Motor Insurance April 2, 2021

As per the Motor Vehicles Act, it is mandatory for all businesses to purchase commercial vehicle insurance for vehicles like – auto-rickshaws, cabs, school buses, tractors, commercial vans and trucks. You might ask, what is commercial vehicle insurance? Well, it is a motor insurance policy that covers damages and losses of the vehicle and owner/driver. This policy offers financial protection in cases like third-party liability, accidents, collisions, natural calamities, fires, etc. It will ensure financial protection from any losses and damages caused to and caused by your vehicle and the person who is driving it. Know about commercial vehicle insurance in detail below.

Types of Commercial Vehicle Insurance

There are mainly two types of commercial vehicle insurance that you can see below.

Third-party Insurance: This type of insurance covers you financially against legal liabilities arising from the damages caused to a third person or property due to your insured vehicle. In this type of commercial vehicle insurance, you would not get any benefits for the vehicle. It covers only third-party liability. You will get 100% compensation under this type of policy by which you can pay third-party loss in the event of death or permanent total disability. Whereas only 50% compensation is offered to the third party in case of partial permanent disability.

Comprehensive Insurance: This type of commercial vehicle insurance is not mandatory as per the Motor Vehicles Act. However, under comprehensive commercial vehicle insurance policies, you will get coverage for damages caused to your vehicle, third party or property. This type of insurance safeguards your vehicle against damages arising out of man-made and natural calamities. And it also covers third-party liability such as – death, injury or property damage caused to  a third party by your insured vehicle.

Things to Know About Commercial Vehicle Insurance

Before purchasing commercial vehicle insurance, you should know the following:

  1. You can purchase this insurance policy for vehicles like – Bus, Taxi, Tractor, Truck, Trailer, Crane and other goods and passenger carrying commercial vehicles
  2. You just need to submit the duly filled proposal along with KYC and vehicle documents to apply for the insurance.
  3. In case of any unfortunate event like – accidents, damage, loss of life, you need to submit the vehicle-related and other claim-related documents to the insurance company. The company examines the value of the damage or loss and pays the claim amount accordingly.
  4. In case of accidental death or serious injury, you must file the First Information Report (FIR) to the nearest police station. Because it is mandatory for commercial vehicle insurance claim processing. This applies to cases of third-party damage, medical expenses of the injured and compensation for the deceased in the accident
  5. If your insured vehicle is damaged during the policy term, the same will be repaired at the insurance company’s network garages and handed over to you within the stipulated period.

Popular Insurance Companies Offering Commercial Vehicle Insurance in India

You can buy your commercial vehicle insurance plan from the following insurance companies

Company NameBenefits Under Commercial Vehicle Insurance
Go Digit General InsuranceCovers damages and losses in situations like

  1. Accidents

  2. Collisions

  3. Natural calamities

  4. Fires

  5. Third-party liability


You can purchase commercial vehicle insurance from Go Digit for auto-rickshaws, cabs, school buses, tractors, commercial vans and trucks.
Reliance General InsuranceCovers damages like

  1. Riot

  2. Strike​

  3. Earthquake

  4. Malicious act

  5. Terrorist activity

  6. Landslide

  7. Rockslide

  8. Accident (external means)

  9. Burglary

  10. Housebreaking

  11. Theft

  12. Inundation cyclone

  13. Hailstorm

  14. Frost

  15. Fire explosion

  16. Self-ignition or lightning

  17. Flood

  18. Typhoon

  19. Hurricane

  20. Storm

  21. ​​Tempest caused to your vehicle


Third-party insurance and protect yourself against losses such as bodily injury, death to a third party or any damage to that person’s property
SBI General InsuranceCovers your farming vehicles such as

  1. Tractors

  2. Harvesters

  3. Reapers

  4. Threshers

  5. Chaff cutters

  6. Salvage Corps vehicles

  7. Lawnmowers


Along with

  1. A personal accident cover for you and your family

  2. A compulsory Third-Party Liability

  3. Personal Accident for Paid Driver/cleaner, Additional Legal Liabilities towards Paid Driver and employee, Bi-fuel Kit, enhanced, etc.

HDFC ERGO General InsuranceCovers
Tractor and any other commercial vehicle against Accidents, Burglary, Calamities, Personal Accident, Third Party Person and Property Liability.
Shriram General InsuranceCovers damages like

Fire explosion

Self-ignition

Lightning

Burglary

Housebreaking

Theft

Riot

Strike

Earthquake

Flood

Typhoon

Hurricane

Storm

Tempest Inundation cyclone

Hailstorm

Frost

Landslide

Rockslide

Accident

Malicious act

Terrorist activity


Also

Get financial security against bodily injury, death to a third party or any other damages to a person or property.
Magma HDI General InsuranceFinancial safeguards against any legal liability towards third parties and damages caused to the vehicle from

  1. Fire

  2. Explosion

  3. Self-ignition or lightning

  4. Earthquake

  5. Flood

  6. Typhoon

  7. Hurricane

  8. Storm

  9. Tempest

  10. Inundation

  11. Cyclone

  12. Hailstorm

  13. Frost

  14. Landslide

  15. Rockslide

  16. Burglary

  17. Theft

  18. Riot

  19. Strike

  20. Malicious act

  21. Accident by external means

  22. Terrorist activity

  23. Any damage in transit by road, rail, air, inland waterway, lift or elevator, together with loss or damage to the vehicle itself.

Raheja QBE General InsuranceInsures Goods Carrying vehicles, Passenger Carrying Vehicles and other Miscellaneous Vehicles against damages and third-party liability.

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