COMMERCIAL VEHICLE INSURANCE FAQs

What is the amount for which I need to insure my commercial vehicle?

A commercial vehicle is usually insured up to its IDV. This is the vehicle’s ex-showroom price, minus depreciation. In case the vehicle is stolen or damaged beyond, the insurance company will provide the IDV of the vehicle to the insured. Do note that depreciation can reduce the IDV of the vehicle considerably. For instance, after just 4 years, the value of your vehicle would have reduced by 50% due to depreciation.


Therefore, if you wish to remove depreciation from the equation, you can opt for the return to invoice add-on. This will ensure your vehicle is insured up to its current listing price in case of theft or damage that results in total loss of the vehicle.

What kind of risks are covered under a third party policy?

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 occur 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.

Issues if I forget to renew my commercial auto insurance?

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.

Can I renew my commercial vehicle insurance

IFFCO Tokio provides you the option to renew commercial vehicle insurance either online or offline. Just visit our commercial vehicle page and click on the renew options. After this, simply enter your policy number, confirm/customize the coverage of your plan, and make the payment to renew your policy.

Do you have a commercial vehicle insurance policy from another insurance company? No problem! You can renew your coverage with IFFCO-Tokio! Just visit our website and fill out a fresh proposal. We might send one of our representatives to inspect your vehicle and provide you with the best quotation for your needs. The best part is that you can retain your NCB from your existing policy – this ensures you get quality coverage at discounted rates!

What is a No Claim Bonus(NCB) in Insurance?

If you do not make a claim against your insurance policy during the coverage tenure, then you will be eligible for a discount when you renew your plan. This discount is known as No Claim Bonus or NCB.

Your NCB discount also increases for every subsequent claim-free year. As such NCB discounts can range from 20% to 50%. However, the moment you make a claim, this NCB discount may be retracted completely.

NCB is usually attached to the policyholder and not the vehicle. Therefore, when you buy a new car, your NCB will be transferred to the insurance policy of your new vehicle. 

If I change my insurance company, will my no claim bonus get transferred too?

If you don’t make any claim in your current policy and wish to change vehicle insurance companies at the time of renewal, you need not worry about your No-claim bonus. The No-claim bonus for your current policy will be transferred to whichever insurance company you are opting for. You just have to provide the proof of the no-claim bonus along with your original policy papers. For proof, the insured person can ask their insurer for a letter that acknowledges the bonus accumulation in their policy.

What is the meaning of “Deductible”?

Before the insurance provides compensation for a claim, the insured has to pay some amount from their pockets. This amount is called deductible or excess and is based on the type of vehicle you own. For two-wheeler owners, the deductible amount starts from Rs. 50 and for private cars and commercial vehicles the base deductible is Rs. 500. The deductible amount depends upon the cubic capacity/carrying capacity of the vehicle. The higher the cubic capacity of the vehicle, the higher will be the deductible amount. It can also arise if the vehicle is too old or the frequency of claims made by the policyholder is very high.

How is the premium determined in Commercial vehicle Insurance?

Different insurance providers charge different premiums depending upon various factors related to the vehicle. The main parameters which are taken into consideration include the cubic capacity of the vehicle, the deductible amount of the plan, the coverage you have opted for, and the Insurance declared value (IDV) of the vehicle. Some motor vehicle insurers charge a lower premium but in return make you pay a higher deductible, whereas there are vehicle insurance companies that provide less coverage and less Insured declared value. You can find the best combination of premium rates and coverage at IFFCO Tokio. 

What commercial auto Insurance Cover should I buy?

Third-party vehicle insurance and comprehensive vehicle insurance are the two types of motor vehicle insurance policies that people in India can choose from.

Having 3rd party vehicle insurance is the minimum criteria to drive a vehicle in India. This type of policy only covers damages incurred by the third-party in case of an accident. To get a broader range of coverage, you can opt for comprehensive vehicle insurance. It covers ‘third party liability’ as well as own-damage.  However, this type of policy is slightly expensive than the liability-only policy.

I have lost my commercial vehicle insurance policy. Is it possible to acquire a duplicate one?

