What is a Commercial Vehicle Insurance?
A Commercial Vehicle Insurance is a customized motor insurance policy to cover for damages and losses caused to or by a commercial vehicle and the respective owner-driver. This could include damages and losses in situations such as accidents, collisions, natural calamities, fires, etc. It is mandatory for all businesses to buy a commercial vehicle insurance for their vehicles, such as for auto-rickshaws, cabs, school buses, tractors, commercial vans and trucks, amongst others.
Why do you need a Commercial Vehicle Insurance?
- If your business owns one or many vehicles, it’s essential to get a commercial vehicle insurance that will financially protect and cover your business from any losses and damages caused to and by your vehicle (s) 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, a 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.
Why choose a Commercial Vehicle Insurance Policy by Digit?
What's covered in a Commercial Vehicle Insurance?
Add-ons available with Commercial Vehicle Insurance
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.
Your vehicle and its parts can depreciate in value 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 (like rubber or fiberglass parts) in the case of an accident.
Your vehicle's engine or gearbox get damaged in an accident, due to things like water regression or leakage of lubricating oil. This add-on will help cover any consequential damages caused after the accident (but because of it), for example engine damage due to hydrostatic loss, which is not covered in a standard policy.
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.
For many, 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 damages.
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 for 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.
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 to payable to the financier of the vehicle recorded in our books.
Additional Coverages a.k.a Endorsements Available
Sometimes, just a standard coverage isn’t enough to cover for all circumstances. That’s why, we offer optional covers too you can opt for as per your needs, to extend your commercial vehicle’s coverage.
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.
We hope this never happens, but if something happens to the person sitting with you in the vehicle, in an unforeseen accident this cover is a fall back to cover for the same.
This cover has you protected against any legal liability that arises against you due to an injury caused to your employees / someone who works for you.
This cover helps cover for losses or damages to lamps, tyres, tubes, mudguards, bonnet, side part bumpers, headlights and paintwork in all cases, even if the vehicle is partially damaged.
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.
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.
Upon every loss there will be certain amount which you will have to pay as your share of the loss called as 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.
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:
In the case of a Third-Party Liability Only Policy, damages to own vehicle won’t be covered.
If the owner-driver of the claimed vehicle is drunk or driving without a valid licence.
Any damage caused due to contributory negligence of the driver (such as driving when there’s an existing flood)
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.
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
Passenger Carrying Vehicle Insurance
- Insurance specifically for vehicles that typically carry one or more passengers, such as taxis, cabs, auto rickshaw, school buses, private buses, etc.
- Passenger carrying vehicles, especially school buses and regular cabs have a huge responsibility as they carry several passengers on a daily basis.
- A number of India’s population’s lives and incomes depend on driving these vehicles. A commercial vehicle insurance ensures that they will always be protected against losses, in case of any unfortunate circumstances.
Goods Carrying Vehicle Insurance
- Vehicles that typically carry goods to be transported from one place to another. These primarily include trucks, tempos and lorries.
- Goods carrying vehicles are usually large in size and are prone to a lot of risk due to it. A 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.
- 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.
Miscellaneous & Special Vehicles Insurance
- Apart from cabs, taxis, trucks and buses, there are many other vehicles often used for and by business. Some of these may include special vehicles used for farming, mining and construction, among others.
- A commercial vehicle insurance for the same will protect the insured vehicle from any damages and losses caused to and by the vehicle and its respective owner-driver.
- Given the both the investment and size of these vehicles, it’s always a safer choice to insure the same with a 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.
Types of Commercial Vehicle Insurance Policies
Based on the requirement of your commercial vehicle, we primarily offer two policies. However, considering the risk and use of commercial vehicles, it’s recommended to take a Standard Package Policy that will financially protect your own commercial vehicle, and the owner-driver using it as well.
| 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-driverIf owner-driver doesn’t already have a Personal Accident Cover from before |
|
| Get Quote | Get Quote |
Know more about the difference between comprehensive and third party two wheeler insurance
How to file a claim?
Call us at 1800-258-5956 or drop us an email at hello@godigit.com
Keep your details such as policy number, location of the accident, date & time of the accident, and contact number of the insured/caller handy to make our process easier.
What our customers have to say about us
Very simple claim process. Just dial the number from your insurance policy.A call generated to Digit insurance team and they register the claim in 5 minutes after that take vehicle to workshop for repair. Survey done on Same day. Abhishek sir who explains all the process to me and also help to get claim.
I am vary Happy and satisfy with the service provided by Mr. Siddhesh Magdum. It was a great experience to deal with him. He has adequate knowledge of auto sector. He is Vary polite in nature and Vary prompt in his work. He helped me a lot to solve my problem. I want to say, thank you digit to provide such a knowledgeable and experienced person to resolve our problems. Keep it up Siddhesh sir you are doing great job and good luck for your future.
I am extremely delighted the way Digit Insurance handled my case. I am happy to share the way Mr. Ratna Kumar of Go Digit handled my case. He has constantly followed up every alternate day to update the status of my vehicle with the garage people. I feel Digit is in safe hands of workers like Ratna Kumar. I would definitely love to renew my insurance and also go for my other vehicle Creta. Strongly recommend Digit. All the very best to Digit.
Know more about Commercial Vehicle Insurance
Why should I buy a 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, a 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 a 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 an 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: 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.
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!
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.
Best Value: Finally, pick a vehicle insurance that gives you a fair combination of it all. The right price, services and of course, quick claims!
Commercial Vehicle Insurance Premium Calculator
Following are the factors that could affect your commercial vehicle insurance premium:
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.
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.
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.
Type 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.
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 in consideration the purpose of your vehicle.
Typically, a 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 is your premium. 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 a 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, a regular car insurance is primarily designed for cars owned and used by you and your family. However, a 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 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 for them all in times of need.
FAQs about Commercial Vehicle Insurance in India
What is the difference between Comprehensive and Third-party policy in Commercial Vehicle Insurance?
A third-party policy in a commercial vehicle insurance only covers for damages and losses caused to a third-party property, person or vehicle, whereas a comprehensive policy will cover for both third-party related and own damages and losses as well.
What is a Passenger carrying vehicle?
A passenger carrying vehicle is any commercial vehicle that helps people transport from one place to another. Examples of this include public and school buses, cabs and taxis.
What is a Goods carrying vehicle?
As the name suggests, a goods carrying vehicle is a type of commercial vehicle primarily used to transport goods from one place to another, such as trucks and lorries.
What is considered as miscellaneous and special vehicles category?
Any special vehicle that doesn’t fall into the category of either passenger carrying vehicles or goods carrying vehicles is considered as a special or miscellaneous vehicle. This could include pick-up trucks, vehicles used during construction, etc.
What should I do if my commercial vehicle gets into an accident?
In case your commercial vehicle gets into an accident, immediately call us at 1800-103-4448 and we’ll help you out of trouble!
Where can I repair my commercial vehicle in case of damages?
At Digit, we have our partner garages across India. You can either get your commercial vehicle at any one of them or, get it repaired another garage of your choise and get the repair expenses reimbursed through a claim.