Goods Carrying Vehicle Insurance

What Is A Goods Carrying Vehicle (GCV)?

Motor vehicles specifically designed for transporting goods, products, and materials are called goods carrying vehicles or commercial vehicles. GCVs make up an essential part of the transportation industry as they enable safe and efficient delivery of goods across long distances. They connect manufacturers, suppliers, and consumers to make global trade possible. Many advancements in manufacturing, engineering, and transportation technology have led to the evolution of goods carriers.

So, GCVs have become smarter, more efficient, and even more reliable in recent times, enabling businesses to stay competitive in the global marketplace.

Types Of GCVs

To suit different transportation needs, goods carrying vehicles come in different sizes and provide unique advantages.

Light Commercial Vehicles (LCVs): Small trucks and vans that are used for last-mile delivery.
Medium Commercial Vehicles (MCVs): Medium-sized trucks carry goods and merchandise over medium distances, such as from one city to another, as they are able to easily manoeuvre around traffic and navigate tight turns. They also have a larger payload capacity - making them suitable for carrying heavier loads.
Heavy Commercial Vehicles (HCVs): Transport trucks that are ideal for transporting goods over long distances, as they can carry more payload.
Specialized Transport Vehicles: Vehicles like refrigerated trucks, flatbed trucks, tankers, and others that are designed to meet the specific requirements of the cargo.

Uses of GCV

GCVs are used in a range of industries, from construction to transportation, providing a versatile mode of transport for goods across a variety of applications.

Freight Transportation
The transportation of goods is one of the major applications of goods carrying vehicles. Supply chains rely on these vehicles to move goods between manufacturers, distributors, wholesalers, and retailers. They ensure that goods travel the required distances smoothly and efficiently. For this reason, goods carrying vehicles are an integral part of the global economy, providing a necessary service for businesses of all kinds.
E-commerce and Last-Mile Delivery
It's no secret that e-commerce has changed the way people shop and goods-carrying vehicles are at the forefront of delivery from a distribution centre to a customer's doorstep. By offering rapid and convenient delivery, these vehicles have revolutionised the shopping experience for customers.
Agriculture and Farming
Goods carrying vehicles are a major support to the agricultural industry. These vehicles contribute to every step of the agricultural value chain, from transporting crops to delivering feed and supplies. Their job is to connect producers and consumers by transporting harvests to processing plants, markets, and stores. By providing an efficient transport system, these vehicles help to ensure that farmers can access the resources they need in a timely manner.
Retail Distribution
Goods carrying vehicles make it easy for products to move from distribution centres to stores. It ensures that retail outlets are stocked properly, so customers can get everything they need. With this ease of transportation, it becomes much more straightforward for businesses to fulfil customer orders and have their products reach the end-user in a timely manner.
Pharmaceutical and Healthcare Logistics
Transportation of medications, medical supplies, and equipment is vital to the pharmaceutical and healthcare industries. The availability of critical medical resources is crucial for patient care, especially in life-threatening situations. GCVs ensure the safe and timely delivery of such resources to facilitate the best possible medical care.

Insurance For GCV

An insurance policy that is designed to safeguard commercial vehicles against unfortunate events is called commercial vehicle insurance. The concept is the same as private vehicle insurance. Commercial vehicle coverage is, however, specific to the needs and contingencies of commercial vehicles.

Types of insurance for goods carrying vehicle

For goods carrying vehicles, there are two types of insurance:

Third-party Liability Insurance
A third-party policy covers any liability resulting from bodily injury or property damage caused to a third party.
Comprehensive Policy
A comprehensive policy will cover you against accidental damage or loss incurred by you in the event of an accident as well as third-party liabilities involving your vehicle. With such a policy in place, you can be assured that you are covered in any situation that may arise while driving your vehicle.

What Is Covered Under Comprehensive Insurance?

With a comprehensive insurance policy, you're safeguarded against:

Loss or damage caused by:

Fire explosion, self-ignition, or lightning
Burglary, housebreaking, or theft
Riots and strikes
Earthquakes (fire and shock damage)
Floods, typhoons, hurricanes, storms, tempests, inundations, cyclones, hailstorms, frost
Accidental external means
Malicious acts
Terrorist activities
Transit via road/rail/air/inland-waterway/lift/elevator
Landslides, rockslides

Liabilities of the third party
The insurance company will protect you against the following in accordance with the limits of liabilities stated in the policy (including the claimant's expenses) in the event of an accident -

Death of or bodily injury to a third party caused by or arising out of the use (including the loading and/or unloading) of your vehicle.
Damage caused to the property of the third party by the use (including the loading and/or unloading) of the vehicle.