In case you lose your commercial vehicle insurance policy you can always ask for a duplicate copy. All you have to do is make a phone call on IFFCO Tokio’s helpline number 1800-103-5499 and make a request for the same. However, they may ask for some extra charges to provide a fresh copy.

If I buy my commercial vehicle in a particular city and then I move to another city, which premium rate will be applied?

The premium of a commercial vehicle insurance policy is usually determined based on the place where your vehicle has been registered. Therefore, moving to another city should have any effect on your commercial vehicle insurance policy. As such, Zone-A premiums apply to vehicles registered in larger cities, whereas Zone-B premiums apply to vehicles registered in smaller towns.

What is the period of a commercial auto insurance policy?

In India, a commercial vehicle insurance policy is valid for one year and it has to be renewed before the due date.  The policyholder should make the payments on time and not let the policy lapse. Insurance companies carry out complete vehicle inspection, in case the insurance policy lapses even for a day. You can also lose your no-claim bonus if you allow your comprehensive insurance policy to lapse for more than 90 days.

What are the different coverage limits an insured can avail?

The sum insured of your commercial vehicle insurance policy is limited to the IDV of your vehicle. This is the maximum compensation you can receive in case of theft or total loss of the vehicle. IDV is the current market price of the vehicle after deducting depreciation. For a liability only plan, the amount of compensation payable is capped at Rs. 7, 50, 000. Finally, if your plan included personal accident cover, you and/or your family members can receive compensation of up to Rs. 15 lakh in case of disability or death arising due to an accident.

Is service tax applicable on commercial vehicle insurance and by how much?

The existing rule of law decides the service tax applicable to commercial vehicle insurances.

My address has changed. How do I get my new address updated in the policy documents?

The policyholder must inform the insurance company if there are any changes in the personal details provided in the policy. They can do this by submitting a letter to the insurer along with proof of the details changed. After verifying the proof, the insurance company will do the needful to carry out the changes. In some cases, they may also ask you to pay an additional premium to update your policy.

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 needs to be made. For this, the insured must submit a letter with proof of the changes. Some endorsements may require the insurer to pay an additional premium. So make sure to check these endorsements mentioned in your commercial vehicle insurance policy before making any commitments. 

What is a certificate of Insurance under Motor Vehicles Act?

Insurance companies issue a distinct certificate of insurance along with the policy. The policyholder needs to mandatorily carry this certificate while driving their vehicle. It is also important to keep a copy of the same separately at your home/office for emergency purposes.

What are documents to be kept in the vehicle while paying plying on the road?

The driver shall compulsorily carry the following documents in their vehicle to avoid paying fines.

  • Insurance Certificate.
  • Photocopy of the vehicle registration certificate.
  • Pollution under control record.
  • Photocopy of the driver’s driving license.

 

Is it Possible to Transfer My Insurance?

Yes, it is possible to transfer your motor vehicle insurance policy. To do so, you will have to inform the insurance company in writing. They will ask you to fill in a fresh proposal form and charge some fee to carry out the transfer process. The transfer of the vehicle insurance also carries forward the no-claim bonus from the date of transfer to the policy expiry date. However, the transfer of policy must be carried out within 14 days of the transfer of vehicle registration, or else you won’t be able to make any claims.

When exactly do I need commercial auto insurance?

If you want to use your vehicle for business purposes, you need to register it as a commercial vehicle. Every commercial vehicle must have commercial auto vehicle insurance along with a commercial license plate or tag.

Commercial vehicles with commercial vehicle insurance are usually used to carry out the following functions:

  • To transport machinery and other heavy equipment’s
  • To carry inflammable or intoxicating material.
  • To carry housekeeping instruments for your business.
  • To move cranes from one place to another.
  • To deliver wholesale or retail supplies.
  • To deliver newspapers.
  • Using the vehicle as a cab or rickshaw service.
  • To carry out various extra activities for a said business corporation.
  • Using the vehicle to run miscellaneous errands on behalf of a business.

Is it possible to continue the insurance in the name of the earlier owner even if the vehicle has been transferred to my name, and the same reflects in RTO records?

