Commercial Vehicle Insurance

• Specific business and its assets
• The employees or drivers who have been hired to drive the vehicles
• The high risk of operating certain commercial vehicles

• Who owns and drives the vehicle : If the vehicle is owned by a business, most likely, the vehicle will be covered under a commercial auto insurance policy. If the insured is a sole proprietor who uses the vehicle for commercial uses, then too he would need a commercial auto insurance policy. Moreover, the coverage needed within the commercial policy also depends on how often the vehicle is used and what it is used for.
• How the Vehicle is used : When an insured uses the vehicle for business purposes, he will need a commercial auto insurance policy.
• The Type and Weight of the Vehicle : If the vehicle you drive is heavier than a normal size pickup or SUV. For example, if it is as big as a dump truck, tow truck, semi-truck or commercial trailer, you will definitely require a commercial auto insurance policy. This is because this type of heavy duty vehicles can cause more damage if they are involved in an accident. Therefore, they also need special insurance coverage at times.
• Required Business Liability Limits : If your business vehicle requires higher liability limits, you will probably need a commercial auto insurance policy. In motor insurance business, commercial auto insurance policies offer higher liability limits than personal auto insurance policies.

• A commercial auto insurance policy covers risks such as damage to a property caused by the use of vehicle
• A commercial auto insurance policy covers different types of external damages to the vehicle
• A commercial auto insurance policy covers third party liabilities such as bodily injury to the third-party or damage of third-party vehicle. It also covers legal liabilities arising out of death, injury or property damage to the third-party by the insured’s vehicle.

• Bus
• Taxi
• Tractor
• Crane
• Other goods and passenger carrying vehicles

• For fresh or renewal covers, the company offers door step arrangements including arrangements for free inspection with regards to break in insurance cases.
• The company has a large fleet of trained in-house surveyors. This helps in faster surveys on vehicles and quicker turnaround time while attending to claims.
• The company also follows online e-survey claims module for lowest turnaround time in claim settlement.
• The company has 24x7 call center service is in place, for any support relating to claims.

• Covers for loss and damage to the insured
• Third-party bodily injury
• Third-party vehicle and property damage

• Provision to insure electrical/non-electrical items separately
• Personal accident cover for insured owner driver
• Personal Accident cover for named/unnamed passengers
• Personal Accident cover for paid driver/ employee
• Cover for vehicle parts like lamps, tyres/tubes, mudguards, bonnet/side parts, bumpers, headlights and paintwork of damaged portions only
• Use of commercial type vehicles for commercial and other purposes
• Legal liability to Non fare paying passengers
• Legal liability for paid driver for all operations

• Third-party liability and property damage
• Accidental damage or loss to the vehicle
• Bodily injury or death in the event of an accident

• Bus
• Taxi
• Tractor
• Cranes
• Goods and passenger carrying vehicles

• Commercial car insurance
• Bus insurance
• Taxi insurance
• Truck insurance

• Competitive rates
• Claim service
• Value/Fairness
• Customer Service
• Ease of procedure
• User friendly website

• The company may cancel the policy by sending seven days’ notice by recorded delivery to the insured at insured’s last known address and in such event IFFCO Tokio will return to the insured the premium paid less the pro rata portion thereof for the period the policy has been in force or the policy may be cancelled at any time by the insured on seven days’ notice by recorded delivery on the condition that no claim has arisen during tenure of the policy, the insured shall be entitled to a return of premium at the Company’s Short Period rates for the period the Policy has been in force.
• In cases where the ownership of the vehicle is transferred, the policy cannot be cancelled unless there is concrete evidence that the vehicle is insured with another insurance company

• This cover is applicable only when the windshield glass is broken and there are no damages to the vehicle.
• The vehicle is repaired in a garage / workstation of insurer’s choice within the city of insured’s residence based on the residential address provided for this insurance. If the windshield glass is repaired / replaced at any other garage/workstation, the incident will be treated as a separate claim and the no claim bonus will be affected.
• The cover will apply for only the first claim for replacement of windshield glass, during the year. Subsequent claims for Windshield glass damage will not qualify for continuation of no claims bonus.

• The amount of total deductible mentioned in the policy schedule.
• The damages caused by an uninsured peril.
• Manufacturing defects in the Windscreen cover.
• Depreciation on parts, if the depreciation waiver clause is not selected.
• The add-on cover to be opted at the inception of the commercial vehicle package policy. The insurer doesn’t allow mid-term inclusion and/or removal of the cover.
• All deductibles will be as per the base Package Policy.

