Commercial vehicle insurance insures commercial vehicles like pick up van, auto, bus, etc.
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Home / Commercial Vehicle Insurance Policy: Buy/Renew Online
Commercial vehicle insurance is a customised insurance policy that provides coverage against damage or losses to a commercial vehicle or damage caused by the insured commercial vehicle. The insurance plan provides coverage to both parties (first and third party) in case of accidents, injury/disability or death. The policy covers damage to the commercial vehicle caused due to accidents, natural/manmade calamities, etc. It is mandatory that all business owners should insure their commercial vehicles, such as school buses, auto rickshaws, commercial vans, etc.
Here are the key features and benefits of buying commercial vehicle insurance.
Buying a third-party commercial insurance plan is mandatory by law in India for commercial vehicles. Failing to buy mandatory commercial vehicle insurance can invite serious penance. This is because the risk involved in driving a commercial vehicle, especially passenger-carrying vehicles like taxis, buses, etc., is extremely high.
The damage or injury caused to the third party due to a commercial vehicle can be of a higher magnitude. This attracts equal amounts of compensation that can prove to be a major financial loss for you. It can adversely affect the business as well. However, insurance provides a safety net against financial losses where third-party damage or injuries are concerned.
A commercial vehicle is one of the assets that help the vehicle owner keep the business running. Any kind of damage caused to this asset can have a negative impact on the business. In such a situation, paying more money for the repair of the vehicle can be even more financially draining. Commercial insurance can help you safeguard your savings/income by paying for the repairs of the damaged vehicle.
Commercial Vehicle Insurance ensures that you remain stress-free and can continue to focus on the business. Buying insurance for your commercial car can bring relief to you in terms of damages to the insured vehicle and/or third-party damages or injuries.
In the following sections, let’s take a look at the coverage benefits of the commercial vehicle insurance plan. For more detailed information, you can refer to the policy wording.
Commercial Vehicle Insurance Inclusions
Commercial Vehicle Insurance Exclusions
Damage to the insured vehicle caused due to an accident.
Damage resulting from natural calamities like earthquakes, floods, hurricanes, cyclones, landslides, hailstorms, frost, etc. Damage such as shock damage or fire damage due to a natural calamity is also covered.
Damages arising out of a malicious act not caused by the owner.
Damage due to man-made calamities like riots, vandalism, etc.
Damage to the insured vehicle caused due to terrorist activity.
Theft of the insured vehicle (burglary/breaking into a house is included in this coverage). Here, the owner is expected to submit the vehicle keys and the necessary documents.
The damage occurred while the insured vehicle was being transported via water, rail, or land.
The coverage offered by the Third-party insurance policy.
Note: Personal Accident cover for the owner/driver is mandatory in India and needs to be bought separately along with the Third-party or Comprehensive commercial vehicle insurance policy. It covers both permanent disability/death while driving a car, and the coverage will be a maximum of Rs. 15 lakhs during one policy period.
Damage due to electrical or mechanical breakdown.
Damage caused when driving without valid documents.
Consequential losses are not covered.
Damage caused when involved in criminal activity or breaking the law.
Damage caused when driving under the influence of alcohol.
Intentional damage to the insured vehicle.
Here is the list of add-ons that you can opt for while buying insurance for your commercial vehicle.
Engine and Gearbox Cover
Zero Depreciation Cover
Revenue Loss Cover
Towing Expense Cover
Roadside Assistance Cover
Return to Invoice Cover
EMI Protection Cover
Key and Lock Replacement Cover
There are mainly two types of commercial vehicle insurance plans, and the following sections provide details of the same.
The comprehensive policy offers coverage against damages to the commercial vehicle caused due to accidents, calamities, theft, etc. It also offers third-party liability coverage, such as damages to the third-party property or accidental injury/disability or death of the third party. This policy provides a financial backup if your vehicle is damaged or causes damage/losses to a third party.