No, it is not possible to continue the insurance in the name of the earlier owner if the vehicle has been transferred to the name of a new owner. The new owner needs to fill a new entry for the insurance and has to pay the fee for the same.

What are the documents that must be submitted for a motor insurance claim?

The following is the rundown of records that a policyholder must present to the motor vehicle insurance company in order to settle a claim.

  • Photocopy of the registration certificate of the vehicle
  • Estimated amount of the loss incurred.
  • Invoice of the repairs carried out.
  • Receipt of payment.
  • Record of non-traceability in the event of theft claim.
  • Key of the vehicle in case of a claim.
  • The repair invoice of cashless service, if availed.

What is a cashless vehicle insurance policy?

Vehicle insurance companies in India have tie-ups with authorized garages across the country. Such tie-ups can help the policyholder avail of certain benefits in case of emergencies. One of these benefits is the cashless repair facility. This service gives assurance that in case the vehicle of the insured has damaged and needs urgent repair; the insurance company will coordinate and pay the expenses on behalf of the insured.

What is depreciation in commercial vehicle insurance?

The value of a vehicle decreases by a certain percentage after every passing year. This gradual reduction in the value of the vehicle is known as depreciation. In case of a claim, the insurance company offers compensation based on the depreciated value of the automobile. In case of repairs, the insurer will provide compensation based on the depreciated value of the parts that need replacement. In case of a total loss, the insurance company will provide the IDV of the vehicle which is the vehicle’s ex-showroom price minus depreciation.

What are the two types of deductibles in commercial vehicle insurance?

The following are the two types of deductibles in commercial vehicle insurance:

Compulsory deductibles:

This is a fixed amount decided based on two factors:

  1. Vehicle type
  2. Cubic/carrying capacity of the vehicle.

The Insurance Regulatory and Development Authority of India (IRDAI) have set higher deductibles for vehicles that are very old.

Voluntary deductibles:

These are optional and selecting one can increase the total deductible amount you have to pay to the insurer. Opting for one of these can help to reduce the policy premium amount to a large extent. It is advisable to go for a voluntary deductible if the policyholder doesn’t make any claims. This way you will have to pay a little higher deductible but the premium will be very low.

What are the exact steps to be followed to make a cashless claim?

The insurance holder must follow the given steps to easily make a cashless claim:

  • The policyholder must immediately report the accident to the insurance company and the police and file an FIR if there are critical injuries or casualties following the incident.
  • The policyholder must not move the vehicle by themselves. They must wait for the insurance company to come and move the vehicle. The insurance officer will tow the vehicle to the nearest network garage and inspect the vehicle.
  • After this, the insurer will examine the quote given by the network garage. The repair work will start only after approval from the insurance company.
  • After the approval, the service station starts repairing the vehicle and presents pertinent bills to the insurer on the completion of repairs.
  • The insurer will evaluate all the submitted records and once they are all verified, the claim process will start. The policyholder will have to pay the depreciation and deductibles. The rest will be taken care of by the insurer.
  • In case the car is damaged completely and rendered uselessly, the insurance company will compensate the amount equivalent to the market value of the vehicle. However, they will also consider depreciation. 

Why is it recommended to buy a RTI add-on?

The gap between the invoice value and the Insured declared value (IDV) of a vehicle can be reduced using the RTI add-on in your vehicle insurance policy. This rider will ensure that you get the on-road price of your vehicle in the event of theft or major damages to the vehicle. However, having this benefit added to your policy will cause a rise in the premium amount payable. 

When should an RTI be applied?

There are certain conditions under which the RTI can be applied. They are:

  •  The RTI cover can be used only if the vehicle is completely damaged or is stolen. They are not useful to claim small cracks and dents.
  •  The RTI cover helps you recover the on-road price of the vehicle at the time of claim.
  • The RTI cover helps compensate for a new vehicle owner if their vehicle suffers from loss or damage in an event of an accident.
  • RTI is usually availed by vehicles that are aged 3 years or below. For older vehicles, the depreciation value will be much more and it will not make much sense for the insurance providers to offer this service to their customers.
  • Basic insurance for commercial vehicles might not fetch an amount equal to the on-road price. This is why RTI is beneficial as it offers financial assistance to new vehicles especially in areas where vehicle robbery is common.

