Comparisons between premiums and deductibles for different types of insurance
24 MAY 2023
Commercial vehicles are motor vehicles that are used for commercial purposes such as transporting goods or paying passengers. Basically, it can be classified into three categories. Good carrying commercial vehicles, Passengers carrying commercial vehicles and miscellaneous vehicles.
Good-carrying commercial vehicles are vehicles in which goods are being transported from one place to another as lorries, trucks, tippers, tankers, trailers etc.
Passengers carrying commercial vehicles are basically used as transportation for people. I.e. Auto-rickshaws, Private tour vans, Taxis, cabs etc.
Miscellaneous vehicles are used for special, specific purposes such as ambulances, tractors, cranes, excavators, harvesters etc.
Commercial vehicle insurance is naturally an act-only policy cover. However, it can be extended to a comprehensive cover policy by adding additional premiums.
The act-only policy primarily covers third-party persons in case of injury, death and even property damage. It provides liability to employees and passengers wherever applicable. Comprehensive cover policy generally covers damage that happened to own vehicle. As per IMT- 21 The insurer shall not be responsible under Section I of the policy for loss or damage to lights, tyres, tubes, mudguards, bonnet side pieces, bumpers, or paintwork nevertheless IMT- 23 endorsement redeems the state of IMT 21 and covers the risk.
Commercial insurance comes with several add-ons. To name a few, nil depreciation cover, additional towing cover etc.
It is important to note that commercial vehicles are someone’s source of livelihood. It could be a significant monetary loss to the vehicle owners if any misfortune happened to the vehicle that could leave the owner and their dependents impoverished.
The ideal concept of commercial vehicle insurance is to secure and provide the commercial vehicle in case of damage occurred by natural disasters like fire or man-made disasters. This insurance can be boosted with applicable add-on covers.
The key benefits of opting for commercial vehicle insurance are vast. Primarily, opting for this insurance covers the driver and owner from economic loss brought by an accident. It also covers third-party individuals, vehicles and even property damage in case of an accident.