Buy/Renew Commercial Vehicle Insurance Policy Online

According to the latest report of The Ministry of Road Transport and Highways, an average of 53 road accidents occur per hour in India. These accidents involve all types of vehicles including the commercial ones. The repercussions of damage caused to the commercial vehicle are much more severe as it can directly affect the business and cause financial losses. This is in addition to the cost of repairing the damage to the vehicle. This cost can be reduced with the help of commercial vehicle insurance. 

In this article, all aspects of commercial vehicle insurance are discussed along with answers to some commonly asked queries. Read on to know more:

What is Commercial Vehicle Insurance?

Vehicle insurance that offers a financial backup to a commercial vehicle, for example, goods or passenger-carrying vehicles, in case of an unfortunate incident is called commercial vehicle insurance. It is similar to vehicle insurance for private vehicles, however, the related coverage is specific to serve the needs of a commercial vehicle and the contingencies that may occur to such vehicles.

The vehicle owner can buy commercial vehicle insurance online or through an insurance agent. Nowadays, buying commercial vehicle insurance online is more convenient and time-saving. In some cases buying insurance online can also be lighter on the policyholder’s pocket.

Importance of Commercial Vehicle Insurance Plan:

Buying a commercial vehicle insurance plan is mandatory by law in India for commercial vehicles. The penalty for playing a commercial vehicle without insurance is on the heavier side as compared to the fines imposed on private vehicles. This is because the risk involved in playing a commercial vehicle especially passenger-carrying vehicles like taxis, travel vehicles, etc. is extremely high.

Some commercial vehicles are heavy vehicles like trucks, trailers, cranes, bulldozers, etc. These vehicles can cause damage to high magnitude in case of an accident. The third-parties involved in such an accident need to be given at least monetary compensation. A vehicle insurance policy will ensure that the third party involved in an accident will be compensated fairly.

Without a vehicle insurance plan, the owner of the commercial vehicle will have to shell money from his/her pocket in case of an unfortunate event. Since, this could be a huge amount of money, the owner of a commercial vehicle can suffer a monetary loss that could be detrimental to the business.

Key Features & Benefits of Buying Commercial Vehicle Insurance:

Buying vehicle insurance becomes easier with the help of a commercial vehicle insurance calculator. It helps the potential buyer to adjust certain factors that affect the cost of the policy and know the approximate amount in advance. Commercial vehicle insurance provides a financial backup in case of losses caused due to the damaged commercial vehicle. Here are the key features & benefits of buying commercial vehicle insurance:

Compliance with the Law

Since buying vehicle insurance is mandatory by law in India, you ensure that you comply with the law of the land. Having a valid vehicle insurance policy will avoid the risk of financial losses due to large fines and penalties.

Also, read: Vehicle Scrappage Policy in India

Coverage Against Third-party Losses

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 the owner of a commercial vehicle. 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.

Coverage Against Own Damage

A commercial vehicle is one of the assets that help the vehicle owner keep the business running. Any kind of damages caused to this asset can put a direct setback to 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.

Liberty to Buy Add-ons

If the owner of a commercial vehicle chooses to buy comprehensive coverage for the vehicle, then he/she will get an option to extend the scope of coverage of the policy. This can be done with the help of buying add-ons i.e. additional coverages. Add-ons like Downtime Allowance, Engine Protect, Key Protect, Loss of License or RC, NCB Protect, Roadside Assistance, Small Repair Claim, Consumables, Zero Depreciation, and more can be available for commercial vehicles under the terms and conditions of the insurance company.

Peace of Mind

The above factors ensure that the owner of a commercial vehicle is stress-free and can continue to focus on the business. Buying commercial vehicle insurance can bring relief to the owner in terms of damage to the insured vehicle, third-party damage or injuries, and the cost of treating injuries to the owner/paid driver of the insured vehicle.

