For those running a business that requires the need of vehicles, having a commercial vehicle insurance policy is an investment. A commercial vehicle insurance policy is mandatory as per the Motor Vehicles Act, 1988, and protects one’s business from any sort of loss involving the vehicle. A commercial vehicle insurance policy financially protects the vehicle owner in the case of an accident, as it offers coverage for the damages caused to the vehicle as well as offers coverage for the vehicle of the third party involved in the accident. In addition, a comprehensive commercial vehicle insurance plan offers coverage for both the involved parties in case of any bodily injury, disability or death. Listed below are the nuances of a commercial vehicle insurance.
Benefits of commercial vehicle insurance
Listed below are some of the key benefits of a commercial vehicle insurance:
- A commercial vehicle insurance policy offers coverage for the first party and the third party involved in an accident. This includes coverage for the damages caused to the vehicles as well as coverage for medical expenses in the case of injury or disability following an accident.
- Protects the finances of the business.
- Vehicle owners can make quick claims and settle the issue in a few days.
- All types of commercial vehicles can be insured - transport vehicles, carrier vehicles, passenger vehicles, etc.
What’s covered under commercial vehicle insurance
Listed below are some of the circumstances where a commercial vehicle owner can make an insurance claim:
- In the case of a fire or lightning resulting in the vehicle being damaged.
- If the vehicle is damaged as a result of a riot or strike.
- In case of theft of the vehicle.
- Any malicious act.
- In case of a natural calamity resulting in damage to the vehicle - flood, earthquake, etc.
- In case of a road accident.
- Any damages caused to the third-party vehicle involved in an accident.
- In case of a terrorist activity.
- Personal accident cover in case of bodily injury or disability caused to the first or the third party.
- Coverage for towing in case of a breakdown.
What’s not covered by commercial vehicle insurance
Policyholders cannot make a claim based on the below-listed circumstances:
- Any damage caused due to wear and tear of the vehicle.
- Any sort of mechanical or electrical breakdown.
- If the damage is caused when the vehicle is not being used for commercial purposes.
- Coverage for deductible as not listed in the policy.
- Any sort of consequential loss - fault of the driver.
- Loss or damage caused by nuclear war.
- Loss or damage caused by radiation.
- Any claims made out of contractual liability.
- Driving under the influence of intoxicants.
Insurance companies offering commercial vehicle insurance
Listed below are some of the popular insurance companies offering insurance policies for commercial vehicles: