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    What is Commercial Vehicle Insurance?

    Commercial vehicle insurance is specifically designed to protect commercial vehicles from damage and liabilities. It covers accidents, injuries, and even death involving the vehicle. This policy protects against losses from natural disasters, fires, and other man-made calamities. It’s important for business owners to ensure their vehicles, like auto-rickshaws, trucks, cabs, and school buses, are covered for unforeseen events on the road.

    Features of Commercial Vehicle Insurance

    Commercial vehicle insurance plans are equipped with various salient features. Here are some of the salient features provided within commercial vehicle insurance:

    • Both public and private carriers, including specialized goods carrying vehicles, receive comprehensive coverage under this insurance.
    • In case of accidents or injuries, the commercial vehicle insurance plan offers coverage for associated liabilities.
    • Having a commercial vehicle insurance plan means you don’t need to stress about unexpected expenses; it provides monetary compensation when necessary.
    • Remain stress-free from financial burdens resulting from liabilities.
    • Coverage for damage to third-party persons, vehicles, or property.

    Disclaimer: *Any savings mentioned are provided by the insurer according to the IRDAI-approved insurance plan. Standard T&C apply.

    What are the types of Commercial Vehicle Insurance?

    There are generally two main types of commercial vehicle insurance listed below:

    Commercial Vehicle Insurance with Third-Party Liability

    As per the law, commercial vehicle owners must obtain third-party liability insurance. This policy protects against damage to third-party property, individuals, or vehicles.

    Additionally, this insurance plan covers instances where a third party gets injuries or dies due to an accident. Given the increased weight and nature of goods carried by commercial vehicles, prioritizing their coverage under third-party insurance is crucial.

    Comprehensive Commercial Vehicle Insurance

    Comprehensive insurance ensures complete protection for your commercial vehicle in various unforeseen situations that could otherwise result in unexpected expenses. This plan protects your vehicle against damage, theft, fire, robbery, floods, earthquakes, and more.

    Moreover, a comprehensive vehicle insurance policy extends coverage to third-party property and persons injured in an accident.

    What's Covered in Commercial Vehicle Insurance?

    The commercial vehicle insurance policy provides compensation for personal, medical, and financial losses caused by theft, accidents, or natural disasters.

    Many commercial vehicle insurance companies offer cashless compensation for repairs at their authorized workshops, easing the process for policyholders.

    Several commercial vehicle insurance companies offer tailored insurance plans to cater to diverse customer requirements.

    Below are the advantages provided by a commercial vehicle insurance policy:

    Damage or loss incurred by the insured commercial vehicle due to:

    • Riots and strike
    • Fire, self-ignition, explosion or lightning
    • Malicious acts
    • Theft, break-ins, and burglary
    • Hailstorms, flooding, cyclones, and frost
    • Floods, hurricanes, storms, tempests, and typhoons
    • Landslides and rockslides
    • Earthquakes
    • Accidental damage from external causes
    • Acts of terrorism
    • This policy also covers Personal Accident claims, encompassing the permanent total disability or accidental death of both the paid driver and the owner.
    • Commercial vehicle third-party insurance offers coverage for accidents involving your insured commercial vehicle and another party’s vehicle. It includes compensation for third-party property damage, vehicle damage, bodily injuries, and fatalities.

    What's Not Covered in Commercial Vehicle Insurance?

    The policy excludes claims arising from the following situations:

    • Incidental or consequential losses.
    • Wear and tear of the commercial vehicle
    • Losses suffered during a civil war.
    • Contractual obligations and liabilities are also excluded from coverage
    • Accidents while driving with an invalid license or under the influence of alcohol are not covered.
    • Operating a vehicle beyond its specified use limitations, such as using a private car as a taxi, is not covered.
    • Risks related to war or nuclear incidents.
    • Electrical or mechanical breakdowns, breakage, or failures.
    • If the policy is inactive during an accident or loss.

    What Makes Commercial Vehicle Insurance Important?

    Commercial vehicle insurance plays an important role in protecting your business from significant financial setbacks caused by unexpected circumstances. It covers almost all vehicles used for commercial purposes, ensuring a smooth operation for your business.

    Getting commercial vehicle insurance online is a fast, simple, and stress-free process. It’s wise to compare commercial vehicle insurance quotes before finalizing a policy to find one that suits your budget.

    What are the types of Commercial Vehicle?

    Commercial vehicles serve as important transportation means, often heavy-duty and employed daily for various tasks. This category generally encompasses vehicles such as:

    • Vans
    • Truck
    • Buses
    • Taxies
    • Trailers
    • Shovels
    • Coaches
    • Tractors
    • Bulldozers
    • Mobile Rigs
    • Cranes
    • Carries

    These commercial vehicles are utilized for transporting goods within cities, between states, and also for intercity passenger tours and travel.

