Commercial Vehicle Insurance
General
Content Writer
Storyteller at heart, Manasvi brings 4 years of content and marketing experience to Digit. Whether it's writing SEO-optimised articles or a researched and insightful blog, she strives to transform ideas into creating impactful and engaging content.
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Content Writer
Storyteller at heart, Manasvi brings 4 years of content and marketing experience to Digit. Whether it's writing SEO-optimised articles or a researched and insightful blog, she strives to transform ideas into creating impactful and engaging content.
Product Head - Motor
Mayur specializes in motor insurance and is responsible for overseeing the development and management of motor insurance products. With expertise in product strategy and market analysis, he focuses on developing customer-centric insurance solutions.
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Product Head - Motor
Mayur specializes in motor insurance and is responsible for overseeing the development and management of motor insurance products. With expertise in product strategy and market analysis, he focuses on developing customer-centric insurance solutions.
Commercial Vehicle Insurance Price & Renew Policy Online
If you run a business that utilizes vehicles, then you should know about the best Commercial Vehicle Insurance, the guardian angel that will protect your vehicles financially and is also mandatory by law in India.
This insurance policy covers you as well as third party liabilities in unfortunate events leading to injury or death. Read more about it here!
Table of Contents
Listen to the Audio Overview of This Article
What is Commercial Vehicle Insurance?
What is Commercial Vehicle Insurance?
- Commercial Vehicle Insurance, as the name suggests, is a motor insurance policy that covers damages and losses caused to or by a commercial vehicle and the respective owner-driver.
- It is mandatory in India as it provides coverage to both the parties involved in the accident, covering injury and even death. The policy can be customised as per your specific needs by opting for add-ons.
- The policy covers damages or losses due to accidents, collisions, natural calamities, fires, etc. It is mandatory for all businesses to buy a commercial vehicle insurance online for their vehicles, such as for auto-rickshaws, taxis, school buses, tractors, commercial vans and trucks, amongst others.
How Does Commercial Vehicle Insurance Work?
Commercial vehicle insurance is a contract between you and the insurance company. You pay a small amount as the premium and in turn the insurer provides you with financial protection for your vehicle against damages due to accidents, natural disasters, theft, and other unforeseen events. Here's how it works
Choose a Policy
You choose the type of commercial vehicle insurance plan, including the appropriate add-ons that suit your needs and budget
Buy or Renew Policy
As per your chosen commercial vehicle insurance plan, you can buy or renew car insurance online instantly with Digit and renew your policy with minimal paperwork.
Pay Premium
After purchasing the policy, you have to pay regular payments or commercial vehicle insurance premium to the insurance company, either annually or in installments.
File a Claim
File a claim with your insurer and provide the required documents. After damage assessment, the insurer will settle the claim as per the policy terms.
Why Do You Need Commercial Vehicle Insurance?
Why Do You Need Commercial Vehicle Insurance?
If your business owns one or many vehicles, it’s essential to get insurance for commercial vehicles that will financially protect and cover your business from any losses and damage caused to and by your vehicle, and the people using it.
If your primary business involves the use of vehicles, such as a regular cab service or a private school bus, commercial vehicle insurance will assure your stakeholders and passengers that they’ll always be protected and covered for.
As a mandate by law, it is compulsory to at least have a commercial third party insurance in place that protects third parties against any damages and losses that could be caused by your commercial vehicle.
CV insurance like commercial car insurance has become increasingly important for cab drivers while commercial bike insurance is more important for delivery agents rather than regular bike insurance policy as it is more adaptable for them. Moreover, the coverage for commercial vehicle insurance can be tailored as per specific requirements.
Why Having Commercial Vehicle Insurance is Crucial for Your Business?
Operating commercial vehicles without adequate insurance exposes businesses to substantial financial risks. Accidents, theft, or natural disasters can lead to significant losses. Investing in commercial vehicle insurance policy safeguards your assets and ensures business continuity. It mitigates unexpected expenses arising from accidents or damages, allowing businesses to allocate resources more effectively and maintain financial stability.
Mayur Kacholiya
Product Head
Important Commercial Vehicle Insurance Statistics in India
Here are some important statistics for commercial vehicles in India:
With statistics highlighting the increasing sales of commercial vehicles and frequent road incidents in India, commercial vehicle insurance becomes an absolute necessity. So, safeguard your business from financial burdens by getting cheap commercial vehicle insurance for all types of commercial vehicles.
