Should you own a commercial vehicle or planning to buy one, it is imperative that you have a commercial vehicle insurance to go with it. This insurance policy provides financial cover against any loss or damages sustained by your vehicle, in case it is involved in an accident.
Besides covering damages to your vehicle, this policy also insulates you against third-party legal liabilities (resulting from bodily injuries or death of a third-party) as well as damages to the other party’s property. Here’s more on commercial vehicle insurance.
Why is commercial vehicle insurance important?Commercial vehicle insurance policy resolves financial damages should your car be involved in an accident. In the event of damages, you would be the one held responsible for it – no matter if you were behind the wheels or not. Besides, third-party liabilities are covered as well.
Is there any specific type of vehicles that are covered under this policy?A wide range of commercial vehicles – including trailers, both private and public goods ferrying vehicles, passenger ferrying vehicles and other special types such as mobile rig vehicles, tractors, grabs, etc., – can be insured with the help of a commercial vehicle insurance policy.
What does the policy cover?A commercial vehicle insurance policy can be tailored to meet your specific requirements. Stated below is a list of all inclusions:
Damages sustained by the insured commercial vehicle. These damages might result from:
- Explosion, lightning, fire, self-ignition
- Riots, strikes
- Theft, house-break, burglary
- Activities with mala fide intent
- Natural calamities including earthquake, flood, hailstorm, hurricane, typhoon, landslide, etc.
- Acts of terrorism
Third-party legal liabilitiesA comprehensive commercial vehicle insurance plan offers coverage against damages suffered by a third party and his/her property.
- Personal accident cover
Both the owner (of the insured vehicle) and the driver will be eligible for a Personal Accident Cover in case of accidental death or permanent disability.
What does the policy not cover?It is advised to thoroughly read up the policy fine print in order to know conditions and situations that don’t fall within the ambit of coverage.
Stated below are some of the common exclusions:
- Vehicular wear and tear
- Electrical and mechanical breakdown
- If you are driving the vehicle beyond the specified geographical area
- If the vehicle is being used beyond the specified limitations as stated in the policy
- Any consequential loss or damages sustained as a result of consequences of actions by the policyholder. For instance, a commercial vehicle insurance policy covers for financial damages resulting from natural calamities such as an earthquake. However, if you end up using your vehicle after having felt quake tremors in your region and should your car sustain body damages due to your actions, you would not be eligible for coverage in such a situation.
- Damages inflicted by wars
Click here to apply for a 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.
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