Commercial Vehicle Insurance

Ever since the wheel was invented, the world has never been the same. From pizza to aircraft parts, commercial goods carrying vehicles are the lifeblood of modern businesses worldwide. Commercial Insurance can significantly enhance your business operations with a variety of essential features and functionalities. In a landscape where the dynamics of business are constantly evolving, the latest Commercial Insurance options offer a range of benefits to keep your company ahead of the curve.

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What is Commercial Vehicle Insurance?

Commercial Motor Vehicle Insurance policy is designed especially for those business owners who have their vehicles being used for business purposes. It comprises both: the vehicles bought for business use or any personal vehicles that are being used by the business.

A Commercial Vehicle Insurance is a customized motor insurance policy to cover for damages and losses caused to or by a commercial vehicle and the respective owner-driver. This could include damages and losses in situations such as accidents, collisions, natural calamities, fires, etc. It is a crucial necessity for businesses utilising vehicles like auto-rickshaws, pick-up vans, school buses, tractors, trucks, and other heavy-duty vehicles.

Need and Importance of Commercial Vehicle Insurance

The need for Commercial Vehicle Insurance is paramount for businesses using vehicles for their operations. It ensures financial protection against damages, legal compliance with liability coverage, and overall security, allowing businesses to operate with peace of mind. If your primary business involves the use of vehicles, such as a regular cab service or a private school bus, a commercial vehicle insurance will assure your stakeholders and passengers that they’ll always be protected and covered for. As a mandate by law, it is mandatory to at least have a Liability Only policy in place that protects third-parties against any loss and damages that could be caused by your commercial vehicle.

Types of Commercial Vehicle Insurance

Depending on the nature of business, there are different types of commercial vehicle insurance in India. Each plans have different features, so let us look at them;

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Comprehensive Commercial Vehicle Insurance

This comprehensive plan covers a wide range of risks, including third-party liabilities

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Third-Party Commercial Vehicle Insurance

Third-Party Commercial Vehicle Insurance Mandated by law, it primarily covers third-party property harm and legal liabilities.

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Standalone Own Damage (SAOD)

This focused coverage addresses damages to the insured vehicle without extending to third-party liabilities.

Key Features of Commercial Vehicle Insurance

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Safety Net

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Legal Protection

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Cashless Network of Garages

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No Claim Bonus (NCB)

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Hassle-Free Process

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Personal Accident Coverage

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Third-Party Liability

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Savings & Affordable Premiums

What is Term Plan?

Term insurance is a life insurance policy that provides coverage for a specific term or duration. Its also known as a 'pure protection plan,' It is not only affordable but also offers substantial coverage, making it a cost-effective choice for comprehensive protection. Term Insurance offers financial protection to your family in the event of your demise during the policy period. If you are the primary breadwinner, term insurance becomes a vital tool to ensure the continued well-being and financial stability of your family. This financial cushion helps cover living expenses, outstanding debts, and future financial goals.

 

Benefit How it Works
Death Benefit If you don't survive the policy term, your nominee will be eligible to receive the sum assured as the death benefit.
Maturity Benefit If you survive the policy term, no benefit is paid. However, if you buy a Term Return of Premium (TROP), plan you will receive the amount of premiums paid (minus taxes)-once the policy matures.

Need and Importance of Term Plan

A term insurance plan is a type of life insurance policy that provides coverage for a specified term or period. It offers financial protection to your family in case of your untimely demise during the policy term. Here are several advantages of buying a term insurance policy:

  • Financial Responsibilities

    Term insurance is crucial for individuals with financial responsibilities, ensuring that their loved ones are protected against unforeseen circumstances.

  • Life Stages Consideration

    The importance of term insurance is emphasised across various life stages, such as being newly married, a young professional, a parent, a taxpayer, self-employed, or retired.

  • Ensures Family Lifestyle in Your Absence

    It replaces lost income, helping your dependents maintain their standard of living and meet financial needs even after your demise.

  • Protects Child Education Expenses

    For individuals with children or dependents pursuing higher education, term insurance ensures that their educational aspirations are not compromised.

  • Debt Repayment

    Term insurance helps settle outstanding loans, preventing your family from shouldering financial burdens like home loans or personal loans

  • Peace of Mind

    By investing in term insurance, you gain peace of mind, knowing that your loved ones are financially protected, and their future is secured in your absence.