Why Choose a Commercial Vehicle Insurance Policy by Digit?
We treat our customers like VIPs, know how…
Customize your Vehicle IDV
With us, you can customize your vehicle IDV as per your choice!
24*7 Support
24*7 call facility even on National Holidays
Super-Fast claims
Smartphone enabled self-inspection processes take minutes!
Digit’s Motor Insurance Claim Settlement Ratio is 96% for FY’25
Digit’s Motor Insurance Claim Settlement Ratio is 96% for FY’25
When it came to motor insurance specifically, Digit showcased a high-efficiency Claims Settlement Ratio (CSR), with 96% of motor claims settled seamlessly and we make this simple with:
Smartphone-enabled self-inspection process, with which you can file your claim in minutes!
Cashless Claims at over 2000 garages in India, so you can get your two-wheeler fixed without stress.
Everything digital and paperless. No need for hard copies—just upload everything on our app, and you're all set!
What Our Customers Have to Say about Us
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(250K + Customer Ratings)
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17 nov 2024
Quick reaction on Road side assistance and continuous follow up till resolution. Happy with assistance in late night hours.
Abishek Sharma
18 Aug 2024
I had issue with the motor insurance policy and wanted to upgrade it. The customer care executive had enough patients to explain me everything point to point. Thanks a lot Sudip.
Pratheesh R
18 Sep 2024
I spoke with Sandipa regarding my motor insurance claim through Go Digit General Insurance Ltd. using their Easy Motor Claim Registration process. She was very helpful, informative, and provided excellent support.
Venkat Raman
20 Dec 2024
Digit insurance was helpful in registering my motor claim. Smooth process and knowledgeable staff
Anvesh Allamsetti
12 May 2024
Was promised road side assistance real quick. Help arrived on time. Thanks Umang
Subasish Mohapatra
Digit Motor Insurance in News!
Key Features of Commercial Vehicle Insurance by Digit
What's Covered in a Commercial Vehicle Insurance?
Accidents
Damages caused to the commercial vehicle in case of an accident.
Theft
Loss or damage to the commercial vehicle due to theft.
Fire
Damages caused to the commercial vehicle due to a fire.
Natural Disasters
Damages caused to the commercial vehicle due to any natural calamity.
Personal Accident
If there is an accident of the commercial vehicle, leading to an injury or death of the driver.
Third Party Losses
Any damage caused by the commercial vehicle to a third party.
Towing Disabled Vehicles
Any damage caused by the commercial vehicle to the vehicle being towed.
What’s Not Covered?
It is equally important to know what’s not covered in your commercial vehicle insurance policy so that there are no surprises when you make a claim. Here are some such situations:
Own Damages for Third-Party Policy holder
In the case of a Third-Party Liability Only Policy, damage to your own vehicle won’t be covered
Drunk Riding or without a Licence
If the owner-driver of the claimed vehicle is drunk or driving without a valid licence.
Contributory Negligences
Any damage caused due to contributory negligence of the driver (such as driving when there’s an existing flood).
Consequential Damages
Any damage that is not a direct result of the accident/natural calamity i.e., consequential losses like loss of earnings, loss of market, etc.
Add-ons not Bought
Some situations are covered in add-ons. If you haven’t bought those add-ons, the corresponding situations will not be covered.
Add-ons Available with Commercial Vehicle Insurance
Digit offers the following 9 add-ons with the commercial insurance policy to provide enhanced protection for different commercial vehicles. Choose the ones most suitable for you to get better coverage.
Consumable Cover
A consumable cover will give your commercial vehicle protection beyond just the usual. It covers the cost for your vehicle's bits and pieces, like the nuts and bolts, screws, engine oil, and grease in case of an accident.
Zero Depreciation Cover
Your vehicle and its parts can depreciate over time because of its wear and tear and this amount is usually deducted from any claim. This add-on ensures that this depreciation will be covered on any replaced vehicle parts in the case of partial damage or loss to your vehicle due to an accident.
Engine and Gear Box Protect
Your vehicle's engine or gearbox can get damaged in an accident, due to things like water regression or leakage of lubricating oil. This add-on will help cover any consequential damage caused after the accident (but because of it); for example, engine damage due to hydrostatic loss, which is not covered in a basic plan.
Breakdown Assistance or Roadside Assistance
We all need a bit of help sometimes! Whenever you face a breakdown of your vehicle on the road, due to an accident, flat tires, malfunctioning battery, or more, with our breakdown assistance add-on, you will have the benefit of getting assistance 24x7.