What is an endorsement in motor vehicle insurance?

If there is any change in the personal details of the insured or terms of the motor vehicle insurance policy. The policyholder needs to present written evidence of the same. Such pieces of evidence are called endorsements in motor vehicle insurances.

Can I get my premium money refunded?

Refunds are only provided in case the policyholder cancels their vehicle insurance policy. The refund amount will depend on the coverage tenure remaining under the policy. Do note that refund is only possible there have been no claims made during the policy period.

Are there any pre-conditions to cancellation of policy before its expiry date?

The following two conditions allow the cancellation of motor vehicle insurance before its expiry date:

  • The policyholder has changed insurance companies.
  • The insured has sold their vehicle.

Can we buy an add-on without a policy?

No, it is not possible to buy add-ons separately. You need to purchase a motor vehicle insurance policy to avail of these benefits.

Is any limit to the number of add-on covers an insured can buy?

No, there is no limit to the number of add-ons covers an insured can buy. A person buying vehicle insurance can select any number of add-ons to upgrade the policy coverage. 

Benefits of purchasing motor vehicle insurance online?

There are many benefits of buying motor insurance online. To begin with, it is much easier than buying a plan at a branch. You can avoid the time consuming and painstaking task of visiting the branch and buy a plan from the comfort of your home.

The online process can also be completed much faster. You also have the convenience of completing the process whenever you want, and from wherever you like! Lastly, there is no paperwork involved, the policy document will be emailed to you – this ensures that you always have a softcopy at hand and do not have to worry about losing your insurance papers.

How will I know which add-on is required for me?

Before buying a motor vehicle insurance policy, you can research the benefits of different add-ons and choose the one which you think will suit you. You can also take help from insurance providers who will suggest add-ons based on your vehicle’s age, type, and claim settlement history. Our website will also recommend some must-buy add-ons that you can select from.  

What will happen to my policy if I sell my car?

After the sale of the car, the new buyer can transfer the existing insurance policy to their name by following a very simple procedure. However, the transfer process should be carried out within 14 days of the date of vehicle registration by the new owner.

The old owner of the vehicle can also carry forward his plan and no claim bonus to any other vehicle. In such a case, the new buyer will have to apply for new vehicle insurance.

Is it possible to buy add-on covers that the insured didn’t buy initially with the policy?

Yes! You can buy add-ons that you didn’t initially buy with your policy. The best time to do this is when you renew your plan – you can simply choose the add-ons you want and pay the revised premium. You can also include add-ons mid-way through your policy tenure through a process known as an endorsement – however, you would have to contact the customer care representative of the insurance company for guidance.

What is meant by break-in insurance?

Break-in-insurance occurs when you do not renew your motor vehicle insurance on time leading to its lapsing. According to the rules and regulations in India, you must have your vehicle insured with at least third-party vehicle insurance. So in case of a break-in, the insured should contact the insurer to renew the policy.  Make sure the renewal process is carried out within 90 days of break-in to avail of the no-claim bonus accumulated in the previous policy. 

Is it possible to get new add-ons online at the time of policy renewal?

Yes, you can always opt for new add-ons at the time of renewing your vehicle insurance.

Is it possible to transfer No claim benefit?

Yes, you can transfer your NCB discount when you switch insurance providers. This is because NCB is attached to the policyholder, not the plan, the insurance company or the vehicle. However, you must transfer the plan within 90 days of the renewal date to avoid any unwanted complications.

What is an Insurance premium? Understand how Premiums Work

Premium is the amount you pay to enjoy the coverage of a commercial vehicle insurance policy. This amount is decided based on numerous factors such as the cubic capacity of the vehicle, its IDV, the deductible of the plan, etc.  Premium is usually paid annually. However, you can also avail of long-term plans wherein the premiums are paid after longer intervals of up to 3 years or more.