  • Tax Benefits

    Term insurance offers tax benefits, making it an attractive option for those looking to save on taxes while ensuring financial protection.

  • Business Continuity

    For business owners, term insurance ensures smooth business continuity by providing funds for debt repayment, share buyouts, or capital for operation.

Our Preferred Plan

Finding the best motor insurance for two-wheeler insurance can be a very stressful for any individual as there are many plans available in the market from various motor insurance companies. To make it easier for you, we BimaSure have compiled the list of best two-wheeler insurance plans along with its key features in the table below:

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Two-Wheeler Insurance

Coverage Benefits

    • Advantage with Acko
    • 2.8 crore+ customer insured
    • 94.54% Claim Settlement Ratio*
    • 24*7 customer support
    • Digitally enabled processes
      • Premium starting at just ₹457*
      • Coverage for Own Damage and Third party Available
      • Personal Accident (PA) Cover Available up to Rs.15 lakhs
      • No Claim Bonus up to 50%
      • Instant claim settlements (within 2 hours) for minor damages
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Two-Wheeler Insurance

Coverage Benefits

    • Advantage with Acko
    • 2.8 crore+ customer insured
    • 94.54% Claim Settlement Ratio*
    • 24*7 customer support
    • Digitally enabled processes
      • Premium starting at just ₹457*
      • Coverage for Own Damage and Third party Available
      • Personal Accident (PA) Cover Available up to Rs.15 lakhs
      • No Claim Bonus up to 50%
      • Instant claim settlements (within 2 hours) for minor damages
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Two-Wheeler Insurance

Coverage Benefits

    • Advantage with Acko
    • 2.8 crore+ customer insured
    • 94.54% Claim Settlement Ratio*
    • 24*7 customer support
    • Digitally enabled processes
      • Premium starting at just ₹457*
      • Coverage for Own Damage and Third party Available
      • Personal Accident (PA) Cover Available up to Rs.15 lakhs
      • No Claim Bonus up to 50%
      • Instant claim settlements (within 2 hours) for minor damages
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Two-Wheeler Insurance

Coverage Benefits

    • Advantage with Acko
    • 2.8 crore+ customer insured
    • 94.54% Claim Settlement Ratio*
    • 24*7 customer support
    • Digitally enabled processes
      • Premium starting at just ₹457*
      • Coverage for Own Damage and Third party Available
      • Personal Accident (PA) Cover Available up to Rs.15 lakhs
      • No Claim Bonus up to 50%
      • Instant claim settlements (within 2 hours) for minor damages

Inclusion and Exclusions in Commercial Vehicle Insurance

Based on the requirement of your commercial vehicle, we primarily suggest two policies. However, considering the risk and use of commercial vehicles, it’s recommended to take a Standard Comprehensive Package Policy that will financially protect your own commercial vehicle, and the owner-driver using it as well.

  Liability Only Standard Package
Damages Caused by your commercial vehicle to any third party person to property ✔ ✔
Damages caused to any third-party person or property by the vehicle being towed by your insured commercial vehicle ✔ ✔
Loss or damages to own commercial vehicle due to natural calamities, fire, theft or accidents ❌ ✔
Injury/Death of owner-driver ✔ ✔
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Invalid Driving License

Driving Without a Valid Licence

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Normal Wear And Tear

Normal wear and tear and general aging of the vehicle

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Geographical Area

Any accidental loss or damage and/or liability caused sustained or incurred outside the geographical area

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Vehicle Breakdown

Mechanical or Electrical Breakdown

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Alcohol/Drugs

Damage to/by a person driving the vehicle under the influence of drugs or liquor

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War And Nuclear Risks

Damages due to nuclear risk or war/p>

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consequential losses

Depreciation or any consequential losses

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Vehicle Policy

Private Vehicle Used for Commercial Purposes

Commercial Vehicle Insurance Premium Rates

Your commercial vehicle insurance premium includes three major components;

1. Own Damage Premium: This is calculated as IDV X [Tariff Rate] – [Discounts] + Add On Covers.

2. Personal Accident cover premium + Additional covers

3. Third-Party Liability Premium: This is stipulated by the Insurance Regulatory and Development Authority of India (IRDAI), and it is directly proportional to your vehicle’s cubic capacity.

