Coverage & Claims Process for Commercial Vehicle Insurance Plans

Insurance

Commercial vehicles are meant for business purposes. Their primary job is to transport goods, passengers and/or both. This places considerable stress on the driver as he/she feels and is responsible for the goods and passengers in the vehicle. If the vehicle is uninsured, this would result in financial and legal ramifications to the owner of the business.

This is why you need a commercial vehicle insurance plan that protects you fromdamage, injury, or death-causing accidents.

Commercial vehicle insurance explained

Statistics show that driving on Indian roads could be a bit risky. Hence, if you buy an insurance plan for your commercial vehicle, you would be doing yourself a favour. A commercial vehicle insurance policy offers you coverage against any damages causedby an accident. It also provides personal as well as third-party liability cover. An accident may causedeath, injury,anddamage to a third-party’sperson and property, which could cause legal liabilities. A commercial vehicle insurance plan will offer you protection from such liabilities.

Types of plans available

There are two types of commercial vehicle insurance plans available, i.e.,third-party liability cover and comprehensive commercial vehicle policy. Under a third-party cover, any damages or injuries caused to the third-party’s vehicle and person will be taken care of. The insurance company, however,won’t cover you for any losses.

On the other hand, a comprehensive commercial vehicle policy covers any injuries suffered by you as well as damages to your vehicle.

What does it cover?

A comprehensive motor insurance plan offers extensive coverage against accidental damage/loss, burglary, theft, fire, explosion, lightning, riots, terrorism, earthquakes, storm, landslide, etc.

Claims procedure

There are two methods of raising a claim for your commercial vehicle insurance plan. Let us understand how they work:

  1. Cashless

Your insurerhas a list of network garages and hospitals that process cashless repairs and treatment. You can inform your insurer and the vehicle would be taken to a network garage for repair. This would also be the same for bodily injuries, wherein the insurer’s network hospital would be treating the victims ona cashless basis. Under the cashless method, once you have paid the pre-decided deductible amount, the insurance provider pays the hospital and garage bills on your behalf. Since you do not have to run around looking for cash to pay, this is known as the cashless method.

  1. Reimbursement

If circumstances don’tallow the injured person and/ordamaged vehicle to be taken to the insurer’s network hospital/garage, then you would have to pay for the treatment and repair costs yourself, respectively. Once the person has been discharged and/or the vehicle has been repaired, you can submit all the detailed bills to the insurer to compensate you for the same. Since the insurer returns money paid by you, it is known as the reimbursement method.

However, the insurer has to be informed immediately in both cases for the claim to be approved without any hassles.

Necessary documents to file a claim

A few essential documents are required to get your claim processed on time. They are as follows:

  • Registration Certificate of your vehicle
  • A claim form that is duly filled and signed
  • FIR of the incident
  • Valid driving license of the driver

If you do not have commercial vehicle insurance for your passenger/goods vehicle, you can purchase one online. To keep your plan active, you must renew your commercial insurance policy online each time your term ends. Additionally, if you do not raise any claims in a single term, then you will be eligible to receive a no-claim bonus during motor insurance renewal, which is essentiallyreductionof premium by a certain percentage.