Business persons need commercial vehicles for various work purposes, such as transporting goods, making deliveries, or meeting their suppliers or customers. However, employees driving these vehicles face the risk of various road mishaps. This, in turn, can lead to financial loss for the company, and here, commercial vehicle insurance comes as a lifesaver.
As per the Motor Vehicles Act of 1988, all vehicles running on Indian roads must have an insurance policy. This guide covers the various aspects of commercial vehicle insurance. Learn how to choose the best insurance for your fleet.
What are the Different Types of Commercial Vehicle Insurance Plans?
Commercial vehicle insurance policies cover various public and private vehicles used for work purposes, such as taxis, trucks, school buses, trailers, and mobile rig vehicles.
Broadly categorising, there are three commercial vehicle insurance plans in India. These include:
- Passenger Carrying Vehicle Insurance
These insurance plans are ideal for automotive owners who use their vehicles to transport passengers from place to place. It covers transportation means like taxis, auto rickshaws, buses, etc.
By owning this insurance, you can ensure financial protection for yourself/ the driver, the passengers, and the vehicle itself and safeguard your business against unforeseen losses.
- Goods Carrying Vehicle Insurance
A goods-carrying vehicle or truck insurance policy is vital for companies that own trucks or similar vehicles. Owning these policies can save your business from thousands, or even lakhs of Rupees in losses, as the sheer size of these vehicles makes them more prone to on-road mishaps.
Goods-carrying vehicle insurance covers owners of trucks, tempos, trailers, and three-wheeler vehicles against accidents, theft, third-party losses, or even natural disasters.
- Special/ Miscellaneous Vehicle Insurance
Some commercial vehicles do not transport goods or people. However, companies use them for construction, farming, mining, and other purposes. Special commercial vehicle insurance policies provide financial coverage for these vehicles.
They also compensate for medical treatment costs that may be incurred due to injuries to the vehicle’s owner or driver.
Three Key Tips to Secure the Best Commercial Vehicle Insurance
When purchasing commercial vehicle insurance online, please keep the following things in mind:
- Verify the Commercial Vehicle Insurance Inclusions
To choose an ideal plan, you must compare the quotes and offerings provided by several commercial vehicle insurance companies. To do this, contact different providers to check what they can offer. Next, compare the specific benefits to arrive at a well-informed decision.
- Know the Vehicle Insurance Claim Process
Before buying a plan, Do not hesitate to discuss the insurance claim procedure with your automobile insurer. You should have a comprehensive idea about the claiming process, the documents required, the estimated waiting period, and other related aspects. Typically, all these factors vary from one insurance company to another.
- Consider the Cost of Owning an Insurance
Policy costs will vary across vehicle insurance companies. Additionally, other factors like the type of commercial vehicle you seek insurance for, the vehicle’s age, and the policy type will influence the premium. Hence, you should carefully compare and revise the coverage by customising your vehicle’s insurance.
Finally, when comparing the prices, consider the vehicle insurance GST too. In short, it is essential to understand all the details beforehand to eliminate confusion that can arise later on.
How to Buy Commercial Vehicle Insurance Online?
To buy a commercial vehicle policy online, you can follow these steps:
Step 1: Visit your preferred insurance company’s website and mention your commercial vehicle’s registration number, your mobile number and select the option ‘View Prices’.
Step 2: Choose a relevant plan, check the IDVs, and select add-ons accordingly. Once you have made the selections, click on ‘Continue.’
Step 3: Provide a few details, such as your personal information and nominee details, and click on ‘Pay Now.’
Step 4: Choose a valid mode of payment and complete the KYC verification process.
Step 5: You will receive a soft copy of your commercial vehicle policy via the registered email address and WhatsApp. You can access these documents 24/7 on your insurance company’s mobile app.
Documents Needed to Purchase Commercial Vehicle Insurance Online
Generally, you will require the following documents while purchasing commercial vehicle insurance from a reputed company:
- RC or vehicle registration certificate
- Previous year commercial vehicle insurance copy, whenever applicable
- Any of these documents for the KYC procedure – PAN card/ Aadhaar card/ Form 16/ Passport/ DL/ Voter ID card
How to File a Claim With Your Commercial Vehicle Insurance Provider?
Buying and claiming commercial vehicle insurance online is very easy. All you have to do is follow these three steps:
Step 1: After an accident/ a loss, inform the insurance provider about the situation as quickly as possible. You can call them over their helpline or drop an email.
Step 2: Keep the policy details ready like the policy number, date and time of the accident, accident’s location, contact number of the beneficiary, etc. Arranging these things beforehand will make the claiming process a lot easier.
Step 3: Provide the mandatory documents and wait for approval from your insurer’s end. Once the verification is complete, your claim will be processed.
Documents Required to File a Claim
Following an accident, commercial vehicle insurance companies typically request the below-mentioned documents when a claim is filed:
- Vehicle registration certificate
- Driving licence of the concerned driver
- Copy of FIR, whenever applicable
- The Aadhaar card of the claimant
- Vehicle fitness certificate
- Load challan in case of a goods-carrying vehicle
- Duly filled claim form
- Tax paid receipt
- Commercial vehicle insurance policy certificate
It is safe to conclude that commercial vehicle insurance renewals are much more vital than most people assume. Moreover, careful policy selection becomes necessary as there are too many options available in the market.
