Buy/Renew Your Commercial Vehicle Insurance 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!
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.
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 liability only policy 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.
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?
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What's covered in a Commercial Vehicle Insurance?
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:
Add-ons available with Commercial Vehicle Insurance
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:
Key Features of Commercial Vehicle Insurance by Digit
Key Features |
Digit Benefit |
Claim Process |
Paperless Claims |
Customer Support |
24x7 Support |
Types of Commercial Vehicles Covered |
Cabs and Taxis, Trucks, Lorries, Buses, Auto Rickshaws, School Vans, etc. |
Premium |
Customized as per type of commercial vehicle & number of vehicles to be insured |
Additional Coverage |
PA Covers, Legal Liability Cover, Special Exclusions and Compulsory Deductibles, etc |
Damages to Third-Party |
Unlimited Liability for Personal Damages, Up to 7.5 Lakhs for Property/Vehicle Damages |
Types of Commercial Vehicles Covered
Types of Commercial Vehicle Insurance in India
Liability Only
Standard Package
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 |
✔
|
✔
|
How to File a Claim with Digit?
To file a claim against commercial vehicle insurance, follow these steps:
- Step 1 - Inform your insurer as soon as possible by calling Digit on 1800-258-5956 or dropping an email at hello@godigit.com.
- Step 2 - Keep your details handy such as policy number, location of the accident, date and time of the accident, and contact number of the insured/caller to make the process easier.
- Step 3 - Present the required documents required to file the claim and wait for the insurers to verify the details. Upon verifying, your claim will be processed.
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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 (RC) of the vehicle
- Driving license of driver
- Aadhaar card
- Fitness certificate of the vehicle
- Copy of FIR, if applicable
- Load challan of your commercial vehicle
- Duly filled claim form
- Tax paid receipt
- Commercial Vehicle Insurance Policy Certificate
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.
- This is a given but remember to follow all the road safety rules and regulations to avoid claim rejections on grounds of issues like underage driving, drunk driving, overloading, or even running a red light at the time of an accident.
- Remember to transfer the vehicle’s insurance policy the new owner when buying a second-hand vehicle, else claims could be rejected.
- In case the vehicle meets with any accident or theft, inform your insurer about it at the earliest, before sending it for any repairs. Also, send them all the necessary documents within the fixed period to avoid claim denial.
- Always provide correct information about the loss face while filing for claim as any misinterpretation or fraudulent information will lead to claim rejection.
Commercial Vehicle Insurance Price
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.
Vehicle Age | Depreciation Rate |
Not Exceeding 6 months | 5% |
Exceeding 6 months but not exceeding 1 year | 15% |
Exceeding 1 year but not exceeding 2 years | 20% |
Exceeding 2 years but not exceeding 3 years | 30% |
Exceeding 3 years but not exceeding 4 years | 40% |
Exceeding 4 years but not exceeding 5 years | 50% |
Know more about Commercial Vehicle Insurance
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.
Is Commercial Vehicle Insurance important?
Yes, commercial vehicle insurance is extremely important. While a liability only policy is already mandatory by law, a standard package policy is essential in safeguarding your own vehicle and yourself.
Moreover, having commercial vehicle insurance in place will financially protect your business from any unexpected losses that could arise due to situations such as thefts, natural calamities, fires and accidents.
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): 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.
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:
- Service Benefits
- Quick Claim Settlement
- Check your IDV
- Best Value
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.
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!
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.
Finally, pick the vehicle insurance that gives you a fair combination of it all. The right price, services and of course, quick claims!
Factors to Consider for Commercial Vehicle Insurance Premium Calculation
Following are the factors that could affect your commercial vehicle insurance premium:
- Model, Engine & Make of the Vehicle
- Location
- No-Claim Bonus
- Type of Insurance Plan
- Purpose of the Commercial 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.
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.
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.
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.
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.
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 (NCB) 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.
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.