What is Commercial Vehicle Insurance?
Commercial vehicle insurance is a type of policy that provides coverage to vehicles used for commercial purposes such as transporting goods from one place to another (like pickup trucks) or carrying passengers (like taxis or buses). This insurance covers losses to insured vehicles in cases such as accidents, fire, theft, riot, or natural calamities.
Commercial Vehicle Insurance Cost
Commercial vehicle insurance cost is about 9510 rupees for private goods carrying vehicles and 17647 rupees for public goods carrying third-party insurance for vehicles with GVW in 0 to 7500 kgs. For heavier vehicles and other types of commercial vehicles, such as passenger-carrying and miscellaneous vehicles, the cost of insurance depends on factors like the type of vehicle usage, manufacturing year, carrying capacity, etc. Use our calculators to estimate costs for both goods-carrying and passenger-carrying vehicles.
Why Do You Need Commercial Vehicle Insurance?
It's mandatory to have insurance policies for all types of motor vehicles, whether private or commercial. This requirement aims to protect against damages to third parties or their property, making third-party insurance mandatory. Although comprehensive commercial vehicle insurance isn’t required in India, it's advisable to secure full coverage to protect your vehicle during accidents.
How to Buy/Renew Commercial Vehicle Insurance Online?
Buying or renewing commercial vehicle insurance online for heavy goods vehicles like lorries, buses, and trucks is simple. At PolicyLegit, we assist customers in finding plans from various insurers that meet their specific needs. For example, if you use your vehicle solely for business-related goods transport, we offer tailored private carrier goods insurance options. Submit your RC and current insurance copy or fill out our contact form, and we’ll handle the renewal within 5 minutes.
Categories of Commercial Vehicle Insurance In India
- Goods Carrying Commercial Vehicle Insurance – Includes Pickup Insurance, Heavy Vehicle Insurance, Lorry Insurance, Goods Tractor Insurance
- Passenger Carrying Commercial Vehicle Insurance – Includes Commercial Car Insurance, Bus Insurance, School Bus Insurance
- Miscellaneous Vehicles Insurance – Covers Agricultural Tractor Insurance, Excavator Insurance, Mixer Insurance, Crane Insurance, etc.
- Contractors Plants and Machinery Insurance – Machine Insurance
Types of Commercial Vehicle Insurance Available Online
Third Party Commercial Vehicle Insurance - This type of insurance covers damages to third-party properties, injuries, or death of other persons involved in an accident with the insured vehicle. As per Indian law, it's mandatory to have at least third-party insurance to operate a vehicle in India. It is recommended for vehicle owners if the vehicle is very old, has a low IDV (Insured Declared Value) compared to the premium, or is driven infrequently.
Comprehensive Insurance - Covers both third-party damages and damages to the insured vehicle in cases of accident, theft, or fire. Although it is not mandatory to purchase comprehensive insurance for commercial vehicles, it is advisable as it provides broader coverage. This type of insurance protects against partial or total vehicle damage caused by accidents, riots, natural calamities, and other external factors.
Complete Coverage
Commercial Vehicle Insurance provides coverage for the following types of losses or damages:
- Damage caused by fire, explosion, self-ignition, or lightning.
- Partial or total loss due to burglary, housebreaking, or theft.
- Damages caused by riots and strikes.
- Losses due to earthquakes (fire and shock damage).
- Protection from floods, typhoons, hurricanes, storms, tempests, inundations, cyclones, hailstorms, and frost.
- Damage caused by accidental external means.
- Damage or loss due to terrorist activity.
- Damage caused by malicious acts.
- Partial or total loss during transit by road, rail, inland waterway, lift, elevator, or air.
- Losses caused by landslides or rockslides.
Claim Coverage Percentage
The following percentages of coverage are provided under comprehensive commercial vehicle insurance:
| Rubber/Nylon/Plastic parts, Tyres, Tubes, Bags |
50% |
| Fiberglass components |
70% |
| All glass parts |
100% |
Depreciation Rates
The rate of depreciation for all other parts, including wooden parts, is as follows:
| Not exceeding 6 months |
Nil |
| Exceeding 6 months but not exceeding 1 year |
5% |
| Exceeding 1 year but not exceeding 2 years |
10% |
| Exceeding 2 years but not exceeding 3 years |
15% |
| Exceeding 3 years but not exceeding 4 years |
25% |
| Exceeding 4 years but not exceeding 5 years |
35% |
| Exceeding 5 years but not exceeding 10 years |
40% |
| Exceeding 10 years |
50% |
Rate of Depreciation for Painting
For painting, a depreciation rate of 50% applies only to the material cost of total painting charges in case of a consolidated bill for painting charges.
What is Covered in Third Party Commercial Vehicle Insurance Online?
As subject to the limits mentioned in the policy schedule, the following coverages are provided toward liabilities to third parties in commercial vehicle third-party insurance:
- Death of or bodily injury to any person caused by or arising out of the use (including the loading and/or unloading) of the vehicle.
- Damage to property caused by the use (including the loading and/or unloading) of the vehicle.
Private Carrier and Public Carrier Commercial Vehicle Insurance
At PolicyLegit, we compare insurance plans from different insurance companies providing coverage for all types of goods-carrying vehicles. You can buy comprehensive or third-party insurance for your goods-carrying vehicle. Third-party insurance prices for goods-carrying vehicles are determined by the IRDA and are usually revised annually.
- Private Carrier Goods Carrying Commercial Vehicle Insurance (For Corporate/Firm/Company/Self Business Uses Only & Not valid for any public usage of vehicle)
- Public Carrier Goods Carrying Commercial Vehicle Insurance (Valid for all types of commercial transport purposes)
Best Companies for Commercial Vehicle Insurance
A variety of insurance companies provide commercial vehicle insurance online. Selecting the best insurance company for your commercial vehicle depends on:
- Availability of cashless garages from the insurer in the city where the vehicle is mostly driven.
- After-sales services such as endorsements in policy.
Here’s a list of top commercial vehicle insurance products and companies in India:
Understanding the Meaning of Different Types of IMT in Commercial Vehicle Insurance Policies
- IMT14 - Applicable to Goods Carrying Vehicles; excludes claims for non-registered vehicles.
- IMT17 - Personal Accident Cover for paid drivers, cleaners, and conductors.
- IMT20 - Limited third-party property damage cover.
- IMT23 - Covers specific vehicle parts like lamps and tyres.
- IMT25 - Covers CNG/LPG kits in a bi-fuel system.
- IMT34 - Covers both commercial and private vehicle uses.
- IMT38 - Legal liability to fare-paying passengers.
- IMT37 - Liability to non-fare-paying passengers.
- IMT37A - Liability to non-fare-paying, non-employee passengers.
- IMT42 - Excludes coverage for unauthorized cargo.
Top 10 Add-On Covers in Commercial Vehicle Insurance in India
- Nil Depreciation
- Additional Towing Charges
- EMI Protection
- Daily Allowance Benefit
- Total Cover
- Emergency Hotel Accommodation
- Tools and Equipment Cover
- Personal Belongings Cover
- No Claim Discount Retention Insurance
- No Claim Discount One Step Down Cover