Different Types of Commercial Vehicle Insurance Plans Available:

The expanse of the insurance industry in India is wide and covers almost all types of financial contingencies. As far as motor vehicle insurance is concerned, multiple types of insurance products are available in the market to provide coverage to various types of commercial vehicles. The owner needs to first identify the need for insurance and then proceed to buy a suitable coverage. Note that the policyholder is the first party, the insurance company is the second party, and anyone affected by the insured vehicle is the third party. Following are the types of commercial vehicle insurance policies:

Third-Party Insurance for Commercial Vehicles

Buying at least a Third-party insurance policy is mandatory in India. It covers any person that is directly or indirectly affected by the insured vehicle. Third-party vehicle insurance provides the following coverages: 

  1. Accidental third-party property damage
  2. Accidental third-party bodily injuries
  3. Death of the third party
  4. Legal liabilities faced by the owner of the insured vehicle
  5. Personal Accident cover for the owner/driver

Comprehensive Insurance

The Comprehensive type of vehicle insurance is exhaustive in nature. It not only provides the mandatory coverage but also covers the insured vehicle against damage to various types. Take a look at the following to understand the coverage in detail:

  1. The entire coverage offered by the Third-party liability policy.
  2. Coverage against theft of the insured vehicle.
  3. Cover for damage against natural calamities (floods, earthquakes, landslides, hurricane, etc.).
  4. Coverage for damage against man-made calamities (riots, vandalism, bandhs, etc.).
  5. Accidental damage.
  6. Coverage for damages against fire or explosion.
  7. A Personal Accident cover for the owner/driver.
  8. Liberty to choose additional coverages like Zero Depreciation, Roadside Assistance, Engine Protect, No Claim Bonus Protection, etc.

What are the Types of Commercial Vehicles Covered?

India is one of the four biggest markets for commercial vehicles around the globe. Such heavy use of commercial vehicles can be attributed to the larger Indian population as commercial vehicles directly or indirectly cater to the people’s need for transport of multiple types of goods and travel purposes. 

Different types of commercial vehicles can be broadly divided into three categories – Heavy Commercial Vehicles (HCVs), Medium Commercial Vehicles (MCVs), and Light Commercial Vehicles (LCVs). The insurance policy for these commercial vehicles is based mainly on the capacity and purpose of transport. Commercial bus insurance is available for buses and coaches. Commercial auto insurance covers Light Commercial Vehicles. Commercial truck insurance covers Heavy Commercial Vehicles. Commercial car insurance can be purchased for passenger-carrying vehicles for four-wheelers like taxis.

Passenger Carrying Vehicle (PCV) Insurance:

Passenger Carrying Vehicles (PCV) are usually Light Commercial Vehicles, for example, auto-rickshaw, car, cab, taxi, school bus, etc. However, heavy vehicles like buses or coaches also come under PCV. The owner of a transport business can apply for a PCV insurance online either by visiting the website of an insurance broker or by directly applying for insurance on the insurance company’s website. The following events are usually covered under a comprehensive PCV insurance. For exact inclusions, please get in touch with your insurance company or refer to the policy document:

  1. Damage due to fire, explosion, or if lightning strikes the insured vehicle.
  2. Theft of the insured PCV (burglary/breaking into a house is included in this coverage).
  3. Damage due to man-made calamities like bandh, riots, vandalism, etc.
  4. Damage resulting from natural calamities like earthquakes, floods, hurricane, cyclone, landslide, hailstorm, frost, etc. Damage such as shock damage or fire damage due to a natural calamity is also covered.
  5. Personal Accident cover for the owner/paid driver.
  6. Damage to the insured vehicle caused due to an accident.
  7. Damage arising out of a malicious act not caused by the owner.
  8. Damage to the PCV caused due to terrorist activity.
  9. The damage that occurred while the insured PCV was being transported via water, rail, or land.
  10. The entire coverage offered by the Third-party liability policy.
  • Commercial Car/Taxi Insurance

The insurance bought for the purpose of covering a commercial car/taxi is known as commercial car/taxi insurance. These vehicles are usually four-wheelers that can be either simple hatchback cars, sedans, or SUVs (Sports Utility Vehicles). They are commercially owned and are used to carry paid passengers from one place to another. The insurance policy covers a commercial car/taxi against the types of damages mentioned in this section.

  • Commercial Auto Rickshaw Insurance

This type of insurance covers typical auto rickshaws that are used to carry 3 passengers. Such vehicles usually ply within a small distance and the risk factor is comparatively on the lower side. However, accidental damage cannot be ruled out. The insurance policy for commercial auto-rickshaws covers the events mentioned in this section.