Loss of Revenue
For many businesses and even individuals, vehicles are essential for work. This add-on helps to compensate you for any loss of income that could occur while your commercial vehicle is not available when it’s being repaired due to damage.
Additional Towing Expenses
When your vehicle is in an accident, it will need to be towed to a garage to be repaired. Under this add-on, we will cover additional expenses that you might have while your vehicle is being moved from the spot of accident to the nearest garage or place of safety.
EMI Protection Cover
If your vehicle is taken on a loan and is damaged by an accident, and it’s sitting in a garage for repair that might mean a loss for your business. Through this add-on, you will be paid regular EMIs payable to the financier of the vehicle recorded in our books.
Return to Invoice
If the insured passenger carrying vehicle suffers a total loss or constructive loss or is stolen, the policyholder will be compensated under this return to invoice cover. The compensation can be in the form of payment for a new vehicle at the prevailing ex-showroom price. However, exactly same make, model, variant is discontinued Company’s Liability will be limited to the difference between the last available ex-showroom price and claim payable under OD section of the Base Policy.
Key and Lock Replacement
There are instances when the vehicle’s lockset needs to be replaced or the keys are misplaced and lost. In such scenarios, this key and lock replacement cover helps the policyholder get compensated for the cost incurred to get the vehicle’s locks and keys replaced, installing a new lockset etc., in the insured vehicle. However, this add-on is available only for passenger carrying vehicles.
Additional Coverages or Endorsements Available
Sometimes, just standard coverage for vehicles isn’t enough to cover for all circumstances. That’s why Digit offers optional covers too, which you can opt for as per your needs to extend your commercial vehicle’s coverage, including:
Personal Accident Cover
If you don’t already have a PA cover, you can include it within your commercial insurance policy plan as having a personal accident cover is mandatory by law. This provides coverage for bodily injury or death of the owner-driver in case of an unfortunate accident.
Unnamed PA Cover
We hope this never happens, but if something happens to the passenger in the vehicle in an unforeseen accident, this cover is a fall back to cover for the same.
Legal Liability
This cover has you protected against any legal liability that arises against you due to an injury caused to your employees or someone who works for you.
IMT 23
This cover helps cover for losses or damage to lamps, tyres, tubes, mudguards, bonnet, side part bumpers, headlights and paintwork in all cases, even if the vehicle is partially damaged.
Electrical Accessories
This cover is for those who have fitted any electrical accessory in their vehicle, which is not a part of the manufacturer’s model, this will cover those accessories.
Non-Electrical Accessories
If you’ve fitted any non-electrical accessory in your vehicle which is not a part of the manufacturer’s model, this cover helps cover for those accessories during damages and losses.
Special Exclusions & Compulsory Deductibles
Upon every loss, there will be a certain amount you must pay as your share of the loss, called the compulsory deductible. This will also in turn help reduce your premium. This will also cover the loss or damage to lamps, tyres, tubes, mudguards, bonnet, side part bumpers, headlights and paintwork if your vehicle is completely damaged.
Types of Commercial Vehicles Covered
Passenger Carrying Vehicle Insurance
- This insurance is specifically for vehicles that typically carry one or more passengers, such as taxi/cab, auto rickshaw, e-rickshaw, van, school buses, private buses, etc.
- The premium varies depending on the type of vehicle, its cc, location of vehicle, seating capacity, vehicle weight, etc.
- The policy comes with several add-ons including PA Cover, Legal Liability Cover, Special Exclusions and Compulsory Deductibles, etc.
- Passenger carrying vehicles, especially school buses and regular cabs, have a huge responsibility as they carry several passengers daily. Therefore, they need commercial bus insurance.
- Most of India’s population’s income depend on driving these vehicles. A commercial vehicle insurance policy ensures that they will always be protected against losses, in case of any unfortunate circumstances.
Goods Carrying Heavy Vehicle Insurance
- If your business actively uses trucks to transport goods from one place to another, a commercial vehicle insurance also protects losses against any loss or damage of goods that can occur due to circumstances such as natural calamities, accidents, fires, etc.
- Commercial truck insurance covers vehicles that typically carry goods to be transported from one place to another, which primarily include trucks, tempos, trailers, etc.
- Goods carrying vehicles are usually large and prone to a lot of risk. So, commercial vehicle insurance not only protects damages and losses to third parties but also protects the owner-driver and the vehicle from losses that can arise out of accidents, natural calamities or other unfortunate situations.
