Commercial Vehicle Insurance
About Commercial Vehicle Insurance
As per the Motor Vehicles Act of 1988, it is mandatory for all commercial vehicles to have insurance coverage in India. Without this insurance, you may have to pay fines and penalties.
Commercial vehicle insurance helps protect a business's assets in case of an accident or other unexpected event. This helps ensure the continuity of operations and minimises financial losses. This insurance can be a cost-effective solution as it can help mitigate the financial impact of an accident rather than having to bear the entire cost out of pocket.
This policy typically includes liability coverage, which can help cover the costs of any injuries or property damage caused by accident involving the insured vehicle. Apart from that, your policy can also provide personal accident coverage for the driver and owner of the vehicle.
Third party rates are revised in accordance to IRDAI circular which came in force from 01/June/2022. Please click on link to check the attached circular of IRDAI.
Self Service Options
Make changes to your policy & update your contact details.
Make changes to your policy & update your contact details.
Print policy document and view renewal notice
Print policy document and view renewal notice
What is Commercial Vehicle Insurance?
Commercial vehicle insurance in India is a type of insurance that covers vehicles used for commercial purposes, such as trucks, buses, taxis, and other vehicles that are used for business activities. This type of insurance typically includes coverage for third-party liability and damage to the vehicle itself. All commercial vehicles must have third party liability insurance in India.
The insurance coverage for commercial vehicles includes protection against damage to the vehicle and liability coverage in the event that the vehicle is involved in an accident and causes injury or damage to third parties. The policy covers loss or damage to the vehicle due to natural calamities, man-made disasters, theft, and riots, among others.
The premium for commercial vehicle insurance is typically higher than that for personal vehicle insurance, as commercial vehicles are considered to be at a higher risk of accidents and damage. The premium amount is also affected by factors such as the type of vehicle, its age, the purpose for which it is used, and the area in which it is operated.
What is Passenger Vehicle Insurance?
Passenger vehicle insurance is a commercial vehicle insurance policy for cabs/taxis or other types of passenger vehicles. It offers coverage to the insured and their vehicle/vehicles against damages due to accidents, natural calamities, human causes, and many other damages.
As the owner of a passenger vehicle, it is important to safeguard your business by securing your vehicle against damages. While a simple third-party or liability-only policy is a legal requirement, you need a comprehensive passenger vehicle insurance policy for extensive protection for yourself and your vehicle.
How to buy Commercial Vehicle Insurance online?
If you want to buy commercial vehicle insurance online from Tata AIG, you can choose from our range of passenger vehicle insurance policies. To know more about the other commercial vehicle insurance policies, please contact us at:
- 1800 266 7780 (toll-free).
- 022 66939500 (tolled).
- Contact our Tata AIG agents by calling 1800 267 7233 (toll-free).
Who Needs Commercial Vehicle Insurance in India?
In India, commercial vehicle insurance is mandatory for all vehicles used for business or commercial activities. This includes a wide range of vehicles, such as:
- Trucks, lorries, and other heavy commercial vehicles used for transporting goods and materials.
- Buses and other vehicles used for public transportation, such as school buses and tour buses.
- Taxis and other vehicles used for ride-sharing or ride-hailing services.
- Construction vehicles, such as excavators, bulldozers, and cranes.
- Delivery vehicles, such as vans and trucks, used for courier and logistics services.
- Any other vehicle that is used for business or commercial purposes.
It is important to note that commercial vehicle insurance differs from personal vehicle insurance and the policies have different coverage and cost.
Commercial vehicle owners must have an insurance policy in place to protect the vehicle and its driver from potential financial losses that might occur in case of an accident or theft. It also protects the third party from any damage that might occur in case of an accident.
Why Choose a Commercial Vehicle Insurance Policy by Tata AIG?
Here are some key reasons why you should select Tata AIG for your commercial vehicle insurance needs:
- We offer a hassle-free online claim intimation process. You can also keep track of our claim status on our website.
- Tata AIG enables you to make changes to your commercial vehicle insurance policy and update your contact details online when necessary.
- You can choose from a range of insurance policies for your commercial vehicle that suits the needs of your business and secure your vehicle against a range xof damages.
- The Tata AIG promise stands up to its commitment to serving its customers with quality customer care so that you receive apt support for your insurance needs.
- Our easy claims process and our 650+ claims experts are readily available to help you with filing a claim if your commercial vehicle needs to be secured.
