:
- Damage or loss caused due to an accident
- Theft of the vehicle
- Any loss or damage caused due to fire
- Damages due to natural disasters like floods, storms, etc.
- Injury or death of the driver in case of an accident
- Towing of the damaged vehicle if required
- Loss or damage caused to any third party
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In addition to the above, you can purchase several other add-ons to extend the policy coverage. These add-ons include consumables cover, depreciation cover, engine-gearbox cover, loss of revenue cover, EMI protection cover, etc.
Exclusions
There are certain instances where the commercial vehicle insurance policy will not cover the loss or damage to your commercial vehicle. These exclusions include:
- Own damages for a simple third-party insurance policy.
- Loss or damage is caused if the driver was drunk while driving or driving without a valid driving license.
- Damages were caused due to contributory negligence of the driver.
- Consequential damages are not directly caused by accident, theft, fire, natural disasters, etc.
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Comparing commercial vehicle insurance policies
There are two types of commercial vehicle insurance policies that you can purchase. These are:
- Third-party liability insurance policy: This is legally required for all vehicles in India under the Motor Vehicles Act. Third-party insurance for commercial vehicles protects third parties involved in an accident against loss, damage, injury, or death caused by the vehicle.
- Comprehensive commercial vehicle insurance policy: Comprehensive commercial vehicle insurance policies provide financial protection against loss or damage to the insured vehicle. These plans cover loss or damages caused due to accidents, theft, fire, and natural disaster like floods, storms, etc.
How to calculate commercial vehicle insurance premium?
You have to renew your commercial vehicle insurance by paying premiums annually. You can calculate the premium payable directly from an online commercial vehicle insurance calculator. Several factors can affect the premiums payable for a commercial vehicle insurance policy. These factors include:
- Vehicle make, model, and engine
- Vehicle purpose
- Registration location
- Insurance type
- NCB
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How to file a claim?
Filing a claim for commercial vehicle insurance is a simple process. In case of damage or loss of the vehicle, inform your insurance provider immediately. You can do this by calling a toll-free helpline number of that company or sending an email. Most insurers also allow you to file claims online. The documents required to file a claim include:
- Vehicle documents: Registration Certificate, fitness certificate, vehicle tax receipt, load challan, route permit
- Driver’s documents: Original driving license, Aadhaar card copy
- Insurance documents: Duly signed and filled claim form, original policy papers
- Copy of the FIR in case of accident or theft
Renewal
You can renew the commercial vehicle insurance policy either the traditional way by visiting your insurance provider’s office or their agent. You can also renew your policy online by visiting the insurer’s website and filling in the required details. Payments can also be made online.
Buying a comprehensive commercial vehicle insurance policy provides you peace of mind in case of an accident or theft. Visit the insurance providers’ websites, compare their policy details, and select the best policy according to your requirements.
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