Commercial vehicles form an integral part of any business. No matter if you own a company with a single commercial vehicle or a fleet of them, a commercial vehicle insurance policy can help provide coverage against external damages, coupled with both third-party liability and personal coverage.
With a commercial car insurance plan, you can get coverage from a variety of legal liabilities and losses resulting from bodily injury, death or other damages caused to a third-party or their property. Getting the coverage right is a very important step forward, particularly if you are using your commercial vehicles on a regular basis.
Why is commercial vehicle insurance required?
Commercial vehicle insurance provides coverage to automobiles, ones that a regular car insurance policy doesn’t cover. A few special types of vehicles (such as goods carrying vehicles, passenger ferrying vehicles, shovels, excavators, grabs, mobile rigs, tractors) along with their respective usage, might fall outside the ambit of an auto insurance policy. It is in these circumstances that a commercial vehicle insurance policy comes in really handy, one that caters particularly to vehicles intended for commercial and business use.
Types of commercial vehicle insurance
There are primarily two types of commercial vehicle insurance policies:
- Comprehensive commercial vehicle insurance policy
This kind of a policy covers the following:
- Damage or loss to the insured vehicle
- Third-party liability coverage from damages and losses resulting from death, bodily injury of a third-party (caused by the insured vehicle)
- Indemnity to third-party property, resulting from damages caused by the insured vehicle
- Personal accident coverage
- Third-party liability only policy
This variant offers coverage in case your vehicle is responsible for causing death, bodily injuries or property damage to a third-party. That being said, a third-party liability only policy would not cover the insured against any damages and losses, if any.
In case you don’t want comprehensive coverage, it is advisable that you buy a commercial vehicle liability only insurance policy.
What are the optional covers provided by commercial vehicle insurers in India?
- Coverage for both electrical and non-electrical items
- Personal accident coverage for the insured owner or driver, for that matter
- Personal accident coverage for both named and unnamed fellow passengers
- Personal accident coverage for a driver employed by the owner
- Coverage for various vehicular parts and components, including lamps, tubes, tyres, side parts, bonnet, mudguard, headlights, bumpers, and paintwork (only that of damaged portions/areas)
- Coverage for vehicles used for both commercial and other objectives
- Legal liability only coverage for non-fare paying fellow passengers
- Legal liability only coverage for a paid driver across operations
Is damage to windshield glass covered under a commercial vehicle insurance policy?
Should the windshield glass (front and/or rear) break of the insured vehicle break and need immediate repairs, the insurer would replace or repair the glass without your No Claim Bonus (NCB) being affected in any way.
Normally, claiming for such damages will lead to the insured losing the accumulated NCB for the year. However, with an add-on cover, you would be able to get the repairs done without jeopardizing the NCB.
Generally, you can opt for commercial vehicle insurance through specialized policies such as:
- Commercial car insurance
- Bus insurance
- Truck insurance
- Taxi insurance
What to consider before opting for a commercial vehicle insurance policy?
- The owner of the vehicle
Should the vehicle be owned and operated by a business, chances are it would be covered under a commercial vehicle insurance policy. In addition, should you be a sole proprietor and use the vehicle for commercial reasons and purpose, it would still come under the ambit of a commercial vehicle insurance policy.
- The type of vehicle
Should the vehicle be heavier in comparison to a normal-size SUV (such as a tow-truck or a dump truck, for that matter), you would need a commercial vehicle insurance policy.
Moreover, you can buy car insurance insurance online from a number of insurer websites and aggregator portals.