Light Commercial Vehicle Insurance
- This insurance covers lightweight vehicles that are used for transporting goods commercially, such as mini trucks, minivans, and pickups like Tata Ace, etc.
- Light Commercial Vehicle Insurance for goods carrying vehicle covers damages due to accident, theft, fire, natural disasters, personal accident, towing, etc.
- It also provides liability coverage, which implies that it will also cover any damage or loss to a third party due to your vehicle.
Commercial Two-Wheeler Insurance
- This insurance covers two-wheelers used for business, or which carry passengers from one place to another, but it does NOT cover any personal two-wheelers.
- It covers different types of two-wheelers, like motorcycles, mopeds, scooters, and more.
- A commercial bike insurance safeguards passengers, and in some cases, the owner/driver depending upon the policy terms, in mishaps due to accident, collision or natural calamity.
Miscellaneous & Special Vehicles Insurance
- This type of insurance covers other vehicles often used for and by business. Some of these may include special vehicles used for farming, mining and construction, among others, including JCB, excavators, tractors, etc.
- Commercial vehicle insurance for such vehicles will protect them from any damage and losses caused to and by the vehicle and its respective owner-driver.
- Given both the investment and size of these vehicles, it’s always a safer choice to insure the same with commercial vehicle insurance. This way, the business or sole proprietor will lessen its risk and protect itself from any financial losses that could occur due to unfortunate mishaps.
Third Party vs Comprehensive Commercial Vehicle Insurance
Third Party
Comprehensive
|
Damages caused by your commercial vehicle to any third-party person or property |
✔
|
✔
|
|
Damages caused to any third-party person or property by the vehicle being towed by your insured commercial vehicle |
✔
|
✔
|
|
Loss or damages to own commercial vehicle due to natural calamities, fire, theft or accidents |
×
|
✔
|
|
Injury/death of owner-driver If owner-driver doesn’t already have a Personal Accident Cover from before |
✔
|
✔
|
Complimentory Wellness Benefits for Digit Commercial Vehicle Insurance Customers
With your Digit Commercial Vehicle Insurance, you also get exclusive access to a wide range of wellness perks, making taking care of yourself easier and more affordable:
Unlimited 24×7 Teleconsultations with General Physicians
Get expert medical advice anytime, anywhere.
Mental Health Consultation & Services
Consult the best and most trusted therapists at affordable rates, with up to 50% off
Diagnostic Tests & Health Check-Ups
Stay ahead of health concerns with affordable screenings and lab tests.
Specialist Teleconsultations
Speak to top specialists in Mental Health, Women’s Health, Diet & Nutrition, and more, at flat 50%!
Women's Health Care Programs
Pregnancy Care Programs, access to Mum Support Group, PCOS/PCOD Care Programs, Maternity Support and much more!
Physiotherapy Sessions
Stress and Pain relief covered with exclusive discounts on Physiotherapy consultation and session bookings.
Dental Consultation Offers
Avail unlimited, free dental consultations and exclusive discounts on dental treatments.
Sexual Wellness
Get flat 15% discount on Sexual Wellness Programs!
Chronic Care Support Programs
Personalized assistance for long-term health conditions.
How to Buy/Renew Commercial Vehicle Insurance Policy with Digit?
Switch to Digit
Existing Digit Policy
Enter Vehicle Details
On the Digit App or website, enter the vehicle registration number and select the policy status.
Choose a Plan
Select the type of vehicle insurance plan and choose desired add-ons.
Enter Personal Details
Enter your personal, nominee and vehicle details, and move to the next step.
Make Payment
Complete the payment and mandatory KYC verification process.
That's It!
You’ll receive the policy document via email, SMS and WhatsApp. Also, you can access it 24X7 on the Digit App.
Documents Required to Buy Commercial Vehicle Insurance Online
To buy Digit commercial vehicle insurance online, a load of paperwork is not required. Furnish only the following documents to buy a new two-wheeler insurance policy within minutes:
Registration Certificate
×
It is an official document issued by the Regional Transport Office (RTO) that proves your vehicle is legally registered under the Motor Vehicles Act.
Previous Year Insurance Policy
×
A Previous Year Insurance Policy refers to the auto rickshaw insurance coverage you had for the previous policy term, typically valid for one year. It includes details like:
- Policy Number: Unique ID of your old insurance plan.
- Coverage Type: Whether it was third-party or comprehensive.
- Insurer Details: The company that provided the coverage.
