Thursday, November 24, 2016

Features Of Commercial Vehicle Insurance Plan

Car insurance is something that one cannot ignore because it is mandatory according to the law. Of course you can get away with third party insurance, but it is not sufficient. Comprehensive vehicle insurance is necessary to ensure that you are protected from any kind of financial loss due to damage to the vehicle.
                 

Why commercial vehicle insurance is necessary?
Commercial vehicles are more prone to accidental damage because they usually travel longer distances on roads which are not well maintained. This is why it is necessary to get all commercial vehicles insured properly. At the same time, commercial vehicles are more prone to damage due to natural calamities because of the fact that they are compelled to travel in any kind of weather conditions. Hence it is important to avail commercial vehicle plans because:
  • Protecting your vehicle which is an important asset and investment
  • In some plans you also get coverage for payment of medical bills in case of accidents
  • The insurance company will also take care of the expenses of a lawsuit related to any accident
  • The insurance plans also pay for theft and vandalism apart from accidents and natural calamities
  • You get peace of mind knowing that you are well protected in case of any mishap

Different insurance companies provide different coverage under their commercial vehicle plans, but the most comprehensive coverage is provided under the commercial vehicle insurance plan by Reliance car insurance. Let us look at some of the salient features of the commercial vehicle insurance plans offered by good companies.

Loss or damage to the vehicle due to the following reasons:

  • Fire, explosion, lightening or self ignition
  • Burglary, theft, housebreaking’
  • Riot, Strike
  • Inundation, cyclone, hailstorm, frost
  • Earthquake
  • Typhoon, flood, tempest, storm
  • Landslide, rockslide
  • Accident
  • Terrorist activity
  • Malicious activity

If the vehicle is disabled and needs repair, then the company will bear the reasonable cost of protecting and removing the vehicle to the nearest workshop along with re-delivery to the insured. However, such amount will not exceed the amount stipulated for 3 wheeled vehicles, taxis and other commercial vehicles in any one accident.

The insured can authorize any repair of the vehicle which does not exceed a minimum amount stipulated by the insurance company. Any amount more than this has to be approved by the insurance company. For this a detailed estimate of cost of reasonable repairs needs to be submitted to the company.

The Insured Declared Value of the vehicle is the Sum Assured for the purpose of the plan which is decided at the commencement of the plan. The IDV is fixed based on selling price of the manufacturer and the model of the vehicle insured at the inception of the commercial car insurance plan.

Exclusions
There are some things that most insurance companies will not pay for and these are known as exclusions
  • Damage due to war, invasion, act of foreign enemies, warlike operations and hostilities, civil war, mutiny, military or usurped power, and rebellion
  • Loss or damage due to ionizing radiation or contamination by radioactivity from nuclear fuel or from nuclear waste from the combustion of nuclear fuel
  • Accidental damage or loss due to nuclear weapons material whether direct or indirect
  • Deductible as stated in the plan
  • If the vehicle is driven by someone else who is not the driver in the ‘driver’s clause’
  • Consequential loss – if there is subsequent loss caused by the original damage, then only the cost of original damage will be covered
  • If the vehicle is used for purpose other than the ‘limitations to use’
  • Any loss, damage or liability which occurs outside the geographical region described for the vehicle
  • Claim arising out of any contractual liability
Thus the insurance plans for commercial vehicles cover almost all reasonable elements and the same is true of the Reliance commercial vehicle insurance.


Also Read About Bajaj Allianz Online Health Insurance Plans

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