Commercial Vehicle
Tailored insurance plans for you
What Is a Commercial Vehicle Policy?
A commercial vehicle insurance policy is a type of motor insurance designed to protect the policyholder from financial losses arising due to accidents or other unforeseen events involving a commercial vehicle. It provides coverage for damages or losses caused to or by the insured vehicle, as well as protection for the owner-driver.
Commercial Vehicle Insurance covers situations such as road accidents, collisions, fire, theft, natural calamities, and other related risks. This policy is specifically tailored for vehicles used for commercial purposes, including auto-rickshaws, taxis, school buses, tractors, trucks, and other transport vehicles.
KEY FEATURES OF COMMERCIAL VEHICLE INSURANCE
As per the Motor Vehicles Act, it is mandatory to have insurance for commercial vehicles in India. This requirement ensures financial protection for businesses and third parties in case of accidents
Commercial vehicle insurance acts as a financial safety net for third parties. If your commercial vehicle causes injury, death, or property damage to others in an accident
In addition to third-party coverage, commercial vehicle insurance also protects your own vehicle. It covers repair or replacement costs arising from accidents, theft, fire, or natural calamities.
What Is Covered under Commercial Vehicle Insurance?
Comprehensive Commercial Vehicle Coverage
This type of coverage protects your vehicle against multiple risks, including:
Damage caused due to fire, self-ignition, lightning, or explosion
Losses arising from landslides or rockslides
Theft and related losses, including burglary and housebreaking
Damage due to external accidental causes
Losses caused by riots, strikes, terrorist acts, or malicious activities
Damage incurred while the vehicle is being transported via roadways, railways, waterways, airways, or elevators
Third-Party Commercial Vehicle Coverage
This coverage protects against legal liabilities arising from:
Injury or death of any third party caused by the insured vehicle
Damage to third-party property due to the use of the insured vehicle
What Is Not Covered under Commercial Vehicle Insurance?
Policy Exclusions
Commercial vehicle insurance does not cover claims arising from:
Normal wear and tear
Damages during illegal or unlawful activities
Mechanical or electrical breakdown not caused by an accident
Consequential or indirect losses
Intentional damage or willful negligence
Losses due to nuclear risks or dangerous infections
Unauthorized vehicle modifications violating policy terms
Driving without a valid driving license
War or war-related activities
Driving under the influence of alcohol or drugs
Liabilities exceeding the policy’s specified limits
Damage to uninsured or underinsured vehicles
Losses occurring outside the geographical limits mentioned in the policy
Why Do You Need Commercial Vehicle Insurance?
Financial Protection for Your Business
If your business owns one or more commercial vehicles, insurance helps protect against financial losses caused to or by your vehicles and their users.
Safety Assurance for Passengers and Stakeholders
For businesses such as taxi services or school transportation, commercial vehicle insurance assures passengers and stakeholders that they are protected at all times.
Legal Requirement
As per Indian law, it is mandatory to have at least a third-party liability cover to protect against damages or losses caused to others by your commercial vehicle.
Types of Commercial Vehicles Covered under Commercial Vehicle Insurance
Passenger Vehicles
Taxi / Cab
Auto-Rickshaw
Passenger Bus
School Bus
Commercial Van
Commercial Four-Wheeler (Cabs)
Any Passenger-Carrying Vehicle
Goods & Utility Vehicles
Trucks
Commercial Two-Wheeler
Goods-Carrying Three-Wheeler
Tractor
Construction Equipment
How to File a Claim for Commercial Vehicle Insurance
Inform the Police
In case of an accident, immediately report the incident to the police and file an FIR. The police report is essential for initiating the insurance claim process.
Capture the Incident
Take clear photos or videos of the accident scene, vehicle damage, injuries, and number plates. Collect contact details of witnesses and other involved parties for claim verification.
Notify the Insurance Provider
Inform your motor insurance provider as soon as possible. Share accurate details of the incident and submit the required documents to begin the claim process.
Review Your Policy Documents
Understand your policy coverage, benefits, and limitations before filing a claim. This ensures clarity during claim settlement and avoids confusion.
