Commercial Car Insurance

When you run a business, every move counts, especially when automobiles are involved in the operations. Whether you're running a local delivery service or managing a fleet of cars, keeping them protected with commercial car insurance is important.

In this blog, we will cover everything about this insurance and how it keeps your business vehicles safe from unexpected situations on the road.

Let's begin!

What is Commercial Car Insurance?

Commercial car insurance is a customised policy designed to cover the damages caused to a commercial vehicle. Unlike personal car insurance, which covers individual drivers and their personal vehicles, commercial car insurance protects vehicles used for commercial activities, such as carrying passengers for hire and reward.

Mainly, this insurance is of two types,

• Third-party Commercial Vehicle Insurance: As the name suggests, third-party commercial vehicle insurance protects any third-party property, person, or vehicle. According to law, this insurance is mandatory for commercial vehicles in India and without this, any commercial vehicle can't be driven on Indian roads.
• Comprehensive Vehicle Insurance: This insurance provides comprehensive protection for commercial vehicles in case of uncertainties, such as damage, theft, etc.

Why Should You Buy Commercial Car Insurance?

Below are some of the advantages of buying commercial car insurance.

• Legal compliance: Having commercial car insurance is a legal requirement for businesses that use cars for commercial purposes. Purchasing this ensures that you are complying with regulations and avoid potential fines or penalties.
• Comprehensive coverage: Compared to personal car insurance policies, this insurance offers broader coverage and protects your business vehicles against a wide range of risks.
• Continuity of operations: Smooth operations are key to a successful business. But if the vehicles get damaged, it can severely impact the working. To combat such situations, commercial car insurance proves to be a saviour as it facilitates prompt repairs or replacements of vehicles.
• Financial security: A vehicle-related incident can have a significant impact on businesses. This insurance offers safety by providing financial assistance to cover repair costs and other liabilities.
• Reliability & competitive advantage: Having commercial car insurance shows others that your business takes safety seriously. This way, customers, partners, and stakeholders will feel more confident working with you because they know you're prepared for unexpected challenges.

What is Included and Excluded in Commercial Car Insurance?

Let's break down what is typically included and excluded in commercial car insurance.

Inclusions

• Loss or damage to the car due to:
  • Fire, explosion, self-ignition or lightning
  • Landslide and rockslide
  • Riots and strike
  • Terrorist and malicious acts
  • Natural disasters like earthquakes, floods, hurricanes, and hailstorms
  • External accidental causes
  • Burglary, housebreaking, theft
• Third-party liabilities:
  • The insured vehicle will be protected against financial damage arising from-
    • If any individual is injured or killed by an accident caused by the insured vehicle.
    • If the business vehicle causes damage to someone else's property.

Exclusions

• Damages or expenses resulting from indirect consequences of an incident, such as losses to the business due to the vehicle's non-functionality after an accident, may not be covered by commercial auto insurance.
• Losses or damages to the vehicle occur outside the geographical area covered by the insurance policy, such as incidents outside of India.
• Losses or damages incurred while the vehicle is being used by someone other than the designated driver(s) specified in the policy may not be covered.
• Claims arising from contractual obligations or agreements.
• Losses or damages caused by war or war-like activities.
• Electrical or mechanical breakdown
• When the vehicle is used in restricted areas or conditions not in accordance with the policy's limitations clause may be excluded.

How to Claim Commercial Car Insurance?

Below are some of the easy steps to claim commercial vehicle insurance.

• Report the incident: After an accident or incident, contact your insurance provider as soon as possible to report what happened. Be prepared to provide the following information for claim initiation:
  • Contact number
  • Policy number
  • Date & time of accident
  • Vehicle number
  • Driver name
  • Name of the insured person
  • Location of loss

  Important Tip: Take photos or videos of the damaged vehicle and ensure it must not be repaired before your insurance company survey. If third-party injury/death/property damage is involved, file an FIR immediately.

• Fill out claim forms: Your insurance provider will likely require you to fill out claim forms to officially initiate the claims process. Make sure to provide accurate information.
• Surveyor investigation: After successful claim initiation, a survey will be arranged to assess the circumstances of the incident and determine liability. According to the investigation, the vehicle will be sent for completion of repair work.
• Review settlement offer: The insurer will then make a settlement offer based on your policy coverage and the extent of the damages. Finally, if everything works well, you will receive the reimbursement within (X) working days.

Why Choose Royal Sundaram for Commercial Car Insurance?

When it comes to safeguarding your commercial vehicles, Royal Sundaram stands out as a trusted partner. We have built a solid reputation in the insurance industry for reliability, integrity, and customer satisfaction.

So why choose us for commercial car insurance?

• Cashless claim
• Unlimited liability
• Loss or damage protection
• Indemnity for third-party property
• Comprehensive coverage
• Assured claim

To know more about the policy, visit our official website!

Conclusion

In a nutshell, investing in commercial car insurance is not just a legal requirement but a smart business decision that helps protect your assets and mitigate risks. So, don't wait further and get a commercial auto insurance quote from Royal Sundaram.