What is Personal Accident cover for passengers in a commercial auto insurance cover?

Personal accident cover is a component of a motor insurance policy. It offers lump-sum payouts up to Rs. 15 lakh in case the passengers in the commercial vehicle sustain injuries in an accident. Personal accident insurance covers:

  • Permanent total disablement.
  • Permanent partial disablement.
  • Accidental Death.

Is it possible to pay commercial vehicle insurance premium in installments?

No, premiums for commercial vehicle insurance cannot be paid in installments. The person buying a policy for their commercial vehicle will have to pay the complete premium in advance. If not, the insurance company is legally allowed to deny compensation for any risks that are inflicted on the vehicle and the owner.   

How do we define electrical and non-electrical accessories?

Extra electrical and electronic equipment that are not factory fitted in the vehicle are called electrical accessories. Here are some examples of electrical accessories:

  • Music player
  • Mini LCD TV
  • Fog lights

Any extra non-electrical amenities that people fit in their car are called non-electrical accessories.

  • Wheel-caps
  • Leather seat covers
  • CNG-kit
  • Other interior fittings

How do we calculate the value of vehicle accessories?

The policyholder has to mention the value of all the extra installed accessories in the vehicle before buying vehicle insurance online or offline.

What is a short period rate?

The insured will have to pay a penalty if they want to cancel their motor vehicle insurance before its due date. This penalty amount can be reckoned by a method called a short period rate. This method helps the insurer to retain the unearned premium (UEP). 

What are the details that are required to be submitted while registering a claim?

Registering a claim is extremely easy. All you have to do is collate and submit the following details and documents:

  • Policy number.
  • Vehicle Registration Number.
  • Caller details/relation with insured.
  • Date/Time & Place of the incident/ accident.
  • A detailed 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 the police. If yes, the FIR no.
  • Name of the driver (This should be as per the name mentioned in the 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 center 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.

How long does it take for a claim to get settled?

Insurance companies settle the claim within 7 working days of receiving all the relevant documents from the insured. These documents include the original repair invoice, satisfaction voucher, discharge voucher, and necessary fund transfer details.

What is salvage and total loss?

The value of a vehicle that has met with an accident and has been damaged to such an extent that it no longer makes economic sense to repair it is called salvage.  In the case of very old vehicles, even small damage may cause total loss as the expenses to repair the vehicle will be more than current value of the vehicle.

During the policy period if the insured adds accessories, will the policy cover them also?

Yes, both electrical and non-electrical accessories can be added and covered by a commercial auto insurance policy. For this, the policyholder must put in a written request to the insurance company about the addition of the new accessories. The request should provide a description of these accessories and their value. The insurance company might revise the premium based on the value of these accessories.

I own a vehicle which met with an accident two days back. But my original driver was not driving the vehicle. Can I still make a claim?

A claim can be made considering the mentioned criteria are satisfied:

  • The automobile should have a vehicle Insurance Policy
  • If the car was driven by a paid driver whose premium has been paid by you.
  • A fully licensed individual should be appointed to drive the automobile as the premium is built on seating capacity and includes the driver as well.

My vehicle met with an accident but luckily the damages were really minor. Do I still have to lodge a claim or is it optional to lodge a claim especially when the damage is minor?

It is not necessary to always lodge a claim, especially for minor damages. In fact, most insurance experts advise policyholders to refrain from making claims for such damages. There are numerous reasons for this. To begin with, when you make a claim for minor damages, the cost of depreciation and deductible will come out of your pocket. Not to mention, you might also lose out on any NCB you have accumulated in the process which could be greater than the compensation you receive when the claim is settled. 

Under what conditions, can a claim be rejected by an insurance company?

There are definite conditions under which an insurer may reject a claim. They are as follows: 

  • Expiration or Cancelation of the policy. 
  • The premium cheque has been disgraced. 
  • The date of the incident occurred is beyond the period of the policy. 
  • During the period of the accident, the driver of the automobile didn't own a valid driver’s license. 
  • During the period of the accident, the driver of the automobile had consumed drugs or alcohol.  
  • The owner of the automobile had been changed without notifying the insurer within the mentioned period or 14 days. 
  • The destruction was done before the policy had started. 
  • The nature and damage of the accident weren’t in correlation. 
  • The usage of the vehicle included other motives apart from the one mentioned in the proposal.

