Commercial Vehicle Third-Party Insurance

Third Party Commercial Vehicle Insurance Premium Rates

IRDAI has set the third-party commercial vehicle insurance prices for different types of commercial vehicles plying on the roads of India. These premium rates w.e.f 1st April 2022 are as follows:

Premium for Private Goods Carrying Commercial Vehicles (other than 3-wheelers)

Third-Party Premium of Agricultural Tractors

Third Party Premium Rate of Auto-rickshaw and E-Rickshaw

Third Party Premium Rates of Buses

Key Features of Commercial Vehicle Third-Party Insurance

Here are some of the features of commercial vehicle third-party insurance:

Why Do You Need Commercial Vehicle Third Party Insurance?

Here is why you should purchase third-party insurance for your commercial vehicle:

• Mandated by Law: The Indian Motor Laws require every vehicle owner to own at least a third-party insurance policy for his/her vehicle.
• Cost-effective: The policy is cost-effective in terms of the coverage it provides. The IRDAI has laid down a nominal premium for different types of commercial vehicles.
• Save You From Challan: Since it is mandatory to have a third-party policy for commercial vehicles, it can save you from paying a hefty amount on traffic challan.
• Covers TP Death: The third-party insurance policy also covers third-party death and disability caused by the insured commercial vehicle.
• Covers TP Property Damage: The policy protects you from third-party liability in case of loss or damage to third-party property due to the insured vehicle.
• Easy Purchase Process: Commercial vehicle third-party insurance can be purchased easily as you can purchase it online.
• No Discrepancy: Since the Insurance Regulatory & Development Authority of India fixed the price of this policy, there is no chance of any discrepancy in premium rates.
• Peace of Mind: When protected with a third-party insurance policy, you do not have to worry about any unforeseen expenses and keep your peace of mind.

Type of Commercial Vehicles Covered Under Third Party Insurance

There are several types of commercial vehicles that run on the roads and require third-party commercial vehicle insurance. They are as follows:

• Cab & Auto Rickshaw
• Trucks
• Cranes
• Bulldozers
• School Buses
• Passenger Buses
• Goods Carrying Vehicles such as Lorries, Tempos, etc.
• Other Miscellaneous Vehicles used in businesses

Commercial Vehicle Third-Party Insurance: Inclusions

Third-party commercial vehicle insurance provides coverage for the following:

• Third-party Death: If your vehicle injures the third party or the third person dies or suffers any type of disability, this insurance will provide compensation. The coverage offered in such cases is decided by the Motor Accident Claims Tribunal.
• Third-party Property Damage: If your vehicle damages a third-party vehicle, the insurer will provide coverage for it. The compensation offered under this is limited to up to Rs 7.5 Lakh.
• Personal Accident Cover: Under third-party insurance, you also get personal accident cover for up to Rs 15 lakh. You can opt for this if you have a valid driving license.

Commercial Vehicle Third-Party Insurance: Exclusions

The insurer will not provide coverage for the following scenarios under third-party commercial vehicle insurance:

• Illegal Activity: If the commercial vehicle is found involved in any illegal act when the accident took place that caused damage to the third-party vehicle or property.
• Own Damages: Any accidental damage sustained by the insured vehicle is not covered.
• Driving Without License: The insurer will not provide coverage if the driver is found driving the commercial vehicle without a valid driving license.
• Influence of Alcohol & Drugs: If the driver of the insured commercial vehicle is found under the influence of alcohol or drugs, the insurer will not provide coverage for the third-party damage.
• War: The insurer will not cover any damage caused during a war or war-like situation.
• Contractual Liabilities: The insurer will not provide coverage for any contractual liabilities.

Consider These Things While Raising Third-Party Commercial Vehicle Insurance Claim

Here are several important things that you need to consider while raising a commercial vehicle third-party insurance claim:

• When the accident takes place, the third party will file an FIR, and you will have to notify your insurer about this; otherwise, the insurer will not compensate you for the loss.
• It is also vital for the third party to have solid proof that the opposition has caused damage to their property or vehicle.
• If possible, try to settle things out of court, as it can be a very time- and energy-consuming process.
• As per IRDAI, the claim amount is decided by the Motor Accident Claim Tribunal.
• There is no upper limit for personal third-party death/disability; however, the liability limit for loss or damage caused to a third party's property or vehicle is Rs 7.5 lakh.

How to Raise Claim Under Third-Party Commercial Vehicle Insurance?

Follow the steps given below to raise a claim under 3rd party commercial vehicle insurance policy:

Step 1: In case of an accident, a third party must file an FIR to get the charge sheet.

Step 2: After this, you can tell your insurer about the accident.

Step 3: The insurer will send an inspector to inspect the damage caused to the third-party vehicle

Step 4: Ask your insurer for the claim form

Step 5: Once the inspector is satisfied, you can complete the claim form and submit it with the required documents.

Step 6: The Motor Accident Claim Tribunal decides the claiming amount according to the damage caused.

How to Renew Commercial Vehicle Third-Party Insurance Online

Follow the steps below to renew your third-party commercial vehicle insurance online. They are as follows:

Step 1: Before your policy expires, visit Policybazaar.com

Step 2: From the homepage, click on the Commercial Insurance tab

Step 3: Enter your vehicle number in the given form and proceed

Step 4: Select your RTO make, mode, variant, etc

Step 5: From the mentioned third-party plans for your commercial vehicle, select the one that you need

Step 6: Once selected, you can make the payment using UPI, Debit/credit card, or net banking

Step 7: Once the insurer has processed the payment, you will receive a receipt. The insurer will then send a soft copy of your renewed insurance policy to your mail and a hard copy to your registered address.

*It is important to renew your policy before it expires; otherwise, an expired third-party insurance policy can land you in financial and legal trouble.