Claim Process Note
Claim procedures vary by insurer. Some offer cashless claim facilities, while others follow a reimbursement process.
Types of Commercial Vehicle Insurance
Comprehensive Commercial Vehicle Insurance acts as a strong protective shield for your business vehicles. It provides coverage against unexpected events such as accidents, theft, robbery, fire, floods, earthquakes, and other natural calamities. If your commercial vehicle faces any of these situations, the policy helps cover repair or replacement costs, reducing financial stress on your business.
As per Indian laws and regulations, it is mandatory for every commercial vehicle owner to have Third-Party Liability Insurance. This policy provides coverage in case a third party suffers injury, death, or property damage due to an accident involving the insured commercial vehicle.Since commercial vehicles often carry heavy loads and operate frequently, the risk of accidents is higher.
Considerations for Buying or Renewing Commercial Vehicle Insurance
Right Coverage
Buying: Assess your business operations, vehicle usage, and potential risks to choose coverage that aligns with your requirements.
Renewing: Re-evaluate your business needs and update coverage if there are changes in operations or vehicle usage.
No Claim Bonus (NCB)
Buying: Look for policies offering attractive NCB benefits that reward safe driving with premium discounts.
Renewing: If you had a claim-free year, ensure your accumulated NCB is applied correctly during renewal.
Insured Declared Value (IDV)
Buying: Select an IDV that reflects the current market value of your vehicle for fair compensation.
Renewing: Adjust the IDV based on depreciation to maintain accurate coverage.
Additional Benefits
Buying: Evaluate add-ons such as roadside assistance, accessory coverage, and personal accident cover.
Renewing: Review whether your existing benefits still meet your needs or if upgrades are available.
Cashless Network Garages
Buying: Choose insurers with a wide network of cashless garages for convenient repairs.
Renewing: Ensure your preferred garages are still covered under the insurer’s network.
Deductibles
Buying: Select a deductible that balances affordability and risk tolerance.
Renewing: Reassess your deductible choice to optimize premium savings and out-of-pocket expenses.
How to Buy Commercial Vehicle Insurance with Vaishnavi Insurance
Step 1: Visit Vaishnavi Insurance Website
Start by accessing the Vaishnavi Insurance platform to explore and compare commercial vehicle insurance plans.
Step 2: Select Vehicle Type
Choose the category of your commercial vehicle to view relevant insurance options.
Step 3: Enter Primary Vehicle Details
Provide basic information to proceed with plan comparison.
Step 4: Fill Vehicle Information
Enter registration number, make, model, and manufacturing year.
Step 5: Choose an Insurance Plan
Compare available plans and select the one best suited for your business needs.
Step 6: Review and Customize Coverage
Add optional covers and customize the policy as per your requirements.
Step 7: Upload Required Documents
Submit documents such as vehicle registration details, if required.
Step 8: Premium Calculation
The premium is calculated based on vehicle details and selected coverage.
Step 9: Make Secure Payment
Complete the transaction through a secure payment gateway.
Step 10: Policy Issuance
After successful payment, your commercial vehicle insurance policy is issued and shared via email.
Factors Affecting Commercial Vehicle Insurance Price
Type of Insurance Policy
Comprehensive policies offer wider coverage and higher premiums, while third-party policies are more affordable.
Insurance Pricing Structure
Premiums depend on vehicle details, coverage type, and risk factors.
Deductibles
Higher deductibles reduce premiums but increase out-of-pocket expenses during claims.
Insured Declared Value (IDV)
A higher IDV increases premium but ensures better compensation.
Claim History
A clean claim record helps lower premiums through NCB benefits.
Make and Model of the Vehicle
Luxury or high-performance vehicles attract higher premiums due to repair costs.
Engine Capacity
Vehicles with higher engine capacity generally have higher insurance premiums.
Vaishnavi Insurance Commitment
Vaishnavi Insurance aims to provide well-balanced, customized commercial vehicle insurance solutions that protect your business, fit your budget, and ensure long-term financial security.