Commercial Vehicle Insurance Drive your Business Smoothly with BimaSure
Ever since the wheel was invented, the world has never been the same. From pizza to aircraft parts, commercial goods carrying vehicles are the lifeblood of modern businesses worldwide. Commercial Insurance can significantly enhance your business operations with a variety of essential features and functionalities. In a landscape where the dynamics of business are constantly evolving, the latest Commercial Insurance options offer a range of benefits to keep your company ahead of the curve.
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- Offering top 10+ insurers
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Access to more than 6000+
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Buy/Renew Commercial Vehicle Insurance Policy Online
What is Commercial Vehicle Insurance?
Commercial Motor Vehicle Insurance policy is designed especially for those business owners who have their vehicles being used for business purposes. It comprises both: the vehicles bought for business use or any personal vehicles that are being used by the business.
A Commercial Vehicle Insurance is a customized motor insurance policy to cover for damages and losses caused to or by a commercial vehicle and the respective owner-driver. This could include damages and losses in situations such as accidents, collisions, natural calamities, fires, etc. It is a crucial necessity for businesses utilising vehicles like auto-rickshaws, pick-up vans, school buses, tractors, trucks, and other heavy-duty vehicles.
Need and Importance of Commercial Vehicle Insurance
The need for Commercial Vehicle Insurance is paramount for businesses using vehicles for their operations. It ensures financial protection against damages, legal compliance with liability coverage, and overall security, allowing businesses to operate with peace of mind. If your primary business involves the use of vehicles, such as a regular cab service or a private school bus, a commercial vehicle insurance will assure your stakeholders and passengers that they’ll always be protected and covered for. As a mandate by law, it is mandatory to at least have a Liability Only policy in place that protects third-parties against any loss and damages that could be caused by your commercial vehicle.
Vehicle Covered in Commercial Vehicle Insurance
Under the category of commercial vehicle, there are various classifications. Let us look ahead for types of commercial car insurance and their features:
Passenger Carrying Vehicles
Vehicles such as taxis, cabs, auto-rickshaws, school buses, private buses etc., that generally carry at least one passenger are known as passenger-carrying vehicles. These passenger-carrying vehicles are covered under commercial vehicle insurance, which secures them against losses in case of any unforeseen circumstances.
Goods Carrying Vehicles
Vehicles primarily used for carrying goods to transport from one place to another are known as goods carrying vehicles and mostly include mini trucks, trucks, tempos, lorries etc. Since these vehicles are large in size, they carry more risk. Commercial vehicle insurance covers the damages to third party vehicle or own vehicle and the damages to the goods as per the policy coverage.
Miscellaneous & Special
Vehicle
There are many types of vehicles used for business or commercial reasons besides trucks, taxis, buses, cabs etc. The vehicles may include special vehicles used for mining, farming, construction etc. Commercial vehicle insurance shields the insured vehicle from any mishaps and losses caused to and by the vehicle and its driver.
Types of Commercial Vehicle Insurance
Depending on the nature of business, there are different types of commercial vehicle insurance in India. Each plans have different features, so let us look at them;
Comprehensive Commercial Vehicle Insurance
This comprehensive plan covers a wide range of risks, including third-party liabilities, damages from accidents, natural calamities, and theft.
Third-Party Commercial Vehicle Insurance
Mandated by law, it primarily covers third-party property harm and legal liabilities.
Standalone Own Damage (SAOD)
This focused coverage addresses damages to the insured vehicle without extending to third-party liabilities.
Key Features of Commercial Vehicle Insurance
The decision to invest in insurance comes with various benefits, creating a safety net for the policyholder. Key features of buying insurance include:
Safety Net
Having a Commercial insurance policy acts as a safety net, providing financial support for the owner and passengers in case of injuries or damages. The insurance company covers expenses according to the policy terms.
No Claim Bonus (NCB)
The NCB feature rewards policyholders for not making any claims during the policy period by offering discounts on their own damage premium for the following policy year.
