It is a known fact that in India, as per the Motor Vehicles Act, all cars and two-wheelers used for daily commuting purposes must have a valid license. But, is it necessary for commercial vehicles to have an insurance cover? YES, commercial vehicles too must have valid insurance; driving a commercial vehicle without a valid licence may attract a hefty fine.
Commercial vehicles are an integral part of a business, no matter whether you are using it to transport goods or people, it is imperative that you protect the vehicle against theft and damages due to accident. Commercial vehicle insurance not only provides coverage against the physical losses to the car but also covers third-party injuries and death.
Why should you buy commercial vehicle insurance?
Commercial vehicle insurance provides a practical solution to the possibility of your vehicles getting damaged due to accident. In case, if the vehicle meets with an unfortunate road mishap, irrespective of whose fault it is and who was driving the car, you must bear the loss. But, with commercial vehicle insurance, you get the financial protection against such damages.
What does commercial vehicle cover?
Today, in India, several insurance companies offer commercial vehicle loan plans to suit the varying needs of the people. Based on the type of plan you buy, the inclusions may vary, but most insurance companies provide the following cover:
- Damage to the vehicle due to:
– fire, explore or self-ignition,
– burglary, theft, house break-in
– natural disasters like flood, storm, rain, earthquake, landslides
– accident by external means
- In the event of an accident involving your vehicle and another vehicle, the insurance company will compensate for the damages to the third-party’s vehicle and body injuries.
- Commercial vehicle loanalso includes personal accident cover. It pays for the accidental death or the disability of the driver
- Some insurance companies in India also provide towing facility for the vehicles damaged in the accident. Mostly, it is an add-on cover.
The list of inclusions is mentioned in the policy document. You must carefully read the policy papers to know what is covered. Similarly, you must know about the exclusions (what is not covered under the policy). Here is a general list of things that the insurance companies omit from coverage.
- Accidents occurred to wear and tear of the parts and mechanical and electrical breakdown.
- Damages occurred when the vehicle is used beyond its specified limits. For instance, a private vehicle is used as a taxi, or a goods vehicle carries a load more than the specified capacity of the vehicle.
- If the vehicle is used outside the geographical boundaries defined in the policy.
- Loss incurred due to nuclear explosion or ionizing radiation
What is the process to claim commercial vehicle insurance?
- The claiming process starts with reporting the accident to the insurance company as soon as the incident occurs. Usually, insurance companies have toll-free numbers. You can call on these numbers to inform about the damage and initiate the claim process. You can also file a claim online.
- When you file a claim make sure to provide the details of your insurance like the policy number, the sum assured, and the date of purchase.
- Also, you must provide important documents like driver’s license and vehicle registration certificate.
If you have sent the vehicle to any of the garages that are part of the insurer’s network, you can avail the cashless facility. But, if the garage is not part of the network, you must initially pay the expenses and file for a reimbursement subsequently.
Thus, commercial vehicle insurance is a must-have for all business owners. It allows you to get financial protection against road accidents and theft. But, more importantly, it allows you to focus on their business activities rather than worrying about their vehicles.