Things You Should Know About Commercial Vehicle Insurance

Things You Should Know About Commercial Vehicle Insurance

Commercial vehicle insurance and private car insurance are different from each other and the policies provide coverage for multiple situations. Freighters, passenger/goods-carrying vehicles, and other particular vehicles such as excavators, tractors, etc., are some of the vehicles that need to have commercial vehicle insurance.

Given below are some essential points about commercial vehicle insurance that you should know about:

Coverage of commercial vehicle insurance

Many insurance companies provide commercial vehicle insurance policies that are custom-made according to your needs; but mostly, this type of insurance covers damages caused due to:

1. Accidents
2. Self-ignition, explosion, or fire
3. Riots or strikes
4. Natural disasters such as cyclones, earthquakes, landslides, floods, hurricanes, etc.
5. Acts of terrorism

If you are in an accident that involves another vehicle, any loss caused to the other vehicle or injuries to the people inside the vehicle are covered under the insurance. Personal accident cover is also included in such policies. A few insurance companies also provide towing facilities either as an add-on or as part of the standard policy.

Exclusions of commercial vehicle insurance

Wear and tear of the vehicle; electrical or mechanical breakdown; loss or damages that are caused due to war or nuclear attack; damages caused to a vehicle because of overuse.

Moreover, damages sustained when the vehicle was out of the predefined geographical region will also not be covered under the policy. Also, any loss or damage sustained when the vehicle was being driven by someone other than the driver listed in the "driver’s clause" would also not be covered.

What documents do you need to file a claim?

Here is the list of documents that one requires while making a claim:

In case of an accident

The documents that you would require under the circumstances include:

1. Claim form
2. Tax receipt
3. Copy of vehicle registration book (RC)
4. Proof of insurance (policy or cover note copy)
5. Estimate for repairs, copy of driver's license (DL)
6. Original DL for verification
7. FIR in case of third-party property damage/body injury/ death
8. Bills of repair
9. Payment receipts
10. Any other document that the insurer demands

In case of theft

1. Original registration book (RC) letter intimating the Regional Transport Office (RTO) of the theft along with the transfer papers from the authority
2. Tax payment receipt
3. Original policy document
4. Policy number
5. Previous insurance details
6. All sets of keys/warranty card/service booklets, period of insurance
7. FIR as well as no-trace report from the police
8. Any other documents required by the insurer.

Claim procedure of commercial vehicle insurance

You need to report the loss or damage to the vehicle immediately to claim commercial vehicle insurance. Either call the company’s toll-free numbers or visit its website and file the claim online. The company’s representatives should then be able to guide you through the entire motor insurance claim process. You would need to provide your policy number while making the claim.

You can either avail cashless or non-cashless claim. Fill the claim form carefully and attach copies of your driving license and registration certificate. The insurer will pay the garage directly if you get your vehicle repaired at a ‘network garage’. If you get your vehicle repaired at a garage that is not listed with the insurer, then you would have to bear the repair costs. The insurer will then reimburse the amount to you later.

Difference between Commercial Vehicle Insurance and Personal Vehicle Insurance

Commercial vehicles are considered to be at a higher risk; hence, insurers generally charge a higher premium for commercial vehicles. Under personal vehicle insurance, hired drivers or other passengers are not insured unless an add-on has been purchased. On the other hand, hired drivers and passengers alike are covered in the case of commercial vehicle motor insurance.

Motor insurance renewal and purchase can get troublesome as there is a lack of understanding of such insurance. Even after you conduct your research and use the comparison tools, you may end up buying the wrong policy without understanding the different clauses. Hence, you must consult an expert who can rid your doubts and help you find a policy that fits your needs best.

A mother of 2 lovely kids. Digital Marketer by profession and a blogger by passion! Here to inspire and motivate people with my writing.