• Delivery of produce, grocery, frozen food
• Transportation of building material
• Moving company
• Automotive Hauling
• Container Hauling
• Livestock movement
• Restaurant supplies
• General Freight
• Delivery of furniture, materials etc.
• Transportation of dirt, sand, and gravel

• It covers risks such as cost of injuries and medical expenses for the injured party in case a truck driver employed with the business is involved in an accident. It will also have cover for legal defence to safeguard against third-party action, whether or not insured’s company is at fault in an accident.
• It covers the cost of damage to insured’s vehicle from an accident or any other untoward incident like vandalism, theft etc.
• It provides coverage for damage or theft of items being hauled by the vehicle.

• Type of carrier
• Vehicle details
• Registered details
• Vehicle weight

• Type of Policy
• Name of Insured
• Business Type
• Period of Insurance From
• Period of Insurance To
• From Location
• To Location
• Material Type
• Sum Insured
• Status of cargo
• Mode of Transit
• Mode of Packaging
• Basis of sum insured
• Name
• Email ID
• Mobile no

• Coverage for bodily injury or death for the driver
• Coverage for legal liabilities following death and injury of third party
• Property damage regardless of who was at fault at time of accident
• Coverage for damage to the vehicle due to theft, vandalism, fire etc.

• Medical payments coverage for driver and passengers in the other vehicle, especially for a passenger who doesn’t have adequate health insurance.
• In advanced countries, if the bus carrier is that of school students, it is considered prudent to take a policy that will cover the driver and other employees against molestation or child abuse.

• The number of miles the bus travels in a year
• Whether the bus travels within city, highways or across state boundaries or international border.
• The driving record and experience of the drivers
• The number of seats in the vehicle
• Safety measures available in the bus or safety training undergone by the driver
• Passenger profile such as disabled passengers or children
• The amount of company asset or asset related to the vehicle, the insured needs to protect in the event there is a lawsuit against him.

• Individuals driving without valid driving license or under the influence of alcohol, drugs, and other intoxicating drinks
• If the accident occurs outside the geographical area covered by the commercial insurance cover for vehicle
• If the accident is due to mechanical or electrical breakdown in the vehicle, it will not be covered by the commercial insurance cover
• If the insured vehicle has been used for any unlawful reason, it will not be covered by the commercial insurance cover

• Customer’s Requirements: Insurance requirements vary from customer to customer. Liability coverage is an important part of commercial auto insurance. It safeguards third parties against damage or injury caused by the insured’s vehicle. These days, uninsured motorist cover has become an important feature of auto insurance covers. This type of cover will protect the insured against any accident or injury caused by a third-party whose liability cover is not adequate to compensate the insured fully.
• Compare the Insured Declare Value: It is the current market value of the vehicle and the maximum sum assured fixed by the insured. The insured can avail this amount in case of total loss of vehicle due to theft etc.
• Compare Insurer’s Claim Settlement Practice: How fast a company settles claims is an important deciding factor for customers to buy an auto insurance policy from the company. Every company has its own procedure that they follow for settling claims. Businesses look for a hassle-free claim process and opt for the company that best suits their needs.

• Cashless servicing facility available at workshops and garages nationwide
• Towing assistance
• Roadside assistance

• Quote Details
• Premium Details
• Additional Details
• Payment

• Policy Type
• Insurance Type
• Registration State
• Registration City
• Fuel Type
• Vehicle Class
• Vehicle Sub Class
• Make
• Manufacture
• Model
• Variant
• Manufacturing Year
• Date of First Registration
• Policy Inception Date
• Permit Type
• Vehicle Gross Weight
• Cubic Capacity
• Policy Expiration Date
• Email ID
• Mobile
• Vehicle Value

• Engine is an expensive vehicle part
• Repairing the engine costs a lot of money
• Repairing the engine involves considerable labor and material charges

• Damage to engine due to leakage of lubricating oil
• Damage to engine due to any malfunctioning in gear box
• Damage to engine due to water ingression

• If the engine was damaged in an event subsequent to an accident, the insurer will not pay for the engine repair costs
• Most insurance companies offer this add-on for cars less than 5 years old
• The insured cannot make more than two claims in a policy year. Beyond, two claims, the insured will not be compensated for the loss/damage to the engine

• The NCB Protector add-on cover cover’s the insured’s accrued no claim bonus
• The NCB Protector add-on will ensure that insured’s no claim bonus stays intact for the first two claims made during the year. This will be in addition to the claim amount reimbursed
• In case, the insured is at fault he has to forgo his no claim bonus