    Below are various commercial vehicle insurance plans offered separately by insurance companies, each with its distinct features and coverage options.

    Goods carrying vehicle insurance provides comprehensive coverage against both man-made and natural calamities. It protects against theft, fire, explosions, floods, earthquakes, landslides, accidental damages, personal accidents, and third-party liabilities. Goods carrying vehicles play a vital role in the nation’s economic growth by facilitating the transfer of goods domestically and internationally.

    You can purchase goods carrying vehicle insurance for a range of vehicles including trucks, trailers, tractor-trailers, and more.

    Key features of Goods Carrying Vehicle Insurance:

    Below are several essential features of goods carrying vehicle insurance:

    • This policy offers coverage for both third-party liability and own-damage situations.
    • Goods carrying vehicle insurance covers various vehicles like trucks, trailers, and tractor-trailers. For example, it includes truck insurance specifically designed for goods carrying trucks.
    • You can access a cashless claim facility nationwide at registered garages.
    • You can enhance the policy benefits by selecting different add-on covers available.
    • The insurance covers the insured vehicle for damages incurred in accidents, third-party liabilities, and losses from man-made disasters like theft and vandalism.
    • It provides coverage for natural disasters that pose risks to insured vehicles, including floods, storms, earthquakes, landslides, and more.
    • You can earn a No Claim Bonus for each claim-free year, accumulating up to a specified percentage according to the policy terms.

    What’s Covered in Goods Carrying Vehicle Insurance

    Followings are included in goods carrying vehicle insurance:

    • Loss Due to Natural Disasters: Goods carrying vehicle insurance covers damages or losses caused by natural calamities. For instance, if your pickup van is damaged by a cyclone, the insurance will cover the incurred losses.
    • Third-Party Liability Cover: The policy provides coverage for the insured vehicle regarding any liabilities arising from accidental injury, bodily harm, or the death of a third party.
    • Man-made Calamities: The policy covers man-made disasters like theft and vandalism. In case the vehicle is untraceable, the insured pays up to the full value under the ‘total loss’ category.
    • Loss Due to Natural Disasters: Goods-carrying vehicle insurance provides coverage for damage or loss caused by natural calamities. For example, if your goods-carrying pickup van is damaged due to a cyclone, your insurance will cover the resulting losses.
    • Personal Accident Cover: The policy covers the owner/driver for personal accidental damages or loss up to a specified percentage of the Sum Insured, which includes treatment costs. Additional coverage for co-passengers can be obtained by paying an extra premium.

    What’s Not Covered in Goods Carrying Vehicle Insurance?

    Exclusions for insurance on goods-carrying vehicles include:

    • Mechanical and Electrical Breakdown: Your goods-carrying vehicle insurance policy does not cover mechanical or electrical breakdowns.
    • Depreciation: Goods carrying vehicle insurance plans do not provide coverage for the depreciation in the vehicle’s value over time.
    • Illegal Driving: Having a valid and authorized driving license is essential for your goods carrying vehicle insurance to be effective. Additionally, driving under the influence of alcohol or drugs voids coverage under the policy.

    Passenger carrying vehicle insurance protects against accidental damages, fire, explosions, theft, natural calamities, and personal accidents. It also includes third-party liability cover. These policies are designed for vehicles transporting passengers.

    Key Features of Passengers Carrying vehicle insurance:

    Here are the key features of passenger carrying vehicle insurance:

    • You can purchase this insurance for a range of passenger-carrying vehicles, including buses, taxis, vans used for transporting passengers, and more.
    • The cost of the insurance policy is determined by factors such as the vehicle type, engine size, where it’s registered, its Licensed Carrying Capacity, Gross Vehicle Weight, and more.
    • This policy provides coverage for the insured vehicle against damage caused by both human-made incidents and natural disasters.
    • For each year without any claims, you can earn a No Claim Bonus.
    • Certain insurers provide discounts on premiums based on the mode of buying.

    What’s covered in Passenger Carrying Vehicle Insurance

    Followings are included in passenger carrying vehicle insurance:

    • Protection against Natural Disasters: If your vehicle is affected by natural disasters, do not worry, it’s included in the coverage.
    • Protection against Accidental Damage: This policy protects the vehicle in the case of an accident resulting in damage or injury.
    • Personal Accident Cover: The policy provides coverage for the owner-driver and co-passengers (with an additional premium) in case of an accident resulting in injury, disability, or death.
    • Fire and Explosive Incidents: The policy includes coverage for complete or partial loss of the vehicle resulting from fire or explosion.
    • Liability Insurance: If the insured vehicle is at fault, the policy covers accidental injury, damage, or death of a third party, as well as damage to their property as part of third-party liability.

