An Overview of Commercial Vehicle Insurance

Vehicles plying on the roads are classified as private or commercial and basis the classification the rules and regulations governing their maintenance as well as on road permissions also vary. Insurance is another important aspect that is different for commercial and private vehicles and you cannot take a commercial vehicle on road without having proper insurance for the same. So, let’s try to understand the scope of commercial vehicle insurance.

What is the difference between commercial and personal auto insurance?

A vehicle that has been registered as commercial and is used for profit generating activities like carrying passengers or goods needs to have commercial insurance and one that is used for personal use and not for any profit generating activity needs to have personal auto insurance.

While with a personal auto insurance only you are safeguarded from the liabilities arising out of an accident involving your vehicle, when you have commercial auto insurance in place, you and your business, both are safeguarded from such liabilities.

What are the specialized coverage plans that come only with commercial auto insurance?
When you are buying a commercial vehicle package policy, you can check for the following add on benefits:

Coverage for hired vehicles: A business owner may not always use or have his/her own vehicle for transportation of goods and may use a hired vehicle for the same. The commercial auto insurance should offer coverage even for the borrowed vehicle carrying your goods.

Coverage for destruction or theft of equipment in the vehicle: Commercial vehicles are mostly fitted with sophisticated devices like GPS trackers which if stolen or damaged may need you to spend extensively on the repairs. As such, you must go for an auto insurance that gives coverage for such incidents too.

Lease or loan defaults: Many a times, commercial vehicles to be used as cabs or delivery vans are bought on loan by individuals and their ability to repay the loan mostly depends on the kind of business they are getting using that vehicle. As such there could be many slack phases for such people. Therefore when buying commercial vehicle insurance, it is good to go for one that offers coverage for loan or lease defaults too.

What are the benefits of buying commercial vehicle insurance?

• Commercial auto insurances have limits that are way higher than the personal auto insurance policies. As such, they can effectively cover financial liabilities arising out of accidents involving a commercial vehicle.
• The commercial auto insurance not only pays for the damages caused to the vehicle o the third party, it also reimburses you for the damage caused to any equipment that you may be carrying in your commercial vehicle so you can replace or repair them as needed.
• The commercial auto insurance will also give adequate cover for your employee driving the vehicle in case he/she get hurt in an accident involving the vehicle.

When you have commercial auto insurance, you become eligible to take vehicles on lease from various lessees as with most of them your having a commercial insurance becomes a mandatory as well as primary requirement.

Therefore, now that you know all about the various benefits associated with having commercial auto insurance, never settle for personal auto insurance for your commercial vehicle as by doing that you expose yourself and your business to unnecessary risks.

Understanding the key benefits of two wheeler insurance

The demand for two-wheelers has always been high and apart from being economical, the two-wheelers are also considered to be the most convenient vehicle, as it helps in beating the heavy city traffic. Taking a bike out of the traffic is much more convenient than getting a car out.

If you compare the latest technology two wheelers with that of the two wheelers of the earlier times, you will see that there is a marked difference between the two. Just as the modern day two wheelers are technologically advanced, similarly even the modern day two wheeler insurance coverage is much more advanced than the insurance coverage given earlier.

If you get two wheeler insurance from a reputed general insurance company you will be entitled to get a number of benefits and if you want to know more about these benefits, you can go through the list given below:

• A reputed general insurance company makes sure that they provide you with cashless claim service and hassle-free inspection
• The insurance company provides coverage for a total or a partial damage to the vehicle that might be caused due to theft or an accident
• The third party body injury and third party damage is also covered under this insurance policy
• If you do not make any claims, then the insurance company makes sure to give a No claim bonus and this no claim bonus provides you with discounts on your insurance premium
• A reputed insurance company makes sure that they are able to settle the claims of a policy holder within 7 working days
• In case you lose your two-wheeler key, the insurance company also assists you to get a new key
• A reputed insurance company makes sure that they let the policy holder know about the depreciation of the parts which might need replacement due to the damage caused by an accident.
• They also provide excellent customer service even on Sundays and holidays in order to ensure an effective claim settlement procedure.

Thus it is quite clear that there are many advantages of getting two wheeler insurance done from a reputed company, however, there are certain things which are not covered under insurance and given below is a list of such things:

• The insurance company does not cover depreciation, wear, and tear or any mechanical breakdown that may be caused to your vehicle
• Damage caused to the vehicle due to nuclear or war perils or due to drunken driving is also not covered under insurance
• The insurance company does not cover any claims which might arise due to contractual liability

So, it is very important that you get bike insurance from one of the most reputed general insurance companies. This will help you to get a policy at quite an optimum rate. Apart from providing you with insurance at a reasonable rate, a reputed general insurance company will also make sure that you are able to get a coverage which best suits your needs and purpose.

Understanding Accidental Insurance Plans

The accident insurance plans are policies that give a person financial assistance in the event of an accidental disability or accidental death. This type of policy covers accidents that are caused by violent, external and visible means which results in physical injury. It is important to note that accident insurance plans do not include illness or disease as well as nervous, emotional or mental disorders. The accidental insurance also dismisses self-injury, suicides, war and armed force operations etc. 

Listed below are some of the features of Accidental insurance:

• Just like medical insurance and term plan, accidental insurance is an annual contract that can be renewed every year.
• Depending on your income, few insurance companies give 60 to 100 times of your monthly income while others give 8 to 10 times of your annual income.
• Some insurance companies offer accidental insurance to dependents but have restriction in sum assured.

Benefits that a comprehensive accidental insurance policy offers:

This type of insurance is also referred to as accidental death insurance and thus, in case of death of an insured due to an accident, his/her nominees get 100% sum insured. 

In case a person meets with an accident and loses his body parts which may prevent him from working in future; then 100% sum insured is given to the insured person. The accidental insurance covers the following:

• Loss of one hand and foot or both hands or feet 
• Loss of a Limb along with an eye
• Total and permanent loss of both eyes’ vision 
• Total and permanent loss of hearing and speech

It is important to note that in case of permanent partial disablement i.e. loss of a finger or a toe, the amount that the insurance companies pay usually differs. So, it is important that you go through the policy documents thoroughly to understand what they will cover.

If the insured has met with a serious accident which has not resulted into any permanent loss but the doctor has recommended complete bed rest which can impact the earning potential for a small period, in such cases accidental insurance can compensate for this income loss. 

The accidental insurance can offer a few more benefits they can cover education fund for kids, emergency ambulance charges, family transportation, medical expenses, imported medicines etc.
These are some of the benefits that accidental insurance policies offer.
 

However, before you go ahead and invest in an accidental policy; it is important to note that premiums do not depend on the insured person’s age rather it depends on that person’s working conditions and work profile. Usually, there are three different levels on which the individuals are classified:

• Level 1: This includes people who work in offices and are in administration functions.
• Level 2: This includes people who work in various fields as labors.
• Level 3: This includes people who work in circus, mines and are considered as higher risk category.

If you work in a possibly risky occupation or engage in hazardous hobbies or sports then accidental insurance policy might be the best way to insure against a sudden accident.