• Bolts
• Screws
• Washers
• Brake fluid

• Curtains
• GPS Station Announcer
• Door grab handle for cargo trailer
• Laminated windscreen
• Bus Flooring
• Water proof front view camera for bus

• The insured gets ‘on site’ minor repairs
• The insured gets critical services like fuel delivery, emptying of fuel tank and jumpstarting the battery
• Assistance to transport the insured vehicle and relay urgent messages
• Flat tire support and assistance if key is jammed
• Dedicated team of customer care executives to answer all car insurance related queries

• Depreciation Cover
• Third Party Cover
• Personal Accident Cover

• The policy provides protection against Third Party Liability in case of injury or death of a third party
• The policy covers the expenses towards any medical and legal accountability the insured might have
• The policy covers cost of damage towards third party property
• The policy allows the insured a cover up to INR 7.5 lacs
• The policy is applicable while mounting and dismounting the car

• The Personal accident cover offers coverage up to Rs 2 lacs for individual owner-cum driver
• The policy is applicable for any damage or loss that may occur while mounting and dismounting the car

• The cost of the goods to the shipper
• The replacement cost to the shipper
• The various out of pocket costs to the shipper which includes freight, insurance, government fees and taxes
• The price charged by the shipper to the buyer plus the profit margin anticipated by the shipper

1. The insured must lodge the First Information Report (FIR) with the police once he discovers that his vehicle has been stolen.

2. The insured must reach out to the customer service centre of the insurance company and inform them of the incident. This should be done so as to start the process of making the claim. The insured will be provided with a form. He will be required to fill in details like policy number, vehicle details as well as the date, time and description of the incident.

3. The insured has to then submit certain documents. These documents are a duly signed claim form, copies of the registration certificates of the vehicle, driving license of the driver, the first two pages of the policy document, the FIR and a letter addressed to the RTO intimating them about the theft.

4. Post- the above mentioned steps, the police submit a ‘non-traceable report’ and the request for claim gets approved. The insured is required to transfer the registration certificate of the vehicle to the insurance company. Along with the RC, the insured has to submit the vehicle key or sets of keys. He must also give a letter of subrogation to the insurance company.

5. For the reimbursement to take place, the insured needs to submit the original repair invoice along with the payment receipt to the insurer. Meanwhile, the surveyor sends his report and the amount of reimbursement gets approved. It takes around seven working days to get the approved amount reimbursed to the insured.

• After submission of the RC to the insurance company, the insured must get a duplicate RC book from the road tax officer’s office at once.
• In case the vehicle was bought on loan, the insurance company will reimburse the amount payable to the financier. In case, there is any excess amount over and above what was paid to the financer, it shall be borne by the insured himself.

Commercial vehicles, like private vehicles, are insured as per their IDV. IDV is ex-showroom price of a vehicle inclusive of sales tax. The IDV excludes costs like depreciation, registration, and insurance.

If a vehicle is stolen or the vehicle is totally damaged that no repair can redeem, the claim amount payable will be determined on the IDV value.

The IDV is calculated based on the vehicle’s listed price. This price depends on brand and model of the car, and the accessories. This price will be taken at the inception of insurance policy by IFFCO Tokio.

IDV= Ex Showroom price plus sales tax minus depreciation, registration and insurance

The risks covered by this Third-Party policy include:

• Death or injury to a third-party
• Damage of third party property

In insurance, there are two main parties involved- the insurer and the insured. If the damages and loss occurs to anyone else other than the insurer, it constitutes a ‘third-party’. When an insurer buys insurance, it wants to protect itself from its own damages and losses whether it was caused by its own mistakes or a third-party’s. The insured also wants to protect itself from any legal liabilities it may have towards a third-party if the fault was at his end.

The following would be the consequences if a person forgets to renew his commercial vehicle insurance on time:

• In the event the vehicle has an accident; the insurance company will not pay out claims
• No-claims bonuses will not be paid to the insured
• Driving a vehicle whose license has expired is illegal and can lead to fines

Yes, you can choose to renew your commercial auto insurance with IFFCO Tokio. You will need to fill in a fresh proposal. IFFCO Tokio may also require a physical inspection of the vehicle. The best part of the facility is that the insured can transfer the accrued bonuses to the new insurance policy.