What is loading? What is the charge for loading?

When you renew your commercial vehicle insurance policy, the insurance company may ask you to pay an additional premium amount if the risk to cover your vehicle has increased. This additional premium is known as premium loading. The loading price is predicted on the grounds of the age of vehicles as older vehicles are more prone to accidents, destruction, wear and tear, etc. Generally speaking, automobiles that are more than 4, 7, and 10 years old will be levied with 5%, 7%, and 10% premium loading respectively. 

Can a person be covered by commercial auto insurance policy when he uses his own vehicle on the job?

No. An individual who makes use of his personal automobile for commercial business will not be covered under the commercial vehicle insurance policy. However, in a few countries like the US, one gets the option to add an endorsement to their motor vehicle insurance to provide coverage in such situations.  

What should an insured do if his vehicle is stolen and he loses his original policy too?

The first thing the policyholder needs to do is inform the police, the RTO where the vehicle was registered. Next, the policyholder needs to inform his/her insurance provider and also apply for a duplicate copy of the insurance policy.

After this, the policyholder may begin the process of filing a claim. This is will require an FIR and a letter from the RTO acknowledging the theft. Once the claim is registered, 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.

What is meant by total loss?

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.

What is the process for determining liability in a commercial auto accident?

Cases of accidents are assessed according to Tort Liability (that is, compensation must be paid by whoever 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.

What is “Drive Other Car” coverage?

"Drive other car" is an insurance policy that makes provision for the insured individual for the usage of a non-owned commercial vehicle. 

This insurance policy provides the following benefits: 

  • Coverage of Liability. 
  • Payments to cover Medical reasons.
  • Coverage for Uninsured/Underinsured motorists.
  • Coverage for any physical damage caused.

For instance, if an individual without a personal auto policy drives someone else’s vehicle, this policy provides aid against inconveniences that might occur in that vehicle. Similarly, the drive other car policy is functional if the executive of a partnership or corporation or their significant other drives a non-owned automobile. 

Can other people drive a business vehicle owned by me?

Yes, anyone can drive your business vehicle provided they have a proper driver’s license. However, if they are regular drivers of your vehicle, be sure to list their names in your motor insurance policy.

Why does my private passenger vehicle have to go on my commercial policy?

This is because all private vehicles, except for pick-up trucks & vans, which are registered in the name of a business, must be covered under a business car insurance policy. If the vehicle is registered under any particular individual’s name, but is being used for business purposes, it might receive some amount of coverage under a personal car insurance policy. However, for this, the personal car insurance policy must be designated as ‘for business use’.

How does the Common Law define ‘Negligence’?

As per common law, the term ‘negligence’ refers to any careless or inadvertent actions that result in harm and/or damage to others. That being said, negligence is quite common in automobile accidents and it is of two kinds – the first is where one fails to do what needs to be done to avoid an accident. The second is where one actively does something that will result in an accident – a classic example, in this case, is running a red light.

On the other hand, 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.

If an insured lodges a claim after the vehicle insurance expires for an accident that occurred during the policy term, will the company reject the claim as invalid?

No, the claim will not be rejected! As long as the policyholder reports the incident with seven days of its occurrence, the claim will be valid. The insured must lodge an FIR along with all the required documents – this will also serve as evidence of the date of occurrence of the event. However, the claim can be denied if the policyholder fails to adhere to this procedure and timeline.

What is Vahan Vihan? Vehicle Registration Service

‘Vahan’ is a national vehicle registry created by the Ministry of Road Transport and Highways. The main aim of Vahan is to collate all the vehicular information available with all road transport authorities and provide citizens and regulators easy access to the same.

Does the owner of a commercial vehicle need to pay tax even when the commercial vehicle is not plying on road?

No, the owner of a commercial vehicle can avail of tax relief for the period when his/her vehicle was off the road. For this, he/she must approach the transport department to understand the process as every state has a different process to avail of this tax relief.