As the name suggests, this policy provides coverage against third-party liabilities. It is a law-mandated policy that every commercial vehicle owner must buy to comply with the law. It covers damages to third-party property or vehicle and injuries/disabilities or death of the third party caused due to the insured commercial vehicle.
You must buy commercial vehicle insurance for the following reasons.
It is mandatory to have at least a Third-party Insurance Policy as per The Motor Vehicles Act, 1988. Failure to insure your commercial vehicle can invite penalties.
If you own a business that involves transporting passengers in vehicles like cabs, buses, etc., commercial vehicle insurance will provide coverage for your vehicle and passengers.
If you own several commercial vehicles, commercial vehicle insurance will protect you against financial losses due to damage to your commercial vehicles.
Here are the types of commercial vehicles covered under the Commercial Vehicle Insurance Policy.
Here are the steps to file a claim against your Commercial Vehicle Insurance Policy.
Intimate your insurer about the loss/damage as soon as possible.
If the insurer accepts online claim submission, you can visit the insurer’s website to register a claim.
Keep all the documents handy during claim request submission.
Here is the list of documents you need to submit a claim request against commercial vehicle insurance. Note that the documents list may vary depending on the type of claim.
Commercial Vehicle Insurance Policy Certificate
Duly filled claim form
The Fitness Certificate of the vehicle
Driving Licence of the driver
Registration Certificate of the vehicle
First Information Report (FIR) wherever required
Here are the factors you should consider while buying/renewing a commercial vehicle insurance plan.
Coverage: Check the coverage, inclusions, exclusions, terms and conditions.
Insured Declared Value: Choose the right IDV for your commercial vehicle, as it is the amount you receive in case of total loss.
Claim Settlement Ratio: Always check the claim settlement ratio of the insurance provider.
Premium: Use an insurance premium calculator to buy a policy that is high on benefits but low on costs.
No Claim Bonus: When renewing the policy, you must check with the insurer about the NCB discount.
Add-Ons: Opt for add-ons that enhance the policy coverage.
Deductibles: Check for compulsory and voluntary deductibles. Opt for voluntary deductibles only after reading the terms and conditions and after assessing your ability to pay such deductibles.
Cashless Garages: Check with the insurer about the cashless repair facility through the cashless network garages.
You can buy commercial vehicle insurance offline by visiting the insurer’s office. However, the most convenient way is to buy commercial vehicle insurance online. The following steps will explain the process for the same.
Step 1: Consider your requirements before buying online insurance for commercial vehicles. Once done, visit the insurer’s website to purchase the policy.
Step 2: Select ‘Commercial Use’ when prompted for the purpose of driving your vehicle. Answer a few details such as your location, your vehicle’s make and model, variant, purchase year, previous policy details, etc.
Step 3: Compare plans to gauge the scope of coverage, inclusions, exclusions and the price of the insurance plan before buying the policy.
Step 4: You can also adjust the IDV to check its impact on the premium amount. Review coverage, and go through the terms and conditions of the policy.
Step 5: Make a payment online and get the policy instantly into your inbox.
Similar to the purchase process, you can renew the commercial vehicle insurance online. Here are the steps for the same.
Step 1: Visit the insurer’s website and enter your policy number or log in to your account.
Step 2: Select the renew option and choose the insurance policy and add-ons.
Step 3: Review the policy details and select the renew policy option.
Step 4: Pay the premium online to instantly complete the commercial vehicle insurance renewal process.
The commercial vehicle insurance price depends on various factors. You can make use of an online commercial vehicle insurance calculator to find out the approximate price of insurance for commercial vehicles. However, one of the crucial factors that decides the commercial auto insurance cost is the IDV (Insured Declared Value). Now, IDV is calculated based on the age of the vehicle or the depreciation rate. The following table denotes the rate of depreciation for commercial vehicles.