If an insured doesn’t make any claims during the policy tenure, he becomes eligible to receive some benefits at the time of renewal of policy. These benefits are known as no claim bonuses. This benefit goes on accumulating for every no claim year. The final benefits can range from 20% up to 50% of the premium amount. In case a claim is made, the insured will not be able to avail any no claim bonus.

The no claim bonus is given to the insured and not to the vehicle. The implication of this is that on transfer of the vehicle, the policy can be transferred to a new owner, but not the ‘no claim bonuses’. The good part is that the original owner can avail the no claim bonus on a new vehicle purchased by him.

Yes, your no claim bonus will get transferred to your IFFCO Tokio commercial vehicle insurance at the time of policy renewal. However, you will have to submit a proof of the no claim bonus earned. You can do this by submitting your original policy along with a certification that proves that you have not made any claims during the policy tenure. The proof can be in the form of a renewal notice or a letter from the insurer acknowledging the bonus accrued to the insured.

Deductible or excess an insured will pay in an insurance claim before the insurance cover starts paying the insured. This is the out of pocket expenses of a policy holder. Under Motor Insurance policy, there is a normal standard/compulsory excess for most vehicles ranging from ranging from Rs 50 for two-wheelers to Rs 500 for Private Cars and Commercial Vehicles which increases depending upon the cubic capacity/carrying capacity of the vehicle.

The cubic capacity/carrying capacity of the vehicle increase this cost other than factors like the age of the vehicle or if there is high frequency of claims made by the insured.

There are many factors on which premium amount is determined and there is some variation in the premium charged by different insurers on similar covers. The parameters for comparison are deductibles, coverage, and Insured declared value (IDV) of the vehicle.

Some insurers have lower premiums but higher deductibles, while other insurers offer lower coverage and lower insured declared value. At IFFCO Tokio, expect the best coverage for the premium you pay.

In India, third-party liability insurance is a mandatory buy for all vehicles plying on the roads in India. The liability only policy covers losses and damages to people and property caused by the insured to others. A comprehensive policy covers both ‘third-party liability’ and damage to the insured’s own vehicle. A comprehensive policy is broader and therefore more expensive than a liability only policy.

Yes, you can acquire a duplicate insurance policy. For this, please contact IFFCO Tokio on 1-800-103-5499 and place a request for the same. There may be a nominal charge involved for providing a fresh copy of the insurance policy.

The place where the commercial vehicle is registered is the place which will be considered for applying the premium rate. Even if you shift to another city or town, the same rate will be applied to your vehicle. If a vehicle is registered in a town viz- a -viz a city, Zone B premium rate will be applied. For vehicles registered in cities, Zone A premium rate is applied on them.

A commercial vehicle insurance policy is usually of one year duration in India subject to renewal before the due date. It is also mandatory upon the insured to pay the payment on time. In case, the policy lapses even for one day, the vehicle must undergo inspection. In case of comprehensive policy, if it is allowed to lapse for more than 90 days, the accrued no claim benefit will be lost to the insured.

An insured can avail sum insured for the vehicle which is called as ‘Insured Declared Value’. The insured declared value reflects the current market value of the vehicle minus depreciation. Under liability coverage, the insured can avail third party liability cover. Insurers offer third party liability cover against injury and damage up to a sum of Rs. 7, 50, 000. However, there is an option to opt for a lower coverage at Rs, 6000. A lower coverage will result in a lower ‘liability only’ premium.

Service tax is applicable on commercial vehicle as per the prevailing rule of law.

If there are any changes in the information provided in the policy like change of address or changes to the vehicle or its use, a formal endorsement is needed to be done by IFFCO Tokio. For this, the insured must submit a letter to the insurer with proof of the changes. Some endorsements may require the insurer to pay an additional premium. It is advised that the insured checks for the correctness of the endorsement within the commercial vehicle insurance policy.

In motor insurance, a separate certificate of insurance is issued by insurers other than the policy. This document must be carried in the vehicle by the insured. The policy document must be preserved separately at home/ office.

The following documents are to be kept in the vehicle while paying plying on the road:

• Certificate of Insurance
• Xerox copy of Registration Certificate
• Pollution Under Control Certificate
• Photocopy of Driving License of person who is driving the vehicle

Yes, the insurance can be transferred to the buyer of the vehicle. However, the seller must inform in writing of such transfer to the insurance company. A fresh proposal form needs to be filled in. There is a nominal fee charged for transfer of insurance along with pro-rata recovery of NCB from the date of transfer till policy expiry. It may be noted that transfer of ownership in cases of comprehensive covers has to be recorded within 14 days from date of transfer. If the insured fails to do so, no claim will be payable for own damage to the vehicle.

