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A commercial vehicle insurance policy is a type of insurance policy that protects the policyholder from any unforeseen arises from the accident. A Commercial Vehicle Insurance is a customized motor insurance policy to cover for damages and losses caused to or by a commercial vehicle and the respective owner-driver. This could include damages and losses in situations such as accidents, collisions, natural calamities, fires, etc. It is mandatory for all businesses to buy commercial vehicle insurance for their vehicles, such as for auto-rickshaws, cabs, school buses, tractors, and trucks, amongst others.
If your business owns one or many vehicles, it’s essential to get commercial vehicle insurance that will financially protect and cover your business from any losses and damages caused to and by your vehicle (s) and the people using it.
If your primary business involves the use of vehicles, such as a regular cab service or a private school bus, commercial vehicle insurance will assure your stakeholders and passengers that they’ll always be protected and covered.
As a mandate by law, it is compulsory to at least have a Liability Only policy in place, that protects third parties against any damages and losses that could be caused by your commercial vehicle.
Some motor insurance companies have a cashless claim process while some of them reimburse the claim. Let us look at the two cases:
The insurance company will shift the vehicle to the nearest network workshop for the repair work to be done within the stipulated time frame.
It will also arrange a cashless medical treatment facility if the nearby hospital has tied up with the insurance company.
In case the cashless process cannot be carried out due to reasons beyond the control of the insurance company, the policyholder needs to carry out repair work on their own at the nearest location which can later be reimbursed by the insurance company.
Make sure to get the original bill and payment receipt for all the repair work carried out as it will be required by the insurance company to process the claim.
Below are the important documents which the policyholder needs to submit for getting a timely claim:
Duly filled and signed claim form
RC of the vehicle along with a photocopy
Driving license of the driver who was driving at the time of the accident
Valid fitness certificate
FIR in case of third party death or injury or property damage
This insurance takes care of various areas that can put you into trouble. However, certain cases and situations are not covered by commercial vehicle insurance. Let us look at these exclusions:
General wear and tear, depreciation, electrical faults
Technical breakdown and damage, which is not accidental in nature
Damage under the “Drink and Drive” situation
Damage due to overloading the vehicle or its improper use
Damage caused due to driving the vehicle on incorrect routes, a gross violation of general traffic rules
Damage due to war, nuclear risks, ionizing radiations
Consequential loss; if the original damage causes loss or subsequent damage, only the original damage will be covered
The vehicle was driven by someone other than the driver
One can renew a commercial vehicle insurance policy either online or directly by visiting the branch. Most insurance companies provide a No-claim Bonus at renewals provided the policyholder hasn’t made any claim under the policy. One must check the amount of no claim bonus and renewal IDV (Insured Declared Value) before deciding on your policy cover and company.