A DETAILED ANALYSIS OF COMMERCIAL VEHICLE INSURANCE IN INDIA

In India, logistics play a key role in boosting the smooth functioning of a business. Whether it is a service-based organization or a manufacturing enterprise, the logistics function ensures that output is always available when there is demand. This is why commercial vehicles hold an important component when it comes to the logistics operation of an organization. Now, as damages to these vehicles can disrupt business operations, and impact the cash flow of the business, these vehicles need a strong shield. This shield is called commercial vehicle insurance that can protect the vehicle from high usage, exposure to long distances, and operational risks.

In addition to this, the presence of reliable insurance aggregators, like Quickinsure, allows you to visit multiple insurers separately. The platform helps you to compare premiums, coverage, and features of commercial vehicle insurance from top providers in India, thereby saving your time and money simultaneously.

What Does Commercial Vehicle Insurance Mean?

Commercial vehicle insurance is an insurance policy that is specifically designed to offer coverage for damage or losses to commercial vehicles. Similar to personal vehicles, these vehicles also needed to be insured according to the Motor Vehicles Act. If you fail to insure these vehicles then they can attract heavy penalties. Therefore, organizations that own commercial vehicles that must have third-party coverage. Whenever you plan to buy commercial vehicle insurance through online platforms or offline, always make sure you buy the right type of policy suited for your vehicle category.

What is the Need for Commercial Vehicle Insurance?

Following are reasons why commercial vehicle insurance is essential for your business:

●        Whether it’s a tempo, taxi, or truck, heavy vehicle insurance is mandatory to meet legal requirements.

●        It safeguards your business against unexpected financial losses due to accidents, damage, or other unforeseen events.

●        It provides confidence to stakeholders and passengers that they are always protected and insured.

●        For businesses carrying passengers, commercial vehicle insurance helps avoid financial burdens arising from injuries or damages to passengers.

●        Furthermore, buying insurance online makes it easier to compare policies, choose the right one, and complete payments or renewals anytime, at your convenience.

What Does Commercial Vehicle Insurance Cover?

Commercial motor vehicle insurance is mainly designed to cover vehicles used for business purposes. Here’s what it actually covers:

●        It provides coverage for physical damage to your vehicle. This includes damage from an accident, fire, theft, or vandalism.

●        This helps protect you in case you are found responsible for an accident that causes damage to another person’s property and or injuries to someone.

●        This insurance also helps you cover the cost of medical treatment for you and your passenger if you face an accident.

●        It also protects uninsured and underinsured motorists. This means it protects you from an accident with a driver who does not have any insurance or desired insurance to cover the damage they have caused.

●        It also covers the amount that damages your vehicle because of natural calamities such as floods, cyclones, earthquakes, etc.

●        Moreover, it provides coverage for the commercial vehicle that undergoes any damage due to fire, explosion, or lightning.

Type of Commercial Vehicles Covered in These Insurance Policies

Commercial vehicle insurance not only offers coverage for trucks and buses. They cover a wide range of vehicles, including:

1.    Passenger-Carrying Vehicles

●        School and college buses

●        Taxis and cabs

●        Tourist buses

●        Auto-rickshaws

●        Passenger buses

●        Tractor

●        Commercial vans

●        Commercial two-wheeler

●        Trucks 

2.    Goods-Carrying Vehicles

●        Light Commercial Vehicles

●        Trailers

●        Tankers

●        Heavy Commercial Vehicles

●        Containers 

3.    Miscellaneous Commercial Vehicles

●        Agriculture vehicles like tractors

●        Ambulances

●        Construction machinery like dumpers or excavators

Diverse Types of Commercial vehicle Insurance Policies

There are different types of policies that offer suitable coverage plans to vehicle owners. Some major types are as following:

1.    Third-Party Liability Insurance

In India, this commercial vehicle insurance third-party is the minimal legal requirement that provide financial supports for the following:

●        Property damage of third parties

●        Injuries or death of a third party

●        However, it does not cover any damage to the insured vehicle or the owner-driver.

2.    Comprehensive Insurance Policy

This provides expansive protection to the vehicle owners, which includes:

●        Own damage cover

●        Third-party liability

●        Vandalism

●        Mandatory personal accident cover which means these policies offer compensation to the owner-driver in the event of death or permanent disability.