A commercial auto insurance is required for any vehicle that you use for business purpose, provided it is also registered as a commercial vehicle. A commercial vehicle will also have a commercial license plate or tag.

The following functions are usually performed by commercial vehicles only and therefore need commercial auto insurance cover:

• Using the vehicle to carry equipment and machinery
• Using the vehicle to transport flammable or hazardous material
• Using the vehicle to transport housekeeping equipment for business purpose
• Using the vehicle to tow other vehicles
• Using the vehicle to carry cranes plows etc.
• Using the vehicle to deliver retail or wholes sale products
• Using the vehicle to deliver newspaper
• Using the vehicle to transport people as cab or auto rickshaw service
• Using the vehicle to run miscellaneous errands on behalf of a business

This is not possible because registration and insurance of the vehicle must be both in the same name and address. Once the vehicle has been transferred to the new entity, a fresh proposal form must be filled in. There is a nominal fee charged when a policy changes hands from one party to another.

Usually, most motor insurance companies require the following documents to be submitted during settlement of claims:

• Registration copy of the vehicle
• Original estimate of loss
• Original repair invoice
• Payment receipt
• Non-traceable certificate in case of theft claim
• Keys to be submitted in case of theft claim
• Repair invoice in case cashless facility is availed

Cashless insurance policy is a facility wherein auto insurance companies have tie-ups with authorized garages. The insured can get his vehicle repaired at one of these garages after an accident. The insured doesn’t have to pay for the repair work; the insurance company will bear the expenses of the insured’s behalf.

There are few steps in cashless settlement of motor insurance policy claims:

• The insured buys a vehicle insurance policy from a company that has tie-ups with a wide network of garages in the country
• If the insured vehicle damages itself during an accident, the policy holder can choose to get it repaired at one of the garages from the network
• The insurance company pays the garage directly for the repair work done on the vehicle
• The insured is only required to pay on the deductibles and for depreciation of replaced parts

Vehicles depreciate with age. Usually, the depreciation of vehicle comes into play when there is claim for total loss. Total loss occurs when the vehicle is stolen. In a situation, where parts of a vehicle are damaged, the depreciated of parts of the vehicle will be considered at the time of settlement of claim, based on the rate of depreciation. This means, the payment is made for the reduced amount and not for the cost of replacement of the part. The rest of the cost of the parts will be borne by the policyholder out-of-pocket.

The rates of depreciation are as listed below:

• For a typical paint job, a depreciation rate of 50% is applied to the material cost of the paint. However, if a consolidated amount is charged for the paint job, then the cost of paint material is considered to be 25% of the total cost and the 50% rate of depreciation is applied on it
• For all rubber/ nylon / plastic parts, tyres and tubes, batteries and air bags the depreciation rate will be at 50%
• For fibre glass components, the depreciation rate will be at 30%
• For all parts made of glass - Nil

In the case of a paint job, which costs Rs. 15,000 and the cost of the paint in the job is Rs. 3,000, the insurance company will only pay 50% of the cost of the paint. So, Rs. 1,500 will be borne by the insured out of pocket.

Compulsory deductibles: This is a fixed amount and depends on two factors: type of vehicle and the engine capacity of the vehicle. For older vehicles, the compulsory deductibles are set at a higher value by Insurance Regulatory and Development Authority of India (IRDA).

Voluntary deductibles: This is an optional amount that may be chosen by the insured at the time of buying the insurance policy. If an insured opts to pay higher deductibles, the vehicle premium will come down. It is generally recommended that if the policyholder doesn’t make frequent claims, he should pay a higher deductible and keep the premium at a lower level.

When making a cashless claim, the following are the steps the policyholder must perform for ease of claim settlement:

• Immediately after the vehicle is involved in an accident, the insured must contact the insurance company and report the incident. The insured is also required to inform the police and file an FIR if there are serious injuries or death following the accident.
• The insurance company will get the vehicle towed to a network garage where the vehicle will undergo a physical inspection. The policy holder must not attempt to move the vehicle by himself without informing the insurance company.
• The network garage will make estimation for the repair work, and this will be examined by the insurer. Following this, with the approval of insurer, the repair work will start.
• The service station then repairs the vehicle and submits the relevant bills to the insurance company. The insurer will examine the bills and other documents submitted.
• Once all the evaluation and verification is done, the claim pay-out process will start. The insured will have to pay the amount equivalent to deductibles and depreciation. The insurance company will pay the remaining amount directly to the network garage.
• In a total loss situation, if the car was damaged beyond economical repair, the insurance provider will make a payment to the customer that is equal to the market value of the car after accounting for depreciation.