- We enable you to choose from several unique add-on covers to procure additional insurance coverage for your commercial vehicle.
- Our simple and swift online purchase and renewal processes help you save time and effort. You can also compare different plans to find the most suitable one.
What Is Commercial Vehicle Insurance Eligibility
The eligibility criteria for buying commercial vehicle insurance in India include the following:
- The vehicle must be registered and used for commercial or business purposes.
- The vehicle must have a valid registration certificate (RC) issued by the Regional Transport Office (RTO)
- The vehicle must have a valid permit for commercial use, if required by the state in which it is operated.
- The vehicle must pass a fitness test, if required by the state in which it is operated.
- The vehicle must not be more than 15 years old. (It can vary depending on the company's underwriting policy)
- The owner needs a driving licence only if he/she is driving or sitting in it to claim CPA. Else whoever drives the vehicle need a valid licence.
Commercial vehicle insurance policies are typically renewable on an annual basis. This means that at the end of the policy term, the policyholder can choose to renew the policy for another year, by paying the premium again. The policy will typically include the same coverage and terms as the previous year's policy unless the policyholder makes changes to it. It is important to note that if the policyholder does not renew the policy, their coverage will expire, and they will no longer be insured.
The vehicle must also pass an inspection before the policy can be renewed. This is typically done to ensure that the vehicle is in good condition and safe to operate, as well as to identify any potential issues that may affect the vehicle's performance or increase the risk of an accident. The inspection may include a check of the vehicle's brakes, tires, lights, and other safety equipment, as well as its overall condition.
What is Covered in a Commercial Passenger Vehicle Insurance?
Loss of or Damage to the Vehicle Insured
The insured vehicle will be secured against the following damages caused by:
- fire explosion from self-ignition or lightning;
- damages due to landslide or rockslide
- loss due to burglary/housebreaking/theft
- human causes such as riots, strikes, terrorist and malicious acts
- Natural disasters like earthquake, floods, hurricanes, hailstorms.
- External accidental causes
- Damages while the vehicle is in transit by roadways / railways / waterways / airways / elevators.
The insured vehicle will be secured against the following financial damages arising from:
- The death of or physical injury to any person caused by the insured vehicle.
- The damage to third-party property caused by the use of the insured vehicle.
Towing of Disabled Vehicles
If the insured vehicle is mechanically disabled, the coverage will only be effective if:
- The vehicle is not being towed for rewards/compensation.
- However, damages to the vehicle as a result of towing will not be covered.
Personal Accident Cover for Owner-Driver
A compensation to the tune of ₹15 lakhs for the whole policy period will be offered:
- For injuries/death arising from violent, accidental, external, and visible means
- Only in case of the loss of one limb or sight of one eye, the compensation will be 50%.
- In case of the owner-driver’s death, the compensation will be paid out to the insured’s legal representative.
Add-ons Available with Commercial Passenger Vehicle Insurance
The following add-ons are available under a commercial vehicle package policy/comprehensive commercial vehicle insurance policy –
- The depreciation deducted on the value of parts replaced under the own-damage claim will be covered.
- A deductible of 5% of the claim amount, where each claim is for a minimum of ₹1500, will be borne by the insured.
Loss of Income
- Under this add-on, the insured will be compensated for the loss of income in case the insured vehicle meets with an accident and is under repair due to a risk or event covered under the policy.
- The compensation will be paid for 20 days for claims not related to a total loss. The compensation for the total loss of the vehicle will be paid in 30 days.
- The Equated Monthly Instalment (EMI) to be paid by the insured to the financial institution when the vehicle is being repaired in the garage (for a covered risk or event).
- The actual repair time should exceed 7 days as per the surveyor’s report on the loss.
- The actual repair time will be calculated from the next assessment day and will end when the vehicle is ready for re-inspection or delivery.
Repair of Glass, Fibre, Plastic & Rubber Parts
- The insured may file a claim under this add-on only for the glass/plastic/rubber/fibre parts that need repairs and not replacement at any of our network garages.
- This claim does not affect the No Claim Bonus discount during renewal with Tata AIG. However, only one such claim will be applicable, and no further claims can be covered by this add-on.
Additional TPPD cover
- The damage to third-party property up to a specified limit in the policy will be covered under this add-on.
- The property should not belong to the insured by any manner of ownership.
- The loss or damage to the third-party property should have been solely and directly caused by an accident involving the insured vehicle.
