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✦ AMFI Registered — ARN-50844 | ✦ SEBI Compliant | ✦ IRDA Certified Insurance Advisor | ✦ LIC Authorised Agent Delhi NCR | ✦ 20+ Years Experience
Motor Insurance

Commercial Vehicle Insurance

Protect your trucks, buses, taxis, goods carriers, auto and e-rickshaws — and your business revenue. Third-party, comprehensive and fleet cover with expert guidance and claim assistance.

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Last updated: June 2026 · Binod Kumar Shukla · Authorised Insurance Advisor
On this page
  1. What is commercial vehicle insurance?
  2. Vehicles we cover
  3. Policy types
  4. How premium is decided (GVW)
  5. Mandatory PA cover
  6. Add-ons
  7. Fleet insurance
  8. How to claim
  9. Mistakes to avoid
  10. FAQs

What is commercial vehicle insurance?

Commercial vehicle insurance covers vehicles used for business — carrying goods or passengers for hire or reward. Because these vehicles spend more time on the road and carry higher risk, insuring them properly isn't just smart, it's legally required under the Motor Vehicles Act, 1988 (at least third-party cover).

A damaged or off-road commercial vehicle doesn't just cost repair money — it stops earning and hits your business revenue. The right policy protects both the vehicle and your livelihood, covering third-party liability, own damage, and the driver and owner against accidents.

Quick summaryThird-party is mandatory and IRDAI-priced by vehicle class & GVW. Comprehensive adds own-damage cover. A separate Personal Accident cover for the driver/owner is also part of motor policies.

Vehicles we cover

🚛 Goods carrying vehicles

Truck (LCV / MCV / HCV)TrailerTankerTipperMini TruckPickupTempoDelivery VanGoods CarrierGoods E-Cart 3-Wheeler

🚌 Passenger carrying vehicles

Taxi / CabApp Cab (Ola/Uber)BusSchool BusStaff BusTourist BusAuto RickshawE-RickshawPassenger VanAmbulance

🚜 Special & agriculture

TractorHarvesterConstruction VehicleCash VanRecovery / Breakdown VanMining Vehicle

Don't see your vehicle? I cover all commercial types.

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Policy types

PolicyWhat it coversBest for
Third-Party (Liability Only)Injury/death & property damage to others. Mandatory by law. Doesn't cover your own vehicle.Bare legal compliance
Comprehensive (Package)Third-party + own damage (accident, theft, fire, flood, riot).Most operators & financed vehicles
Standalone Own DamageOwn-damage only; bought with a separate TP policy.When TP & OD renewals differ

How the premium is decided

For commercial vehicles, third-party premiums are fixed by IRDAI and notified by MoRTH — primarily by Gross Vehicle Weight (GVW) for goods carriers and seating capacity for passenger vehicles. Own-damage premium depends on IDV, vehicle age, zone and add-ons. Because these rates are revised periodically, we share the current figure for your exact vehicle on request rather than publishing fixed numbers.

Vehicle classPremium driverPremium
Goods carriersGross Vehicle Weight (GVW) slabIRDAI-set (indicative)
Passenger carriersSeating capacityIRDAI-set (indicative)
Taxis / cabsSeating & city zoneIRDAI-set (indicative)
Auto / E-RickshawVehicle classIRDAI-set (indicative)
TractorsUse & HPIRDAI-set (indicative)

Premium rates are indicative and subject to IRDAI revisions and insurer updates. Contact us for the current applicable rate.

Mandatory Personal Accident (PA) cover

Commercial vehicle policies include a separate mandatory Personal Accident cover for the owner-driver, covering accidental death and disability. You can also extend PA cover to paid drivers, cleaners and conductors — important protection for the people who run your vehicle.

Useful add-ons

Zero Depreciation (newer vehicles)Engine ProtectionRoadside AssistanceDriver / Cleaner PALegal Liability to EmployeesLoss of Income / Daily AllowanceConsumablesIMT endorsements
Zero-dep for commercial vehiclesAvailable with select insurers for newer vehicles (typically up to 3–5 years). Since truck/bus/taxi parts are expensive and replaced often, zero-dep can meaningfully cut your claim costs.

Operate a fleet? Get tailored, cost-effective cover.

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Fleet insurance

If you run multiple commercial vehicles, a fleet policy can simplify administration and often improve value — one renewal cycle, consolidated paperwork, and terms suited to your operation. I help transporters, schools, cab operators and businesses insure fleets of trucks, buses, taxis and goods carriers.

How to claim — step by step

  1. Intimate immediately: Inform the insurer (and me) right after the incident, before any repair.
  2. Survey: A surveyor assesses the damage for own-damage and third-party claims.
  3. Documents: Submit claim form, RC, driving licence, permit, fitness certificate, policy copy and (for theft/major) FIR.
  4. Approval: The insurer reviews and approves the admissible amount.
  5. Settle: Cashless at a network garage where available, or reimbursement after repair.
Keep papers validCommercial claims need a valid permit, fitness certificate and driver licence for the vehicle class. An expired permit or wrong-class licence can lead to claim rejection.