What Is Not Covered?

Here are some of the circumstances that are not covered by the insurance -

Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown, failures, breakages, and damage caused by overloading or straining your vehicle.
Loss of or damage to accessories by burglary, housebreaking or theft except in case your vehicle is also stolen.
Damage to tyres and tubes, except when the vehicle is damaged at the same time, where the insurer is only liable for 50% of the replacement cost.
Any accidental loss or damage sustained when you or any other person driving the vehicle with your consent is under drugs or alcohol influence.
Death, injury, damage caused or arising beyond any carriageway or thoroughfare during the loading or unloading of the insured vehicle.
Death or bodily injury arising out of or in the course of the insured's employment, except where the Motor Vehicle Act says otherwise.
Accidental loss or damage and/or liability outside the geographical area.
Any claims arising out of any contractual liability
Any accidental loss damage and/or liability incurred if your vehicle hasn't been used as stated in 'Limitations as to Use' or if it is being driven by someone other than the driver stated in the driver's clause.
Any accidental loss or damage to any property, or any expense or loss arising out of consequential loss.
Any loss or damage resulting directly or indirectly from radioactive contamination, ionising radiation, etc.
Any loss or damage resulting directly or indirectly from nuclear weapons, materials, etc.
Any accidental loss, damage, or liability caused by war, invasion, hostilities, foreign enemies, etc.

Why Do You Need Insurance For Your GCV?

Here are some reasons why you need to purchase insurance for your GCV -

Mandated By Law
It's mandatory to have at least a third-party policy as per the Motor Vehicles Act. It protects the third party against any losses and damage in the event of an accident caused by your vehicle.
Offers Financial Protection
Commercial vehicle insurance isn't just a recommendation, it's a necessity if you own a business with one or more vehicles. It will ensure you are well-protected against any losses or damages in case of an accident.
Reduces Your Risks
When you insure your goods transport vehicle, you reduce your business risk as well as the possibility of losses from accidents, natural calamities, collisions, fires, thefts, etc. This can give you peace of mind when you transport your goods, knowing you have taken the necessary steps to protect your investment.

Moreover, heavy vehicles, like heavy goods carrying vehicles, come with a lot of risks because of their size and purpose. Having goods carrying vehicle insurance protects you against any type of unfortunate events - giving you a sense of security.

How To Purchase Insurance For GCV?

These are the steps you need to follow to make sure your purchase process goes smoothly -

Before you buy commercial vehicle insurance, figure out your needs.
Now head to the website of your desired insurance company or an insurance aggregator.
You'll have to enter your purpose for driving - choose 'Commercial Use'.
Fill out some details, like your RTO location, car make, model, variant, purchase year, previous policy details, etc.
Make sure you compare coverage, inclusions, exclusions, price, etc. of different insurance policies before finalising one.
You can also adjust your IDV to see how it impacts your premium.
Check the coverage and read the policy terms and conditions before you make the payment.
Once the payment is made, you'll get the policy in your registered email ID.

Premium

There are a lot of factors that influence the cost of commercial vehicle insurance. Online commercial vehicle insurance calculators can help you figure out how much a policy costs.

With the right information, these calculators can provide an accurate estimate of your premium. To get the best deal, it is recommended you compare the top insurance policies and companies in the market.

These are some of the factors that affect your premium -

Type of Insurance Policy
Third-party policies are cheaper than comprehensive policies. Broader coverage means higher premiums. Make sure you select a policy based on your coverage needs to ensure you are adequately protected.
Insured Declared Value (IDV)
IDV is the estimated market value of the vehicle. The higher the IDV of your vehicle, the higher your premium will be.
Make And Model
Your commercial vehicle's make and model, along with its year of manufacture, also play a crucial role in calculating the premium.
Engine Capacity
The IRDAI calculates third-party insurance rates based on the engine's cubic capacity (cc). The higher the cc, the more the premium you will have to pay.
Deductibles
A deductible is an amount that you need to pay from your end, before your insurer steps in to pay the claim amount. There are two types of deductibles:

1. Mandatory deductible

It is a fixed amount that you need to pay at the time of claim. Please note that this amount is determined based on the CC of your vehicle.

