Commercial vehicles are used to transport goods, passengers, or both. A commercial vehicle exposes the driver to constant and stressful situations, which can increase the risk of accidents, loss of goods, or even demise of the driver, passengers, or both. Expenses incurred as a result of this, if not covered, can have severe financial and legal consequences for the business owner.
This is where commercial vehicle insurance or liability insurance comes into play, as it protects the policyholder from bodily harm and demise in the event of an accident, as well as third-party liability and property damage.
What is commercial vehicle insurance?
It is an insurance policy that protects commercial vehicles against various types of damage, personal and third-party liabilities. The policy also covers the policyholder for any legal liabilities resulting from the demise, injury, or property damage of third parties caused by your vehicle use.
Advice: If you’re looking for specific covers or add-ons, it’s wise to check insurance premium calculator for commercial vehicle online to identify your affordable premium that caters your needs and goes easy on the pocket.
Commercial vehicle insurance policy types –
- Comprehensive commercial vehicle policy:
- Loss and damage to the insured
- third-party bodily harm
- Third-party vehicle and property damage
- Third-party insurance only covers injuries and property damage to third-party vehicles. It does not cover the insured for any loss.
What does commercial vehicle insurance cover?
It is wise to understand the coverage provided by commercial insurance companies to get the ideal deal. The insurance covers the following:
- Vehicle loss or damage as a result of:
- Theft and burglary are both crimes.
- Fire, explosion, and lighting
- Riots, terrorism, a strike, or a malicious act
- Earthquake, flood, storm, and landslide
- Nefarious act
- Terrorist activity
- Covered third-party insurance protects you from any bodily injury or demise of a third party and damage to that person’s property caused by using your insured vehicle.
Eligibility requirements –
Almost all commercial vehicles that transport passengers, goods or both in India can be covered by a commercial vehicle insurance policy. The following vehicles are covered under the insurance policy:
- Other goods and passenger transport vehicles
One can insure their vehicle through specialised commercial vehicles policies such as commercial car insurance, bus insurance, truck insurance, and taxi insurance.
What is the purpose of commercial vehicle insurance?
You should thoroughly understand and know all the details and policies of public liability insurance, so that you can take advantage of all benefits when they are available. Let us look at how it works:
- Examine your requirements thoroughly to determine your need for the sum insured.
- Also, before settling on a single plan, investigate the insurance companies, plans, and policies.
- Submit the completed proposal form along with any other required documents.
- In the event of an unfortunate event, notify your insurance company of the details of the accident, damage, location, and policy details. Additionally, submit vehicle and other claim-related documents to the insurance company as required.
- Following your notification, the insurance company dispatches a surveyor to determine the extent of the damage and the amount payable under the terms of the policy.
- In case of a third-party claim and accidental demise or severe injury, you must file a First Information Report (FIR) at your nearest police station. It is required to process claims for third-party damage, medical expenses for the injured, and compensation for the deceased in the accident.
- After the necessary repairs and procedures have been completed, the liability insurance company returns the vehicle to the owner within the time frame specified.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.