Everything To Know About A Commercial Vehicle Insurance

Being a commercial business owner, you incur various costs like supplying raw materials, delivery, logistics, etc. The driving force behind completing these functions are the commercial vehicles you own. These carry goods and passengers or both. It is essential to safeguard them against collisions and unforeseen events to protect essential materials and lives.

If any mishap occurs, you bear the responsibility to compensate them as a business owner. Buying commercial vehicle insurance enables you to transfer this liability to the insurer. You can rest assured knowing that you have financial backing in unforeseen circumstances. Read on to understand it in detail:

Coverage: It helps to understand the overall coverage you get before buying to get the best deal. It depends on the policy type you choose. A third-party plan covers only the damages incurred in the form of legal obligations, bodily injuries, death of others. A comprehensive plan protects third-party damages in addition to implications from theft, accidents, earthquake riots, etc., on you and the vehicle.

Functionality: Once you zero in on your plan details and insurer, you submit the duly filled form with documents. The policy provider considers this information for finalising your premium and insured sum. Upon any unfortunate event, you intimate the insurer about the situation by giving the claim form and vehicle details. The claim amount is then given after inspection of the vehicle and third-party accountability.

Eligibility criteria: In India, almost all commercial automobiles used to carry goods and passengers, or both, are eligible for commercial vehicle insurance. These include bus, trucks, taxi, trailers, crane, bulldozer, tractors, etc. These vehicles are heavy duty and carry tonnes of weight. Hence, they hold the highest risk for accidents as compared to personal vehicles. You can also insure them through sub-categories for a specific automobile.

Claim settlement process: You contact and inform the insurer about the accident, who then sends you a claim form. You enter all the details related to the incident as well as damage. Once approved, the claim is settled either through the cashless facility or reimbursed. The former involves direct payment for repairs and medical bills by the company, and the latter requires you to bear the expenses. The insurer then refunds this.

Documentation for claiming: The claiming process is quicker when you have all the required paperwork handy. You should have a filled claim form, vehicle registration copy, driver’s license of the motorist, FIR details in case of third-party damage, etc. This is cross-verified by inspection before providing the claim settlement. Doing it online completes the process with ease.

The law advocates this general insurance plan for road safety. Make sure to renew it on time to avoid legal action. Other than the compulsion, it also ensures that your logistics process is secured against threats. It relieves you from financial losses and reputation threat.

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