India has become a top popular country for car accidents, theft, and injuries due to common road issues. For this, car owners often seek secure commercial vehicle insurance for protection from damages and theft. Commercial vehicle insurance has become common in cities like Delhi, where huge traffic and frequent accidents are common.
For this, insurance has become a savior, which protects the owner. To keep going with investing in expenses and damages to own vehicle and third-party damages also, this commercial insurance is legally blindable under the Motor Vehicle Act, so it’s mandatory to take.
Understanding Commercial Car Insurance
The insurance, which is given to commercial vehicles, is used for daily protection. It includes vehicle transferring goods, placing orders, and giving services. The commercial insurance of a vehicle gives protection from theft and damage, expenses from big repairs, and also protection from legal action. This insurance is called Commercial Vehicle Insurance.
Vehicles covered under Commercial Insurance:
- Vehicles mainly for the transportation of goods and services, which are used by many.
- Taxis & Cabs (Rapido, Ola, Uber).
- Delivery vans of groceries.
- Vehicles for courier and transport companies.
- Corporate cars used for employees to travel for official work.
- Heavy commercial vehicles help to transport items, like big lorries, buses, etc.
Types of Coverage in Commercial Car Insurance
- Natural calamities: If the vehicle gets damaged due to natural calamities, insurance can also be claimed.
- 3rd Party Protection: The person who gets damages with a commercial vehicle gets the proper protection through this insurance.
- Comprehensive Coverage: It is vehicle damage and 3rd party vehicle damage, as well as expenses, which are covered under the insurance.
Personal Insurance vs. Commercial Car Insurance
Feature | Personal Insurance | Commercial Car Insurance |
Usage | Used for personal work | Used for business and work on workplace |
Use | Minimum | Maximum use |
Premium Cost | Low | Higher |
Protection | Only basic protection given | Protection extends to 3rd party |
Suresh, a cab driver, who was dropping off a ride, got into an accident. His vehicle got damaged. Then he instantly informed the company, where the company provided instant insurance and rapid repair claims were given to the vehicle when all documents were submitted. Through this, his business kept on going without paying extra expenses.
Key Factors to Consider Before Buying
People generally get confused about which type of insurance and which add-on should be chosen to keep premium costs low. For all these understandings, these tools are important.
i) Type of Vehicle and its Use
The type of vehicle used in the business is very important. A heavy truck and cargo van have high premiums because they are mostly on road. A company car, which is only used for a few hours, has less damage risk, so its premium cost is also very low compared to a delivery truck.
ii) Coverage Options
Commercial vehicle insurance must have third-party insurance, which is legally mandatory, and ensures that damages to third parties are paid for.
Relevant add-ons can be chosen in insurance policies to give protection to themselves, their vehicles, and employees driving them.
Roadside assistance: When a car gets into an accident during a working trip, then claiming insurance and instantly getting the car repaired after verification by an inspector is helpful.
Insurance Premium Cost Depends on Various Factors
- If the driver is well-experienced and has less traffic breaking records, then the premium cost will be less.
- If the vehicle is new, then its repairing cost is very low, and so the damage will be less. Therefore, the premium cost, as compared to an old vehicle, is less.
- Furthermore, if the vehicle runs on diesel or CNG fuel, then the premium cost gets impacted.
- If commercial vehicle insurance is for an area where traffic jams and accidents are frequent (like cities such as Delhi), then in these regions, the premium cost will automatically get higher.
Every state in India has different commercial vehicle insurance policies.
Steps to Buy Car Insurance for Commercial Vehicles
For taking commercial vehicle insurance, one needs to take simple steps:
Step 1: Know the vehicle type used in the business, as premiums are decided according to vehicle type. Higher-tier vehicles have a higher cost, and lower-tier vehicles have a lower cost.
Step 2: The coverage of insurance includes different areas like third-party insurance, employee protection, and protection from natural calamities and damages.
Step 3: Compare the premium and coverage on different platforms, and according to your budget, decide the premium without compromising safety and protection.
