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Commercial Vehicle Insurance

Commercial vehicle insurance provide protection to commercial vehicle from any loss and damage due to any unforeseen circumstances.

Commercial Cars are an important mode of transportation that are used to transport passengers within the city/cities for passenger tour and travel. They are also used for one state-to-another.

These vehicles usually include vans taxies, cab, maxi cab (capacity of passengers more than 6), auto , 3 wheeler, tempo traveller etc.

Therefore, insurance for such commercial vehicles is very important to overcome from any mishappenings.

Why we need Commercial Vehicle Insurance ?

Having Vehicle Insurance is essential because it covers your expenses in the event of Vehicle damage or injuries to other drivers, passengers or pedestrians. All motorists must be Insured against their liability to other people, as stipulated in the Road Traffic Act 1988

The Important aspect of Commercial Vehicle Insurance is to protect you from any expenses incurred and provide you cover for damage/loss caused due to a natural calamity such as earthquake, floods, etc man-made calamities which include theft, robber, fire, any malicious act or terrorist activity.

Almost, every type of vehicle that is used for commercial purpose such as passengers carrying vehicles, taxies, tractors, cranes, mobile rigs, bulldozer, etc. gets covered under comprehensive commercial vehicle insurance.

Buying commercial vehicle insurance online is a quick, easy and hassle-free process. Therefore, before you zero down the policy, compare commercial vehicle insurance quotes and purchase a policy that fit your budget.

Key Features of Commercial Vehicle Insurance

Commercial vehicle insurance plan comes loaded with some salient features. The following are the salient features offered under commercial vehicle insurance:

      Various classes of commercial vehicles can be insured including trailers, goods carrying vehicles (both private and public carrier), passenger carrying vehicles and special types of vehicles (excavators, shovels, mobile rigs, grabs, tractors etc.)
     personal accident cover for both driver and owner.
     Comprehensive coverage will be there to cover both public and private carriers.
     The commercial vehicle insurance plan provides cover for the liabilities in case of any injury or an accident.
     Be tension free about your unwanted expense because having a insurance plan will provide financial compensation.
     Be stress-free from monetary setbacks incurred due to liabilities.
     Third-party person/vehicle/ property damage cover.

Types of Commercial Vehicle Insurance

There are many types of motor insurance policies available. Each vehicle type like car, bike, commercial vehicles etc. has its own insurance policy.

Irrespective of the vehicle type, Motor insurance policies are mainly of two types which depend on what kind of liabilities the insurance covers.

Type Third Party Policy Comprehensive Policy
What does it cover? It covers damages caused to another person, their vehicle or property due to collision or accidents. It does not cover damages to your own vehicle or bodily injuries which you may suffer.
What is not covered? It covers damages caused to you, your vehicle, or a third party due to collisions, theft, sabotage, natural calamities, man-made calamities or even fire. It covers all kinds of damages, except for the loss suffered while drinking under the influence of alcohol or drugs or without a policy or license.

What does the policy cover?

Here is a list of the benefits that commercial vehicle insurance policy offers:

a) Third Party Property Damage;
with a maximum cover of ₹7,50,000, in case of private cars.

b) Third Party Personal Liability;
  with unlimited coverage. The amount awarded by the court as your liability to a third party due to accidental death or injuries caused by your vehicle will be compensated for under the vehicle insurance policy.

c) Own Damage Cover;
Fire, lightning, self-ignition or explosion
Burglary, theft or housebreaking
Strike or riot
Earthquake (shock damage and fire)
Flood, inundation, storm, tempest, typhoon, hurricane, Cyclone and Hailstorm
Accidental external means
Malicious acts
Terrorist activity
During transit by rail, road, inland waterway, air or lift
Landslide and rockslide
Personal Accident Cover with compensation
For the owner/driver (compulsory): Cover of ₹15,00,000
LL to paid driver.

What it does not policy cover?

Wear and tear of the vehicle
Mechanical and electrical breakdown
If the damage to the vehicle happens when it is used beyond the limitations mentioned. For example, if a private vehicle is used as a taxi.
If the vehicle is used outside the defined geographical area
Deductible as stated in your policy
Consequential loss- only the original damage will be covered, and not any subsequent damage/ loss.
Loss/ damage due to war or nuclear perils
Loss/ damage due to ionizing radiation
If the vehicle is driven by someone other than the driver, as stated in the 'Driver's Clause'.
Claims arising out of contractual liability.

Best Commercial Vehicle Insurance Providers

Insurance Provider Goods Carrying Vehicle Insurance Passenger Carrying Vehicle Insurance
HDFC ERGO Commercial Vehicle Insurance Yes Yes
Digit Commercial Vehicle Insurance Yes Yes
USGI Commercial Vehicle Insurance Yes Yes
Bajaj Allianz Commercial Vehicle Insurance Yes Yes
Royal Sundaram Commercial Vehicle Insurance Yes Yes
Shriram General Commercial Vehicle Insurance Yes Yes
Iffco Tokio Commercial Vehicle Insurance Yes Yes
Tata AIG Commercial Vehicle Insurance Yes Yes
New India Commercial Vehicle Insurance Yes Yes
SBI General Commercial Vehicle Insurance Yes Yes
Bharti AXA  Commercial Vehicle Insurance Yes Yes

