How to Compare Commercial Vehicle Insurance Plans in India for 2022

Commercial Vehicle Insurance is a kind of motor insurance policy that is designed to cover losses or damages caused to a commercial vehicle and its owner-driver. It is a tailored-made plan that includes losses and damages in case of an accident, natural calamities, fire, collisions, etc. As such the compulsory insurance requirement for personal vehicles, commercial vehicle insurance is also mandatory according to the Motor Vehicle Act of 1988. All businesses must have a commercial vehicle insurance policy for their motor vehicles, be it cabs, pick-up vans, tractors, auto-rickshaws, trucks, school buses, commercial vans, and so on.

Well, if you purchase the first motor insurance policy you look at, you will never know whether or not you are availing of a policy with better benefits. It’s therefore important to compare different commercial insurance plans before choosing one. It helps make informed decisions and pick the right insurance cover while keeping in mind your requirements. Further, comparison aids in selecting the right policy that offers a financial cover for your business while saving money.

How to Compare Commercial Vehicle Insurance Plans in India for 2022?

To compare commercial vehicle insurance plans, you should know certain parameters to compare policies and pick one that is most suited to your requirements. It can be quite helpful in maximizing your benefits from it. Compare motor insurance policies for commercial vehicles based on the following factors.

Coverage

Among the most significant points of comparison is coverage. Below is a table that illustrates the benefits usually provided under the third-party liability covers and comprehensive covers.

CoverThird PartyComprehensive
Damages to a third-party vehicle  
Damages to third-party property  
Injury/death to the third-party person  
Personal accident cover  
Damages or loss to own car from an accident   x 
Damages or loss to own car in case of a fire   x 
Damage or loss to own car in case of natural calamity   x 
Theft of your own car   x 
IDV customization   x 
No Claim Bonus   x 
Other customized add-ons   x 

Policy features:

Commercial vehicle insurance plans of different companies come with varying features. While comparing, consider these policy features. For example, some policies can be loaded with optional add-ons others not. Know such features in the policy.

Policy Premium

While choosing an insurance policy, affordability should be the most crucial factor to look through. Remember that lower premiums is not always a good idea because it means lesser benefits. Also, you might end up paying higher deductibles while filing a claim. So, if you compare policies, select the one that claims to offer maximum benefits at reasonable premiums. 

Claim Settlement Process

 Once you decide to choose a policy based on the above pointers, take note of the insurance claim settlement process. Compare the claim settlement process. It will aid in better policy selection.

Claim Settlement Ratio

Claim settlement ratio or CSR is the total number of claims that have been settled by your insurer against the total number of claims filed during the policy tenure. Comparison of policies will allow you to buy the same from an insurer with a high CSR. This will reduce the chances of your claim getting disapproved.

Co-payment

When comparing Commercial Vehicle Insurance Plans in India for 2022, it is good to keep an eye on copay and the deductible portion of your policy. These two factors result in a higher out of your pocket expense at the time of a claim. It is good to choose a policy with no or lower co-payment and deductible.

Add-on Covers

Insurance companies offer various add-on benefits with a comprehensive motor insurance policy. These add-on helps increase financial protection. So, choose a commercial vehicle insurance plan that guarantees to offer the highest number of add-on covers at a reasonable price.

Add-on covers can be zero depreciation cover, return to invoice cover, type protect cover, engine and gear-protection cover, consumable cover, breakdown cover, passenger cover and so on.

No Claim Bonus (NCB)

Another factor to consider when comparing insurance plans is NCB, which is the discount on the premiums in case you have not raised any claims in the previous year. The NCB discount can be between 20% and 50%. No Claim Bonus policy is one of the parameters on which you can compare insurance policies.

Customer Service

It is always good to select an insurance company that offers 24×7 customer service. This is helpful if you face any issues regarding your insurance policy. You should further check how responsive the customer service executives are by calling them and enquiring about your policies.

Network Garages

Next factor to take into account is checking network garages for cashless repair. If you have a comprehensive insurance policy, you can enjoy the benefit of cashless repairs for your car at network garages. Always, switch to an insurer at the time of policy renewal if it has a number of network garages.

Easy Purchase and Claim Settlement

Another point to take into account when comparing commercial vehicle insurance plans is ‘purchasing and claim settlement process.’ Look for ones that have an easy purchase and claim process. An easy process requires less documentation and ensures your claims are settled without much hassle.

Conclusion

To conclude, if you compare commercial vehicle insurance plans considering the above parameters, you can rest assured that you choose the best insurance plan in the market. Choosing an insurance company that lets you have online payment options will be an additional benefit. Picking the right add-ons can enhance your policy coverage. And knowing about what your commercial vehicle insurance plan doesn’t cover eliminates a hefty blow to your business.

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