- The following repair/replacement expenses for the loss or damage will be compensated -
- Internal parts of the engine
- The transmission/differential assembly/gearbox
- The loss or damage should have occurred due to entry of water in the engine or the leaking of lubricating oil.
- The cost of consumables such as engine oil, gearbox oil and other consumables other than fuel will be compensated.
- The cost of consumables needed to be replaced/replenished after an accident involving the insured vehicle will be compensated.
- This includes the engine oil, gearbox oil, lubricants, nut & bolt, screw, distilled water, grease, oil filter, bearings, washers, clip, and brake oil. Only the loss of fuel cannot be compensated.
No Claim Bonus Protection Cover
- This add-on allows the insured to retain their No Claim Bonus (NCB) during renewal, provided the NCB discount for one or more claim-free years has been accumulated.
- However, no claim should have been filed in the preceding year, and no more than one claim can be filed under this add-on during the policy term.
- The policy should be renewed within 90 days from the expiry date.
Emergency Medical Expenses
- The cost of emergency medical expenses incurred by the insured for treatment of physical injury by the owner, driver or passengers of the insured vehicle while it is in use will be compensated.
- The event should arise from violent, accidental external and visible means, and the required treatment should be received in a hospital or nursing home.
Return to Invoice
- The difference between the amount received by the insured and the new vehicle’s purchase price (same make and model mentioned in the invoice) will be compensated in the event of a total loss of the insured vehicle.
- If the exact same make/model is unavailable, the liability covered will be per the original purchase price of the insured vehicle (including registration charges, road tax and the insurance cost).
Loss of Personal Belongings
- The loss or damage to any occupant’s/employees’ personal belongings, while they are in the vehicle, will be covered if the risk/event specified under the policy occurs.
- These personal belongings refer to clothes and other articles of personal nature like audio/video tapes, CDs, etc.
- However, the loss of items like money, cheques, credit or debit cards, jewellery, travel tickets, watches and other such valuables cannot be compensated.
Emergency Transport & Hotel Expenses
- If the insured vehicle cannot be driven due to accidental causes, the cost of overnight accommodation and transport for each passenger, including the driver, will be covered. This also includes the cost of returning to their residences or the nearest city.
- The maximum compensation will be paid for any one accident per passenger during the policy tenure. The proof of expenditure should be submitted for this claim.
- This add-on covers the cost of key replacement for replacing lost or stolen vehicle keys.
- The cost of replacing the locks and keys, along with the cost of labour for the lock replacement, will also be compensated if the vehicle has been broken into.
Additional Personal Accident Cover to Owner-Driver
- Bodily injury to the owner-driver, while the vehicle is in use, that results in violent, accidental external and visible damage, will be compensated.
- The compensation, which can be either 50% or 100% of the add-on, will be offered if any of the specified bodily injuries, harm or death occurs within 6 months of the occurrence of the injury.
Additional Personal Accident Cover to Employee of the Insured, Drive and Unnamed Passengers
- If the insured person’s/driver’s/unnamed passenger’s employee are injured when using the insured car and the injury results in death, disability or the loss of function of a body part, the compensation will be paid out as per the degree of the loss.
- A maximum of ₹5000 will be reimbursed per unnamed passenger in case of repatriation of remains and will be determined as per the vehicle’s seating capacity.
Additional Towing Charges The cost of towing the insured vehicle to the nearest network garage in the event of insured vehicle being disabled by any reason of loss or damage covered under Section I of the policy The compensation will be limited to the maximum coverage specified under the policy and will require the proof of expenses incurred by the insured.
- The cost of replacing the tyre, including the labour and services charges due to the accidental loss caused to the tyres and tubes will be compensated.
- The expenses will only cover the replacement of a tyre of the same make and model. No extra costs will be covered for a replaced tyre of a superior make and model.
- This add-on covers losses or damages to the wheel rim or rims due to a tyre blowout or due to being driven on rough roads or debris.
- The coverage is limited to the compensation of four rims during the policy period and is only for vehicles with run flat or tubeless tyres.
Road Side Assistance
- This add-on covers a range of services under repair and towing, emergency towing assistance and concierge services.
- Some of these are flat tyre servicing, rundown battery, on-the-spot repairs, spare key delivery, alternate mode of transport to resume the journey, hotel accommodation and also contacting medical support if required.
