What is Commercial Vehicle Insurance?

When we talk about commercial vehicle insurance, it refers to the vehicles that are used for commercial purposes and not for personal use. Vehicles like buses, trucks, auto/rickshaws, agricultural vehicles, taxis/cabs, ambulances, etc. come under the commercial vehicle category. In addition, bulldozers, cranes, and trailers also come under the same category. These are listed as heavy commercial vehicles. 

Importance of Buying a Commercial Vehicle Insurance

You will need commercial vehicle insurance if you are in the business of transportation. In India, third-party insurance under the Motor Vehicles Act, 1988 is mandatory. Hence, it makes a necessary for you to get your commercial vehicle insured to avoid penalties. 

Inclusions and Exclusions Under Commercial Vehicle Insurance Policy?

If you are planning to purchase a commercial vehicle insurance policy, we suggest that you go through the inclusions and exclusions of the policy before making the final purchase. Here we have listed all the inclusions and exclusions under the policy. Have a look at the following: 

Inclusions	Exclusions
Damages caused due to a malicious act and not by the owner.	Insured vehicle faces damage due to mechanical or electrical breakdown.
Damages caused due to fire or explosion.	Damage caused to the vehicle when driving under the influence of alcohol.
Damage caused due to an accident to the insured vehicle.	Consequential losses.
Damage caused to the insured vehicle due to terrorist activity.	Damage caused when driving without any valid car documents.
Damage caused due to man-made calamities like riots, vandalism, etc.	Intentional damage.
Damage caused to the vehicle while it was transported through water, land, or rail.	Damage caused when involved in criminal activity.
Insured vehicle being stolen.
Damage caused due to road accident.
Damage caused due to natural disasters like floods, earthquakes, landslides, cyclones, hurricanes, frost, hailstorms, etc.

Difference Between Third-Party Commercial Insurance & Comprehensive Commercial Insurance

When planning to buy a commercial insurance plan, there is constant confusion about which policy to buy – Third-Party Commercial Insurance or Comprehensive Commercial Insurance. So, to help you decide what’s best according to your requirements and budget, we have listed a few pointers below: 

Third-Party Commercial Insurance	Comprehensive Commercial Insurance
Lower premium price	Wider coverage
Offers coverage for third-party claims	Offers coverage for both third-party claims and own damage claims
Coverage for third-party injury & death due to accident	Coverage for more than just accidental damages (option to buy rider covers)
Coverage for third-party property damage	Coverage for damages due to natural or man-made calamities.
No coverage is offered in case of damage caused due to theft or fire	Coverage offered for loss occurred due to fire or theft
No option to include rider covers	Option available to buy add-on covers

In conclusion,

Now that you are aware of commercial vehicle insurance, you can easily plan to make a purchase. We hope that this article provided all the important details regarding the commercial vehicle insurance policy. 

If you want to explore more motor insurance policies, you can visit our Bajaj Finserv app. 

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