Third-Party Liability
This liability cover secures the costs of any damage or injury caused to a third party in the event of an accident. This includes covering the cost of medical expenses, damage to property, and legal expenses
Legal Protection
Having a valid insurance policy ensures legal compliance, preventing hefty fines and potential legal consequences in case of mishaps.
Hassle-Free Process
Advancements in technology enable the easy and fast purchase of insurance policy online with zero paper work. This process is not only convenient but also affordable.
Savings & Affordable Premiums
This policy is cost effective in terms of the coverage its provides, moreover its beneficial for policyholders who shall buy it online as buying online policy helps in getting additional discount
Cashless Network of Garages
Our network of over 6000+ garages ensures cashless services for your vehicle repairs
Personal Accident Coverage
This cover provides financial protection to passengers in the event of an accident. This includes covering the cost of medical expenses and providing a lump-sum payment in case of death or permanent disability.
Stress-Free Claims
Gone are the days when you had to stress over raising an insurance claim. With features such as free pickup and drop* and claim tracking, your claims experience with us is bound to be stress-free! (*as per terms and conditions)
Key Benefits of Commercial Vehicle Insurance
Buying Motor Insurance in India is mandated by the Government of India, but that is not the only reason you should buy motor insurance. Let’s glance at some of the benefits;
Legal Compliance
Adherence to mandatory legal requirements for operating commercial vehicles.
Coverage Against Own Damage
Protection for the insured vehicle from various risks and damages.
Protection from Third-Party Liabilities
Safeguarding businesses from legal and financial repercussions due to third-party harm.
Comprehensive Coverage for Natural Calamities
Financial support for damages caused by natural disasters.
Peace of Mind for Business Operations
Providing a sense of security, allowing businesses to focus on their core operations without undue worry.
Personal Accident Cover
Provides financial security to the owner when they are driving the insured vehicle, This protection is extended to the paid drivers and other passengers basis the sitting capacity of the vehicle
Our Preferred Plans
Finding the best motor insurance for commercial insurance can be a very stressful for any individual as there are many motor plans available in the market from various motor insurance companies. To make it easier for you, we BimaSure have compiled the list of best commercial insurance plans along with its key features in the table below:
Commercial Vehicle Insurance
- Advantage with GoDigit
- 4400+ Cashless Network Garage
- Settled 96% of all claims for private cars
- 24*7 customer support
- Digitally enabled processes
Coverage Benefits
- Customise IDV
- Online Discount available on premium
- Add-ons available
- PA Cover, Legal Liability Cover, Special Exclusions and Compulsory Deductible
- Smartphone-enabled Claim process
Commercial Vehicle Insurance
- Advantage with Acko
- 2.8 crore+ customer insured
- 94.54% Claim Settlement Ratio*
- 24*7 customer support
- Digitally enabled processes
Coverage Benefits
- Customise IDV
- Coverage for Own Damage and Third party Available
- Personal Accident (PA) Cover Available up to Rs. 15 lakhs
- Add- ons available
- Instant claim settlements (within 2 hours) for minor damages
Commercial Vehicle Insurance
- Advantage with HDFC ERGO
- 1800+ Cashless Network Garage
- 100% Claim Settlement Ratio*
- 1.5 Crore+ Happy Customers
- 24*7 customer support
Coverage Benefits
- Customise IDV
- Coverage for Own Damage and Third party Available
- Personal Accident (PA) Cover Available up to Rs. 15 lakhs
- Add- ons available
- No Claim Bonus up to 50%
Commercial Vehicle Insurance
- Advantage with Bajaj Allianz
- 4500 + Cashless Network Garages
- 98% Claim Settlement Ratio
- 24*7 customer assistance
- Digitally enabled processes
Coverage Benefits
