Commercial vehicle insurance is a tailored insurance plan that only covers damage caused by or to the commercial vehicle and the driver. It covers the damage caused due to collisions, natural calamities, fire, and many more. Hence, it is mandated by the law that every commercial vehicle must have heavy vehicle insurance for their rickshaw, cabs, school buses, tractors, etc. You can find many commercial vehicle insurances online, offering you the best plans per your need.
What Does a Commercial Vehicle Insurance Cover?
In case of an accident in your commercial vehicle, the insurance company will compensate you for the loss incurred due to the damage. Below are the following things that are covered by commercial vehicle insurance -
- Loss or damage caused due to fire, self-ignition, explosion, or lightning.
- Malicious acts
- Terrorist activity
- Theft and burglary
- Riots and strikes
- Natural disasters like earthquakes, floods, hurricanes, storms, typhoons, tornados, landslides, rockslides, etc.
The insurance plan also covers personal accident claims, which include permanent total disability or accidental death of the driver and the owner. In addition, it also covers the damage caused due to accidents - damage to the vehicle, bodily injuries, and even death.
What are the Types of Commercial Vehicles Covered Under Commercial Vehicle Insurance?
Commercial vehicles are heavy-duty vehicles used to carry out heavy tasks. The following commercial vehicles are covered under commercial vehicle insurance -
Passenger Vehicle Insurance: Passenger-carrying vehicle insurance offers coverage against accidental damage such as fire, explosion, natural disaster, etc, in addition to third-party liabilities coverage. The following are the features of passenger vehicle insurance -
- You can buy commercial vehicle insurance online for vehicles with more than two passengers, such as taxis, cabs, vans, buses, etc.
- You can earn a No Claim Bonus for every claim-free year.
- The premium is decided based on vehicle type, cubic capacity, RTO, licensed carrying capacity, and gross vehicle weight.
- The insurance also covers the damage due to manmade and natural disasters.
- Some insurance companies offer discounts depending on the purchase mode.
Auto Rickshaw Insurance: Auto-rickshaw is a subcategory of passenger-carrying vehicle insurance. As per the Motor Vehicle Act 1988, if the auto-rickshaw is owned by an organisation, it is mandatory to buy third-party liability insurance. This offers cover against loss or damage due to the third-party vehicle, person, or property. The following are the features of Auto Rickshaw insurance -
- It protects the auto-rickshaw owner from any loss arising due to natural disasters.
- It also assures your passengers that the business is authentic and reliable.
- It also covers you from the loss due to theft.
E-Rickshaw Insurance: E-rickshaws are now registered under the Motor Vehicle Act; thus, third-party insurance for electric three-wheeler vehicle insurance is mandatory. The features are the same as auto-rickshaws. However, the premium amount for an e-rickshaw depends on the number of seating passengers.
Miscellaneous and Special Vehicle Insurance: Miscellaneous vehicles include everything from buses, trucks, and many other vehicles used for farming, mining, construction, etc. Commercial vehicle insurance for these vehicles will help protect the vehicle from damages caused by the vehicle to the vehicle and the drivers of each vehicle.
Given the size of the commercial vehicle, it is always better to choose commercial vehicle insurance that protects you from bearing any huge cost due to accidental damage or damage caused due to natural disasters, riots, etc. Remember to read the policy document when buying commercial vehicle insurance online.