    What’s not covered in Passenger Carrying Vehicle Insurance

    Passenger carrying vehicle insurance typically excludes:

    • Malfunctions and Electrical Issues: Your passenger-carrying vehicle insurance policy doesn’t provide coverage for mechanical or electrical breakdowns.
    • Illegal Driving: If you don’t have a valid driving license, this insurance won’t cover you. Driving under the influence of alcohol or drugs is also not included in the plan.
    • Depreciation: Your passenger-carrying vehicle insurance doesn’t cover the depreciation in your vehicle’s value over time. When making a claim, your insurer compensates up to the IDV (insured declared value or current market price) of the vehicle after factoring in depreciation costs.

    Auto Rickshaw Insurance falls under Passenger Carrying Vehicle Insurance and is mandated by the Motor Vehicle Act in India for organizations owning auto-rickshaws to purchase a liability-only policy.

    This insurance coverage protects a business in case the rickshaw causes harm or damage to third-party property, individuals, or vehicles.

    Features of Auto Rickshaw Insurance

    Here are the key features of an auto-rickshaw insurance policy:

    • Auto insurance protects both your vehicle and you, the owner and driver, from various natural calamities like natural disasters, terrorist actions, fires, accidents, intentional damage, theft, and other unfortunate events.
    • By having auto rickshaw insurance, you’re not only ensuring protection for your vehicle but also demonstrating responsibility to your passengers/customers, assuring them of a reliable business.

    What’s covered in Auto Rickshaw Insurance?

    Auto rickshaw insurance typically includes coverage for:

    • Protection Against Natural Disasters: When it comes to natural disasters affecting your auto, there’s no need to worry. With an auto-rickshaw insurance policy, you’re covered against any potential damage caused by these natural occurrences.
    • Protection against Accidental Damages: This policy provides coverage for the vehicle in the event of an accident resulting in damages or injuries.
    • Coverage for Personal Accidents: In the case of an accident resulting in death, disability, or injury, this coverage extends to both the owner-driver and any co-passengers.
    • Protection Against Fire: This insurance policy also includes coverage for total or partial loss incurred by the auto-rickshaw due to fire.
    • Protection Against Theft: This policy extends coverage to your auto-rickshaw in the event of loss or damage resulting from theft.
    • Towing Disabled Vehicles: The auto rickshaw insurance policy also provides coverage for any damage sustained by your vehicle while it’s being towed.

    What’s not covered in Auto Rickshaw Insurance?

    The Auto Rickshaw Insurance Policy does not cover the following:

    • Damages to your property while being insured under a third-party policy
    • Operating a vehicle under the influence of alcohol or driving without a valid license
    • Contributory negligence
    • Resulting damages or losses

    e-Rickshaws and e-carts are now part of the Motor Vehicles Amendment Act 2015 and are required to be registered. The Insurance Regulatory and Development Authority (IRDA) mandates third-party insurance for three-wheeled vehicles operated by batteries.

    The insurance requirements and processes for e-Rickshaw coverage closely resemble those of auto-rickshaw insurance. However, e-Rickshaws currently have access only to third-party insurance. The premium amount is determined based on the vehicle’s seating capacity.

    Beyond the spectrum of commercial vehicles like taxis, buses, and trucks, numerous other vehicles fall within this classification.

    Certain vehicles, utilized in mining, construction, farming, and similar industries, are categorized as miscellaneous or special vehicles. Despite this categorization, they still fall under commercial vehicles. Owners of machinery like JCBs, towing trucks, etc., can opt for commercial vehicle insurance policies to secure financial protection against unforeseen incidents.

    Factors to consider when buying or renewing Commercial Vehicle Insurance

    When renewing or purchasing a commercial vehicle insurance policy, it’s Important to pay attention to the following aspects:

    IDV (Insured Declared Value)

    When renewing or buying insurance, it's important to select the accurate Insured Declared Value (IDV) in your motor insurance policy. This IDV determines the compensation amount in case of total damage or theft, making it a pivotal consideration.

    Add-on Benefits

    Opt for additional covers to augment the comprehensive coverage of your commercial vehicle insurance policy.


    Having sufficient coverage is essential when purchasing commercial vehicle insurance. Opting for a comprehensive commercial vehicle policy is advisable for those seeking to protect their business interests and attain peace of mind.

    Discount/No-claim Bonus

    During renewal, it's wise for the policyholder to inquire with the insurer about potential discounts on the motor insurance premium.


    Consider selecting deductibles only if you can afford to contribute a portion of the claim from your own funds. Always review the deductibles and clauses during renewal and opt-out if they don't align with your needs.

    Cashless Network Garages

    When speaking with your commercial vehicle insurance agent or provider, inquire about their network garage list and locate one nearby. This ensures convenient and prompt vehicle repairs when needed.

    Note: When buying commercial vehicle insurance online, it’s important to explore the web, compare insurance quotes for commercial vehicles, and secure the best available deal.