  • Commercial School Bus Insurance

The name Commercial School Bus Insurance is self-explanatory. This type of insurance is applicable to vehicles that mainly transport students to and from educational institutes. Such vehicles can be large busses or small vans. The insurance coverage applicable can be found in this section.

Goods Carrying Vehicle Insurance

Goods carrying vehicles can be of any type from Heavy Commercial Vehicles (HCVs), Medium Commercial Vehicles (MCVs), or Light Commercial Vehicles (LCVs). Mostly many goods are carried in vehicles like trucks, tempos, or lorries. The following insurance coverage is applicable to goods carrying vehicles: 

  1. The damage that occurred while the insured vehicle was being transported via water, rail, or land.
  2. Theft of the insured vehicle (burglary/breaking into a house is included in this coverage).
  3. Damages arising out of a malicious act not caused by the owner.
  4. Goods Carrying Vehicle Insurance includes damage due to fire, explosion, or lightning strikes the insured vehicle.
  5. Personal Accident cover for the owner/paid driver.
  6. Damage resulting from natural calamities like earthquakes, floods, hurricane, cyclone, landslide, hailstorm, frost, etc. Damage such as shock damage or fire damage due to a natural calamity is also covered.
  7. The entire coverage offered by the Third-party liability policy.
  8. Damage to the insured vehicle caused due to terrorist activity.
  9. Damage due to man-made calamities like bandhs, riots, vandalism, etc.
  10. Damage to the insured vehicle caused due to an accident.

What is a Commercial Car/Taxi Insurance?

Commercial car insurance refers to the insurance policy issued for a car used for commercial purposes. These are mostly passenger carrying vehicles and come under light commercial vehicles. Any major damage caused to the commercial car can directly put the lives of its passengers at risk. Thus, it is imperative that the owner of a commercial vehicle car spend enough time on purchasing a comprehensive insurance policy with extensive coverage.

Key Features of Commercial Car Insurance

This section lists the key features and benefits of buying a commercial car or taxi insurance:

  1. Coverage Against Third-party Losses

The damage or injury caused to the third party due to a commercial car can prove to be a huge financial loss. This attracts equal amounts of compensation that can prove to be financially draining for the owner of a commercial car. However, insurance provides a safety net against financial losses where third-party damage or injuries are concerned.

  1. Compliance with the Law

Having a valid vehicle insurance policy will avoid the risk of financial losses due to large fines and penalties. Since buying vehicle insurance is mandatory by law in India, you ensure that you comply with the law of the land and avoid paying fines and penalties as the rules for not having an insurance policy are very strict in India.

  1. Liberty to Buy Add-ons

If the owner of a commercial car chooses to buy comprehensive car insurance coverage, the owner will get an option to extend the scope of coverage of the policy. This can be done with the help of buying add-ons i.e. additional coverages. Add-on covers like Downtime Allowance, Engine Protect, Key Protect, Loss of License or RC, NCB Protect, Roadside Assistance, Small Repair Claim, Consumables, Zero Depreciation, and more can be available for commercial cars.

  1. Coverage Against Own Damage 

A commercial car is one of the assets that help the vehicle owner keep the business running. Any kind of damages caused to the car can put a direct setback on the business. In such a situation paying more money for the repair of the car can burn a big hole in the pocket of the owner. Commercial insurance can help you safeguard your savings/income by paying for the repairs of the damaged car. 

  1. Peace of Mind

The above factors ensure that the owner of a commercial car is stress-free and can continue to focus on the business. Buying commercial car insurance can bring relief to the owner in terms of damage to the insured vehicle, third-party damage or injuries, and cost of treating injuries to the owner/paid driver of the car.

Benefits of Buying Commercial Car Insurance Policy: Inclusions

This section lists the inclusions of a commercial car insurance policy. Inclusions are situations that are covered under an insurance policy. The policyholder can go ahead and raise a claim against the following situations:

  1. Damages arising out of a malicious act not caused by the owner.
  2. The damage that occurred while the insured vehicle was being transported via water, rail, or land.
  3. Personal Accident cover for the owner/paid driver.
  4. Goods Carrying Vehicle Insurance includes damage due to fire, explosion, or if lightning strikes the insured vehicle.
  5. The entire coverage offered by the Third-party liability policy.
  6. Theft of the insured vehicle (burglary/breaking into a house is included in this coverage).
  7. Damage to the insured vehicle caused due to an accident.
  8. Damage to the insured vehicle caused due to terrorist activity.
  9. Damage resulting from natural calamities like earthquake, floods, hurricane, cyclone,  landslide, hailstorm, frost, etc. Damage such as shock damage or fire damage due to a natural calamity is also covered.
  10. Damage due to man-made calamities like bandh, riots, vandalism, etc.