TP Rates of Passenger- Carrying (PCV)

Vehicle Type Basic Rate Per Licensed Passenger
Not exceeding 1000 cc ₹ 6040 ₹ 1162
Exceeding 1000 cc but not exceeding 1500 cc ₹ 7940 ₹ 978
Exceeding 1500 cc ₹ 10523 ₹ 1117

TP Rates of GCV Public Carrier

Gross Vehicle Weight (GW)- Public Rates (Rs)
GVW not exceeding 7500 kgs ₹ 16049
Exceeding 7500 kgs but not exceeding 12000 kgs ₹ 27186
Exceeding 12000 kgs but not exceeding 12000 kgs ₹ 35313
Exceeding 20000 kgs but not exceeding 40000 kgs ₹ 43950
Exceeding 40000 kgs ₹ 44242

TP Rates of GCV Private Carrier

Gross Vehicle Weight (GVW)- Private Rates (Rs)
GVW not exceeding 7500 kgs ₹ 8510
Exceeding 7500 kgs but not exceeding 12000 kgs ₹ 17352
Exceeding 12000 kgs but not exceeding 12000 kgs ₹ 10969
Exceeding 20000 kgs but not exceeding 40000 kgs ₹ 17626
Exceeding 40000 kgs ₹ 25038

Goods Carrying Motorized Three Wheelers and Motorized Pedal Cycles - Public and Private Carrier

Category Vehicle Type Basic Rate
A3 Except e-carts (Public Carrier) ₹ 4492
A4 Except e-carts (Private Carrier) ₹ 3922

Frequently Asked Questions

As the need for insurance increases, doubts and queries also increase. Navigating insurance complexities can be overwhelming.To help you with this, We have tried to address common doubts for a seamless journey with Bimafinserv;

What is Commercial Vehicle Insurance Policy?

Commercial Vehicle Insurance is a specialized insurance policy that provides coverage for losses and damages associated with commercial vehicles. It includes protection against accidents, theft, natural disasters, and liabilities arising from third-party harm. It is essential for businesses operating a fleet of vehicles.

What is the IDV in a commercial vehicle insurance policy?

IDV, or Insured Declared Value, is the maximum amount the insurance company agrees to pay in case of a total loss or theft of the insured vehicle. It represents the vehicle’s market value, taking into account depreciation.

What is a cashless claim facility under commercial vehicle insurance?

A cashless claim facility allows the policyholder to get their vehicle repaired at network garages without paying the repair costs upfront. The insurance company directly settles the bill with the garage, making the process convenient for the policyholder.

What is a No Claim Bonus in a commercial vehicle insurance policy?

A No Claim Bonus (NCB) is a reward given to policyholders for not making any claims during the policy term. It results in a discount on the premium during the policy renewal, encouraging safe driving and responsible vehicle management.

What factors affect the premium of a commercial vehicle insurance plan?

Several factors influence the premium of a commercial vehicle insurance plan, including the age of the vehicle, Insured Declared Value (IDV), the city of registration, model and type of the vehicle, and the fuel type.

How much time does it take to settle a commercial vehicle insurance claim?

The time taken to settle a commercial vehicle insurance claim varies depending on the complexity of the case. Generally, insurance companies strive to process claims efficiently, and the duration can range from a few days to a few weeks.

Documents required for Commercial Vehicle Insurance Renewal?

To renew a commercial vehicle insurance policy, you typically need documents such as the Registration Certificate, Driving License, Previous year’s commercial vehicle insurance policy, and any other documents requested by the insurer.

Documents required to Buy Commercial Vehicle Insurance Online?

When purchasing commercial vehicle insurance online, you may need documents such as the commercial vehicle invoice, Registration Certificate, valid driving license, address proof, and credit/debit card details for payment.

What is the Online Process of Commercial Vehicle Insurance Comparison?

The online process of commercial vehicle insurance comparison involves visiting a platform like RenewBuy, entering vehicle details, examining deductibles and IDV, inspecting claim settlement history, choosing add-ons, and selecting the insurance provider.

Why Choose Bimasure for Commercial Vehicle Insurance?

BimaSure offers a comprehensive platform for comparing commercial vehicle insurance policies. It provides up-to-date policy information, easy comparison, the latest information, and a customer-focused approach with expert advice.