RTI add-on is an option provided by insurers to bridge the gap between the invoice value of the vehicle and its insured declared value. With this cover, the insured can get a reimbursement of the on-road price of the car that was paid for the car. A cover with the RTI add-on costs around 10% more than a comprehensive car insurance policy but is very useful to recover the entire loss of the car.

RTI can be applied under certain situations only:

• An insured cannot make claims for small damages like cracks or dents. The RTI cover is useful to cover complete damage to the vehicle or when the vehicle is stolen.
• RTI cover is for complete reimbursement of the cost of the vehicle at which it was initially bought. That is, it helps recover the on-road price of the vehicle.
• The RTI cover is suitable for new vehicle owners because if a new vehicle is lost or completely damaged in an accident, a depreciation cost at the rate of 5 % in the first 6 months and 10 % in the following year is still levied on the vehicle. The depreciation rate keeps on increasing for each subsequent year. Therefore, it is prudent for the owner to include this add-on cover to a comprehensive car insurance policy.
• When the insurer settles a claim with RTI add-on cover, they may either pay the insured the entire on-road price of the car or exclude the cost of specifics, like road tax, registration charges etc. Insurance companies at times compensate on percentage basis in addition to ex-showroom price of the vehicle.
• RTI cover can be availed by vehicles not older than three years. For older vehicles than 3 years, the depreciation cost will be much higher and it will not make financial sense to the insurance company to give this facility to customers. The company would suffer losses if it were to give such a cover to customers.

A normal vehicle insurance cover will not fetch the insured an amount that is equal to the on-road price. Therefore the RTI add-on is beneficial to safeguard a new vehicle especially in areas where vehicle theft is common.

An endorsement is a written evidence of the fact that there is a change in the terms of a policy or in the information provided by the insured. For example, if the insured’s address has changed, it has to be endorsed by the insurer.

No, it is not possible to get the premium refunded unless the policy is cancelled. The insurer retains the premium on short period scale and refunds the remaining amount. Moreover, the insured can be eligible for refund only if there has been no claim during the policy period.

Yes, in general cancellation of motor insurance policy is allowed under the following two situations:

• The insured has insured his vehicle with some other insurance company, at least for the third-party liability
• The vehicle has been sold or registered again

No it is not possible to buy only an add-on without purchasing a policy. Add-on covers are additional benefits offered along with an insurance policy.

No there is usually no limit. However, some add-on covers may not be applicable for older vehicles.

A customer can buy motor vehicle insurance through a website very quickly. He can access free quotes, calculate the best premium rates, and buy with the same quote within a period of seven days. There is no paperwork involved and the customer can use his credit card, debit card or net banking to do the purchase.

Insurers provide customized recommendations based on the vehicle’s age, vehicle type, no-claims-bonus history etc. Many insurance companies have sections in their websites where all the user needs to do is key-in his details to retrieve add-on recommendations.

Moreover, a quick online research is not only quite easy and simple but will also provide the customer a fairly good idea of what add-ons can be beneficial to his requirement.

If you sell your car to another person, the insurance policy is transferred in the name of the new buyer. The new buyer will have to apply for transfer of insurance in his name within 14 days from the date of transfer of the vehicle in his name.

However, if the vehicle owner wants to substitute another vehicle of his to this policy, the policy will not be transferred to the buyer. For this, the buyer will need to buy a new insurance policy.

Yes, it is possible to buy add-on covers other than during the time of buying the policy. Usually, it is recommended to buy the add-on cover at the time of renewal of policy. This can be done online easily. However, if the insured wants to buy new add-ons mid-way, he must contact the customer care representative of the insurance company for guidance.

Break-in-insurance occurs when the insurance policy lapses due to non-renewal on time. Indian motor law makes it compulsory for every vehicle owner to have third-party liability cover. In case of break in, the insured must get in touch with the insurance company to renew the policy if it has been less than 90 days so as to retain the No Claim Bonus. In case, the insured has to buy a new policy altogether, he will have to get his vehicle inspected.

Yes it is possible to get new add-ons online at the time of policy renewal.

Yes, it is possible to transfer accrued benefits from one company to another provided the vehicle is insured within 90 days of renewal date of the policy.