What is Not Covered?: Exclusions

Exclusions are situations that are not covered under an insurance policy. The policyholder cannot raise a claim if the insured vehicle is damaged due to the following situations:

  • Electrical or mechanical damage
  • Consequential loss
  • Damage caused when driving under the influence of alcohol
  • Damage caused when driving without valid documents
  • Damage caused when involved in a criminal activity
  • Intentional damage
  • Damage caused when found breaking the law

A detailed list of exclusions will be available in the commercial car insurance policy. If you are unsure about the list, you can get in touch with the insurance company.

Commercial Car Insurance Price:

The price of commercial car insurance depends on a number of factors. The owner can use a commercial vehicle insurance calculator to know the approximate cost of the insurance policy. Usually, the following factors play a vital role in determining the cost of a car insurance policy:

  1. Type of insurance policy.
  2. The number of additional coverages.
  3. The approximate current market value of the car.
  4. The applicable No Claim Bonus.
  5. The make and model of the car.
  6. The year of manufacture of the commercial car.
  7. The capacity of the engine.

Commercial Auto Rickshaw Insurance:

The insurance policy for a three-wheeled vehicle is called a Commercial Auto Rickshaw Insurance or 3-wheeler insurance. There are approximately 1.5 million auto-rickshaws plying on roads all across India. Auto rickshaws are in good demand in both urban and rural areas of the country. Due to such high demand, it becomes even more essential to buy Commercial Auto Rickshaw Insurance.

Features of Commercial Auto Rickshaw Insurance

The following are the features of Commercial Auto Rickshaw Insurance:

  1. Compliance with the Law

Buying auto rickshaw insurance is mandatory by law. If the rickshaw is not covered with a valid insurance policy, the owner may have to pay heavy fines and penalties.

  1. Coverage Against Third-party Losses

Even though it may seem like an auto-rickshaw may not be capable of causing major damages to third parties, it is capable of causing significant financial loss to the owner. The owner is covered against third-party damage or injuries under auto rickshaw insurance.

  1. Coverage Against Own Damage 

Own damage includes accidental damage, damage arising out of natural or man-made calamities, theft, and fire. The owner is financially protected against such contingencies under auto rickshaw insurance.

  1. Option to Choose Add-ons

Add-ons like Downtime Allowance, Engine Protect, Key Protect, Loss of License or RC, NCB Protect, Roadside Assistance, Small Repair Claim, Consumables, Zero Depreciation, and more can be available for commercial vehicles. Your auto insurance company may also give you an option to choose from these add-ons. Add-ons increase the scope of the policy and the claim amount. Check with your insurer to know the additional exact coverage available with auto-rickshaw insurance.

  1. Peace of Mind

The above factors ensure that the owner of an auto-rickshaw is stress-free and can continue to focus on the business. Buying commercial auto rickshaw insurance can bring relief to the owner in terms of damage to the insured vehicle, third-party damage or injuries, and cost of treating injuries to the owner/paid driver of the rickshaw.

Inclusions of Auto Rickshaw Insurance

Following are the inclusions of Auto Rickshaw insurance:

  1. Damage due to calamities. These calamities could be natural, for example, earthquakes, landslides, flooding, etc. or due to man-made calamities like riots, bandhs, vandalism, etc.
  2. The damage caused due to fire or explosion of the auto-rickshaw. The fire that got ignited due to a natural calamity like the lightning strike is also covered under auto rickshaw insurance.
  3. Damage to the insured auto-rickshaw caused due to terrorist activity.
  4. In a comprehensive type of Auto, Rickshaw Insurance covers the theft of the auto-rickshaw. In this situation, the owner is expected to submit all the keys to the vehicle and the necessary documents.
  5. The damage that occurred while the insured auto-rickshaw was being transported via water, rail, or land.
  6. Damage arising out of accidents.
  7. Personal Accident cover for the owner/paid driver.
  8. All types of third-party damages and injuries.
  9. Damage to the insured auto-rickshaw due to a malicious act is covered.

