Commercial Vehicle Insurance

1️⃣ Is commercial vehicle insurance mandatory?

Yes, third-party commercial vehicle insurance is legally mandatory in India under the Motor Vehicles Act. Any vehicle used for business purposes—such as trucks, taxis, buses, or delivery vans—must have valid third-party insurance to operate legally on public roads.

2️⃣ How is the premium calculated?

The premium for commercial vehicle insurance is calculated based on several factors, including:

• Type of vehicle (truck, taxi, bus, van, etc.)

• Vehicle make, model, and engine capacity

• Seating or carrying capacity

• City of registration

• Nature of business usage

• Policy type (Third-party or Comprehensive)

• Add-on covers selected

• Claim history and No Claim Bonus (NCB)

3️⃣ What is fleet insurance?

Fleet insurance is a special type of policy designed for businesses that own multiple commercial vehicles. Instead of insuring each vehicle separately, fleet insurance allows you to cover all vehicles under a single policy, making management easier and often more cost-effective.

4️⃣ Does it cover passenger liability?

Yes, commercial vehicle insurance can cover passenger liability, especially for vehicles like buses, taxis, and auto-rickshaws. This add-on ensures compensation in case of injury or death of passengers due to an accident. Coverage details depend on the policy terms selected.

5️⃣ How to claim commercial vehicle insurance?

To file a claim:

1. Inform your insurer immediately after the incident.

2. Provide policy and vehicle details.

3. Submit required documents (FIR, if applicable).

4. Allow inspection by the insurance surveyor.

5. Repair at a network garage (cashless claim) or submit bills for reimbursement.

6️⃣ Can I transfer policy ownership?

Yes, when the ownership of a commercial vehicle is transferred, the insurance policy must also be transferred to the new owner. The request should typically be made within 14 days of ownership change by submitting required documents to the insurer.