Commercial Vehicle Insurance
Keep Your Working Vehicles Insured And Earning
Commercial vehicle insurance covers vehicles used for business, from light goods carriers and heavy trucks to school buses, taxis, tractors and cranes. It protects the vehicle against accident, fire and theft, and covers liability to third parties, passengers and paid drivers. Because the rules differ for each vehicle class, a small mismatch between permit, use and policy can decide whether a claim is paid. MILES checks those details, compares insurers and supports you when a vehicle is off the road.
What Commercial Vehicle Cover Includes
Own Damage To Vehicle
Repairs or total loss after collision, overturning, fire, theft, flood or riot, based on the vehicle's insured declared value.
Third-Party Liability
Compulsory cover for death, injury and property damage caused to others while the vehicle is in use.
Paid Driver Liability
Legal liability to paid drivers, cleaners and conductors, which ties in with the Employees' Compensation Act 1923.
Passenger Cover
For buses, taxis and other passenger vehicles, liability to fare-paying passengers is part of the policy.
Special Type Vehicles
Cranes, tractors, excavators, ambulances and other miscellaneous vehicles need their own class of cover, which we arrange.
Business-Friendly Add-Ons
Zero depreciation, roadside help, consumables and cover for trailers or fitted equipment, where insurers offer them.
What is commercial vehicle insurance?
Commercial vehicle insurance is motor insurance for any vehicle used to carry goods or passengers for business, or used for a special commercial purpose such as construction or farming. Like every motor policy in India, it must include third-party liability under the Motor Vehicles Act 1988, and it can add own-damage cover for the vehicle itself.
The policy is written differently from a private car policy. The class of vehicle, its gross vehicle weight or seating capacity, its permit and the way it is used all shape the premium, the cover and the conditions that apply at claim time.
Classes of commercial vehicle
| Class | Examples | Key points |
|---|---|---|
| Goods-carrying vehicles | Pick-ups, light and heavy trucks, tippers, tankers, trailers | Rated on gross vehicle weight; public and private carriers are treated differently |
| Passenger-carrying vehicles | Taxis, cabs, buses, school buses, auto-rickshaws | Rated on seating capacity; passenger liability applies |
| Miscellaneous and special type | Cranes, tractors, excavators, forklifts, ambulances, road rollers | Use off public roads and fitted equipment need careful wording |
What is covered
- Own damage from accident, fire, explosion, self-ignition, theft, natural calamities, riot and malicious acts.
- Third-party liability for death, bodily injury and property damage caused to others.
- Liability to passengers for passenger-carrying vehicles.
- Legal liability to paid driver, cleaner or conductor, relevant because employers have obligations to these workers under the Employees’ Compensation Act 1923.
- Owner-driver personal accident cover where the owner drives the vehicle.
What is not covered
- Driving by someone without a valid licence for that class of vehicle.
- Use outside the permit, such as a goods vehicle carrying passengers for hire, or operating outside the permitted area.
- Carrying loads beyond the permitted limit, where the insurer’s wording makes this a condition.
- Wear and tear, and mechanical or electrical breakdown.
- Loss of income while the vehicle is off the road, unless specifically added.
- Damage to the goods being carried, which needs separate transit cover.
The last point is often misunderstood. A motor policy covers the truck, not the cargo. Businesses moving their own goods usually need a marine sales turnover policy or similar transit cover alongside the motor policy.
How the premium is decided
Own-damage premium depends on the insured declared value, vehicle age, make and model, weight or seating class, zone of operation, add-ons, deductibles and your No Claim Bonus. Third-party premiums for each class are notified by IRDAI. Insurers also look at how the vehicle is used: long-haul inter-state trucking, local distribution and school transport carry very different risks.
How MILES helps
- Check permit and use: we confirm the policy matches the permit, route and type of load, which is where many claims fail.
- Compare insurers for your vehicle class; not every insurer is keen on every segment, such as tippers or tankers.
- Driver liability: we make sure paid drivers and cleaners are declared correctly on the policy.
- Grow into a fleet: once you run several vehicles, we can move them to fleet insurance with common renewal dates.
- Claims support for own-damage and third-party claims, including coordination with surveyors and garages.
How a claim works
- Report the accident or theft to the insurer and to MILES immediately.
- File an FIR for theft, injury, death or serious third-party damage.
- Do not move the vehicle for repair until the surveyor has inspected it, except for safety.
- Submit the claim form with RC, permit, fitness certificate, driver’s licence, policy copy and FIR where relevant.
- Third-party injury claims are usually decided through the Motor Accident Claims Tribunal, and the insurer defends and pays within the policy terms.
- Own-damage claims are settled after survey and repair, less deductibles and depreciation.
Commercial vehicles are a core part of our motor insurance work for businesses across India.
Cover, exclusions and premiums depend on the insurer’s policy wording and underwriting. MILES Insurance Brokers Pvt. Ltd. is an IRDAI-licensed direct broker (Life & General, Reg. No. 954); the insurance is issued by the insurer. Insurance is the subject matter of solicitation.