A number of specific business usage and vehicle types are generally excluded from private car insurance policies.

The reason why they are excluded because personal vehicle insurance policies are not legally eligible for operating any sort of businesses.Private or personal vehicles are rated differently in the country.

Business owners that run their businesses through any type of vehicle that is used for commercial purpose, are required to bring under commercial vehicle insurance policy.Due to their continuous functioning in a restless manner, these vehicles are more vulnerable to various damages.

This is the reason why commercial vehicles require compact coverage which is fulfilled by a comprehensive vehicle insurance policy.Determining whether your vehicle requires commercial auto insurance or private car insurance can be sorted out by figuring out for which purpose your vehicle is being used.Commercial vehicle insurance policy offers four major types of coverage:Third party legal liability cover pays for property damage or bodily injury to a third party caused by your vehicle.

This policy also pays for accident-related legal expenses, such as settlement costs or attorney fees etc.The policy covers physical damage and collision.

It pays for repairs if your commercial vehicle is damaged by something other than a car accident.

Commercial vehicles play a significant role in businesses very much depends on such vehicles.

Similarly, the protection for these vehicles also calls for urgent action.

To ensure that your business runs smooth and fantastic, it is a must to have a good commercial vehicle insurance policy to deal with any unforeseen damage as a result of an accident.The costs of repairing such vehicles are much higher than private vehicles.

And in case of any significant loss or damage, you may have to break the bank if you have insured under a good commercial vehicle insurance plan.Death or bodily injury to a third party person due to an accident involving your vehicle.Damage to third party property.Liability is covered for an unlimited amount related to death or injury and damage to third-party property is Rs.7.5 lacs under Commercial vehicle insurance.Along with the third party legal-liability cover, package policy for commercial vehicle compensates against the following loss or damage from the followings:Housebreaking, theft, burglary.Riot and Strike.Malicious Act.Any damage to your vehicle while it’s in transit via rail, air, road, inland waterway, lift or elevator.Terrorist Act.Explosion, fire, lightning or self-ignitionTyphoon, Flood, Storm, Tempest, Inundation, Hurricane, Hailstorm and Cyclone.Accidental external means.Damage by landslide/RockslideEarthquake (Fire and Shock) Damage.You Can Further Extend the New India Commercial Vehicle Insurance Online to Cover Loss or damage to the accessories fitted inside the vehicle such as fans, stereos, air-conditioners, etc.From the above write-up, the importance and coverage of commercial vehicle insurance policy are quite clear.

Before the renewal of a commercial vehicle insurance policy, make sure that you are comparing different plans online to have the best coverage for the best price.

Ensuring the protection to your commercial vehicle is the very first step in securing your business.

Mainly two types of commercial vehicle insurance policies are available to choose from:Liability Only Policy: This commercial vehicle insurance policy covers third party liability for bodily injury and / or death and property damage of a third party person.

Personal Accident cover for Owner-driver is also included under this plan.Third party commercial vehicle insurance covers the vehicle owner's legal liability to pay compensation in the event of the following:Damage to third party property.Liability is covered for an unlimited amount with regard to death or injury and damage to third party property.Death or bodily injury to a third party person due to an accident involving your vehicle.Package Policy: Package motor insurance policy, also known as comprehensive vehicle insurance covers loss or damage to the commercial vehicle insured as well as third partly legal liability too.Along with the third-party legal liability cover, package policy for commercial vehicle compensates against the following loss or damaged from the followings to your commercial vehicle:Explosion, fire, lightning or self-ignition.Housebreaking, theft, burglary.Riot and Strike.Malicious Act.Typhoon, Flood, Storm, Tempest, Inundation, Hurricane, Hailstorm  and Cyclone.Terrorist Act.Any damage to your vehicle while it’s in transit via rail, air, road, inland waterway, lift or elevator.Accidental external means.Damage by landslide/RockslideEarthquake (Fire and Shock) Damage.How Premium is Determined?The premium of Commercial vehicle insurance Plan depends on the following factors:Insured Declared Value (IDV) of your commercial vehicleCubic capacityGeographical zoneAge of the vehicleGVW of in case of commercial vehiclesWhat Are the Exclusions of Commercial Vehicle Insurance Online?Just like any other insurance policies in India, commercial vehicle insurance also has a number of exclusions.

Find out the exclusions below:Consequential lossAny damage or loss incurred when driving with invalid driving licenseUsing your vehicle otherwise than in accordance with the `limitations as to use’Driving under the influence of intoxication.Loss due to civil war, war, mutiny etc.Damage to your commercial vehicle due to wear and tear, breakdowns is not coveredAny claim arising out of contractual liability is not coverage

Commercial vehicle insurance policy is a type of motor insurance plan that covers a commercial vehicle such as an auto, bus, taxi, truck, lorry, tractor, etc., against various types of external damages, along with personal and third-party liabilities in the event of an unforeseen accident.Just like any other type of motor insurance plan, there are two types of commercial vehicle insurance policy: third-party and comprehensive or own damage.The risks that Third-Party policy cover includes:Death or injury to a third-party.Damage of third-party property.In insurance, there are 2 main parties involved namely the insurance provider (second party) and the insurance buyer (first party).

If any damages or loss occur to anyone else other than the insurance buyer, it constitutes a ‘third-party’.When an individual buys commercial vehicle insurance, they basically wants to protect the vehicle from own damages whether it was caused by it was caused due to own mistakes or a third-party’s.

Here one thing you must keep in mind that the third-party policy only protects an insured against the third-party claims and this type of plan is mandatory by the law.

But the comprehensive or own damage cover is optional and it offers coverage for own damage as well as third-party bodily injury, death and third-party property damage.Commercial vehicle insurance policy offers coverage for the following:Drivers or employees who have been hired to drive the commercial vehicles.Specific business and its assets.High risk of operating certain commercial vehicles.Major Exclusions of Commercial Vehicle InsuranceIf an accident occurs outside the geographical area covered under the policy for the commercial vehicle.The policy will not offer any coverage if the insured vehicle has been used for any unlawful reason.The policy will not cover any accidental damage it is caused due to a mechanical or electrical breakdown in the vehicle.Any accident caused while the individual was driving the vehicle without a valid driving license or under the influence of alcohol, drugs, and such other forms of intoxication.If your business runs on the wheels of a commercial vehicle then it becomes your very first duty to ensure total protection to that vehicle.

You can click here to get the best deals on the renewal of commercial vehicle insurance policy online.