What is Not Covered in Commercial Passenger Vehicle Insurance?
Following are the exclusions or damages that are not covered under the Tata AIG commercial vehicle insurance policy:
- Accidental losses/damages/liabilities caused to the vehicle if an incident or risk occurs outside the geographical scope of the policy (outside India).
- If any claims arise due to contractual liability.
- Any accidental losses/damages/expenses arising from any consequential loss. Therefore, even if your vehicle is insured against damages, losses to your business due to the vehicle being non-functional cannot be covered.
- Any accidental losses/damages/expenses as a result of nuclear weapons, war or war-like activities, hostilities, invasions, or the act of foreign enemies (before or after the declaration of war).
- Losses or damages to the insured vehicle directly or indirectly caused by ionising radiations/contamination by radioactivity particles from nuclear fuel/nuclear waste.
- Any accidental losses/damage/liabilities caused to, sustained by or incurred when the vehicle is being used by any other person apart from the designated driver/drivers as stated in the driver’s clause.
- If the vehicle suffers any losses/damages/liabilities when it is in use under restricted areas and conditions or not in accordance with the limitations clause.
Passenger-Carrying Vehicle Insurance
Passenger-carrying vehicle insurance covers the vehicle owner, the driver of the vehicle, and the passengers of the vehicle. As mentioned above, the insurance policy includes liability coverage for any injuries or damage caused to passengers, as well as physical damage to the vehicle.
It also has an add-on for loss of income if the vehicle is unable to operate due to damage or repairs. The policyholder can also opt for personal accident cover for drivers and co-passenger.
Taxis: Both traditional public taxis and ride-hailing services such as Uber and Ola come under this category. Tourist vehicles: Such vehicles include vans, coaches, and cars that are used for sightseeing tours or other tourism-related activities.
Passenger-Carrying Vehicle Insurance Features
Some of the key features of passenger-carrying vehicle insurance include:
Third-Party Liability: This liability cover secures the costs of any damage or injury caused to a third party in the event of an accident. This includes covering the cost of medical expenses, damage to property, and legal expenses.
Comprehensive Coverage: This feature covers third-party liabilities and damage to the vehicle itself. This includes covering the cost of repairs or replacement of the vehicle in case of an accident, fire, or theft.
Personal Accident Cover: This cover provides financial protection to passengers in the event of an accident. This includes covering the cost of medical expenses and providing a lump-sum payment in case of death or permanent disability.
No Claim Bonus: The NCB feature rewards policyholders for not making any claims during the policy period by offering discounts on the own damage premium for the following policy year.
Add-on Covers: This feature allows policyholders to customize their insurance policy by adding additional coverage options, such as roadside assistance, engine protection, and zero depreciation cover.
Cashless Claim: Through cashless claims, the insured can get their vehicle repaired at a network of authorised garages without the need to pay any cash up front.
Overall, passenger-carrying vehicle insurance provides a comprehensive range of features that are designed to provide financial protection and peace of mind to vehicle owners and passengers.
How to File a Claim?
Here are the prerequisites that you must keep in mind when filing a claim with Tata AIG:
- Get immediate medical attention for any form of bodily injury.
- Make a note of the other vehicle’s number that is involved in the accident.
- Also, try and make a note of the names and contact details of any witnesses present.
- Immediately get in touch with us on our 24x7 helpline at 1800 266 7780(Toll-free) or 022 66939500 (tolled) or file the claim online in the Claims section. Respond to a few simple questions, and we will help you out.
- Fill up the preliminary claim form so your replies are ready before you call us.
- If there is theft of the vehicle, bodily injury, or property damage, be sure to file a First Information Report (FIR) with the police within 48 hours. FIR may be needed in case-to-case basis
Documents Required to Claim Commercial Vehicle Insurance
Tata AIG offers a convenient process for filing a claim on your commercial vehicle insurance policy. With minimum documentation, you can file your claim. The documents required are:
- Claim form
- Registration Certificate
- Driving License
- Fitness Certificate
- State Permit
- National Permit
- Authorisation Certificate
- Load Challan / Goods Receipt / Invoices for Material loaded (in case the vehicle was loaded at the time of accident)
- FIR /Police report - In case of Theft or Third-Party Bodily Injury.
- Final Repair Invoice
Note: The above is an indicative list of documents, additional documents/ information may be required depending upon the circumstances of loss.
Is it Important to Renew Commercial Vehicle Insurance Policy?
