5 Must-Knows About Commercial Vehicle Insurance

Almost all businesses require some or the other form of motor vehicles. It can be either for procurement or for the deliveries to take place. To take it a step further, for a business who owns a fleet of cars, it is their primary source of operations, and it is vital that they must be insured. Skimping on insurance is the last thing that you should be doing in that case.

A commercial vehicle insurance plan differs from your standard policy for private vehicles. It includes the coverage for different kinds of vehicles like cargo vehicles, passenger-carrying vehicles, trailer trucks, excavators, mobile rigs, tractors etc. Different scenarios that are faced by such vehicles are accounted for while deciding the coverage of your policy. Thus, using a commercial vehicle insurance plan will help you avert financial setbacks in your business that might arise due to any third-party liability, damage or harm.

1.     Damages covered under your policy

Motor insurance plans are designed to suit the requirements of its customers. But most of them have a certain standard coverage like damages due to fire, explosions or self-ignition, riots and strikes. Natural perils like floods, cyclones, earthquakes, landslides are also covered alongside human dangers like accidents or terrorist activities.

In case your vehicle is involved in an accident, your motor insurance policy covers the loss to the vehicle, as well as damages to the third-party. Any accident that leads to a demise or bodily injury resulting in disability is also covered.

Some insurers also provide additional facilities like towing assistance to your vehicle. Staying aware of the coverage on your policy is crucial to get the best when you buy motor insurance online.

2.     Exclusions to your insurance policy

The exclusions to your policy determine the situations when your policy will not cover you in case of a loss. Examples of cases where your insurance plan does not cover are –

  • Regular wear and tear of the moving parts.
  • Electrical or mechanical damages.
  • Damages due to nuclear radiation or war.
  • Damage to the vehicle in case used beyond normal operations as specified.

These exclusions further include the usage of your vehicle beyond its stipulated geographical periphery.

3.     Comparison of the insurance cover

With a plethora of options to choose from, selecting the right insurance plan is essential. While one may prefer to opt for the cheapest alternative, you should look at the benefits and weigh them against the premiums paid for it. A broader gamut of cases can be covered when you load the necessary add-ons to your insurance plan.

4.     What documents you need to file a claim

The documents generally differ among the insurance companies as well as the situation for which a claim is filed. But mostly, the following documents are required to claim the damages –

  • Vehicle Documents like the registration certificate along with pollution certificate.
  • Copy of your insurance plan.
  • Copy of driving license of the driver of the vehicle.
  • First investigation report (FIR) and requisite forms that are required to be submitted to the RTO in case of a theft.
  • Cost of estimated repairs.

5.     Calculating premium for your commercial insurance plan

The premium is one factor that will determine your final purchase decision. Being a recurring expense, it is important that you select the right add-ons that make the premium affordable at the same time, offering adequate coverage. Here are some of the factors that are used in determining the premium for your vehicle –

  • The model and make of your vehicle.
  • Vehicle’s age
  • The IDV or insured declared value of the vehicle
  • Location of registration.
  • Type of coverage opted.

Keep these points in mind whether you’re a first-time buyer or here for your next car / two wheeler insurance renewal. It will not only help you select the right plan as well as ensure you have an adequate insurance cover.

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