- Policy Expiry Date: The date the previous insurance lapsed.
- No Claim Bonus (NCB): A discount earned if no claims were made.
Documents for KYC Verification
×
Inorder to buy a auto rickshaw insurance policy online a KYC verification is needed for which various documents such as your PAN/Aadhar/DL/Voter ID/Form 16/Passport is required.
How to Download Your Commercial Vehicle Insurance Policy on Digit App?
To download your renewed or already active Commercial Vehicle insurance policy with Digit, follow the given steps:
Login to Your Acount
Visit the Digit website or app and click on ‘Login’ at the top-right corner. Enter your registered mobile number and verify with OTP.
Visit ‘Active Policies’
Once logged in, navigate to the Active/My Policies section. Here, you can check the policy number, end date & start date.
Download the Policy
Done! You can save, share, print or email the policy for future reference anytime, anywhere.
How to File Claim & Track Real-time Status through Digit App?
File a Claim
Track Claim Status
Login
Open the Digit App and go to the "File Motor Claim" option. Login and you'll be directed to the "File Motor Claim" page. Click on the policy card to start claim filing.
Provide Details
Fill in all the details related to the accident and damage to the commercial vehicle.
Enter Personal Details
Update your personal details and that's it, your claim is successfully filed, and you will receive the next steps on your email & WhatsApp.
What are the Documents Required to File a Claim with Digit?
Here is the list of documents you will need to file a claim for commercial vehicle insurance. Remember that these documents may vary depending on the type of claim.
Registration Certificate
×
It is an official document issued by the Regional Transport Office (RTO) that proves your vehicle is legally registered under the Motor Vehicles Act.
Driving license
×
A driving license is an official document that authorizes a person to operate a vehicle on public roads. It serves as proof that the individual has passed the required tests and meets the legal criteria for driving.
Aadhaar card
×
An Aadhaar card is a unique identification document issued by the Unique Identification Authority of India (UIDAI). It contains a 12-digit Aadhaar number that serves as proof of identity and address for Indian residents. The card links biometric data—fingerprints and iris scans—with demographic details like name, date of birth, and address.
Fitness certificate of the vehicle
×
A Fitness Certificate (FC) is a mandatory document that certifies a vehicle is roadworthy and meets safety and emission standards in India. It is required for commercial vehicles
Copy of FIR
×
An FIR (First Information Report) copy is a document that records the details of a criminal complaint filed with the police. It serves as the official record of an incident and is the first step in a legal investigation.
Load challan
×
A Load Challan is a fine or penalty issued for overloading a vehicle beyond the permitted weight limit. In India, traffic authorities enforce strict regulations to prevent overloaded vehicles from causing road hazards and excessive wear on infrastructure.
Duly filled claim form
×
A duly filled claim form is a document that has been properly completed with all required details for submitting a claim—typically for insurance, healthcare, or reimbursement purposes. It ensures that the claim process is smooth and avoids delays due to missing information.
Tax paid receipt
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A Tax Paid Receipt is an official document that confirms the payment of taxes to the government. It serves as proof that an individual or business has fulfilled their tax obligations.
Commercial Vehicle Insurance Policy
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A Commercial Vehicle Insurance Policy is a type of insurance designed to protect vehicles used for business purposes, such as trucks, buses, taxis, and delivery vans. It provides financial coverage against damages caused by accidents, theft, fire, natural disasters, and third-party liabilities.
How is AI making Digit’s Motor Insurance Claim Process Faster & Smarter
How is AI making Digit’s Motor Insurance Claim Process Faster & Smarter
At Digit, we believe filing a motor insurance claim should be simple, not stressful. That’s why we’ve built intelligent automation into every step of the process—so you can get back on the road, faster.
- AI That Sees What You See: When you upload a video of the damage through our app, our AI doesn’t just watch—it analyses. Using advanced image recognition, it assesses the extent of the damage, classifies it, and helps determine the next steps. This means quicker evaluations, fewer delays, and a smoother experience for you.
- Automated Document Processing: From inspection reports to claim forms, our AI systems automatically sort and process your documents. This reduces manual effort, minimises errors, and speeds up approvals. And with a human-in-the-loop approach, we ensure every claim is handled with both precision and empathy.
- Automation That Works Behind the Scenes: Our systems also fetch claim details directly from partner platforms, eliminating the need for repetitive data entry. Whether it’s Bulk Policy Issuance or real-time claim registration, automation helps us move faster—so you don’t have to wait.