2. Voluntary deductible

As the name suggests, it is an amount chosen by you voluntarily. The higher the deductible, the lesser your premium will be. Please note that you need to pay the chosen voluntary deductible along with the mandatory deductible every time you file a claim.

How To Calculate Your Commercial Vehicle Insurance Premium?

Using a commercial car insurance premium calculator, you can calculate the cost of your insurance policy. This calculator allows you to input specific information, so you can get an accurate estimate of your commercial car insurance premium. With this calculator, you can make sure you're getting the right coverage for the right price.

To calculate your commercial vehicle insurance premium, follow these steps -

You need to fill out some details about the vehicle, like its model, its purchase date, its previous insurance policy details, etc.
Choose an insurance plan that fits your needs and add optional covers to enhance your base coverage.
Click ‘Calculate’ once you're done with these steps to see how much the insurance policy will cost.

Things To Consider While Buying Insurance For GCV

Before you commit to the policy, here are a few things to remember -

It's important to understand that every plan available on the market differs in terms of coverage, deductibles, exclusions, etc. By researching and comparing the top plans available, you can make sure that you select the policy that best meets your needs and budget.
Ensure that the insurer is reliable and has good customer service - reviews from past and present customers can help give you an idea of the quality of service they provide.
Make sure you read the fine print to know what's covered and what's not - so you can avoid any nasty surprises down the road.

How Do You File A Claim?

If you want to submit a claim, you need to first contact your insurance company. Claim processes vary from insurer to insurer.

There are 2 kinds of claims -

Cashless Claim
Reimbursement Claim

👉Cashless Claim

When you file a cashless claim, your vehicle can only be repaired at a garage that's part of your insurer's network. Here's what you need to do for a cashless claim -

The first thing you should do is take your vehicle to the network garage.
Then, you’ll need to initiate the claim by submitting the required documents to the insurer.
A surveyor from the insurance company will inspect the vehicle in the garage.
Once the surveyor gives you the green signal, you can proceed with the repairs.
Once your vehicle is fixed, the garage will give your insurance company the repair invoice.
Upon verification of the documents, the insurance company will settle the claim and compensate the garage.

Note: In the case of a major accident, ensure you move your vehicle from the accident spot only after you get approval from the insurer or the surveyor appointed by the insurer.

👉Reimbursement Claim:

In case your vehicle needs to be fixed at a garage that isn't affiliated with your insurance company, you can submit a reimbursement claim You'll need to follow these steps to file a reimbursement claim -

The first thing you need to do is to notify your insurer.
A surveyor will be assigned once the insurer gets your notification.
The damage will be verified by the surveyor. As soon as it is approved, the repair work can begin.
Once the repair work is done, you'll have to pay upfront and then claim reimbursement later.

Here are the documents you'll need to make a claim -

Duly filled claim form
Registration copy
Aadhar card copy
Copy of insurance
Tax paid receipt
Driving licence copy of the driver at the time of the accident
Estimate of repair (signed and stamped by the garage)
Invoice copy (signed and stamped by the garage)
Copy of permit
Copy of fitness certificate
FIR copy
Cancelled cheque/passbook (In case of reimbursement claim)
Any other documents that the insurer needs.

Renewal

The insurance policy for your GCV will need to be renewed regularly to keep its coverage and benefits active. It's super easy to renew your insurance policy online, in just a few steps -

Fill out your vehicle information or policy number on the current insurance company's profile.
Your renewal details will show up on the screen. Be sure to double-check your details before you proceed with the next step.
In case you wish to change your insurer, go to the website of your desired company or any web aggregator or broker. You'll need to fill in some details like the make, model, registration number, RTO, etc.
As per the data entered, you will get a list of quotations from various insurance companies.
Select the one that best suits your needs and go ahead with the renewal.

Cancellation for GCV insurance

You can cancel your GCV insurance policy if you want to sell your vehicle or get a new policy. If you cancel before coverage starts, you'll get a full refund. A prorated refund will be given if the cancellation happens after the policy starts.

Here’s how you can cancel your policy -

The first step is to write an email to the insurance company mentioning the reason for cancellation.
Your insurance company might ask for documents depending on the stated reason.
In cases where you're cancelling your policy because you're selling the vehicle, the insurer may require you to submit Form 29 of RTO or the Sale Deed as proof of sale.
If you're cancelling your policy because you purchased a new policy, the insurer may ask you to produce the new policy.
While some insurers may refund the money to the source account through which you purchased your existing policy, others may require a cancelled cheque in the owner's name.