Does Motor Vehicle tax differ from state to state?

Yes, motor vehicle tax falls under the purview of individual state governments. Therefore, each state has its own motor vehicle act based on which the vehicle tax is calculated.

What is meant by additional MV tax? Does it apply to all types of commercial vehicles?

Additional MV tax is applied when certain parameters exceed the specified limits. For example, an additional MV tax will apply if the unladen weight of the vehicle exceeds 50000 KGs.

Which forms must be submitted while paying tax online?

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

I entered vehicle registration number in the e-portal but got the message “Alert! This service has not been activated for the concern State/RTO.” What does this mean?

This means that the online tax payment facility is not available in your state. This is because the online tax payment facility is not available for every state in India as of now. Only a few states and their RTOs have an online facility for tax payment.

Which mobile number do I have to use to avail the facility for online payment of motor tax?

You may use any mobile number of your choice to avail online payment facility for motor tax payment. Once you enter your mobile number, you will get OTP for confirmation of your mobile number. After that, you can proceed to the payment process.

My transaction showed as pending when I tried to make an online payment. What could be the reason?

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

Why did I get a “No record found” for my commercial vehicle?

There are two possible reasons for this – the first is that your state is not yet covered under the online facility for motor tax payment. Secondly, it could also be possible that the records of some registered vehicles have not been yet been migrated to the online portal.

I am trying to pay motor vehicle tax online for my commercial vehicle. But I got the message “Alert!!! Vehicle is blacklisted”.

Blacklisted vehicles cannot avail of the online payment service. In this case, the customer must first approach the respective department to remove his vehicle from the blacklist. Once the vehicle is removed from the blacklist, the customer can avail of Vahan services for payment of taxes and other services.

Why does a customer sometimes get "Transaction failed, please initiate new transaction” despite making a payment online?

This can happen sometimes. The amount may be debited from the customer’s account but reconciliation may still be pending at the bank’s side. That’s why it is important for customers to keep checking his/her transaction status through the ‘check pending transaction’ option.

How exactly cashless commercial auto insurance policy work?

Getting cashless claims with your commercial auto insurance policy is extremely simple. It only involves the following steps:

  • 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 is damaged in an accident, the policyholder 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.

Can a commercial vehicle owner pay Motor Vehicle Tax online?

Yes, motor vehicle tax can be paid online through the e-portal parivahan.gov.in. Alternatively, you can also pay motor vehicle tax through your state transport portal.

How exactly cashless commercial auto insurance policy work?

Getting cashless claims with your commercial auto insurance policy is extremely simple. It only involves the following steps:

  • 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 is damaged in an accident, the policyholder 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.

Benefits of purchasing motor vehicle insurance online?

There are many benefits of buying motor insurance online. To begin with, it is much easier than buying a plan at a branch. You can avoid the time consuming and painstaking task of visiting the branch and buy a plan from the comfort of your home.

The online process can also be completed much faster. You also have the convenience of completing the process whenever you want, and from wherever you like! Lastly, there is no paperwork involved, the policy document will be emailed to you – this ensures that you always have a softcopy at hand and do not have to worry about losing your insurance papers.

Is it possible to buy add-on covers that the insured didn’t buy initially with the policy?

Yes! You can buy add-ons that you didn’t initially buy with your policy. The best time to do this is when you renew your plan – you can simply choose the add-ons you want and pay the revised premium. You can also include add-ons mid-way through your policy tenure through a process known as an endorsement – however, you would have to contact the customer care representative of the insurance company for guidance.

Is it possible to transfer No claim benefit?

Yes, you can transfer your NCB discount when you switch insurance providers. This is because NCB is attached to the policyholder, not the plan, the insurance company or the vehicle. However, you must transfer the plan within 90 days of the renewal date to avoid any unwanted complications.

What is Personal Accident cover for passengers in a commercial auto insurance cover?

Personal accident cover is a component of a motor insurance policy. It offers lump-sum payouts up to Rs. 15 lakh in case the passengers in the commercial vehicle sustain injuries in an accident. Personal accident insurance covers:

  • Permanent total disablement.
  • Permanent partial disablement.
  • Accidental Death.

