These are most common commercial vehicle insurance facts
- Third party liability coverage is mandatory for India, even in commercial vehicles.
- The comprehensive policy covers own vehicle damage, personal accident insurance(for the driver), as well as third party liabilities.
- Commercial vehicle insurance premium gets determined by the age, condition, make , model of the vehicle, its IDV, driver details and end use purpose of the commercial vehicle.
- The third party component of the premium remains same with most of the insurers, however the self insurance component may differ in commercial vehicles or any other type of motor insurance.
- Commercial vehicle insurance policy is valid for a year, after which it needs to be renewed, before expiry of the policy, for eligibility to avail No claim Bonus.
- No claim bonus is given in case there has been no claim in the policy period, but it is not transferable.
- In the event of an accident of your commercial vehicle, the driver/owner must inform insurer immediately, post which inspection and claim processing can start.
- Insurer (bank or insuring entity, as per IRDA) reserves the right to decline a claim, in case it finds irregularity in documentation or if it is one of the event in the exclusions list.
- Any modifications in your commercial vehicle needs to be informed immediately to the RTO and the insurer, so that those modification can be insured and the future claims should not get rejected.
- There are a host of other add on features which can be taken for the benefit of the commercial vehicle owner, a detail list can be found in our other sections, or on the policy documents of the insurer.
It is advised to understand the relevance of these commercial vehicle insurance facts, with regard to your business line. This will help you in making a wise risk cover policy.
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