●        Theft, riots, or fire incident

What is Not Covered in Commercial Vehicle Insurance?

Even the insurance policies offer extensive coverage, there are certain exclusions which include:

●        Damage caused by normal wear and tear of the vehicle.

●        Mechanical or electrical failures not linked to an accident.

●        Accidents occurring while driving under the influence of alcohol or drugs.

●        Losses or damages due to war, nuclear risks, or related events.

●        Driving vehicle without a valid license.

●        Damages caused due to driving vehicles outside undefined geographical areas.

●        Consequential losses, such as business interruption, are not directly linked to the accident.

●        Using the vehicle for illegal purposes or in ways not covered under the policy terms.

Add-On Covers to Enhance Protection

Add-ons are optional features that vehicle owners can avail for more customized protection. These covers have wide range of plans such as:

1.    Zero Depreciation Cover

This type of add-on plan eliminates the depreciation cost on parts replaced after an accident, thereby ensuring a higher claim amount.

2.    Engine Protection Cover

This plan is widely beneficial for vehicle owners staying in monsoon-prone areas. It covers engine damage due to waterlogging or oil leakage.

3.    Roadside Assistance

This particular coverage provides help during breakdowns, towing, flat tires, lost keys, etc.

4.    Return to Invoice

This particular plan covers the difference between the IDV and the original invoice value in case of total loss or theft.  It is generally available for newer vehicles and limited to certain vehicle categories.

5.    Legal Liability for Paid Driver, Cleaner, or Conductor

This add-in plan is mandatory in certain types of commercial vehicles, such as buses or large trucks.

How to Choose the Right Commercial Vehicle Insurance Policy

There are a number of insurers and policy plans available in the market. Here’s what to focus on:

1.    Usage Type

You need to choose policy plans based on your usage types. This is mainly because there are different plans for good transport vehicles and passenger transport vehicles.

2.    Vehicle Age and Type

Always check the premiums, as they vary for new and old vehicles.

3.    IDV Selection

Choose the right Insured Declared Value to avoid underinsurance.

4.    Add-On Covers

Evaluate coverage plans based on geographic risks and operational patterns.

5.    Insurer’s Claim Settlement Ratio

This ratio Indicates reliability during claim settlement

6.    Garage Network

Access to cashless repairs in your area

7.    Customer Support

You should also check the availability of dedicated help during claims and emergencies.

How to Buy or Renew Commercial Vehicle Insurance in India?

With the rise of online platforms, purchasing or renewing insurance of commercial vehicle has become a seamless process. Here are some few steps that you need to follow while buying or renewing commercial vehicle insurance:

Buying a New Policy

●        At first, visit insurer or aggregator website

●        Enter vehicle details, such as RC, registration number, etc.

●        Choose policy type, like third-party or comprehensive

●        Customize with add-ons

●        Review premium and make payment

●        Receive soft copy instantly via email

Renewal Process

●        Renew before the expiry date to avoid inspection

●        Review coverage and revise add-ons if required

●        Avail of No Claim Bonus (NCB) for discounts up to 50% if no claims were filed in previous

How to Fill a Commercial Vehicle Insurance Claim?

When it comes to safeguarding your commercial vehicles, choosing the right insurance partner makes all the difference. This is where Quickinsure stands apart from regular aggregators. Instead of simply showing you a list of policies, Quickinsure provides a smart comparison engine that instantly scans 30+ top insurers in India, delivering the best plans tailored to your truck, taxi, bus, or fleet within seconds.

Businesses often struggle during claims, but Quickinsure ensures you are never left alone. Its dedicated claim assistance team works with insurers to fast-track settlements and minimize downtime. This makes your logistics keep moving without disruption. For companies managing multiple vehicles, Quickinsure also helps design fleet insurance solutions that optimize coverage and reduce costs. With transparent pricing, no hidden charges, access to a wide garage network, and expert guidance available 24/7, Quickinsure positions itself as more than just an insurance platform. It becomes a reliable partner for your business growth and continuity. 

