Compare Commercial Vehicle Insurance Plans in India

Business in today’s world rely heavily on logistics for its success. Be it a traditional brick and mortar store or an e-commerce organization, all of them require logistics in their business operations. Right from sourcing raw material for production process to delivering the finished product, each stage demands the support of the logistics arm. Commercial vehicles play a pivotal role in this process. Since these vehicles often travel long distances, a commercial vehicle insurance becomes essential. Akin to the mandatory insurance requirement for private vehicles, commercial vehicle insurance is also compulsory as per the Motor Vehicle Act of 1988.

Why is it crucial to have commercial vehicle insurance?

Long distance travels involve a higher risk, both for the goods as well as the vehicles. While the goods can be insured using a business insurance policy, commercial vehicles need their own separate insurance cover. With commercial vehicle insurance, there exists a financial safety net for the repair or replacement of spares in case of an accident. Further, any liabilities that might become due because of third-party damages and losses is also covered by commercial vehicle insurance. Just like you compare the different available products before buying one, similarly, you must also compare commercial vehicle insurance plans. It helps to pick the right insurance cover while keeping in mind your requirements. Further, comparison of commercial vehicle insurance also aids in selecting the right policy that offers a financial cover for your business while saving money.

What are the factors to keep in mind when making a comparison of commercial vehicle insurance plans?

When you purchase a commercial vehicle insurance, compare them based on the following pointers -

• Policy features: Different insurance companies have varying policy features. Making a thorough comparison of these features helps decide which is a better commercial vehicle insurance. Moreover, policies can be loaded with optional add-ons. Since they enhance the overall scope of the policy, it is prudent to compare commercial vehicle insurance and then select based on the requirement.
• Policy premium: Some insurance companies might offer similar features at an affordable option. This can help you save some money. But relying exclusively on the premium for comparison of commercial vehicle insurance policies is not advisable.

• Claim settlement process: Once you have finalised the policy based on the above pointers, take a note of its insurance claim settlement process too. Comparison of the claim settlement process can aid in better policy selection.

Here’s what you should keep in mind while when you compare commercial vehicle insurance plans

• The Motor Vehicles Act makes third-party insurance covers mandatory for all commercial vehicle
• When making a comparison of commercial vehicle insurance in India, make sure to keep an eye on co-payment and the deductible portion of your policy. As these factors result in a higher out-of-pocket expense at the time of claim, it is best advisable to opt for a policy with lower co-payment and deductible.
• Selecting insurers that offer online vehicle insurance payment options would offer you benefits such as immediate policy issuance
• Selecting the right set of add-ons can significantly help to enhance your policy coverage. Keep an eye on it too.
• Lastly, do not skip on knowing about the instances where your commercial vehicle insurance plan doesn’t offer coverage. This will result in a hefty blow to your business.

These are some of the key factors to remember when making a comparison of commercial vehicle insurance in India. Not only does it offer financial coverage, but also creates a safeguard to handle third-party liabilities as well as necessary cost of repairs. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.