Commercial Vehicle Insurance

Know about the types, benefits and coverage details of a commercial vehicle insurance policy.

3 Mins
01 Feb 2023

Commercial vehicle insurance is a tailored motor insurance policy for commercial vehicles, such as vans, trucks, trailers, taxis, buses, tractors, and more. For businesses or individuals relying on vehicles for commercial operations, commercial motor insurance is immensely important since it covers the damages and losses to the commercial vehicle during its daily run.

Benefits of commercial vehicle insurance

If your business owns one or many commercial vehicles, commercial motor insurance becomes a must for you. It financially covers your business from several losses and damages caused to and by your vehicle. Below are a few benefits of having commercial vehicle insurance:

  • Comprehensive coverage

    Policyholders get comprehensive coverage for both private and public commercial vehicles.

  • Third-party insurance

    In an event of an accident or injury, the policy provider will take care of third-party liabilities, including injury or damage to the third-party’s body or property.

  • Personal accident cover

    A personal accident cover provides financial coverage to the owner and the driver during the time of an incident.

  • Financial support

    Individuals with commercial vehicle insurance can rest stress-free as the possible vehicle-related financial concerns will be taken care of by the insurance provider.

Different types of commercial vehicle insurance

Ideally, there are two types of commercial vehicle insurance policies:

  • Comprehensive commercial vehicle insurance

    This commercial vehicle insurance plan provides coverage against any sort of damage caused to the insured's vehicle because of robbery, flood, theft, fire, earthquake, etc. Further, all the benefits of third-party insurance are also covered under a comprehensive insurance plan.

  • Commercial vehicle's third-party liability insurance

    A third-party commercial car insurance policy is mandated by law and covers damages and losses caused by your vehicle to any third party or their properties.

Add-on covers available on commercial vehicle insurance

You can also opt for several add-on covers with a commercial vehicle insurance policy. Some of them are:

  • Consumable cover

    This option offers financial coverage for the smallest vehicle components, such as screws, bolts, grease, and engine oil, in case of damage caused by an accident.

  • Engine and gearbox cover

    Damages, such as fluid leakage or water regression, are covered under this add-on facility.

  • EMI protection cover

    This add-on cover helps pay the EMI for a loan taken to buy the vehicle.

  • Roadside assistance

    Those opting for this additional coverage get roadside assistance if their vehicles break down due to a flat tyre, accident, or problems with the battery.

  • Loss of revenue

    The insurance provider will provide compensation for the loss of income if the vehicle suffers any damage due to an accident and is at a garage for repair.

Factors to look for while buying or renewing a commercial vehicle insurance policy

Here are some pointers to keep in mind while buying or renewing a vehicle insurance policy:

  • Third-party insurance

    According to the Indian Motor Vehicles Act and the Indian Road Safety Act, every vehicle owner should have a third-party insurance policy to drive legally on the roads of India. Hence, while opting for insurance policies, individuals must ensure they have a valid third-party liability cover in their policy plan.

  • Insured declared value

    The IDV or insured declared value is the sum the insurance company will provide in case the vehicle suffers irreparable damage or gets stolen. Willing applicants must check this factor, as different insurance firms offer different IDVs for commercial vehicle insurance.

  • Services offered

    Checking the claim settlement ratio, the company’s reputation, plans offered and more provides insight into the insurance provider and helps make the right choice.

Key inclusions of a commercial vehicle insurance

Damages caused due to the following incidents are covered by a commercial car insurance policy:

  • Accidents

  • Theft

  • Fire

  • Natural disasters

  • Personal accident

  • Third-party losses

  • Towing disables vehicles

Key exclusions of a commercial vehicle insurance

Damages caused due to the following incidents are not covered by a commercial vehicle insurance policy online:

  • Own damages for the third-party policyholder

  • Drunk driving or without a license

  • Contributory negligence

  • Consequential damages

Types of commercial vehicles covered

Here are the types of commercial vehicles covered under a commercial vehicle insurance policy:

  • Passenger-carrying vehicles, such as cabs, taxis, auto-rickshaws, private buses, etc.

  • Goods carrying vehicles, such as tempos, trucks, lorries, etc.

  • Miscellaneous and special vehicles, such as mining and farming vehicles.

How to file a claim for commercial vehicle insurance?

One can follow these simple steps to raise a claim online:

Step 1: Contact the insurer and fill up the claim form

Step 2: Submit all relevant documents

Step 3: A surveyor will conduct an evaluation of the damages in the vehicle and report the same to the insurer

Step 4: After the insurer accepts the claim, you will receive the claimed amount

Commercial Vehicle Insurance from Bajaj Finance: What makes it a good decision

Bajaj Finance one of the leading NBFCs has partnered with various top insurers offering the best insurance policies by keeping customer demand and requirements in mind.

Here are the reasons to opt for a commercial vehicle insurance policy from Bajaj Finance:

  • Comprehensive coverage for a wide range of losses and damages

  • A paperless policy claim process

  • 24-hour customer support team

  • Lucrative facilities, such as personal accident cover, compulsory deductibles, legal liability cover, etc.

  • Online insurance purchasing and renewal

If you are searching for a dependable commercial vehicle insurance plan, choose from a selection of plans available on Bajaj Finance Insurance Mall.

Disclaimer

Insurance is the subject matter of solicitation. Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Future Generali Life Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Limited, Niva Bupa Health Insurance Company Limited , Aditya Birla Health Insurance Company Limited and ManipalCigna Health Insurance Company Limited under the IRDAI composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. Tax benefits applicable if any, will be as per the prevailing tax laws. Tax laws are subject to change. Visitors are hereby informed that their information submitted on the website may be shared with insurers. BFL is also a distributor of other third party products from Assistance Services providers such as CPP Assistance Services Pvt Ltd, etc. All product information such as premium, benefits, exclusions, sum insured, value added services, etc. are authentic and solely based on the information received from the respective insurance company or the respective value added service provider or Assistance company.

Note – While we have made all efforts and taken utmost care in gathering precise information about the products, features, benefits, etc. However, BFL cannot be held liable for any direct or indirect damage/loss. We request our customers to conduct their research about these products and refer to the respective product’s sales brochures before concluding their sale.