Commercial Vehicle Insurance Claim Process

Claiming commercial vehicle insurance is an easy process now a days. You can contact to your agent direclty , can call on toll free number , or by filling online forms as well. Make sure insured person have following details :

  • Time and date of loss
  • Policy number for reference
  • The location where the incident took place
  • A brief description of the incident
  • Name & contact number of the person filing the claim

Documents Required to Claim Commercial Vehicle Insurance

To claim the insurance , you should have the following documents with you all the time :

  • Registration certificate of the vehicle
  • Driving license (original copy)
  • Claim form duly signed and filled
  • Copy of FIR
  • Tax paid receipt
  • Copy of Aadhar Card
  • Fitness certificate
  • Original insurance policy papers
  • Load challan of your commercial vehicle
  • Route permit ( if applicable)

Important Factors To Be Considered While Buying/Renewing your Vehicle Insurance

While renewing or buying a commercial vehicle insurance policy, customer should focus on below points:

  • Insured Declared Value (IDV): The term ‘IDV’ refers to the maximum claim your insurer will pay if your vehicle is damaged beyond repair or is stolen. Suppose the market value of your car is Rs 5 lakh when you buy the policy. That means the insurer will disburse a maximum amount of Rs 5 lakh.
  • Coverage: It is important to have appropriate coverage when buying any commercial vehicle insurance policy.
  • Discount/NCB: NCB actually stands for ‘No Claim Bonus’. It is actually a kind of reward that the car insurance providers provide to their customers when they do not file any claim in a policy year.
  • Add-on Benefits: Select add-on covers to enhance the overall policy commercial vehicle insurance coverage.
  • Deductibles: Choose for deductibles only when it is possible to pay a portion of the claim from your pocket. Always check for the deductibles and clauses at the time of renewal.

Add-on benefits in insurance policy

Zero Depreciation Cover Invoice price cover No Claim Bonus Protection
In case you need to replace some parts of your car, the car insurance plan pays you the depreciated value of the part and not the invoice value of the part. In case you have opted for a Depreciation Cover, you would be paid the actual price of the part and not the depreciated value. Insurance companies usually offer this value added cover for cars which are a maximum of 2 to 3 years old. This benefit comes with a small increase in premium. In case of a "total loss" of your car due to severe damage, the insurance companies will pay you the depreciated value of your car and not the price to purchase a new car. If you opt for this add-on cover, you effectively receive an amount to purchase a brand new car. Companies also pay the road tax and registration costs with this cover. It is also called the "Return to Invoice" cover. This too is available only for cars which are 2 to 3 years old and can be availed by paying extra premiums. In case you have not made any claims in your policy, you get discounts on renewal in the form of No-claims Bonus. This can lead to substantial savings in your renewal premium. In case, you have accumulated a good No-claims bonus %, this add-on cover will protect your against the loss of this bonus in case of a claim you make. You will be able to carry on your NCB % on renewal.
Emergency Assistance Keys and Locks Replacement Cover  
There are a variety of assistance which insurance companies offer as add-on covers. These include emergency transport, daily allowances, assistance if you run of out fuel, assistance in case of a flat battery, towing facilities, taxi benefits to name a few. Some are offered as freebies and some are charged as part of the annual premium itself. Small measures which can actually be very handy when you are stranded. In case the keys to your car are lost, this will cover the costs of replacement. In case new locks need to be procured, this will cover that cost also. Usually this is available only once during a policy period.

Process to Renew a Commercial Vehicle Insurance Plan

A commercial vehicle insurance policy can be renewed online as well as offline. If you want to renew your policy offline, you can contact an agent of your insurance company or visit their nearest branch. In case you want to renew your commercial vehicle insurance plan online, you can follow the procedure mentioned below:

  • Visit the official website of your insurance provider
  • Go to the policy renewal option
  • Enter the required details, such as the policy number
  • Submit the details
  • Pay the premium amount online

Commercial Vehicle Insurance Cost

Subject to deduction for depreciation at the rates mentioned below in respect of parts replaced:
1. For all rubber/nylon/plastic parts, tyres and tubes, batteries and air bags- 50%
2. For fibre glass components- 30%
3. For all parts made of glass- Nil
4. Rate of depreciation for all other parts including wooden parts will be as per the following schedule

Vehicle Age Depreciation Rate
Within 6 months Nil
Between 6 months to 1 year 5%
Between 1 year to 2 years 10%
Between 2 years to 3 years 15%
Between 3 years to 4 years 25%
Between 4 years to 5 years 35%
Between 5 years to 10 years 40%
Exceeding 10 years 50%


The Company undertakes to pay compensation as per the following scale for bodily injury/death sustained by the owner-driver of the vehicle, in direct connection with the vehicle insured or whilst driving or mounting into/dismounting from the vehicle insured or whilst travelling in it as a co-driver, caused by violent, accidental, external and visible means which independent of any other cause shall within six calendar months ofsuch injury resultin:

Nature of injury Scale of compensation
Death 100%
Loss of two limbs or sight of two eyes or one limb and sight of one eye 100%
Loss of one limb or sight of one eye 50%
Permanent total disablement from injuries other than named above 100%