All You Need to Know About Commercial Vehicle Insurance in India

It is common knowledge that all vehicles registered in the country need to have insurance cover; be it private or a commercial vehicle. While private vehicles are purchased by individuals for their personal use, a commercial vehicle is used to ply passengers, goods, and other utility vehicles like an excavator or crane. All of them are mandatorily required to obtain a vehicle insurance to provide coverage for damages.

What is a commercial vehicle insurance plan?

Commercial vehicle insurance is the insurance policy that all vehicles which are not registered with a private registration need to buy. Akin to private vehicle insurance plans, this policy also is offered in the for third-party coverage. For third-party plans, the coverage is provided for injuries and damages to any liabilities incurred to third person, their vehicle or property. This insurance policy is also commonly called as the commercial truck insurance or commercial car insurance where its used widely.

Need for commercial vehicle insurance

Since commercial vehicle are the backbone of the business operations, it is crucial to insure them. Any damages to these vehicles can result in downtime of business operations hampering the entire business flow. For instance, a cab aggregator depends solely on its cars for generating revenue. Any damage to these cars hampers the ability of the business to bring in income. Similarly, for trucks, they ensure the logistics of production operations continue smoothly. Thus, insurance coverage for commercial vehicles must not be ignored.

In addition, if this commercial vehicle happens to injure a person in a road mishap, or damages the property of such third person, the liability arising out of it will be covered under the insurance policy. Lastly, the policy also extends to cover the injuries sustained by the driver of such vehicle in case of accidental death or disability.

What does impact the premium of commercial vehicle plans?

The commercial vehicle insurance is not as a result of one particular factor but a combination of many factors that determine the premium. Insured declared value or IDV, how old the vehicle is, manufacture and model of the vehicle, fuel type and its load carrying capacity, location of registration, purpose of its use, are some of the factors that impact the premium. With the help of a vehicle insurance calculator, these premiums can be estimated, and the coverage can be opted for.

How to select a suitable insurance policy?

Selection of the right insurance policy is based on understanding what kind of coverage you need for the vehicle. It depends whether the vehicle is used to move passenger or goods. And if goods, withing the organisations premise like a forklift or across locations. Once you have a clear idea of the exact use of the vehicle, an adequate commercial vehicle insurance policy can be purchased. This selection process will help you tick off all your requirements and opt for a suitable commercial insurance plan. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.