Purchasing a car in India can be for one of two or purposes: private use or commercial use. Irrespective of the usage, however, both of these require that one have an insurance cover that has been mandated by the Indian government. A private car insurance policy typically protects the insured’s vehicle from third-party accidents, natural calamities, robbery, and more. Vehicle insurance works slightly differently for commercial cars. Here are a few key differences between commercial and private vehicle car insurance liability in India.
Private Car Insurance Inclusions
It is common for a private car insurance policy to offer financial coverage to the owner of the vehicle for any third-party damages, or loss due to accidents. Private car insurance policies also cover the vehicle against natural calamities, theft, riots, fire, and more, particularly when the policy is a comprehensive one like the Bajaj Car Insurance plans on Finserv MARKETS. The reason for a wide range of coverage is because a private car owner is a lot less likely to file insurance claims than a commercial car owner.
Keep in mind that private car insurance policies, however, do not cover one’s vehicle when it is used for either business or commercial purposes. Although it can be purchased as an additional rider to one’s inclusions, private car insurance also tends not to include a passenger cover. Such policies also exclude coverage offered to personal drivers, if you have not opted for those riders.
Commercial Car Insurance Inclusions
With private cars, it is mandatory for the owner of the vehicle to opt for a third-party cover. In comparison to private car insurance, commercial vehicle insurance tends to offer protection against the legal liabilities that could occur as a result of death or disability resulting from your vehicle to any third party. This is the main difference when it comes to the basic inclusions in private car insurance versus commercial vehicle insurance. However, the latter type of policies also tends to cover any accidental damage to property.
In some cases, commercial car owners can opt for an add-on cover to their original cover so they can include a wider geographical area of coverage. Commercial car owners can also opt for riders like a personal accident cover for their driver, and personnel who are involved in the upkeep of their commercial vehicles. To estimate how these add-ons will impact one’s insurance premiums, you can rely on a car insurance calculator available online.
The Bottom Line
No matter which type of vehicle you own, opting for a comprehensive car insurance policy like the Bajaj Allianz General Insurance, will protect you from a slew of potentially dangerous situations you could find your vehicle in. The Bajaj Allianz General Insurance on Finserv MARKETS offers both commercial and private vehicle liability insurance coverage, each of which comes with its individual set of add-on benefits. For instance, a commercial vehicle third-party liability plan on Finserv MARKETS allows you to opt for coverage in a broader geographical area as well as personal accident coverage for your driver, and car maintenance personnel.