Premium is the fixed amount of sum paid over the period by the insured to the insurance company in exchange of benefits or covers availed as part of the insurance policy. The insurance premium is income for the insurance company and also represents a liability because the insurer must provide coverage for claims being made against the policy.

Personal Accident Insurance for Passenger covers monetary pay-outs towards injuries sustained to passengers in a commercial vehicle in an accident. The add-on covers:

• Capital Sum Insured for which the maximum amount is Rs. 2 lakhs per person
• Permanent total disablement
• Permanent partial disablement
• Accidental Death

No, it is not possible to pay premium in instalments because as per Section 64 VB of Insurance Act, 1938, the insurer will not assume any risk unless the premium is paid in advance. Therefore, full premium will be collected from the insured before the start of the policy itself.

Electrical accessories are electrical or electronic equipment that are usually not fitted with the vehicle. Some examples of electrical accessories include:

• Music system
• LCD mini TV
• Fog lights

Non-electrical accessories cover any non-electrical/ non-electronic equipment that is not factory fitted with the vehicle. Some non-electrical/ non-electronic equipment include:

• Mag wheels,
• Leather seats
• CNG-kit
• interior fittings

Value of electrical accessories will be as declared by the insured.

It is a type of method to calculate the penalty amount for cancelling a policy before its due date. A short period rate cancellation method allows the insurer to retain unearned premium (UEP) that is more than what is done in pro rata cancellation method. Therefore, it acts as a disincentive for the insured to cancel a policy before it expires.

The following details are required to be submitted while registering a claim:

• Policy number
• Vehicle Registration Number
• Caller details / relation with insured
• Date / Time & Place of the incident/ accident.
• Detail description of the incident/ accident
• Type of loss whether Own damage/Theft/third-party
• Type of physical injury or damage
• Whether the incident has been reported to police. If yes, the FIR no
• Name of the driver(This should be as per the name mentioned in driving license)
• Current location of the vehicle
• Garage preference where the insured would like to get it repaired

Once the above information is provided, the call centre of the insurance company will provide the insured with a unique number known as claim no. The claim no will be used for all future correspondence.

Once the insurer receives all relevant documents like original repair invoice, satisfaction voucher, discharge voucher, and necessary fund transfer details, the claim will get processed within 7 working days.

Salvage is the value of wreck following an accident which renders the vehicle totally damaged so much that it no longer makes economical sense to repair the vehicle. For older model vehicles, sometimes a minor damage can render it useless because the total repair expenses will be more than what the vehicle is worth.

Yes, they will be covered but the insured must make a written request to the insurer about the addition of new accessories in the vehicle. He must also provide description of the accessories and information on their value. An additional premium may be levied on the insured.

Yes, you can make a claim provided the following conditions are fulfilled:

• Insurance policy for the vehicle should exist
• If you have paid the premium for a paid driver and the car was driven by him with your permission
• The person driving the vehicle is duly licensed because the premium is based on seating capacity and includes the person on driver’s seat

It is not necessary to always lodge a claim especially for minor damages. For very small damages, the claim amount will be very small and you will still have to pay for depreciation and excess. Most significantly, you will lose your no claim bonus at the time of policy renewal. However, once you have decided not to make a claim for a particular accident, you will not be able to make a claim for the same at a later stage.

A claim may be rejected by an insurer under certain circumstances. Some of these circumstances are as mentioned below:

• The policy has expired or has been cancelled
• The premium cheque has been dishonoured
• The date of accident is outside the policy period
• The person driving the vehicle at the time of accident didn’t possess a valid license
• The person driving the vehicle at the time of accident was under the influence of alcohol or drugs
• The vehicle has changed owners but the same has not been informed to the insurer within the stipulated 14 days.
• The damages existed before the policy started
• The nature of damage doesn’t correlate with the cause of the accident
• The vehicle was used for some other purpose other than commercial business or what was mentioned in the proposal

Loading is an additional premium to be paid at the time of renewal of policy when the company feels that the insured is prone to risks. The additional premium helps the insurer cover losses which may be higher than what is anticipated.

In general, a vehicle which is more than 4 year old will be subject to 5% loading, and vehicle with age 7 and above will be loaded with additional 10%. Vehicles that are aged more than 10 years are subject to maximum 15% by some well-known insurers.

The loading charge is due to the anticipation that older vehicles are more prone to risks of accidents, damages, and other wear and tear.

No. If an employee in a commercial business is using his own personal vehicle to run business errands or even to attend meetings he will not be covered under the commercial policy. In some countries like US, there is option to add an endorsement to the insurance policy to provide coverage for this type situation.