- Coverage for Own Damage and Third party Available
- Personal Accident cover available
- Add on available for CNG/LPG system
- No Claim Bonus
- On Spot settlement using the App
Commercial Vehicle Insurance
- Advantage with ICICI Lombard
- 6500+ Cashless Garage
- 93.4% Claim Settlement Ratio
- 2.17 Crore policies issued
- 24*7 Customer Support
Coverage Benefits
- Cover available for Loss/damage to the vehicle insured
- Cover for liability to third party
- Personal Accident Cover for Owner cum Driver
- No Claim Bonus is available
- Add ons available
Commercial Vehicle Insurance
- Advantage with Kotak General
- 4200+ Cashless Network Garage
- 99% Claim Settlement Ratio
- 1.23 Crore policies issued
- 24*7 customer assistance
Coverage Benefits
- Cover available for Loss/damage to the vehicle insured
- Cover for liability to third party
- Personal Accident Cover
- No Claim Bonus is available
- Kotak Edge Benefit
Commercial Vehicle Insurance
- Advantage with SBI General
- 7000+ Cashless Network Garage
- 98% Claim Settlement Ratio
- 20.46 Crore Customers
- Customer service Assistance
Coverage Benefits
- Cover available for Loss/damage to the vehicle insured
- Cover for liability to third party
- Personal Accident Cover
- Legal Liabilities Towards Paid Drivers and Employees
- No Claim Bonus
Inclusion and Exclusions in Commercial Vehicle Insurance
Based on the requirement of your commercial vehicle, we primarily suggest two policies. However, considering the risk and use of commercial vehicles, it’s recommended to take a Standard Comprehensive Package Policy that will financially protect your own commercial vehicle, and the owner-driver using it as well.
Commercial Vehicle Insurance Premium Rates
Your commercial vehicle insurance premium includes three major components;
1. Own Damage Premium: This is calculated as IDV X [Tariff Rate] – [Discounts] + Add On Covers
2. Personal Accident cover premium + Additional covers
3. Third-Party Liability Premium: This is stipulated by the Insurance Regulatory and Development Authority of India (IRDAI), and it is directly proportional to your vehicle’s cubic capacity.
TP Rates of Passenger- Carrying (PCV)
| Vehicle Type | Basic Rate | Per Licensed Passenger |
|---|---|---|
| Not exceeding 1000 cc | 6040 | 1162 |
| Exceeding 1000 cc but not exceeding 1500 cc | 7940 | 978 |
| Exceeding 1500 cc | 10523 | 1117 |
TP Rates of GCV Public Carrier
| Gross Vehicle Weight (GW)- Public | Rates (Rs) |
|---|---|
| GVW not exceeding 7500 kgs | 16049 |
| Exceeding 7500 kgs but not exceeding 12000 kgs | 27186 |
| Exceeding 12000 kgs but not exceeding 12000 kgs | 35313 |
| Exceeding 20000 kgs but not exceeding 40000 kgs | 43950 |
| Exceeding 40000 kgs | 44242 |
TP Rates of GCV Private Carrier
| Gross Vehicle Weight (GVW)- Private | Rates (Rs) |
|---|---|
| GVW not exceeding 7500 kgs | 8510 |
| Exceeding 7500 kgs but not exceeding 12000 kgs | 17352 |
| Exceeding 12000 kgs but not exceeding 12000 kgs | 10969 |
| Exceeding 20000 kgs but not exceeding 40000 kgs | 17626 |
| Exceeding 40000 kgs | 25038 |
Goods Carrying Motorized Three Wheelers and Motorized Pedal Cycles - Public and Private Carrier
| Category | Vehicle Type | Basic Rate |
|---|---|---|
| A3 | Except e-carts (Public Carrier) | 4492 |
| A4 | Except e-carts (Private Carrier) | 3922 |
Add-ons Available with Commercial Vehicle Insurance
Insurance companies offer various add-ons to enhance coverage, although they may increase the premium amount. Some noteworthy add-ons include;
Consumable Cover
A consumable cover will give your commercial vehicle protection beyond just the usual. It covers the cost for your vehicle's bits and pieces, like the nuts and bolts, screws, engine oil, and grease in case of an accident.
Personal Accident Cover
If you don’t already have a PA cover, you can include it within your commercial insurance policy , This extends coverage for bodily harm or death in an accident.
Key and Lock Replacement
Passenger Carrying Vehicle: There are instances when the vehicle’s lockset needs to be replaced or the keys are misplaced and lost. In such scenarios, this cover helps the policyholder get compensated.
