As you might know already, according to the Motor Vehicles Act, 1988, all vehicles plying on public roads in India are mandatorily required to be insured. This includes vehicles that are used for both personal, business & commercial purposes. If you own a commercial vehicle or plan to own one in the near future, then it is crucial for you to know all about commercial vehicle insurance.
You can learn more about this in the following sections.
Now that you know what commercial vehicle insurance is, let’s take a look at why you need it.
Mandated by the law
As seen above, possession of a valid insurance plan is mandatory for motor vehicles, according to the Motor Vehicles Act, 1988. The Act states that every commercial vehicle that’s used on public roads must have at least a valid third-party commercial vehicle insurance.
Protects you financially
One of the major advantages of getting a commercial vehicle insurance is that it can provide some much-needed financial cushion in the event of an accident, damage, or loss caused to or by your vehicle.
For instance, if your vehicle is involved in an accident, you may have to pay damages or compensate for any losses to third-parties in addition to restoring your own vehicle to its original condition. Spending money out of your own pocket for all of this can end up being a significant financial burden. But with commercial vehicle insurance, these expenses will be taken care of by your insurance provider, thereby securing your finances.
Instills confidence in your customers
Commercial vehicle insurance also covers damages and losses to the goods that you transport using your vehicle. This tends to instill a sense of faith in your customers and can help put their mind at ease. Knowing that their belongings are well protected, your customers will likely be more willing to continue doing business with you.
Commercial vehicle insurance offers a lot more than just protection for your vehicle and your finances in the event of an accident or a mishap. Here’s a quick look at some of the key features:
Buying commercial vehicle insurance online is now a hassle-free process and can only take a few minutes.
Nearly all commercial vehicle insurance plans provide a paperless claim facility that expedites the claim process considerably. This means that you don’t have to get too stressed about having your claims settled on time.
With commercial vehicle insurance, you can also get all your claims settled directly through the cashless claims facility, thereby saving you plenty of time and effort.
If you feel the need to increase your coverage beyond a commercial vehicle insurance, then you can do so via the add-ons during the time of purchase.
If you’re looking to renew your insurance for commercial vehicles, here’s something that you may not know. You can actually renew it online within just a few minutes from the comfort of your own home. Here’s the step-by-step process that you would have to follow:
Step 1: Visit the website of your commercial vehicle insurance provider.
Step 2: Look for the policy renewal section.
Step 3: Fill in the required details, such as your policy number, the cover, the tenure for which you want to renew the policy, and the vehicle’s details, among other things.
Step 4: Submit the application with the details filled in.
Step 5: Pay your renewal premium online.
Just like renewing a commercial vehicle insurance online, filing a claim is also equally easy. Follow the guide below to lodge an insurance claim:
Step 1: Visit the website of your commercial vehicle insurance provider and register your claim online.
Step 2: Submit the documents required to register your claim. This typically includes paperwork to offer information like the engine and chassis number, the description of the accident, the date and time of the accident. Moreover, you will have to provide a copy of the police complaint in case your claim is for theft of your vehicle.
Step 3: The insurer will then assess your claim and the documents you’ve submitted.
Step 4: Once your claim is approved, it will be settled immediately.
The maximum tenure that insurance providers typically offer on a commercial motor insurance plan is 3 years.
The premium for your commercial vehicle insurance plan is determined based on factors such as -
Make and model of the vehicle
Type of vehicle
Engine capacity
IDV
Age of the vehicle
City of registration
Type of coverage
Add-ons chosen
Currently, there are two types of commercial motor insurance plans that you can choose from, namely comprehensive and third-party insurance.
No. You can only opt for add-ons at the time of purchase or renewal of your commercial vehicle insurance plan.
Comprehensive insurance is the better option since it covers both third-party liabilities as well as own damages to your vehicle.