Commercial vehicle insurance is an essential aspect of running a business that involves the use of vehicles. In India, all commercial vehicles must have a valid insurance policy.
- Renewing this policy on time is crucial to ensure that the business and its employees are protected against any financial losses due to accidents or mishaps involving commercial vehicles.
- One of the main reasons for renewing commercial vehicle insurance on time is to comply with the laws and regulations set by the government. In India, the Motor Vehicles Act 1988 makes it mandatory for all commercial vehicles to have a valid insurance policy.
- Failure to renew the policy on time can lead to hefty fines and penalties, which can be a significant financial burden for the business.
- Accidents can happen at any time, and the costs of repairing or replacing a commercial vehicle can be substantial. Having a valid insurance policy in place can help to mitigate these costs, allowing the business to continue operating smoothly.
Renewing the insurance policy on time is crucial for compliance with laws and regulations, protection against financial losses, and securing lower premiums. Business owners in India should make sure to renew their commercial vehicle insurance policies on time to ensure the continued safe and smooth operation of their business.
Factors to Consider While Buying/Renewing Commercial Vehicle Insurance
When buying or renewing commercial vehicle insurance in India, there are several factors to consider:
Coverage: It is important to understand the different types of coverage available, such as third-party liability coverage, comprehensive coverage, and add-on coverage. Make sure the policy covers all the necessary aspects as per the requirement of your business.
Insured Declared Value: At the time of the purchase or renewal of the policy, it is crucial to choose an appropriate IDV. This will be the current market value of the vehicle and will also be the amount receivable for compensation if the vehicle suffers a total loss.
Insurer's reputation: Research the reputation of the insurer and check for the claims settlement ratio and customer reviews. This will give you an idea of how reliable the company is in terms of settling claims and providing customer service.
Premiums and deductibles: Apart from calculating and comparing the premiums, also ensure that you check if it is possible to opt for a deductible. Here, you will have to pay a portion of the claim amount from your own pocket, so, getting a deductible should be feasible.
Network garages: Check if the insurance company has a wide network of garages for cashless claims settlement. In the event of damage to the vehicle, you should be able to locate the nearest garage to ensure efficient and timely repairs.
Renewability: Check all the clauses related to the renewability of the policy. Some plans may have certain restrictions, in which case, you can look out for other plans or decide how to proceed with the policy of your choice.
Add-on covers: Some policies may include add-on covers such as personal accident cover, medical expenses, and protection against any other damages. Check how you can include any of these add-on covers to the policy and if they align with your business needs and enhance the coverage.
Claim process: Understand the claim process and the documents required to file a claim. Make sure the process is simple and transparent.
How to Renew a Commercial Vehicle Insurance Plan?
It is important to renew your commercial vehicle insurance plan before it expires to avoid any lapse in coverage. Renewing a commercial vehicle insurance plan with Tata AIG is a simple and swift process that you can carry out online.
Here are the steps to renew a commercial vehicle insurance plan with us:
- Check the expiry date: Check the expiry date of your current commercial vehicle insurance policy to ensure that you renew it before it expires.
- Gather required documents: Before renewing your commercial vehicle insurance plan, make sure you have all the required documents, such as the registration certificate (RC) of the vehicle and your insurance document.
- Online process: When renewing the policy online with Tata AIG, simply enter your commercial vehicle insurance policy number and log in on our official website to download the policy renewal document.
- Check our plans: Compare our different commercial vehicle insurance plans to find the one that best suits your needs and budget.
- Make the payment: Once you have chosen a plan of your choice, you can make the payment online through any of our digital payment channels.
- Receive the policy: After making the premium payment, you will receive the policy document in your email.
- Keep the policy handy: Keep the policy document handy and ensure that you carry it with you while driving the vehicle.
What Are the Factors That Determine Commercial Vehicle Insurance Prices?
There are several factors that determine the price of commercial vehicle insurance in India, including:
Type of vehicle: The make, model, and age of the vehicle will affect the price of the insurance policy. Newer and more expensive vehicles will typically have higher insurance costs.
Coverage: The type and amount of coverage selected will also affect the price of the policy. A comprehensive policy with added coverage will cost more than a basic third-party liability policy.
Location and Usage of Vehicle: The usage of the vehicle, such as whether it is used in an urban or rural location, will affect the price of the policy. The premium rates will also vary depending on where the vehicle is based and operated.