Parts Depreciation Cover
This cover safeguards against depreciation of replaced parts.
Roadside Assistance
This add-on covers a range of services under repair and towing, emergency towing assistance and concierge services.Some of these are flat tyre servicing, rundown battery, on-the-spot repairs, spare key delivery, alternate mode of transport to resume the journey, hotel accommodation and also contacting medical support if required.
Engine Protection Cover
Your vehicle's engine or gearbox get damaged in an accident, due to things like water regression or leakage of lubricating oil. This add-on will help cover any consequential damages caused after the accident
Return to Invoice
Passenger Carrying Vehicle-If the insured vehicle is a total loss or constructive loss or is stolen, the policyholder will be compensated under this return to invoice cover.
EMI Protection Cover
Some insurer also provides this cover in which you will be paid regular EMIs to payable to the financier of the vehicle recorded, if your vehicle is taken on a loan and is damaged by an accident, and it’s sitting in a garage for repair.
Passenger Cover
If something happens to the person sitting with you in the vehicle, in an unforeseen accident this cover ensures protection for occupants with additional benefits.
Additional Towing Expenses
When your vehicle is in an accident, it will need to be towed to a garage to be repaired. Under this add-on, we will cover for additional expenses that you might have during vehicle relocation
FAQ's
As the need for insurance increases, doubts and queries also increase. Navigating insurance complexities can be overwhelming.To help you with this, We have tried to address common doubts for a seamless journey with Bimasure;
Commercial Vehicle Insurance is a specialized insurance policy that provides coverage for losses and damages associated with commercial vehicles. It includes protection against accidents, theft, natural disasters, and liabilities arising from third-party harm. It is essential for businesses operating a fleet of vehicles.
IDV, or Insured Declared Value, is the maximum amount the insurance company agrees to pay in case of a total loss or theft of the insured vehicle. It represents the vehicle’s market value, taking into account depreciation.
A cashless claim facility allows the policyholder to get their vehicle repaired at network garages without paying the repair costs upfront. The insurance company directly settles the bill with the garage, making the process convenient for the policyholder.
A No Claim Bonus (NCB) is a reward given to policyholders for not making any claims during the policy term. It results in a discount on the premium during the policy renewal, encouraging safe driving and responsible vehicle management.
Several factors influence the premium of a commercial vehicle insurance plan, including the age of the vehicle, Insured Declared Value (IDV), the city of registration, model and type of the vehicle, and the fuel type.
The time taken to settle a commercial vehicle insurance claim varies depending on the complexity of the case. Generally, insurance companies strive to process claims efficiently, and the duration can range from a few days to a few weeks.
To renew a commercial vehicle insurance policy, you typically need documents such as the Registration Certificate, Driving License, Previous year’s commercial vehicle insurance policy, and any other documents requested by the insurer.
When purchasing commercial vehicle insurance online, you may need documents such as the commercial vehicle invoice, Registration Certificate, valid driving license, address proof, and credit/debit card details for payment.
The online process of commercial vehicle insurance comparison involves visiting a platform like RenewBuy, entering vehicle details, examining deductibles and IDV, inspecting claim settlement history, choosing add-ons, and selecting the insurance provider.
BimaSure offers a comprehensive platform for comparing commercial vehicle insurance policies. It provides up-to-date policy information, easy comparison, the latest information, and a customer-focused approach with expert advice.
Purchasing commercial vehicle insurance online offers benefits such as convenience, easy comparison of prices and services, access to up-to-date information, and the ability to explore and choose the most suitable policy.
To file an online claim for commercial vehicle insurance, the insured must provide a copy of the claim notification, policy number, filled claim form, valid driving license, RC copy, police report (in case of an accident), fitness certificate, road tax verification, and photographs of the incident or damaged vehicle.
Commercial Vehicle Insurance is essential for businesses as it provides financial protection against potential losses and liabilities related to the operation of commercial vehicles. It ensures compliance with legal requirements and allows businesses to operate with confidence, knowing they are covered in case of unforeseen events.