Exclusions of Auto Rickshaw Insurance

Following is the list of exclusions of Auto Rickshaw insurance:

  1. Damage caused when driving without valid documents
  2. Intentional damage
  3. Electrical or mechanical damage
  4. Damage caused when found breaking the law
  5. Damage caused when driving under the influence of alcohol
  6. Consequential loss
  7. Damage caused when involved in a criminal activity

You can get in touch with the insurance company to understand the exact situations that are not covered under your Auto Rickshaw insurance policy.

Commercial Auto Rickshaw Insurance Cost

Since an insurance policy is slightly customized for each individual vehicle owner, its cost also varies. The following factors play an important role in determining the price of your Auto Rickshaw insurance policy: 

  1. The type of auto-rickshaw being insured – Electric auto-rickshaw, petrol/diesel auto-rickshaw, CNG auto-rickshaw
  2. Type of insurance policy – Third-party liability only, comprehensive policy.
  3. The number of additional coverages purchased with a comprehensive policy – Zero depreciation, Roadside Assistance, NCB Protect, etc. 
  4. The approximate current market value of the Auto Rickshaw.
  5. The No Claim Bonus if applicable on the Auto Rickshaw insurance.
  6. The manufacturer of the Auto Rickshaw.
  7. The year of manufacture of the Auto Rickshaw.

Commercial School Bus Insurance:

Commercial bus insurance can be purchased for a vehicle that transports students to and from an educational institute. It is not only necessary to purchase school bus insurance to comply with the law, but it is a moral responsibility since children are usually the passengers of this type of vehicle.

Features of Commercial School Bus Insurance

The following are the features of Commercial School Bus Insurance:

  1. Adhering to the rules

It is mandatory to buy insurance coverage for a commercial vehicle in India. Buying Commercial School Bus Insurance ensures that the owner complies with the laws of the country.

  1. Third-party Liability Coverage

Any type of accidental damage caused due to the school bus, for example, damage to other vehicles or injuries to people, is covered under Commercial School Bus Insurance.

  1. Own Damage Coverage

A Comprehensive Commercial School Bus Insurance policy covers damages to the insured school bus. This ensures the smooth running of the business for the owner and immediate repairs.

  1. Availability of Additional Coverages

A Comprehensive Commercial School Bus Insurance policy will give the option to increase the scope of a policy with the help of additional coverages. Add-ons like Zero Depreciation, Roadside Assistance, Engine Protection, etc. may be available with the policy.

  1. Peace of Mind

The above factors ensure that the owner of a school bus is stress-free and can continue to focus on the business. Buying Commercial School Bus Insurance can bring relief to the owner in terms of damage to the insured vehicle, third-party damage or injuries, and cost of treating injuries to the owner/paid driver of the school bus.

Inclusions of Commercial School Bus Insurance

Following are the inclusions of Commercial School Bus Insurance:

  1. Damage to the insured school bus due to a malicious act is covered.
  2. The damage caused due to fire or explosion of the school bus. The fire that got ignited due to a natural calamity like the lightning strike is also covered under school bus insurance.
  3. Damage due to calamities. These calamities could be natural for example, earthquakes, landslides, flooding, etc. or due to man-made calamities like riots, bandhs, vandalism, etc.
  4. In a comprehensive type of school bus insurance covers the theft of the school bus. In this situation, the owner is expected to submit all the keys to the vehicle and the necessary documents.
  5. Damage to the insured school bus caused due to terrorist activity.
  6. Damage arising out of accidents.
  7. The damage that occurred while the insured school bus was being transported via water, rail, or land.
  8. All types of third-party damages and injuries.
  9. Personal Accident cover for the owner/paid driver.

Exclusions of School Bus Insurance

Following is the list of exclusions of School Bus Insurance:

  1. Electrical or mechanical damage.
  2. Consequential loss.
  3. Damage caused when found breaking the law.
  4. Damage caused when involved in criminal activity.
  5. Damage caused when driving without valid documents.
  6. Intentional damage.
  7. Damage caused when driving under the influence of alcohol.

