For any business, logistics and transportation is a crucial process and cost for consideration, regardless of whether it is a core activity for your organization or not. In any case, if your business utilizes vehicles for commercial purposes, the commercial vehicle insurance comes to your rescue in case of any unfortunate accidents.
Why Do You Need a Commercial Vehicle Insurance?
The personal vehicle insurance of your car provides limited coverage, as it is intended for personal use and not business use. The insurance coverage for drivers and the passenger would also be limited if any. Even if your car is only used to ferry company employees, it is considered as commercial use. In case of an unfortunate event, the insurance company can reject the claim if your car is insured on personal use and is found to be used for commercial use.
Moreover, if you know that your vehicle will be used for commercial purposes even occasionally, you can apply for commercial vehicle insurance to get a higher liability cover. Moreover, vehicles bigger or heavier than SUVs usually might need a mandatory commercial vehicle insurance policy.
Which Vehicles Need Commercial Vehicle Insurance?
Any vehicle that is driven for commercial purpose, either to transport passengers or goods is covered should be covered by commercial vehicle insurance. Vehicles like taxis, buses, trucks, tractors, auto-rickshaws, trailers carrying containers, cranes and similar others would definitely need commercial vehicle insurance.
What is Covered?
Any damage to the insured vehicle, subject to the sum insured or actual damage is covered if caused due to circumstances such as accidents, fires, explosions, riots, terrorism, burglary, theft, earthquake, flood, storm and similar calamities. The cost of medical treatment for injured driver and passengers is also covered. In case of death or permanent disability, the compensation is paid according to terms and conditions of the commercial insurance policy.
Third party liability is also part of commercial vehicle insurance. Hence, the damage occurred to the property of a third party, injury or death to the third party is also covered under this policy.
What is Not Covered Under Commercial Vehicle Insurance?
Like any other insurance policy, commercial vehicle insurance also covers any unfortunate damage suffered to the insured. Any wilful damage or claim made to make a profit is not covered. At the same time, gross negligence by the driver, incorrect or prohibited routes, violation of traffic rules and “drink and drive” conditions make a case for rejection of the claim. If overloading or over-speeding of the vehicle is proven as a cause of the accident, the insurance company can deny the claim.
General wear and tear, technical break down, electrical faults, depreciation and similar instances that are not accidental in nature are also not covered in commercial vehicle insurance.
How to Select the Perfect Car Insurance Policy?
There are several car insurance companies in India that provide commercial vehicle insurance. To select the proper company, below are the tips to consider:
- Many business owners give priority to insurance premiums when they choose an insurance policy. However, instead of the premium amount, you should focus on the claim settlement ratio of insurance companies. It indicates the percentage of claims settled by the insurance company. There is no use of buying the insurance policy at a lower premium and then not getting the claim amount in a timely and professional manner. Going for credible companies like Bajaj Finserv can ensure that you have a hassle-free experience.
- We live in the digital era. Nowadays, companies provide online commercial vehicle insurance saving you a lot of time and money. Moreover, with a little bit of online research, you can get more clarity on what is covered and what is not covered in the policy you want to choose. If you are not comfortable with purchasing insurance online, some companies also offer doorstep collection services for the application form, required documents and for your insurance premium.
- Nowadays, almost all insurance companies provide cashless cover to their customers. If there is no network workshop and hospital near the accident site, you have to spend the amount on your own and then you can apply for reimbursement. Enquiring about the cashless capability of your insurance company will help you during unfortunate events.
A well-defined commercial vehicle insurance policy can save a lot of funds for your business. You can cover the major costs associated with any unforeseeable accidents that your commercial vehicle might get into and get very good benefits with additional covers as well.