Commercial Vehicle’s Age
Rate of Depreciation
Up to 6 months
6 months to 1 year
1 year to 2 years
2 years to 3 years
3 years to 4 years
4 years to 5 years
5 years to 10 years
Over 10 years
Here are some of the important factors that impact the commercial vehicle insurance price.
The premium for a Third-party policy is lower than the Comprehensive Policy. Usually, the wider the coverage, the higher the premium.
Deductibles are of two types: Mandatory deductibles and Voluntary deductibles. The higher the deductible amount at the time of claim settlement, the lesser the premium amount.
IDV is the approximate current market value of the vehicle. The higher the IDV, the higher the premium amount and vice versa.
The make and model of the vehicle and the year of manufacture of the commercial vehicle also determine the premium amount.
Third-party insurance policy rates are determined by the IRDAI based on the vehicle’s engine cubic capacity (cc). The higher the cc, the more the premium amount.
Calculating the approximate insurance cost for commercial vehicles can be done via the commercial car insurance premium calculator. It is an online tool to find out the insurance premium for commercial vehicles. Here is the process to calculate the commercial vehicle insurance premium or commercial car insurance premium.
Share details: Provide a few details of the vehicle to the insurer, such as vehicle model, purchase date, and previous policy.
Customise features: Choose the type of insurance plan, and customise the plan with the required add-on covers.
Find out the premium: Once you have selected the type of plan and customise the plan with add-ons, the insurer will provide you with the cost of commercial vehicle insurance.
What is the cost of insurance for a commercial vehicle?
The cost of commercial vehicle insurance depends on various factors such as the type of policy, vehicle’s age, make and model of the vehicle, add-ons, etc.
What is covered in commercial vehicle insurance?
The coverage benefits of commercial vehicle insurance depend on the type of policy. A third-party plan provides third-party liability coverage, and the Comprehensive Plan provides third-party liability coverage and coverage against damages to your commercial vehicle.
Which is best insurance company for commercial vehicles?
An insurance company that provides maximum coverage at a lower premium and settles claims quickly can be considered the best insurance company for commercial vehicles.
Is motor insurance commercial insurance?
A motor insurance can be any insurance plan that provides coverage to a motor vehicle. Whereas commercial insurance is a specific insurance plan tailored to provide coverage to a commercial vehicle.
What is the third-party rate for commercial vehicle To find out the third-party insurance rate for commercial vehicles, you can visit the official website of IRDAI.
A car insurance policy that protects a commercial car against financial liabilities is called commercial car insurance. It can be one of the following two types – Third-party liability insurance or Comprehensive insurance.
Commercial insurance provides insurance coverage to commercial vehicles that transport goods or passengers. On the other hand, a personal insurance policy is issued to private vehicles that a person owns for personal travel purposes.
Commercial vehicle insurance provides coverage against various contingencies like damage to the third-party property or damage to the insured vehicle, etc. It can help the vehicle owner to carry out quick repairs and help the business run. Also, it is mandatory by law to buy a Third-party insurance policy while driving your vehicle in India.
One can insure a commercial vehicle either by visiting ACKO’s website or downloading the app. The entire process can be completed in under 5 minutes if all goes well.
The insurance premium is calculated based on various factors like IDV of the vehicle, claim history of the vehicle owner, manufacturing year, make and model, etc.
IDV refers to the Insured Declared Value. It is the approximate current market value of the vehicle. The car owner needs to declare this amount while buying a comprehensive insurance policy. IDV is also an important factor in determining the cost of insurance for commercial vehicles.
No, you cannot pay the premiums for commercial vehicle insurance on Equated Monthly Instalment (EMI). As per Section 63VB of The Insurance Act, 1938, insurers will not assume any risk unless the commercial vehicle insurance premium is received in advance. Therefore, there is no car insurance EMI option.
Have queries related to ACKO’s car insurance policies? Refer to our Policy Wordings for detailed information or reach out to us via email or phone using the information below
Write to us at [email protected]
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