5 Things To Know About Commercial Vehicle Insurance in India

If you own vehicles that are used commercially, getting insurance is a priority. Given the increasing number of accidents, thefts and third-party liabilities, vehicle insurance is the only way to minimize losses, reduce anxiety and stress. But given the numerous insurance companies and plans, it can be really confusing to know the best commercial vehicle insurance cover. Thus, it is critical to invest time and effort in enhancing knowledge about commercial vehicle insurance India.

1. Policy Requirement:

2. Policy Cover:

3. Policy Exclusions:

4. Policy Price Determination:

• Type
• Age
• Model
• Registered Domicile
• Fuel type
• IDV

5. Policy Comparison:

• Overall coverage
• Policy exclusions
• Claim settlement ratio
• Garage network
• Add-on covers
• Claim process
• Online reviews
• Brand value

1. Commercial vehicle insurance is required to provide comprehensive protection to vehicles used for good-carrying, passenger-transporting and other commercial purposes. No matter the size of the vehicle, insurance today is mandatory as per the Motor Vehicles Act 1988. It is also a wise decision since it provides reimbursement in case of damage, loss or third-party liability.The basic reason to buy insurance is to cover several perils that may befall your vehicle; hence, it is very important to know what the insurance policy covers. Generally, insurance providers reimburse for events such as fire explosion, third-party damage, theft, riot, natural disaster, road accident, terrorist activity, self-ignition, and other malicious acts. There are several add-on covers that can be merged with a general commercial vehicle insurance cover, such as third-party damage or injury reimbursement, accidental death of the driver, towing facilities, etc. However, every policy has different reimbursement rules and documentation requirement, which needs to be met for the claim to be accepted.It is essential to know what the policy does not cover so that there is complete clarity from the beginning. Events such as driving under the influence of alcohol or drugs, loss caused due to nuclear war, accidental damage due to illegal activity, damage by the unregistered driver, etc. are not included in general policy insurances. That said, each policy is different, and it is very important to study all exclusions before buying.The overall cost of the policy is determined based on factors related to the concerned vehicle, such as below:
2. In addition to these factors, previous claim records and the type of cover are analysed while calculating the premium for the commercial vehicle insurance policy.An informed choice is always the best one; hence, it is very vital to understand some basic policy comparison points (such as below) to ensure you buy the right cover from the right company.

To sum it up It is always advisable to conduct extensive research beforehand and analyse policy documents carefully before purchasing commercial vehicle insurance.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.