Insurance

What is CV Insurance? Why should you buy it?

Imagine you are about to deliver your loaded material, and a determined rash biker is all set to flaunt some off-roading skills just next to your truck. Did you skip a beat too?

Transportation services are supposed to be time specific yet safe. However, according to the Ministry of Road Transport and Highways, the latest report declares a sum of 26,130 accidents due to trucks/lorries that led to 9,913 deaths in India. Uncertain mishaps are inevitable. In such situations, Commercial Vehicle (CV) Insurance is your savior.

What is Commercial Vehicle Insurance?

Commercial vehicle insurance provides financial support and covers in case of accidental damage and loss caused by or to your commercial vehicle along with the owner/driver. Commercial vehicles like trucks, lorries, tempos, buses, tractors, etc. are covered under commercial vehicle insurance.

Basic commercial vehicle insurance includes third-party cover. However, you can choose the insurance policy with added benefits that suits your pocket and risk appetite.

Why can you not skip commercial vehicle insurance?

  1.  Motor Vehicle Act

The mandate implied by the Ministry of Road Transport and Highways, in the year 1988 under the Motor Vehicle Act, makes it compulsory for any vehicle that operates in a public area to own an insurance policy. Thus, buying insurance for your CV is one step towards being a responsible citizen.

  1.  Lives at Risk

Commercial vehicles contribute to the majority of traffic on National Highways and thus, significantly account for road deaths (11%) and accidents (10.9%). Commercial vehicle insurance provides financial aid for both the owner/driver and the third party, in case of damages or losses due to an accident.

  1. Cover for damage to the vehicle

Trucks keep the body and soul together for a logistics business. On average, a truck generates a profit of Rs. 50,000-80,000. But on the other hand, loss or damage to the vehicle can lead to an ultimate loss.

Suppose an Earthquake gulps your lorry or an angry flood swipes it away. Will the insurance provide cover for such incidents? Fortunately, yes! Natural calamities and fire are covered by a customized insurance policy.

After all, you never know when a tree may thud your truck or a distracted driver may collide with your vehicle! 

Better be safe than sorry!

  1. Cover for theft/ Loss of Vehicle

The percentage of stolen vehicles vastly exceeds the percentage of vehicles recovered. Thus, it becomes crucial that your commercial vehicle insurance plans cover the losses caused due to theft. So, in case your commercial vehicle is stolen, you can claim insurance and buy a new vehicle based on the IDV provided by the company.

Insurer Declared Value (IDV) is the fixed sum promised by the insurance company that the owner receives in case of loss of CV due to theft or complete loss of the vehicle due to an accident. IDV ideally is the best market price of the vehicle, which the insurer pays as compensation to buy a new one.

  1. Add-ons

Would you like a free oil change service with a general check-up of your commercial vehicle? Of course! Commercial vehicle insurance policies come with added benefits which are termed “Add-ons”.

Road-side assistance, EMI benefits, and NCB (No Claim Bonus) are a few vanilla add-ons. At Vahak, you get extravaganza add-ons like instant policy and speedy settlement, and material/goods insurance, which will help your pockets. Afterall, A penny saved is a penny earned.


What is Commercial Truck Insurance?

Commercial truck insurance is a customized insurance plan. This type of insurance largely depends on the type/range of the truck (Mini truck/Light truck/Heavy-duty truck). You can choose add-ons like road-side breakdown assistance or wear-tear of truck parts, etc. 

FAQs

  1. What is not covered under commercial vehicle insurance?

Though CV insurances are amazing, no assistance is provided in case of drunk driving or when the driver is not carrying a valid license. Any damages to the vehicle that are not caused by the accident are not covered; these include deliberate harm caused to the vehicle by the owner. Damage to the vehicle and its parts due to regular wear and tear are not covered in insurance. However, you might get an add-on that covers for the wear and tear of the vehicle as well. 

Insurance companies do not provide cover for the damage to the goods present in the commercial vehicle. However, we at Vahak provide a value-added product, which covers almost all kinds of goods carried by the vehicle. 

2.     What is Online Commercial Insurance?

Now that we all belong to a cashless and digital world, commercial vehicle insurance

policies are just a few clicks away. There are multiple perks of buying commercial vehicle insurance online, including:

No paperwork/Physical documentation:

Zero paperwork and online insurance policies save you from physical documentation, verification (KYC), boring trips to insurance offices and delays due to lunch breaks.

 No more meddling by middle man (Agent):

Fraud and miss-selling of insurance policies are a big threat when you buy insurance

policies. At Vahak, we provide transparent end-to-end processing of insurance

with the help of our partner Coverfox.

Coverfox provides extensive support for buying and renewal of insurance along with swift claim settlement.

3.               What documents should I produce for the process of claiming insurance?

Here is a list of documents you should readily keep available while claiming insurance:

a.                Appropriately filled and signed claim form.

b.               Registration copy and original documents of the commercial vehicle.

c.                Driver’s license and valid fitness certificate.

d.               Copy of FIR or photocopy of the registered complaint.

e.                Original copy of insurance policy.

4.               How is the premium of the Commercial vehicle decided?

The insurance company takes into consideration the following factors to fix a premium for the commercial vehicle:

  • IDV of the vehicle
  • Type of the commercial vehicle which depends upon the cubic capacity and load-carrying capacity of the vehicle
  • Deductible/Excess: Deductible is the base amount the owner has to pay to the insurance company. Deductible amount varies from vehicle to vehicle, depending upon the type of the vehicle, the condition of the vehicle, and how old the vehicle is.

5.               What are the Minimum Eligibility Criteria to buy CV insurance?

A person is eligible to buy commercial vehicle insurance only if:

  • He/She is above the age of 18 years and owns citizenship of India.
  • He/She owns the original and valid documents of the commercial vehicle.

6.               How can I Renew my Commercial vehicle insurance?

You can renew your commercial vehicle insurance online through the company website. You need to log in to the portal and enter a few details like policy number or customer number. Next, you will have to choose the policy for your commercial vehicle and approve it for renewal. You will receive an online confirmation of the same through email.

Now you are just one step away from finalizing  your CV insurance. So, you can reach out to team Vahak and go Ready-set-transport!

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