COMMERCIAL VEHICLE INSURANCE

What is a commercial vehicle policy?

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. 

Why do you need Commercial Vehicle Insurance?

• 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.

Claim Process

Some motor insurance companies have a cashless claim process while some of them reimburse the claim. Let us look at the two cases:

In the case of the cashless process

• 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 the case of the non-cashless process

• 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.

Documents Required For Claim Process

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

Exclusions

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

Renewal Process

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.