Insured Declared Value (IDV): IDV is the current market value of the vehicle and is one of the factors that determine the premium for the policy. This amount will be the total coverage and will be compensated in the event of the vehicle’s total loss.
Claims history: Your claims history also plays a role in determining the premium. A good claims history can result in a lower premium while a bad claims history can result in a higher premium. Ensure that you check the state's laws before purchasing the commercial vehicle insurance policy to ensure that the vehicle and the business meet all of the required criteria.
Commercial Vehicle Insurance Cost
The Insurance Declared Value (IDV) is a key factor that affects the cost of commercial vehicle insurance. IDV is the maximum amount that an insurer will pay in case of total loss/Constructive loss or theft of the vehicle. The higher the IDV, the higher the premium for the insurance policy will be. This is because a higher IDV means that the insurer is assuming a greater financial risk in the event of a loss.
On the other hand, a lower IDV will result in a lower premium, but it also means that the policyholder will receive less compensation in the event of a total/constructive loss. However, it is advisable not to lower the premiums by choosing lower coverage for your vehicle. In case of total loss arising from irreversible damage to or theft of the vehicle, the compensation should meet the loss.
It is important to note that IDV is calculated based on the manufacturer's listed selling price of the vehicle, minus depreciation.
Who All Are Insured Under Commercial Vehicle Insurance?
Commercial vehicle insurance is meant to compensate for the financial losses and damage caused to the vehicle and the following parties due to an accident or unforeseen event.
A comprehensive commercial vehicle insurance plan covers:
The owner of the vehicle: The policyholder, who is the owner of the commercial vehicle, is covered under the insurance policy. However, it is not necessary that the owner should be driving the vehicle at the time of the incident.
The driver of the vehicle: The driver of the commercial vehicle who may not necessarily be the owner, is also covered under the insurance policy. When they are on the job and are using the vehicle, they will be covered for damages and losses caused due to an accident or mishap.
Passengers in the vehicle: Unnamed passengers in the commercial vehicle, such as employees or customers, are covered under the insurance policy in case of an accident during the commute.
Third-party damages: Third-party liability coverage is mandatory for commercial vehicles in India. This coverage covers any damage or injury caused to a third party, such as another vehicle or pedestrian, as a result of an accident involving the insured vehicle.
Paid Drivers: Paid drivers are also covered under commercial vehicle insurance, as long as they are authorised to drive the vehicle and have valid driving licenses. Insured Vehicle: Coverage against any sort of damage caused to insured vehicle under section 1 of the policy.
Factors to Consider While Comparing Commercial Insurance Plan
When choosing from different commercial vehicle insurance policies, you can compare various plans based on the following factors:
Coverage: Compare the coverage offered by different insurance plans to ensure that you are getting the right level of protection for your business needs.
Premium: Compare the premium rates of different insurance plans to ensure that you are getting the best value for your money.
Claim settlement process: The claim settlement process should be efficient so that you are able to receive timely compensation for damages to your vehicle.
Add-on covers: Compare the add-on covers to check which one offers the most comprehensive coverage for your specific business needs. Network garages: Check if your insurance provider has a wide network of garages for cashless claim settlements.
Customer service: The customer service team should be responsive, helpful, and well-informed so that you can have all your policy-related queries resolved.
Policy terms and conditions: Carefully read and understand the terms and conditions of different insurance plans to ensure that you are fully aware of the coverage and exclusions.
How to Calculate Commercial Vehicle Insurance Premiums?
The premium for commercial vehicle insurance in India is calculated based on several factors such as the type of vehicle, its age, the purpose of use, the geographical location, the sum insured, the coverage chosen, and the insurance provider's underwriting policies.
Type of vehicle: The type of vehicle, such as a truck, bus, or taxi, will affect the premium. The make and model of the vehicle will also be considered for premium calculation.
Age of the vehicle: The age of the vehicle also plays a role in determining the premium. Purpose of use: The purpose of use, such as the transportation of goods or passengers will impact the insurance premium.
Geographical location: The geographical location of the vehicle, such as a high-risk area or a remote area, will affect the premium.
Sum insured: If the sum insured of the commercial vehicle insurance policy is high, the premiums will also be higher. However, it is advisable to always have adequate insurance coverage for your vehicle. Coverage selected: The coverage chosen, such as third-party or comprehensive, also affects the premium.
Underwriting policies: The underwriting policies of the insurance provider also play a role in determining the premium.
