Commercial vehicle insurance is a type of insurance policy that covers the owner against losses sustained or damages caused by their commercial vehicle. The coverage of a comprehensive commercial vehicle insurance policy extends to cover own damages, third-party losses, theft, and losses due to natural and man-made disasters. Do note that insurers may offer separate policies for commercial vehicles that transport passengers and those that carry goods.
In India, every commercial vehicle is required to maintain at least an active third-party vehicle insurance policy to ply on the roads. However, most commercial vehicle owners prefer to opt in for the extensive protection that the comprehensive insurance brings. If you have recently acquired a vehicle for commercial purposes, you might want to know more about the coverage offered by commercial motor insurance. To help you out, this article lists out the coverage that you can enjoy under a comprehensive commercial vehicle insurance plan.
- Third-party damages
Your comprehensive commercial vehicle insurance policy covers you for any liabilities towards a third-party during a mishap. The coverage extends to death or injury sustained by the third-party and damages caused to the third-party’s property during an accident.
- Own damages
External damages that occur to your insured vehicle during an accident are also covered within the limits of the policy. As these damages can add up to quite a bit, this coverage can truly protect your finances and save you from a hefty repair bill. Furthermore, comprehensive commercial vehicle insurance policies also generally have personal accident cover built-in for the owner. However, the owner may need to purchase a separate personal accident cover for the driver if the owner and driver are not the same individual since some insurers might not automatically include coverage for the driver. Remember it is mandatory to have personal accident cover for all motorists on Indian roads.
- Coverage against natural and man-made calamities
A comprehensive commercial vehicle insurance plan will cover you against losses due to fire, theft, floods, and earthquakes, among other natural and man-made calamities.
- Customizable coverage with add-ons
You can further customize your comprehensive commercial vehicle insurance policy by opting in for add-ons that can increase the scope of your plan. Some of the most popular add-ons that people generally opt for include invoice protection cover, NCB protector, consumables cover, accessories cover, and depreciation cover, among others. Make sure to ask your insurer for a complete list of all their add-ons so that you can pick the ones that will really benefit you.
Do bear in mind that commercial vehicle insurance policies also have certain exclusions to the coverage they provide. For instance, your claim will not hold if you were under the influence of alcohol at the time of the accident. Furthermore, your claim can be rejected if your driving licence is not valid. Make sure to check the exclusions in the fine print of the policy you are about to buy.
We hope that this article has helped in bettering your knowledge on commercial vehicle insurance.
Take care and drive safely!