    When comparing commercial insurance plans, there are key points to keep in mind

    When evaluating commercial insurance plans, several key factors should be taken into account. These include:

    Policy's Premium Amount

    Many insurance companies provide cost-effective features that can aid in making a financially cost-effective decision. However, relying solely on the premium rate might compromise the coverage potential of the commercial insurance plan.

    Ratio of Claim Settlements

    After selecting the suitable insurance plan that meets your needs, it's important to review the insurance company's claim settlement process. Ensuring a seamless claim settlement process is essential.

    Policy's Features

    Insurance policies come with varying features across different companies. When comparing plans, it's recommended to conduct thorough research on the features offered by various insurers.

    What factors influence the pricing of commercial vehicle insurance?

    When calculating the cost of commercial vehicle insurance, factors such as goods carrying vehicle insurance or passenger carrying vehicle insurance are taken into account:

    • Vehicle’s age
    • Registration zone
    • Vehicle’s IDV
    • Type of fuel used in the vehicle
    • The vehicle’s type and model

    Vehicle age affects Insured Declared Value via Depreciation.

    Depreciation significantly influences commercial vehicle insurance. As a vehicle ages, its value decreases, directly impacting the Insured Declared Value (IDV) based on the depreciation rate. Here’s how it works:

    Vehicle Age Depreciation Rate
    Within 6 months Nil
    Between 6 months to 1 year 5%
    Between 1 year to 2 years 10%
    Between 2 years to 3 years 15%
    Between 3 years to 4 years 25%
    Between 4 years to 5 years 35%
    Between 5 years to 10 years 40%
    Exceeding 10 years 50%

    Commercial Vehicle Insurance Claim Process

    Making a successful claim on your commercial vehicle insurance can be straightforward with the correct approach. To ensure smooth reimbursement of the claimed amount, it’s crucial to promptly inform your commercial vehicle insurance provider about any loss or damage. If you purchased the policy through an agent, it’s advisable to notify the agent as well.

    You have the option to register a claim by contacting them through their toll-free helpline number or by sending an email to their customer helpline address.

    Today, many commercial

    • A policy number is required
    • Timing and date of the incident
    • Contact details and name of the individual filing the claim
    • The specific site of the incident
    • A small description of the incident

    Documents needed for Claiming Commercial Vehicle Insurance

    For a claim on commercial passenger vehicle insurance or goods carrying vehicle insurance, you’ll need to provide the following documents:

    • Completed and signed claim form
    • Vehicle’s registration certificate
    • Copy of the First Information Report (FIR)
    • Original copy of the driving license
    • Copy of the Aadhar Card
    • Receipt for paid taxes
    • The original papers of the insurance policy
    • Permit for the designated route
    • Challan for the load carried by your commercial vehicle
    • Certificate of fitness

    Commercial vehicle insurance that is right for you

    My Policy Express offers the best commercial vehicle insurance that will financially shield and cover your business from any losses and damages caused to and by your commercial vehicle(s) and the people using it. As per the law, it is compulsory to have a commercial vehicle insurance if you are taking the wheels of a commercial vehicle. You can choose at least a Liability Only policy that will protects third-parties against any damages and losses that could be caused by your commercial vehicle.

    Let’s check what is covered in a Commercial Vehicle Insurance?

    Accidents & Natural Calamity

    Theft and Injury or Related

    Fire and Towing ore Related

    What are the major exclusions?

    Generally, commercial insurance have some of the so-called exclusions.

    Frequently Asked Questions

    Let’s say your IT business experiences a covered event – someone breaks into your office and steals several laptops. You file a claim with your commercial insurance provider. They investigate the claim, assess the damage, and then offer you the funds to buy new laptops and replace the window that the burglar smashed. Other claims might be a bit more complicated. A liability claim, for example, often involves a lawsuit against your business. In these situations, a customer, client, or unrelated third party believes your business caused them financial damage and wants compensation from you. If someone sues your business for an event covered by your policy, your insurance provider will likely connect you with an attorney to take charge of your legal defense. The attorney will either defend your case in court, or offer to settle with the plaintiff. All of the costs associated with the lawsuit are paid by the insurance provider, up to your policy limits, after you’ve paid your deductible. This includes attorney’s fees, court costs, and any settlement or judgment amount.

    No, premiums for commercial vehicle insurance cannot be paid in installments. The person buying a policy for their commercial vehicle will have to pay the complete premium in advance. If not, the insurance company is legally allowed to deny compensation for any risks that are inflicted on the vehicle and the owner.

    The following would be the consequences if a person forgets to renew his commercial vehicle insurance on time:

    • In the event the vehicle has an accident; the insurance company will not pay out claims
    • No-claims bonuses will not be paid to the insured
    • Driving a vehicle whose license has expired is illegal and can lead to fines.