Step 4: Check the review and read all the terms and conditions for payment of claims given by the company, then by the insurance.
Step 5: Submit all required documents such as:
(i) Vehicle registration certificate
(ii) Driver’s license
(iii) Previous insurance policy
(iv) Business tax details
Car Insurance Renewal for Commercial Vehicles
Many people just take insurance and forget about renewing it. Insurance is important, and without renewing, one cannot update the protection of damage. Today, renewable insurance is legally mandatory. Without proper insurance, legal fines can be imposed. Vehicles can also be seized.
Without Car Insurance Renewal, all the financial help or vehicle repairing costs after accidents cannot be claimed.
Renewable insurance also helps in covering third-party losses and in situations that can be dealt with.
Step-by-step guide to check vehicle insurance
Check car/vehicle insurance with all details in a few seconds by following these easy steps:
Step 1: Go to the official website of the insurance company.
Step 2: Click the “Vehicles” button.
Step 3: Enter the vehicle registration number.
Step 4: Fill in the captcha and press enter.
Step 5: All details of the vehicle, including insurance company and cost, will be displayed.
How to renew commercial vehicle insurance
- Search for a company.
- Click Renew Policy or Commercial Vehicle Renewal.
- Enter the vehicle registration number and previous policy details.
- Check all coverages and add-ons.
- Securely make the payment for the new policy.
- Download the document for your new policy.
There is no need to visit the office. You can now just update and renew your commercial vehicle insurance online.
Tips to Reduce Renewal Premium
- Use No Claim Bonus (NCB): If the customer did not make any claim throughout the year, then a discount (up to 50%) is given on the renewal premium.
- Fleet Discount: If the customer has multiple vehicles used for commercial purposes, then a special discount is given on the premium.
How to Claim Car Insurance
There is a need to understand the steps for making a claim for insurance so that you can be protected from the rejection of a claim.
Step 1: Inform the company about the claim immediately within 24 hours.
Step 2: Inform the police and register an FIR if the situation is that much harsh.
Step 3: Submit all required documents which are asked.
Step 4: The vehicle insurance company inspector comes to look after the damages and calculates the cost of damage.
Step 5: Once the inspector approves, the damaged vehicle gets repaired without any heavy cost.
Common Mistakes to Avoid (Insurance Claims)
- People mostly get panicked and get scared, running away from the accident place.
- Most people do not inform about the accident, causing a delay in the report.
- Claimants often miss documents, due to which a quick claim of insurance is not approved.
- Check the “claiming” which is approved, because a third-party claim is different from a “previous claim”. So, selection should be clear as per requirement.
Tips to Reduce Commercial Car Insurance Premium
Delhi has high traffic, leading to more accidents. Those serving businesses in Delhi often face high car insurance premiums. Therefore, it is advisable to prefer other alternatives to reduce premium charges.
For Employees:
- Maintain a safe driving record: Drivers who have had no accidents or traffic violations will secure lower premiums. A safe driving record leads to less premium.
- Fleet Discount: When the insured claims to have a bulk of vehicles used for business, the insurance company gives a discount on the premium.
- Avoid Unnecessary Add-ons: Don’t choose unnecessary add-ons or those that are not mandatory for your business, as they increase the premium.
- Install Anti-Theft and GPS Devices: Installing anti-theft and GPS devices to locate the vehicle increases its safety and protection, reducing the risk and potentially lowering the premium cost on safety measures.
By following these steps, the premium can be cut by 10–20% without compromising safety measures from the insurance.
Conclusion
Today, the world is very fast-paced, and transporters who get caught in accidents or theft and injuries often suffer huge losses. Claiming insurance and effective collaboration for a quick claim can prevent major financial mistakes.
Having proper insurance protection for commercial vehicles is beneficial.
So, the expenses and losses to companies due to damages and theft have led companies to choose the right commercial insurance policy from reliable and affordable providers. This also helps in Delhi, where getting premiums might come under the Vehicle Act.