Add-on Covers for Commercial Vehicle Insurance:

Add-ons or additional coverages increase the scope of a vehicle insurance policy. It also helps in availing more services from the insurance company and may help in increasing the claim amount. Usually, the following types of add-ons are available for commercial insurance:

  1. Consumables Cover
  2. Downtime Allowance Add-on
  3. Engine Protect Add-on
  4. Return to Invoice Cover
  5. Key Protect
  6. Loss of License or RC
  7. NCB Protect Add-on
  8. Roadside Assistance Cover
  9. Small Repair Claim
  10. Zero Depreciation Cover

Inclusions of Commercial Vehicle Insurance:

Following are the inclusions of Commercial Vehicle Insurance :

  1. Damage to the insured commercial vehicle due to a malicious act is covered.
  2. The damage caused due to fire or explosion of the commercial vehicle. The fire that got ignited due to a natural calamity like the lightning strike is also covered under commercial vehicle insurance.
  3. Damage due to calamities. These calamities could be natural for example, earthquakes, landslides, flooding, etc. or due to man-made calamities like riots, bandhs, vandalism, etc.
  4. The comprehensive type of commercial vehicle insurance covers theft of the commercial vehicle. In this situation, the owner is expected to submit all the keys to the vehicle and the necessary documents.
  5. Damage to the insured commercial vehicle caused due to terrorist activity.
  6. Damage arising out of an accident of the commercial vehicle.
  7. The damage that occurred while the insured commercial vehicle was being transported via water, rail, or land.
  8. All types of third-party damages and injuries.
  9. Personal Accident cover for the owner/paid driver.

Exclusions of Commercial Vehicle Insurance:

Following is the list of exclusions of Commercial Vehicle Insurance:

  1. Damage caused when involved in criminal activity.
  2. Intentional damage.
  3. Consequential loss.
  4. Damage caused when driving under the influence of alcohol
  5. Damage caused when driving without valid documents.
  6. Damage caused when found breaking the law.
  7. Electrical or mechanical damage.

Things to Consider While Buying/Renewing Commercial Vehicle Insurance:

Buying commercial vehicle insurance online is an easy process. However, it is not advised to procrastinate the purchase and buy a policy in a hurry. One should consider the following things before buying the policy:

  1. Consider your requirements.
  2. Check the quality of services offered by the insurance company.
  3. Check the claim settlement ratio of the insurer.
  4. Check the available coverage.
  5. Buy only those add-ons which suit your requirement.
  6. Use an insurance premium calculator.
  7. Consider buying a comprehensive policy.
  8. Compare available plans.

Step-by-Step Process to Renew a Commercial Vehicle Insurance Online:

Buying insurance for the vehicle is not a one-time process. The policyholder needs to keep renewing the policy in time as well. Here is a step-by-step process to renew commercial vehicle insurance online:

  • Step 1
    Consider your requirements and look for a suitable commercial insurance policy.
  • Step 2
    Compare similar plans and go through the offered coverage and exclusions of the policy.
  • Step 3
    Begin with the purchase journey by entering your previous policy details on the insurance company’s website. For example, www.acko.com
  • Step 4
    Review coverage and go through the terms and conditions of the policy.
  • Step 5
    Make a payment.

You may receive the policy instantly at the registered email address if there are no gaps in the expiry of the previous policy and the renewal process.

Why is it Important to Renew Commercial Vehicle Insurance Policy?

It is crucial to renew vehicle insurance policy probably before the expiry to ensure continued coverage. It will help in complying with the law as well. Additionally, depending upon the coverage of the policy, various types of claims can be raised depending upon the inclusions of the policy.

