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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.
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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:
- You can purchase this insurance policy for vehicles like – Bus, Taxi, Tractor, Truck, Trailer, Crane and other goods and passenger carrying commercial vehicles
- You just need to submit the duly filled proposal along with KYC and vehicle documents to apply for the insurance.
- 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.
- 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
- 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 Name | Benefits Under Commercial Vehicle Insurance |
|---|---|
| Go Digit General Insurance | Covers damages and losses in situations like
You can purchase commercial vehicle insurance from Go Digit for auto-rickshaws, cabs, school buses, tractors, commercial vans and trucks. |
| Reliance General Insurance | Covers damages like
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 Insurance | Covers your farming vehicles such as
Along with
|
| HDFC ERGO General Insurance | Covers Tractor and any other commercial vehicle against Accidents, Burglary, Calamities, Personal Accident, Third Party Person and Property Liability. |
| Shriram General Insurance | Covers 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 Insurance | Financial safeguards against any legal liability towards third parties and damages caused to the vehicle from
|
| Raheja QBE General Insurance | Insures Goods Carrying vehicles, Passenger Carrying Vehicles and other Miscellaneous Vehicles against damages and third-party liability. |