To calculate the commercial vehicle insurance premium, you can use the online premium calculators provided by insurance companies or consult with an insurance agent.
Some Helpful Documents
Frequently Asked Question
Why do you need commercial vehicle insurance?
Commercial vehicle insurance is important for the following reasons:
- At least a third-party insurance policy is mandated by law if you own a commercial vehicle that carries passengers such as a taxi, school bus, etc.
- A commercial vehicle insurance financially covers your trade, and your vehicle from losses and damages caused by/to your vehicle and the parties involved.
What is the Motor Vehicles Act of 1988?
The Motor Vehicles Act of 1988 is legislation passed by the Government of India that regulates the registration, licensing, and operation of motor vehicles in India. The Act is designed to ensure the safety of road users and to reduce the number of accidents on Indian roads. The Act provides for various provisions including, but not limited to:
- Registration of motor vehicles
- Licensing of drivers
- Control of traffic on roads
- Insurance of motor vehicles
- Control of pollution caused by motor vehicles
- Establishment of the National Transport Development Policy Committee The Act is administered by the Ministry of Road Transport and Highways, and is enforced by the state governments through their respective transport departments. The Act also provides for the establishment of tribunals to hear appeals against the decisions of the transport department.
What does a comprehensive commercial vehicle insurance policy cover?
Apart from accidental damage, comprehensive commercial vehicle insurance covers fires, thefts, natural disasters, personal accidents, and a range of other losses to the vehicle.
What are cashless garages in commercial vehicle insurance?
Cashless garages are the network of garages available under Tata AIG. You can choose to have your insured vehicle repaired at any of these cashless garages in the event of any losses/damages covered under the policy. Instead of paying the garage for the repairs out of your own pocket, you can simply file a claim with Tata AIG and the cost of the repairs will be covered by the insurance plan. The insured needs to bear a portion of the repair cost based on policy obtained, such as deductibles, depreciation etc.
How many add-ons can I include with my insurance policy?
You can include one or more add-on covers with your base insurance policy. The choice of these add-ons will depend on the needs of your vehicle and can be selected as per your understanding.
When can I avail of the No Claim Bonus on my insurance policy?
You can avail of the No Claim Bonus (NCB) discount on your insurance policy at the time of policy renewal. If no claim has been made or is pending in the preceding policy year after the first year or consecutively for several policy years, your NCB discount will accumulate over the years. You can get up to a 50% discount on the own-damage premiums paid towards the policy.
Why is the Insured Declared Value important for choosing your insurance policy?
The Insured Declared Value or IDV is the current market value of your vehicle. This value is the coverage that you can receive for your insured vehicle. In the event of total loss that could either be irreparable damage to or the theft of the vehicle, the losses will be compensated with the sum insured under the policy coverage.
What is the difference between comprehensive and third-party policies in commercial vehicle insurance?
A comprehensive policy provides coverage for both third-party liability and own damage. This means that if a commercial vehicle is involved in an accident and causes damage to another vehicle, property and Physical injury to third party the insurance company will pay for the damages. Additionally, if the commercial vehicle itself is damaged in an accident, the repairs or replacement of the vehicle will be covered. Comprehensive policies include coverage for natural disasters, theft, and a range of named perils and unforeseen events. A mandatory third-party policy, on the other hand, only provides coverage for third-party liability. This means that if a commercial vehicle is involved in an accident and causes damage to another vehicle, property and Physical injury third party the insurance company will pay for the damages. However, if the commercial vehicle itself is damaged in an accident, the policyholder will have to bear the cost of repairs or replacement. Third-party policies are cheaper than comprehensive policies, as they provide less coverage. You can consider a comprehensive policy, especially if the commercial vehicle is a significant asset to the business or is used on a regular basis.
Will the IDV also affect my premium amount?
Yes, the IDV will also impact your premium amount. If you choose an IDV higher than the current market value of your vehicle, the sum insured of your policy will be greater. This will result in expensive premiums. But, on the other hand, it is advisable not to opt for a very low IDV for lowering the premiums as it will lead to inadequate compensation in the event of total loss.
How do I contact Tata AIG if my commercial vehicle is involved in an accident?
Please immediately contact the Tata AIG 24x7 helpline number 1800 266 7780(Toll-free) or 022 66939500 (tolled) to contact us and file a claim. To file the claim online, please visit the Claims section on our website.