This policy offers protection against losses or damages resulting from natural calamities, fires, man-made disasters, and other unforeseen events. It's imperative for all business proprietors to secure insurance for their commercial fleet, comprising auto-rickshaws, trucks, lorries, cabs, school buses, and other vehicles operating on the road.
This requirement encompasses vehicles such as taxis, auto-rickshaws, commercial two-wheelers, trucks, passenger buses, school buses, tractors, commercial vans, any vehicle transporting passengers or goods, construction equipment, and other heavy vehicles. Having this insurance is imperative for the legal operation of these vehicles on roads or any commercial premises.
• Primarily, it provides financial support in the event of an accident involving your commercial vehicle.
• Secondly, in compliance with the law, possessing at least a Liability Only (third-party) policy for your commercial vehicle is mandatory.
In India, there are two types of commercial vehicle insurance policies available, which are:
• Comprehensive insurance policy for commercial vehicles.
• Third-party insurance policy for commercial vehicles.
A comprehensive commercial policy offers coverage for damages caused by and to your commercial vehicle. On the other hand, a third-party insurance policy provides protection to third-party individuals or property that may have been affected by damages caused by your commercial vehicle.
Harm resulting from an intentional wrongdoing not committed by the owner.
Destruction due to fire, detonation, or lightning striking the insured vehicle.
The complete coverage provided by the third-party auto insurance policy.
Harm to the insured vehicle caused by an accident.
Destruction to the insured vehicle caused by terrorist actions.
Harm due to human-made disasters such as strikes, riots, vandalism, etc.
Harm incurred while the insured vehicle was being transported by water, rail, or land.
Theft of the insured vehicle (break-in/burglary is included in this coverage). In this case, the owner is required to submit the vehicle keys and necessary paperwork.
Harm resulting from an electrical or mechanical malfunction.
Indirect losses are excluded from coverage.
Harm incurred while operating a vehicle under the influence of alcohol.
Harm incurred while driving without valid documentation.
Harm incurred while engaged in illegal activity or violating the law.
Deliberate destruction of the insured vehicle.
Several factors impact the cost of commercial auto insurance. Generally, the following factors are critical in determining the price of an auto insurance policy:
Insurance Policy Type:
The premium for a third-party policy is typically lower than that of a comprehensive policy. Generally, the broader the coverage, the higher the policy.
Deductibles come in two forms: mandatory and voluntary. The greater the deductible amount at the time of claim settlement, the lower the premium amount.
Insured Declared Value (IDV):
The IDV represents the car's approximate current market value. The higher the IDV, the greater the premium amount, and vice versa.
Claim History:
Insurers offer discounts to those who do not make any auto insurance claims during the policy period. This discount can reach up to 50% for five consecutive claim-free years. The greater the No Claim Bonus discount, the lower the premium.
Car Make and Model:
The make, model, and year of manufacture of the commercial vehicle also determine the premium amount of the commercial auto insurance policy.
Engine Capacity:
Third-party insurance policy rates are calculated based on the vehicle's engine cubic capacity (cc) by the IRDAI. The higher the cc, the higher the premium amount.
Passenger-Carrying Vehicles:
Passenger-Carrying Vehicles (PCVs) typically include Light Commercial Vehicles, such as auto-rickshaws, cars, cabs, taxis, school buses, and also heavy vehicles like buses or coaches.
Goods-Carrying Vehicles:
Goods-Carrying Vehicles may belong to any category, including Heavy Commercial Vehicles (HCVs), Medium Commercial Vehicles (MCVs), or Light Commercial Vehicles (LCVs). Trucks, tempos, or lorries usually transport a large amount of goods.
LET’S SECURE INSURANCE BROKERS PRIVATE LIMITED | Reg. Office - S.No 19, Patil Arcade, Erandawane, Pune 411004 | IRDAI Direct Insurance Broker (Life & General) | License No.- 913 | CIN No - U66000PN2020PTC196618 | GST No - 27AAECL4462G1ZH | T&C Apply* Copyright © LET’S SECURE INSURANCE BROKERS PRIVATE LIMITED. All Rights Reserved