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69% Motor Repair Work Approvals Done within 12 Hours
69% Motor Repair Work Approvals Done within 12 Hours
In H2 FY25, our average vehicle repair approval time was 15 hours and 36 minutes, with 69% of approvals completed within 12 hours. Only 7.47% of cases experienced longer wait times, typically due to complex assessments or the need for additional documentation, highlighting our commitment to minimising delays and maximising efficiency.
Rest assured, we carefully monitor every step to ensure your vehicle is back on the road as swiftly as possible!
Digit Settled 9.16 Lakh Claims with 99.9950% Accuracy in FY'25
The below data is for all the products as given in the table below.
Settled 9.16 Lakh Claims Settled
That’s how many times we showed up for our customers in FY 2024–25. Behind each of those numbers is a mishap, and we were right there, making sure things got sorted quickly.
Out of these, nearly ₹6.52 lakh were motor insurance claims alone—proof that we’re there when it matters most, whether it’s something trivial or serious.
₹4,622 Crore Paid in Claims
From minor hiccups to major emergencies, we made sure our customers didn’t have to carry the financial burden alone. Quick settlements, zero confusion, and real peace of mind.
Of this, ₹2,199 crore was paid out under motor insurance, covering everything from accidents to unexpected situations like rat damage.
99.9950% Claims Accuracy
Out of 9.16 lakh claims in FY 2024–25, only 256 were escalated to the Hon’ble Ombudsman^. Out of which only 46# were escalated and ruled in favour of the customer. This significantly proves the claim's accuracy rate of 99.9950%.
For Motor Claims, out of 256 escalated claims for Digit, just 124 were motor-related. By year-end, 104 motor claims were closed, with 28 resolved through mediation. Only 26 health claim decisions went in favour of customers.
Ombudsman Complaints for FY 2024-25
The below information is a summary of escalated claim cases reviewed by the Hon’ble Ombudsman in FY 2024–25.
Disclaimer: ^This data pertains to cases reported to various offices of the Hon’ble Insurance Ombudsman. Customers have the option to approach the Consumer forum as well; #Only includes complaints arising from claims. The company had a total of 11 complaints arising from non-claims, i.e., policy-related grievances (5 won, 2 settled, 1 lost, and 3 outstanding). One non-claim complaint where the decision went in favour of the complainant is not included in the numerator while calculating claims accuracy.
Interesting Claim Stories & Insights from Digit Customers
Dogs Cause ₹1.5 Lakh in Auto Rickshaw Damages in Panvel
In Panvel, owning an auto rickshaw comes with its own set of challenges, but it’s not potholes or traffic that cause the most trouble. It’s dogs. Yes, you read that right. This year, encounters with canines have resulted in repair claims surpassing ₹1.5 lakh, illustrating that sometimes the most significant dangers on the road come with four legs and a wagging tail.
₹4 lakh claim after Cow topples JCB in Raigad
In Raigad, a JCB operator had a day they’ll never forget. A cow darted across the road, and in the blink of an eye, the machine flipped—yes, flipped. The result? A claim of over ₹4 lakh. It’s not every day you see a JCB somersault, but when the unexpected happens, the right insurance doesn’t hesitate. We step in, cover the damage, and keep the work going.
How to Avoid Claim Rejections?
How to Avoid Claim Rejections?
Here’s what all you need to keep in mind to avoid claim denials for commercial auto insurance:
- Always drive your insured vehicle only when you have your valid commercial driving license with you. This is because if you do not possess a valid license at the time of the accident, or if you were driving without one, your claim will be denied.
- Make sure your vehicle’s registration certificate (RC) and all other important documents are valid and not expired.
- You must also have a valid or active Pollution Under Control Certificate (PUCC) for the insured vehicle when you are renewing your commercial vehicle policy.
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Rate of Depreciation for Commercial Vehicles
The price of premium for your commercial vehicle insurance policy depends upon the Insured's Declared Value (IDV) of the vehicle. This IDV is adjusted for depreciation value of your vehicle as per the below table.
This age-wise depreciation is applicable for only Total Loss/Constructive Total Loss (TL/CTL) claims.
Why is It Important to Buy/Renew Commercial Vehicle Insurance?
Why is It Important to Buy/Renew Commercial Vehicle Insurance?
It’s important to buy or renew your cheap commercial vehicle insurance for the following reasons:
- As per the Motor Vehicle Act, every vehicle whether it’s used for personal or professional purposes is required to at least have a third-party liabilities policy to cover for any damages or losses cause by your commercial vehicle to a third-party person, vehicle or property.
