Commercial Vehicles

Commercial Vehicle Insurance under the Motor Insurance in India provides cover for all vehicles licensed in India to ply on roads for commercial purposes.
Types of commercial vehicles that come under the commercial vehicles are given as follows:

• Passenger Carrying Commercial Vehicles: Buses, Vans, Taxi etc.
• Goods Carrying Commercial Vehicles: Trucks, Tankers, Trailers, Mini trucks etc.
• Tractors
• Miscellaneous class of Vehicles: Ambulance, Cinema van, Caravan, etc.

Premium Factors

• IDV (Insured Declared Value)
• Registration Zone
  • Commercial Vehicles, excluding vehicles rateable under Section 4. C.1 and C.4
    Zone A: Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi and Pune.
    Zone B: Rest of India
  • Commercial Vehicles, excluding vehicles rateable under Section 4. C.1 and C.4
    Zone A: Chennai, Delhi / New Delhi, Kolkata, Mumbai
    Zone B: All Other State Capitals
    Zone C: Rest of India
• Fuel type (Petrol / Diesel / CNG / LPG)
• Gross Vehicle Weight (GVW) / Licensed Carrying Capacity (LCC) as applicable.
• Age of Vehicle
• Add on Covers

Key Benefits

• In case of fleet of vehicles under a single ownership, fleet insurance policy for commercial vehicle insurance will eliminate the stress of managing individual insurance policies for each and every vehicle.
• Fleet insurance for Commercial vehicles has better negotiation ability, as all vehicles are insured in bulk under a single policy.

Coverages

• Any loss or damage caused to the vehicle due to Natural Calamities: Fire, explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide.

• Any loss or damage caused to the vehicle due to Manmade Calamities: Burglary, theft, riot, strike, terrorism, malicious act, accident by external means, any damage in transit by road, rail, inland waterway, lift, elevator or air.

  • The policy is subject to a deduction for depreciation at the rates mentioned below in respect of parts replaced:
    • All rubber/nylon/plastic parts, tyre, tubes, batteries and airbags - 50%
    • For Fiberglass components - 30%
    • For all parts made of glass - Nil
  • Rate of depreciation for all other parts including wooden parts will be as per the following schedule

• Third-party legal liability: Protects the insured against legal liabilities arising out of accidents to Third parties, causing Death, permanent injury or any damage caused to their property.

• Towing disabled vehicles: The policy shall be operative whilst the insured vehicle is being used for the purpose of towing any one disabled mechanically propelled vehicle and the indemnity provided by Section II of the policy shall subject to its terms and limitations be extended to apply in respect of liability in connection with such towed vehicle, Provided always that, the such vehicle is not towed for reward.

  • Damage to such towed vehicle being conveyed thereby shall be excluded.

• Personal accident cover: The policy provides for a mandatory Personal Accident cover for "owner" driver and optional cover for passengers covering accidental death and permanent total disability.

Add on Covers

• The policy can be extended to cover the following risks on payment of additional premium:
• Loss or damage to accessories fitted in the vehicle such as Electrical / Non-Electrical items, stereos, fans, air-conditioners etc.
• Personal accident covers under Commercial vehicle policies for Passengers & Driver.
• Legal liability to employees of the insured
• Legal liability to non-fare paying passengers
• Cover for lamps, tyre/tubes, mudguards, bonnet /side parts, bumpers, headlights and paintwork of a damaged portion only.

Exclusions

The Insurers shall not be liable under this policy in respect of

• Any accidental loss or damage and/or liability caused sustained or incurred outside the geographical area as the motor tariff of India it is limited to India but can be covered for neighbouring countries by paying extra premium.
• Any claim arising out of any contractual liability;
• Any accidental loss damage and/or liability caused sustained or incurred whilst the vehicle insured herein is:
  • Being used otherwise than in accordance with the "Limitations as to Use." or
  • Being driven by or is for the purpose of being driven by him/her in charge of any person other than a driver, as stated in the Driver's Clause.
• Any consequential loss
• Any liability of whatsoever nature directly or indirectly caused by or contributed to buy or arising from ionizing radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. For the purposes of this exception, combustion shall include any self-sustaining process of nuclear fission.
• Any accidental loss damage or liability directly or indirectly caused by or contributed to by or arising from nuclear weapons material.
• Any accidental loss damage/liability directly or indirectly or proximately or remotely occasioned by contributed to by or traceable to or arising out of or in connection with war, invasion, the act of foreign enemies, hostilities or warlike operations (whether before or after declaration of war).

No Claim Bonus

The insured is entitled to a No Claim Bonus (NCB) on the Own Damage section of the policy, if no claim is made or pending during the preceding year (s), as per the following table:

No Claim Bonus will only be allowed provided the policy is renewed within 90 days of the expiry date of the previous policy.

The schedule of depreciation for fixing the IDV of the vehicle

IDV of a vehicle beyond five years of age and obsolete models of vehicles is to be determined based on an understanding between the insurer and the insured. IDV shall be treated as market value throughout the policy period without any future depreciation for total loss (TL) / Constructive Total Loss (CTL) claim.

Claim process

In the event of loss, the following are immediate actions to be taken
To intimate to the insurer the occurrence of loss, submit a full statement in writing of the claim, provide the nature and extent of loss and also the estimate of loss. Any delay in intimation might jeopardize the claim as the insurer may express an inability in accepting liability of the loss/damage.

• To take all steps to reduce and minimize the extent of loss/damage and liability.
• Proximate cause of the loss and assess the type/extent and whether it is within the scope of the policy.
• To extend full co-operation to the insurer and the surveyor appointed for completion of the survey work and for proper assessment of the loss.
• Produce all such records and proof as may be required by the surveyor or the insurer for arriving at the extent of loss and the liability under the policy.
• Provide documents such as, claim form, claim bill, copy of Policy, DL, RC copy etc.
• Keep the damaged property under the safe custody until advised by the surveyor/insurer regarding its disposal.
• Identification of the subject-matter insured.