Types of Commercial Vehicle Insurance Policies

Ever wondered the countless kilometres the cabs, trucks and busses ply each day? Surely in manifolds when compared to a private vehicle. During such mile-munching travel journeys, there can be cases of unfortunate accidents that can damage these vehicles.

Do insurance companies cover such damages too?

Yes, of course! These vehicles which ply passengers and goods require commercial vehicle insurance the most. Firstly, to protect their vehicle and secondly, to cover any damages to third-person or property.

Commercial vehicle insurance is an important part of owning a motor vehicle. A mandate as per the law requires the owner to have insurance for each such motor vehicle. Just like your private vehicles, commercial vehicles too, must have an insurance policy.

What is the importance of having commercial vehicle insurance?

An adverse situation like a breakdown or damage to your vehicles can cause a financial strain on the business resources. It can end up disrupting the normal business activities like procurement and delivery of your goods. In the case of cab aggregators, damage to their vehicle can mean a complete halt of the operations. At such times, availing a commercial vehicle plan can help not only avoid financial burden but also reduce the downtime of your operations significantly.

Now that you’re aware of the importance to avail a commercial insurance cover for your vehicles let us look at a few salient features of the commercial policies-

  • A commercial policy can be opted for private as well as public vehicles. There’s no restriction on the vehicle category for which a commercial plan can be selected.
  • Your commercial policy covers for third party liabilities along with personal damages.
  • Your financial worries are at bay for any damage to your vehicles.
  • You can focus on your business growth instead of worrying about the repairs that may be needed.

After becoming familiar with the importance and a few highlights of a commercial vehicle plan, let us look at the types of commercial vehicle insurance policies –

Third-party Liability Commercial Vehicle Insurance

Third-party commercial insurance provides the policyholder protection against any damages that may be caused to any third person. This policy includes any damages to the property as well as bodily injury. Any injury to such another person is insured without any limit, whereas property damage is restricted up to ₹ 7,50,000. The vehicle owner with these types of insurance policies must tread with caution any damage to their vehicles is not covered under such motor insurance policy.

Comprehensive Commercial Vehicle Insurance

The shortcomings of third-party policy are overcome by a comprehensive insurance cover. This insurance policy ensures a broad coverage to the owner as well as third-party. A comprehensive cover includes protection against unfortunate events like theft, fire, earthquake, damage and so on. The coverage is scalable as per requirements with the help of suitable add-ons.

In the end, vehicle insurance will keep you protected from monetary stress in case of unfortunate accidents and damages. Also, remember to complete your bike / car insurance renewal In time to avoid losing out on benefits like a no claim bonus or more. While zeroing down to a suitable policy, make sure you read the policy document so that you are aware of the terms and conditions for filing a claim in case required.

There are Money Expert courses that are designed to teach drivers how to drive more safely and effectively. These courses can be taken by anyone who has a driving license and want to improve their driving skills.

Post Author: Lailah Ford