Mistakes to avoid

  • Using a private vehicle as a taxi without commercial cover — claims get rejected for "limitations as to use".
  • Letting the policy lapse — legal penalty, lost NCB, and off-road risk to revenue.
  • Under-declaring IDV — lower payout on total loss/theft.
  • Skipping driver/cleaner PA & legal liability — leaves you exposed to employee claims.
  • Expired permit/fitness at claim time — a common rejection reason.

Frequently asked questions

Is commercial vehicle insurance mandatory?
Yes. At least third-party cover is mandatory for every commercial vehicle under the Motor Vehicles Act, 1988.
How is commercial third-party premium decided?
It's fixed by IRDAI (notified by MoRTH), mainly by Gross Vehicle Weight for goods carriers and seating capacity for passenger vehicles, and revised periodically.
What is GVW?
Gross Vehicle Weight — the vehicle's total laden weight. It's the key slab that determines third-party premium for goods-carrying vehicles.
What is the difference between third-party and comprehensive?
Third-party covers only liability to others; comprehensive adds own-damage cover for your vehicle from accident, theft, fire and calamities.
Is a separate PA cover included?
Yes. Commercial motor policies include a mandatory Personal Accident cover for the owner-driver, and you can extend PA to paid drivers, cleaners and conductors.
Can I get zero depreciation for a truck or taxi?
Yes, with select insurers for newer vehicles (typically up to 3–5 years). It reimburses replaced parts without depreciation — valuable given expensive commercial parts.
Does NCB apply to commercial vehicles?
Yes, on the own-damage premium for claim-free years (ranging up to 50% as per guidelines). It does not apply to third-party-only cover.
What is fleet insurance?
A single policy covering multiple commercial vehicles, simplifying renewals and paperwork and often offering better value for operators.
What documents are needed for a commercial claim?
Typically the claim form, RC, driving licence (correct class), permit, fitness certificate, policy copy and, for theft/major incidents, an FIR.
Can a private car be used as a taxi?
Not under a private policy. Using a private vehicle commercially without proper commercial cover can lead to claim rejection. You need a commercial policy.
What happens if my permit or fitness has expired?
An expired permit or fitness certificate at the time of loss is a common reason for claim rejection. Keep them valid.
How is taxi insurance priced?
By seating capacity and city zone, with TP fixed by IRDAI. Metro zones (higher accident density) can attract higher rates.
Can I insure an e-rickshaw or auto?
Yes. Autos and e-rickshaws have their own commercial classes with TP cover mandatory and comprehensive optional.
What is legal liability to employees cover?
It covers your liability towards paid drivers, cleaners and conductors for injury or death during employment on the vehicle.
Does commercial insurance cover goods carried?
Motor insurance covers the vehicle and liabilities, not the goods. Goods in transit need separate marine/transit insurance.
What affects my commercial premium?
Vehicle segment, GVW or seating, IDV, age, city zone, cargo type, add-ons and claims history (NCB).
Is comprehensive worth it for an old truck?
It depends on the vehicle's value and your risk. For older, low-value vehicles, TP plus key add-ons may suffice — I help you decide.
How do I renew without losing NCB?
Renew before expiry (within the allowed window). A lapse can cost your NCB and require a fresh inspection.
Can I insure a tractor used for farming?
Yes. Agricultural tractors have their own class; commercial use attracts commercial cover. TP is mandatory.
What is IDV for a commercial vehicle?
The vehicle's current market value and the maximum payable on theft or total loss. Set it fairly to ensure a fair claim.
Can I pay premium in instalments?
Some insurers offer instalment options on certain commercial policies. I can check availability for your vehicle.
Does it cover natural disasters?
Comprehensive and own-damage policies cover flood, cyclone and similar events; third-party-only does not.
How do I insure a whole school bus fleet?
Through a fleet policy covering all buses under one renewal, with PA cover for drivers and conductors. I arrange this for schools.
What is a goods-carrying E-cart 3-wheeler?
An electric three-wheeler used to carry goods — it has its own commercial class and TP rate.
Can you help me choose and claim?
Yes. I help you pick the right cover and add-ons, get a competitive quote, and assist end-to-end at claim time. Call or WhatsApp 99115 81705.
B

Binod Kumar Shukla — Authorised Insurance Advisor

20+ years helping transporters, cab operators, schools and businesses across Delhi NCR insure commercial vehicles and fleets, with end-to-end claim assistance.

Related insurance & guides

All General Insurance → Car & Bike Insurance → Workmen Compensation → Marine / Goods Transit → Claim Process → Personal Accident →

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Disclaimer & compliance: Binod Kumar Shukla provides insurance advisory and policy assistance for multiple insurers. Policies are issued subject to the underwriting guidelines of the respective insurance companies, and premiums are governed by the insurer and IRDAI regulations. Third-party premiums are fixed by IRDAI and revised periodically. Policy issuance and claim settlement are subject to insurer underwriting terms and IRDAI regulations. Insurance is the subject matter of solicitation. This page is for information only and does not constitute a contract of insurance.

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