Commercial Vehicle Insurance Cover

Mainly two types of commercial vehicle insurance policies are available to choose from:

Liability Only Policy: This commercial vehicle the insurance policy covers third-party liability for bodily injury and/or death and property damage of a third party person. Personal Accident cover for Owner-driver is also included under this plan.

Third-party commercial vehicle insurance covers the vehicle owner's legal liability to pay compensation in the event of the following:

●        Damage to third party property.

●        Liability is covered for an unlimited amount about death or injury and damage to third party property.

●        Death or bodily injury to a third party person due to an accident involving your vehicle.

Package or Comprehensive Policy: Package commercial vehicle insurance policy, also known as comprehensive policy covers loss or damage to the vehicle insured as well as third-party legal liability.

Along with the third-party legal liability cover, package policy for commercial vehicle compensates against the following loss or damage:

●        Explosion, fire, lightning, or self-ignition.

●        Riot and Strike.

●        Malicious Act.

●        Flood, Storm, Typhoon, Tempest, Inundation, Tempest, Hailstorm, Hurricane, and Cyclone.

●        Housebreaking, theft, burglary.

●        Terrorist Act.

●        Any damage to your vehicle while it’s in transit via rail, air, road, inland waterway, lift, or elevator.

●        Accidental external means.

●        Damage by landslide/Rockslide

●        Earthquake (Fire and Shock) Damage.

How Is The premium for Commercial Vehicle Insurance Policy Calculated?

The premium of a Commercial vehicle insurance Plan depends on the following factors:

●        Insured Declared Value (IDV) of your commercial vehicle

●        Cubic capacity

●        Geographical zone

●        Age of the vehicle

●        GVW of in case of commercial vehicles

Apart from the above-mentioned coverage, here's what commercial vehicle insurance doesn't cover

Just like any other insurance, the commercial vehicle also has several exclusions:

●        Consequential loss

●        Any damage or loss incurred when driving with invalid driving license

●        Damage to the vehicle due to wear and tear, breakdowns are not covered

●        Using the vehicle otherwise than by the `limitations as to use’

●        Driving under the influence of intoxication.

●        Loss due to civil war, war, mutiny, etc.

●        Any claim arising out of contractual liability is not coverage