The insured must report the matter to the insurance company, the police, and the RTO where the vehicle was registered. The RTO must formally acknowledge the letter sent by you informing them about the theft.

The insured must also call the insurance company to get a duplicate copy of the policy and to start the process of filing the claim. The insured will need to fill in a claim form and submit the police FIR to the insurer. An investigator will be appointed to trace the lost vehicle. Depending on the outcome of the investigations, the insurer will offer the insured a claim settlement. A few additional documents may be required during the claim settlement process.

By total loss, we mean damages incurred on the insured’s vehicle where the cost of repair amounts to more than 75% of the IDV on his policy.

Cases of accidents are assessed according to Tort Liability (that is, compensation must be paid by whomever is negligent or at fault), unless both parties to the accident are insured by companies that are bound by the Intercompany Settlement Agreement. This agreement specifies how claims would be adjusted given the particular scenario.

“Drive other car” insurance policy provides coverage for personal use of a non-owned commercial automobile by the insured.

“Drive other car” provides the following benefits:

• Liability cover
• Medical payments
• Uninsured/Underinsured motorist coverage
• Physical damage coverage

If an individual, for example, a company officer, does not have his own personal auto policy, and uses a corporate car for person use, this coverage is apt to protect them from exposures that may occur from using someone else’s car. Similarly, if an executive of a partnership or corporation or their spouse drives a non-owned vehicle that is rented or borrowed, the ‘the drive other car’ is useful.

Yes, other people may drive your business vehicle with your permission. However, make sure that they are listed on your policy if they are regular drivers of the vehicle.

If a private passenger vehicle (not a pick up or a van) is registered in the name of a business, it must be covered under a business auto policy. If the vehicle is registered in the individual’s name, but is used for business use, some uses may be covered under the personal auto insurance policy and the personal auto policy must be designated as business use.

Under common law ‘Negligence’ generally means careless or inadvertent conduct that results harm or damage which is quite common in automobile accidents. One can be negligent in two ways- First, by failing to do what needs to be done to avoid an accident. Secondly, by actively doing something (such as running a red light) that can result in an accident. Reckless or wanton conduct refers to intentional disregard for the safety and welfare of others. Strict liability under ‘Negligence’ may also be imposed in some cases, even in the absence of fault. For example, if the accidents involved certain defective products or extra hazardous activities such as the transporting of explosive chemicals without taking adequate safety measures and endangering others in the process.

No, the claim will be valid. However, the insured must report the incident within seven days of occurrence of the event. An FIR should be lodged along with all required documents which will work as an evidence of the date of occurrence of the event. Upon failure to adhere to the above steps, the claim will be deemed invalid.

Ministry of Road Transport and Highways, Government of India has initiated Vahan Citizen services, an e-portal for payment of taxes and registration of vehicles. Vahan Online Services are available for different states/RTOs. If you want to know about the availability of the services in your state and also avail on these services, you need to enter the registration number of your vehicle. Please mind that the registration number should not have any gaps in between.

An owner of a commercial vehicle has the option to apply for tax exemption for the period when his vehicle was off the road. For this, he must approach the transport department to understand the process as every state has a different process.

Motor vehicle tax is under the purview of state government. Each state has its own motor vehicle act based on which tax calculated.

Additional MV tax is applied when certain parameters exceed the specified limits. For example, the unladen weight of vehicle exceeds 50000.

Motor Vehicle tax can be paid online through the e-portal parivahan.gov.in. Alternately, it can be paid via state transport portal.

There is no need to submit any form while paying tax online.

Online tax payment facility is not available for every state in India as of now. Only a few states and their RTO have online facility for tax payment.

You can use any mobile number to avail online payment facility for motor tax payment. Once you enter your mobile no, you will get OTP for confirmation of mobile number. After that, you can proceed to the payment process.

This could be because you earlier transaction for the same vehicle is pending. You are not allowed to start a new transaction without settling earlier transactions.

All states and their RTOs in India are not yet covered under the online facility for motor tax payment. It is also possible that some of records of registered vehicles have not been migrated to the online portal.

A customer with a blacklisted vehicle cannot avail services for online payment. The customer must approach the respective department to remove his vehicle from blacklist. Once the vehicle is removed from blacklist, he can avail Vahaan services for payment of taxes etc.

The amount may be debited from customer’s account but reconciliation may still be pending at bank’s side. A customer should therefore keep checking his transaction status through “check pending transaction”.