Steps to fill the claim for commercial vehicle insurance:

Filing a commercial vehicle insurance claim though seems difficult, but with the assistance of the right insurance service provider, it becomes easy and straightforward. Here are some major steps that help you in the claim process flow with support of Quickinsure:

Step 1: Inform Quickinsure or your insurer immediately after the incident.
Step 2: File an FIR (mandatory for third-party injuries, theft, or major damages).
Step 3: Upload or submit documents like policy copy, RC, license, and FIR through the Quickinsure portal.
Step 4: A surveyor inspects the vehicle and approves repairs.
Step 5: Get your vehicle repaired at a network garage for cashless settlement or pay upfront and get reimbursed.

Also, with Quickinsure, you can track claim status online in real time, ensuring complete transparency throughout your commercial vehicle insurance claim process. 

Documents Needed:

●        Insurance Policy Document

●        Registration Certificate (RC)

●        Driver’s licence

●        FIR copy (if applicable)

●        Claim form

●        Repair bills or invoices (in case of reimbursement)

Regulatory Framework and Guidelines

The Insurance Regulatory and Development Authority of India (IRDAI) governs motor insurance in India. Here are some guidelines that you should take a note of:

●        Long-term third-party insurance (3 years for new commercial vehicles)

●        No Claim Bonus (NCB) transfer between insurers with proper documentation

●        E-Vahan integration for digital verification

●        Compulsory PA cover of ₹15 lakh for owner-driver, unless already covered under another personal accident

Costs of Commercial Vehicle Insurance

The premiums of commercial vehicle insurance based on several factors including:

●        Type and model of vehicle

●        Gross Vehicle Weight

●        Add-on covers

●        Area of operation like urban or rural

●        Zone classification like metro cities fall under Zone A

●        Past claim history

●        IDV selected

Latest Updates in Commercial Vehicle Insurance

The Insurance Regulatory and Development Authority of India (IRDAI) has introduced several reforms to make commercial vehicle insurance more relevant and future ready. Some of the key updates include:

●        Long-Term Third-Party Insurance
For new commercial vehicles, IRDAI has mandated long-term third-party insurance policies, up to 3 years. This helps businesses avoid yearly renewals and ensures continuous compliance with the Motor Vehicles Act.

●        Coverage for Electric Commercial Vehicles (EVs)
With the rapid adoption of electric fleets, like e-rickshaws, electric buses, and last-mile delivery vehicles, insurers are now offering special EV commercial vehicle policies. These plans cover risks unique to EVs, such as battery damage, charging station accidents, and specialized spare parts.

●        Digital Policy & Claim Process
IRDAI is pushing insurers and aggregators to fully adopt digital issuance and claim tracking through platforms like e-Vahan and DigiLocker. This reduces paperwork, speeds up claims, and enhances transparency.

●        Focus on Road Safety & Telematics
The regulator has also encouraged the use of telematics-based insurance where premiums are linked to driving behavior, mileage, and safety scores. This is expected to lower costs for businesses with disciplined drivers.

The Bottom Line

When it comes to safeguarding your commercial vehicles, choosing the right insurance partner makes all the difference. With Quickinsure, you can instantly compare plans from top insurers, explore add-on covers, and select policies tailored to your business needs, all in one place. The platform ensures quick, hassle-free purchase and renewal with complete transparency, helping you save both time and money while keeping your vehicles and business operations fully protected.

If you are planning to secure your truck, taxies, and buses with comprehensive insurance plans, feel free to reach out to our experts today!

FAQs:

Q1. Is commercial vehicle insurance mandatory in India?

Yes, under the Motor Vehicles Act, it is mandatory for all commercial vehicles, whether goods carriers or passenger carriers, to have at least third-party liability insurance.

Q2. What is the difference between third-party and comprehensive commercial vehicle insurance?

Third-party insurance covers only damages or injuries caused to a third party. While comprehensive insurance provides broader protection, including own damage, theft, fire, natural disasters, and mandatory personal accident cover.

Q3. How is the premium for commercial vehicle insurance calculated?

Premiums depend on factors like vehicle type, gross vehicle weight, insured declared value (IDV), area of operation, add-on covers selected, and past claim history.

Q4. Can I buy or renew commercial vehicle insurance online?

Yes, with the help of insurance aggregators like Quickinsure, you can compare policies, customize add-ons, buy new insurance, or renew existing ones online without visiting multiple insurers.

Q5. What documents are required to file a commercial vehicle insurance claim?

You typically need the insurance policy, registration certificate, driver’s license, FIR copy (if applicable), claim form, and repair bills or invoices in case of reimbursement.

Published on - 4/10/2015