If you own a commercial vehicle, it is not only a high valued asset, it is also a highly valued possession. Hence, it is essential to insure your valuable possession. Considering today’s risk factors, it is a must to have a comprehensive policy since it covers both third-party legal liability and any damage or loss caused to the vehicle due to explosion, earthquakes, fire, burglary, strikes, cyclones, flood, theft, malicious acts, riots, accidents and terrorist activities.
To put it in a single sentence, commercial vehicle insurance is basically a custom-made motor insurance policy that has been designed to offer coverage for damages and losses caused by or to a commercial vehicle and the respective owner-driver.
The coverage may include damages and losses in situations such as collisions, accidents, fires, natural calamities, etc. It is mandatory for all businesses to buy commercial vehicle insurance for their vehicles, such as for trucks, taxis, auto-rickshaws, cabs, tractors, natural calamities, commercial vans, etc among others.
Now let’s have a look at the different types of commercial vehicles that can be covered by purchasing a commercial vehicle insurance policy. In general, the list can be categorized into three parts.
Passenger Carrying Vehicle Insurance
- Passenger Carrying Vehicle (PCV) Insurance is specifically for vehicles that generally carry one or more passengers. Taxis, cabs, school buses, auto-rickshaw, private buses, etc are some of the examples of such vehicles.
- Passenger carrying vehicles, particularly regular cabs and school buses have an enormous responsibility since they carry a number of passengers on a regular basis.
- There’s no denying the fact that a big chunk of Indian population’s lifestyle and income depends on driving these vehicles. In its place, commercial vehicle insurance makes sure that they are always protected against losses, in the event of any ill-fated circumstances.
Goods Carrying Vehicle Insurance
- Vehicles that generally carry goods to be transported from one place to another fall under Goods Carrying Vehicle (GCV) insurance category. Trucks, tempos, lorries, etc are some of the primary examples of such vehicles.
- Since goods carrying vehicles are typically large in size, they are prone to a lot of risks. Commercial vehicle insurance not only safeguards losses and damages to third parties but also protects the owner-driver and the vehicle against losses that can occur out of natural calamities, accidents or other unfortunate circumstances.
- Commercial vehicle insurance is a must if your business vigorously uses trucks to transport goods from one place to another. The commercial vehicle insurance policy for goods carrying vehicles will also protect losses against any damage or loss of goods that can happen because of circumstances such as fires, accidents, natural calamities, etc.
Miscellaneous & Special Vehicles Insurance
- Apart from taxis, cabs, buses and trucks, there are many other types of commercial vehicles that are often used for and by businesses. Some of these may include special vehicles used for mining, farming and construction, among others.
- A commercial vehicle insurance policy for the same will safeguard the insured vehicle against any losses and damages caused to and by the vehicle as well as its respective owner-driver.
- Such vehicles are huge in size and it requires a lot of investment for the same. Hence, it’s always a smart choice to insure these vehicles with the best commercial vehicle insurance. This way, the business or the sole property owner will reduce its risk and protect itself from any financial losses that could come about due to unfortunate mishaps.
So it’s quite clear that commercial vehicle insurance is a necessity if you own one or more commercial vehicles. It is a must for the monetary protection of your business. While opting for a commercial vehicle insurance policy, it is advisable to go for the comprehensive plan which offers total coverage. You may also choose to include some add-on covers along with your basic plan by paying some additional premium.
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