How do we define electrical and non-electrical accessories?

Extra electrical and electronic equipment that are not factory fitted in the vehicle are called electrical accessories. Here are some examples of electrical accessories:

  • Music player
  • Mini LCD TV
  • Fog lights

Any extra non-electrical amenities that people fit in their car are called non-electrical accessories.

  • Wheel-caps
  • Leather seat covers
  • CNG-kit
  • Other interior fittings

What are the details that are required to be submitted while registering a claim?

Registering a claim is extremely easy. All you have to do is collate and submit the following details and documents:

  • Policy number.
  • Vehicle Registration Number.
  • Caller details/relation with insured.
  • Date/Time & Place of the incident/ accident.
  • A detailed 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 the police. If yes, the FIR no.
  • Name of the driver (This should be as per the name mentioned in the 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 center 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.

During the policy period if the insured adds accessories, will the policy cover them also?

Yes, both electrical and non-electrical accessories can be added and covered by a commercial auto insurance policy. For this, the policyholder must put in a written request to the insurance company about the addition of the new accessories. The request should provide a description of these accessories and their value. The insurance company might revise the premium based on the value of these accessories.

What should an insured do if his vehicle is stolen and he loses his original policy too?

The first thing the policyholder needs to do is inform the police, the RTO where the vehicle was registered. Next, the policyholder needs to inform his/her insurance provider and also apply for a duplicate copy of the insurance policy.

After this, the policyholder may begin the process of filing a claim. This is will require an FIR and a letter from the RTO acknowledging the theft. Once the claim is registered, 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.

What is meant by total loss?

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.

What is the process for determining liability in a commercial auto accident?

Cases of accidents are assessed according to Tort Liability (that is, compensation must be paid by whoever 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.

If an insured lodges a claim after the vehicle insurance expires for an accident that occurred during the policy term, will the company reject the claim as invalid?

No, the claim will not be rejected! As long as the policyholder reports the incident with seven days of its occurrence, the claim will be valid. The insured must lodge an FIR along with all the required documents – this will also serve as evidence of the date of occurrence of the event. However, the claim can be denied if the policyholder fails to adhere to this procedure and timeline.

What is Vahan Vihan? Vehicle Registration Service

‘Vahan’ is a national vehicle registry created by the Ministry of Road Transport and Highways. The main aim of Vahan is to collate all the vehicular information available with all road transport authorities and provide citizens and regulators easy access to the same.

Does the owner of a commercial vehicle need to pay tax even when the commercial vehicle is not plying on road?

No, the owner of a commercial vehicle can avail of tax relief for the period when his/her vehicle was off the road. For this, he/she must approach the transport department to understand the process as every state has a different process to avail of this tax relief.

Which forms must be submitted while paying tax online?

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

My transaction showed as pending when I tried to make an online payment. What could be the reason?

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

Why did I get a “No record found” for my commercial vehicle?

There are two possible reasons for this – the first is that your state is not yet covered under the online facility for motor tax payment. Secondly, it could also be possible that the records of some registered vehicles have not been yet been migrated to the online portal.

My vehicle met with an accident but luckily the damages were really minor. Do I still have to lodge a claim or is it optional to lodge a claim especially when the damage is minor?

It is not necessary to always lodge a claim, especially for minor damages. In fact, most insurance experts advise policyholders to refrain from making claims for such damages. There are numerous reasons for this. To begin with, when you make a claim for minor damages, the cost of depreciation and deductible will come out of your pocket. Not to mention, you might also lose out on any NCB you have accumulated in the process which could be greater than the compensation you receive when the claim is settled. 

I am trying to pay motor vehicle tax online for my commercial vehicle. But I got the message “Alert!!! Vehicle is blacklisted”.

Blacklisted vehicles cannot avail of the online payment service. In this case, the customer must first approach the respective department to remove his vehicle from the blacklist. Once the vehicle is removed from the blacklist, the customer can avail of Vahan services for payment of taxes and other services.