Commercial Vehicle Insurance | Nilkanth Advisory

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.

What is Commercial Vehicle Insurance?

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?

We treat our customers like VIPs, know how…

Customize your Vehicle IDV

With us, you can customize your vehicle IDV as per your choice!

24*7 Support

24*7 call facility even on National Holidays

Super-Fast claims

Smartphone enabled self-inspection processes takes minutes!

What’s covered in a Commercial Vehicle Insurance?

Accidents

Damages caused to the commercial vehicle in case of an accident.

Theft

Loss or damage to the commercial vehicle due to theft.

Fire

Damages caused to the commercial vehicle due to a fire.

Natural Disasters

Damages caused to the commercial vehicle due to any natural calamity.

Personal Accident

If there is an accident of the commercial vehicle, leading to an injury or death of the driver.

Third Party Losses

Any damages caused by the commercial vehicle to a third party.

Towing Disabled Vehicles

Any damages caused to by the commercial vehicle to the vehicle being towed.

Add-ons available with Commercial Vehicle Insurance

Consumable Cover

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.

Parts Depreciation Protect

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.

Engine and Gear Box Protect

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.

Breakdown Assistance – commonly known as Roadside Assistance

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 24×7.

Loss of Revenue

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.

Additional Towing Expenses

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.

EMI Protection Cover

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.

Return to invoice – Passenger Carring Vehicle

If the insured vehicle is a total loss or constructive loss or is stolen, the policyholder will be compensated under this return to invoice cover. The compensation can be in the form of payment for a new vehicle at the prevailing ex-showroom price or If exactly same make, model, variant is discontinued Company’s Liability will be limited to the difference between the last available Ex-Showroom Price and claim payable under OD section of the Base Policy.

Key and Lock replacement – Passenger Carrying Vehicle

There are instances when the vehicle’s lockset needs to be replaced or the keys are misplaced and lost. In such scenarios, this Key and Lock replacement cover helps the policyholder get compensated for the cost incurred to get the vehicle’s locks and keys replaced, installing a new lockset etc. in the insured vehicle.

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.

Personal Accident Cover

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.

Unnamed PA Cover

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.

Legal Liability

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.

IMT 23

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.

Electrical Accessories

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.

Non-Electrical 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.

Special Exclusions & Compulsory Deductibles

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:

Own Damages for Third-Party Policy holder

In the case of a Third-Party Liability Only Policy, damages to own vehicle won’t be covered.

Drunk Riding or without a Licence

If the owner-driver of the claimed vehicle is drunk or driving without a valid licence.

Contributory Negligences

Any damage caused due to contributory negligence of the driver (such as driving when there’s an existing flood)

Consequential Damages

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	24×7 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.

Passenger Carrying Vehicle Insurance

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.

Goods Carrying Vehicle Insurance

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-driver	✔	✔

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.

How fast are Digit Insurance Claims Settled?

This is the first question that should come to your mind when switching your insurance company. Good you’re doing that!Read Digit’s Claims Report Card