Vehicles are a key component in the logistics of a business. Not only do they facilitate procurement of materials, but also ensure the output is available at the place of consumption. Thus, facilitating the logistics of your business operations. Further, damages to these vehicles can disrupt your cash flow and business operations. If such vehicle is a critical part of your business operations, it is necessary to shield it against damages. With a commercial vehicle insurance policy, these disruptions can be avoided and the financial impact on your operations can be mitigated.
As per the Motor Vehicles Act, it is mandatory for all vehicles registered in the country to have a vehicle insurance policy. Be it private or a commercial vehicle, it is a compulsory requirement. In addition, these policies can be purchased as third-party plans or comprehensive covers. While a third-party policy is the bare minimum that you need to buy, it offers protection against legal liabilities that become payable to a third person in the event of an accident. On the contrary, a comprehensive policy is an alternative to such third-party plan. With comprehensive coverage, the insurer includes any costs of repairs to your vehicle in its insurance cover. Apart from that, theft, natural calamities and man-made perils are other events that are covered by a comprehensive plan.
When you buy a commercial vehicle insurance online, there are various types of vehicles that are covered by it. This article mentions these different types of vehicle which can be categorised in three parts.
Passenger carrying vehicles
Vehicles are used for transportation of passengers. Taxis, buses auto-rickshaws are some examples that are specifically used for carrying of passengers. While they are regularly used in to and fro, a commercial vehicle insurance is necessary since it is exposed to various perils. This general insurance policy helps safeguard these vehicles and damages for its repairs. A lot of the lower income group is dependent on driving these vehicles for their livelihood, and a commercial vehicle insurance help to avoid a dent for its repair costs.
Goods carrying vehicles
Another common application of commercial vehicles is those used in transporting goods. All those vehicles that are classified as heavy goods are generally classified in this category. Trucks, tempos, lorries, etc are some examples that are primarily used in movement of goods. Some of these vehicles are typically large in size, larger than average. Because of its extended dimensions, they are prone to higher risks. Any damages or repairs to these vehicles can be a hefty blow to the business operations. Thus, a vehicle insurance policy that offers coverage for such private vehicles helps safeguard against third-party liabilities as well as insure against repair costs.
Other special vehicles
Other than taxis, buses, trucks, some special types of vehicle are required for other activities. For instance, excavator, tractor, forklift, etc are specialised types of vehicles that have limited but critical use in certain business applications. These specialised vehicles are also required to purchase an insurance cover as they can injury a third-party during its operations.
As critical it is to buy vehicle insurance for private vehicles, commercial vehicles also find its use. So, make sure all your vehicles used in business operations are insured. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.