Insurance

Is it Necessary to Purchase or Renew Commercial Vehicle Insurance?

Commercial Vehicle Insurance

Let’s take a quick look at the stats.

According to the latest report provided by the Ministry of Road Transport and Highway, 26,130 truck accidents led to 9,913 deaths in India. Any commercial vehicle without insurance is not spared by law, under the mandate of the Motor Vehicle Act (1988), implied by the Ministry of Road Transport and Highway.

The Ministry of Road Transport and Highway imposed the Motor Vehicle Act 2019. According to this act the initial fine for driving an uninsured commercial vehicle is Rs.1000 and the subsequent fine is Rs.4000. In such cases the licensing authority has the right to seize the license of the driver. If the driver is held guilty then the license of the driver is eligible for disqualification or revocation. Along with this, one may also suffer imprisonment for up to three months depending on the severity of the incident.

Apart from this, if the accident of an uninsured vehicle leads to lively damages, legal issues may lead to imprisonment for years! 

In conclusion, commercial vehicle insurance provides cover for, third-party losses as well as provides financial aid for the owner/driver. Insurance also saves one from any legal penalties. Thus, it is a great idea to buy insurance while things are good. Better safe than sorry!

Perks of Renewing Your Commercial Vehicle On Time

Commercial vehicle insurance is the magic wand to save your pockets. Renewing your insurance on time will just do more good to you than you have thought. How? Let’s check.

No Claim Bonus (NCB)

No Claim Bonus (NCB) is an add-on that provides you with discount benefits. For example, you own a truck and you bought an insurance policy a year ago. Your insurance included NCB as an add-on. During this tenure of the past one year you did not claim the insurance. Now, for the upcoming renewal of your insurance you can ask for a discount on the insurance premium. This discount is termed as No Claim Bonus. 

The chances that you won’t have to claim for insurance are high if you are a safe trucker. If you do not claim the insurance within the policy period, the insurance company provides a discount on the next renewal. This discount can help you save a few bucks. However, the percentage of discounts provided by different insurers may vary. We at Vahak grant astonishing discount ranges for No Claim Bonus.

However, NCB is applicable only in case of uninterrupted renewal and timely payments of the premiums. This means, if you missed renewing your insurance then you might become ineligible to benefit from No Claim Bonus. However, team Vahak can help you keep a check on timely renewals of your commercial vehicle insurance. We at Vahak along with Coverfox provide online assistance for troubleshooting all issues related to commercial vehicle insurance.  So get in touch with the Vahak team to know more about No Claim Bonus discounts and online insurance renewal. 

Stress-free Renewal of Insurance

Missed premiums or delays in the renewal of insurance make the vehicle subject to inspection for damage. In such cases, the company checks if the vehicle underwent losses due to an accident while the vehicle was uninsured.

Any uncertain mishap that might have damaged the vehicle during the period when the vehicle insurance was not renewed, will affect the Insurer’s Declared Value (IDV) due to depreciation. Let’s take a quick look at these two terms-  Insurer Declared Value (IDV) and Depreciation- Depreciation is the decrease in the value of the vehicle due to damage or wear and tear. Whereas, Insurer Declared Value is the best market price provided by the insurer to the owner of the vehicle. 

For example, Mr. Batra owns a Mahindra Bolero PikUP which was bought for an on-road price of Rs.9,12,000. However, one time he forgot to renew the insurance for the same. In the meantime, the vehicle was damaged due to a minor accident. So, when Mr. Batra went to renew his insurance, the depreciation calculated by the company was 20%. This means Mr. Batra will get approximately an amount of about 8,93,760 only when he claims the insurance. 

Adversely affecting his premium!

Save on Taxes!

Commercial vehicle insurances are eligible for tax exemption as they fall under “Business Expenditure”.

Commercial vehicles used for business purposes can appeal to saving taxes. The tax saved would depend on the type of vehicle, premium of insurance and IDV, and depreciation.

How to Purchase or  Renew Commercial Vehicle Insurance Online?

With digital advancements, you can customize your commercial vehicle insurance policy and pay for it at any time according to your convenience. You may purchase/renew your existing commercial vehicle insurance in three simple steps as follows:

  1. Visit the official website of your insurance provider. Enter the Policy number/Registration number of the vehicle. This will fetch all the details regarding the vehicle’s insurance. Thoroughly check the details.

     2. Choose the right plan for your commercial vehicle insurance considering               your business needs.

     3. Pay for the insurance plan through online payment methods. You will                     receive a confirmation mail along with all the details adhering to the policy.

Documents required to Purchase or  Renew Commercial Vehicle Insurance

According to the Insurance Regulatory and Development Authority of India (IRDAI), the documents required to be submitted for purchasing or renewing commercial vehicle insurance would be the same. Here is the list of documents you should produce while buying or renewing your insurance:

  • Identity proof of owner (PAN card/Aadhar card, etc.)

  • Address proof of owner (Driving license, Voting ID, Passport, etc.)
  • Copy of legitimate driving license.
  • Copy of RC of the vehicle.
  • Other documents like, the PUC of the vehicle, previous policy documents (in case of renewal), details required for online payment, etc. may be required.  

Summary

Driving an uninsured vehicle may intensify the repercussions of a mishap. On the contrary, having insurance for the vehicle ensures you compensation if a mishap occurs. Insurance is a safety net that can help you with unbearable losses due to accidents. Vahak provides safe, secure and, sustainable CV insurance so that our customers can stay stress-free.

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