auto insurance

Why is auto insurance important

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Why is auto insurance important

Auto insurance is a subclass of passenger carrier vehicle insurance. Under the motor vehicles act, buying a third-party housing policy in India is essential for auto-rickshaw if the auto-rickshaw causes damage or damage to a third-party vehicle, person, or property, it will provide a cover for the same.

Following are the main features and importance of an auto insurance policy:

  • It saves your auto and owner/driver from any loss arising out of natural disasters, terrorist activities, fire, accidents, malicious ACTS, and theft amid other unfortunate incidents.
  • Auto insurance assures passengers/customers that you are safe.

Auto Insurance Plan

  • Coverage: Coverage for external damage: the policy will auto cover in case of an accident resulting in damage or injury.
  • Coverage of natural disasters: Natural disasters can overwhelm your auto. There is nothing to worry about; An auto insurance scheme provides coverage for natural calamities.
  • Fire: Total or partial loss of auto-rickshaw has also been covered due to the fire.
  • Personal accident cover: Owner-driver and co-passengers are provided in case of an accident due to accident, death, disability, or injury.
  • Third-party loss: Any damage or damage to the passengers by the third party or your auto rickshaw has also been covered.
  • Theft: Policy also covers your auto-rickshaw in case of any loss or damage that occurs due to theft.
  • Warping to the disabled: An auto insurance policy provides coverage to your auto against any loss in case it is tow.

What is not Under the Auto Insurance Policy?

  • Driving or drunk driving without a license
  • Own damage to third party insurance
  • Consequential losses
  • Contributory negligence

E-rickshaw insurance: E-vehicles along with e-rickshaws are now registered and are covered under the motor vehicle amendment act 2015. Insurance regulatory and development authority (IRDA) makes for third party insurance required for battery-driven 3- wheelers.

The insurance norms and procedures for e-rickshaw insurance are fully similar to the auto insurance policy. However, only third-party insurance is available for e-rickshaw. The premium amount is based on vehicle capacity.

Commercial vehicle or auto insurance: Conclusion

The commercial vehicle or auto insurance policy covers personal, medical, and financial losses due to damage resulting from theft, accidents, and natural calamities. Most insurance companies provide a cashless compensation/claim by repairing your vehicle in their registered workshops.

Several insurance companies provide customized commercial vehicle or auto insurance policies to meet the different needs of their customers. Here is a list of benefits that a business vehicle insurance policy offers:

Loss/damage due to an insured commercial vehicle:

  • Fire, self – ignition, explosion, or lightning
  • Riots and strike
  • Theft, housebreaking, and theft
  • Dishonorable act
  • Floods, storms, thunderstorms, and thunderstorms hail
  • Landslide and stonewall
  • Earthquake
  • Terrorist activity
  • Accident (by external means)

Personal accident claims also come under this policy. It covers the permanent total disability/accidental death of the driver and the owner.

In case of an accident connected with your insured commercial vehicle and third-party vehicle, the third party insurance cover. This will cover a third-party vehicle, damage, or damage caused by bodily injuries and death.

Option to increase the benefit of policy by availing different add-on cover at an additional premium.

Paid add-on cover in the commercial motor insurance policy:

You can increase your scope by choosing to use the add-on cover to pay an extra premium. Here are a few add-ons you can choose from:

  • Supportive cover: Coverage for damage of accessories

Legal liability cover to paid drivers/conductors/non-hired passengers

  • Personal accident cover: Personal accident benefit to owner/driver & any other named person other than an employee & vehicle cleaner/conductor/paid driver
  • Zero depreciation cover/zero depreciation cover: To get the full value of the vehicle in case of loss or damage
  • Towing cover: Roadside assistance in case of sudden breakdown of the vehicle.
  • Engine guard: To cover the resulting loss to the vehicle engine.

Business vehicle insurance policy:


Any claim arising out of the policy is not covered:

  • Vehicle break
  • Consequential damage
  • The loss that occurred during the civil war
  • Contractual liabilities also not included
  • Any accident while driving with an illegal driving license or while drunk on alcohol
  • According to ‘use by limits’ use of the vehicle (in the event of being used as a private car taxi)
  • A crisis of war, a nuclear crisis
  • Electrical and mechanical breakdown, breakdown or failure
  • If a policy is not active at the time of accident or loss.

Commercial vehicle or auto insurance claim process:

The claim of a commercial vehicle or auto insurance with the correct approach is easy. To get the claim amount reimbursed without difficulty, it is important to inform your insurance provider of the loss immediately.

You can call them on their toll-free helpline number to record a claim or write them to their subscriber helpline email id.

Nowadays, most of the commercial vehicle insurance provider claim forms are also provided online. While filing a claim, the following details are required from the end of the insured:

  • Loss time and date
  • Policy no for reference
  • A place to which the incident has occurred
  • Brief of incident
  • Name and contact number of the person filing the claim

Also, Read – Cheap Commercial Vehicle Insurance for USA

Full video version is also available please see bottom of the article.

Documents required to claim commercial vehicle or auto-rickshaw policy:

To claim commercial passenger vehicle insurance or vehicle insurance carrying goods, you must submit the following documents:

  • Registration certificate of vehicle
  • Driving license
  • Duly filled claim form and signature
  • Copy of FIR
  • Tax receipt
  • Copy of Aadhar card
  • Fitness certificate
  • Original insurance policy papers
  • Load invoice of his business vehicle
  • Root permission

Commercial vehicle or auto insurance policy renewal:

The passenger or baggage carrying vehicle needs to be renewed on time to ensure the benefit of the policy. Renewal of policy is also possible online. All you need to do is to visit the insurer’s official website and complete the online renewal formalities. Pay the online premium and renew the policy immediately.

Factors of business vehicle or auto insurance pricing:

  • IDV of vehicle
  • Vehicle age
  • Area of registration
  • Vehicle type and model
  • Fuel type of vehicle

How to calculate a business vehicle or auto insurance premium?

You should not buy the policy in compulsion or haste. Before purchasing a policy, you must compare the policies available online based on premium rates, facilities, and benefits and claim the settlement ratio of the insurers. You may also visit aggregator websites, where you can compare different commercial vehicle insurance quotes. Also, using the motor insurance calculator, you can get an idea of how much you are going to pay the premium.

Full video version of the article:

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