- Safeguard your own commercial vehicle too by going for a complete package policy that will protect your commercial vehicle from own damages and losses due to accidents, collisions, natural calamities, etc.
- Avoid unexpected business losses, as your commercial vehicle insurance will be able to cover them all in times of need.
Why Should I Buy Commercial Vehicle Insurance for my Business?
Why Should I Buy Commercial Vehicle Insurance for my Business?
Whether you’re using a vehicle as part of your primary business or not, it’s important to safeguard all vehicles being used for commercial purposes.
While a liability only policy is already a mandate by law, having a standard package policy in place ensures your vehicle and owner-driver are also financially protected in the case of any unforeseen circumstances such as natural calamities, fire, theft and accidents.
If your business is asset heavy due to the vehicles used, you must have a standard package policy in place. This not only protects the owner-driver but also financially protects your business from any possible losses.
After all, businesses are full of risks. A commercial vehicle insurance will at least protect you from one of them.
How to Choose the Right Commercial Vehicle Insurance Online?
How to Choose the Right Commercial Vehicle Insurance Online?
- Given the number of options available today, it is important to pick an insurance that is simple, reasonable, protects and covers you and your business in all possible situations and most importantly, guarantees to settle claims as soon as possible. After all, that’s the most important part of insurance!
- Here are a few tips that will help you pick the right motor insurance for your vehicle:
- Right Insured Declared Value: IDV is the manufacturer's selling price of the commercial vehicle (including depreciation) you want to insure. Your premium will be dependent on this. While looking for the right commercial vehicle insurance online, make sure your IDV is stated correctly.
- Service Benefits: Consider services such as 24x7 Customer Support and a Wide Network of Cashless Garages, among others. In times of need, these services matter.
- Review Add-Ons: While picking the right commercial insurance for your vehicle, consider the add-ons available to ensure maximum benefits.
- Claim Speed: It’s the most important aspect of any insurance. Pick an insurance company you know will settle claims quickly.
- Best Value: From the right premium and after services to claim settlements and add-ons; pick a motor insurance that conveniently covers everything you think you will need at the best possible value.
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How to Compare Commercial Vehicle Insurance Quotes Online?
How to Compare Commercial Vehicle Insurance Quotes Online?
It can be tempting to pick the cheapest commercial vehicle insurance available. However, while comparing commercial vehicle insurance quotes, consider factors such as service benefits and claim settlement periods.
Depending on your type of vehicle, vehicles used for commercial purposes can be prone to a lot of risks. Therefore, weighing in important factors is important to ensure your vehicle and business are safeguarded against all the odds:
1. Service Benefits: Great services really matter in times of trouble. Make sure to evaluate services each insurance company is offering and make a sound choice accordingly.
Some of the services Digit offers are 24*7 Customer Care Support and Cashless at 1400+ Garages among other services.
2. Quick Claim Settlement: The whole point of insurance is to get your claims settled! So, make sure you pick an insurance company that will guarantee quick claim settlements.
Additionally, we have a zero-hardcopy policy, which means we only ask for soft copies. Everything is paperless, quick and hassle-free!
3. Check your IDV: A lot of insurance quotes online will have a low IDV (Insured Declared Value), I.e. the manufacturer's selling price of your commercial vehicle. While the IDV affects your premium, it also makes sure you get your right claim at the time of a settlement.
The last thing you want during a theft or damage is to find out your IDV was low/at the wrong value! At Digit, we give you the option to set your IDV while buying your commercial vehicle insurance policy online.
The last thing you want during a theft or damage is to find out your IDV was low/at the wrong value! At Digit, we give you the option to set your IDV while buying your commercial vehicle insurance policy online.
4. Best Value: Finally, pick the vehicle insurance that gives you a fair combination of it all. The right price, services and of course, quick claims!
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Factors to Consider for Commercial Vehicle Insurance Premium Calculation
Factors to Consider for Commercial Vehicle Insurance Premium Calculation
The Following are the factors that could affect your commercial vehicle insurance premium:
1. Model, Engine & Make of the Vehicle: Of course, the amount of risk your vehicle faces will largely depend on what kind of vehicle it is in the first place!
A commercial vehicle insurance for a regular cab will be a lot lesser than that of a goods carrying truck or school bus, simply because of the size and type of vehicle. Additionally, factors such as the year of manufacturing, vehicle condition, etc., will also influence your premium.