Commercial Vehicle Insurance Price:

The commercial vehicle insurance cost depends upon multiple factors. Here is a list of factors that determine the price of a commercial vehicle insurance policy:

  1. The type of commercial insurance – LCV, MCV, HCV.
  2. Type of insurance policy – Third-party liability only, Comprehensive policy.
  3. Additional Coverages – Roadside Assistance, Engine Protect, Zero Depreciation, Key Protect, NCB Protect, etc.
  4. The make and model of the commercial vehicle
  5. The applicable No Claim Bonus in case of a comprehensive vehicle insurance policy.
  6. Depreciation on the vehicle as per the following table:
Vehicle AgeDepreciation Rate
Under 6 months5%
Age between 6 months and 1 year15%
Age between 1 year and 2 years20%
Age between 2 years and 3 years30%
Age between 3 years and 4 years40%
Age between 4 years and 5 years50%

Commercial Vehicle Insurance Comparison:

Some insurance companies and many online brokers/web aggregators have an option to carry out commercial vehicle insurance comparison. This option allows a potential policyholder to gauge the scope of coverage, services of the insurance company, and the price of the insurance plan before buying the policy. 

A calculated decision can be taken with the help of commercial vehicle insurance comparison of rates and other features. Experts advise that a vehicle owner should always compare commercial vehicle insurance before buying or renewing the policy each time.

How is Commercial Vehicle Insurance Premium Calculated?

The premium of commercial vehicle insurance is calculated by considering multiple factors such as manufacturing year, Insured Declared Value (IDV), applicable deductibles, type of policy, add-ons, claim history, etc. by an insurance company.

If you wish to get a quote for your policy, you can use a commercial vehicle insurance calculator. It is a simple tool in which you have to enter various details related to the vehicle and you can know the approximate value of the insurance policy.

How to Claim Commercial Car Insurance?

To raise a claim against commercial car insurance, you need to first get in touch with your insurance company. Each insurer has slight variations when it comes to their claim process. Usually, the policyholder gets in touch with the insurer and a claim is raised via call, email, or by filling the claim form.

Commercial Vehicle Insurance Claim Process:

A claim for commercial vehicle insurance can be of the following two types: 

  1. Cashless Claim

The vehicle is repaired at a network garage under a cashless claim. The network garage and the insurance company will settle the repair bill among themselves and the policyholder just needs to pay the deductibles. This is a hassle-free claim process in which the policyholder does not have to worry about arranging a large sum of money for getting the vehicle repaired.

  1. Reimbursement Claim

A reimbursement claim can be raised after the policyholder settles the repair bills. Here first the policyholder pays the entire amount of money required to repair the vehicle and then applies for a reimbursement claim. It requires the policyholder to arrange money for the repairs of the damaged vehicle. 

Note that both types of claims need to be approved by the insurance company before the repair work begins.

Documents Required to Claim Commercial Vehicle Insurance:

You might require the following set of documents while making a claim with the insurance company:

  • The commercial insurance policy
  • Duly filled claim form
  • Fitness certificate of the vehicle
  • Driving license of the driver of the vehicle
  • Registration certificate of the vehicle
  • First Information report (if required)

Why choose a Commercial Vehicle Insurance Policy by Acko?

Acko is a digital-first insurance company with a proven track record of exceptional customer service. If you buy commercial vehicle insurance with Acko, you will receive all the service benefits that are extended to loyal customers. The following are the advantages of buying insurance from Acko:

Best Price

Being a digital-first insurance company has allowed Acko to eliminate costs and commissions related to middlemen or agents. This benefit is directly passed on to the customer while buying insurance. So you get the best price available in the market.

Instant Claims

An efficient claims team ensure that you are at priority when you raise a claim. In case of minor damages, you may be given an instant claim settlement. All you have to do is inform Acko what your issue is and Acko will get it resolved at the earliest.

Excellent Customer Support

Any queries related to buying a policy, choosing an insurance cover, or making a claim, will be addressed by an insurance expert who will provide the best possible solution.

The above factors make Acko one of the fastest-growing insurance companies in today’s market.

Frequently Asked Questions:

What is commercial insurance?

A car insurance policy that covers a commercial car with insurance is called as commercial car insurance. It can be one of the following two types – third-party liability insurance or comprehensive insurance.

Why would I need commercial auto insurance?

Commercial auto 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 an insurance policy of a vehicle in India.

What is the difference between commercial and personal 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 purposes.

How do you insure a commercial vehicle?

One can insure a commercial vehicle either by personally visiting the insurance company, hiring an agent, by buying an insurance policy online from web aggregators, or by visiting an insurer’s website.

How are insurance premiums calculated?

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.

What is IDV in my Commercial Vehicle Insurance policy?

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 vehicle insurance.