2. Location: Your vehicle’s insurance premium may differ based on where your commercial vehicle is registered and going to be used.
This is because each location possesses a different level of risk, i.e. a vehicle being used in a metro city like Mumbai, Bangalore, Hyderabad or Delhi would be higher than that of non-metro cities.
3. No-Claim Bonus: If you’ve already had a commercial vehicle insurance before and are currently looking to renew your policy or get a new insurer- then in this case your NCB (No Claim Bonus) will also be considered, and your premium will be at a discounted rate!
A No-Claim Bonus means your commercial vehicle hasn’t had a single claim in the previous year.
4. Types of Insurance Plan: Under commercial vehicle insurance, there are primarily two kinds of insurances available. Therefore, your insurance premium will also depend on the kind of plan you choose.
While the compulsory, liability only plan comes with a lesser premium- it only covers third-party damages or losses caused to a third-party and personal accident of the owner (if he/she is traveling in the insured vehicle);whereas a standard package policy may be higher in premium but, would also cover damages and losses to our own commercial vehicle and the driver respectively.
5. Purpose of the Commercial Vehicle: Every commercial vehicle is used for different purposes. While some are used to transport passengers, some are used to transport goods or even used to construct buildings. Therefore, your insurance premium will also take into consideration the purpose of your vehicle.
Typically, regular auto rickshaw insurance would be cheaper than of a goods carrying truck not only cause of the difference in size, but also cause a truck insurance will also cover for the value and type of goods being regularly transported
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Important Things to Know Before Buying a Commercial Vehicle Insurance Policy
Important Things to Know Before Buying a Commercial Vehicle Insurance Policy
What is IDV?: The Insured Declared Value is the maximum amount your insurance provider can pay out in case your car is stolen or damaged beyond repair. This value is determined by the manufacturer’s selling price of your vehicle and its depreciation calculated.
What is NCB (No Claim Bonus)?: A no claim bonus is a discount on premium given to the policyholder for having a claim free policy term. A no claims bonus ranges from a discount of 20-50% and is something you earn at the end of your policy period by maintaining a record of having no accidents caused by your commercial vehicle.
What are Deductibles?:Deductibles are the amount the policy holder is required to pay out during a claim. There are generally two kinds of deductibles; one that is compulsory and the other, the voluntary claim- that you can opt and choose according to how much your business can bear per claim.
The higher your voluntary claim, the lower your premium is. However, while choosing a voluntary deductible amount- make sure it is an amount you’ll be able to afford in case a claim arises.
What is a Cashless Claim?: If you opt to get your commercial vehicle repaired with a Digit Authorized Repair Center, we will make the payment for the approved claim amount, directly to the Repair Center. This is a Cashless Claim.
Please note, if there are any deductibles, like a Compulsory Excess/ Deductible, any repair charges for which your insurance doesn’t cover you or any depreciation costs, that is to be paid by the insured’s own pocket.
What Do You Mean by a Third-Party Liability?: A Third-Party Liability is when your commercial vehicle damages a third-party property, person or vehicle. In this case, your insurance policy (Liability only policy/Standard Package Policy) is liable to financially cover for the losses incurred towards it.
How is Commercial Vehicle Insurance Different from a Regular Car Insurance?: A commercial vehicle is essentially prone to a lot more risk than regular car insurance. Take for instance a goods carrying truck. In case of an accident or a natural calamity, a truck would bear a lot more risk due to its size and the value of goods being carried on the truck.
Similarly, taxis and buses would bear a lot more risk, as they carry several different passengers daily and would be liable for the same.
To simply put it, regular car insurance is primarily designed for cars owned and used by you and your family. However, commercial vehicle insurance is specifically designed for those who use vehicles as a vital part of their business.
The risks and situations that could arise for the two are different and policies are therefore customized for each of them accordingly.
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Digit Commercial Vehicle Insurance makes it easy to protect your vehicle, whether it’s a taxi, truck, or any other commercial ride.
With flexible coverage options based on your vehicle type, quick smartphone-enabled claims, and a wide network of cashless garages, everything is designed to be smooth and hassle-free.
And with a helpful support team and a simple digital process, and you’ve got insurance that works just the way you need it to.
FAQs about Commercial Vehicle Insurance in India
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Have queries related to Digit motor insurance policy? You can refer to our Policy Wordings for detailed information or reach out to our support team via WhatsApp self-support, email or phone using the information below:
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