Is It Possible To Pay Commercial Vehicle Insurance Premium In EMI?

Managing a business is a challenge. Every day feels like a new day. It is like steering a ship through turbulent seas, especially if you depend on commercial vehicles to maintain operations. These vehicles are crucial for operations, whether they are used for client transportation or the delivery of commodities. But with fuel prices, maintenance, and, of course, insurance, there's a lot to juggle.

Take Ken, for example. He runs a small delivery service, and like many, he feels the pinch when it's time to pay the hefty insurance premium. Given the other expenses, it's another cost that he wonders if he could pay off in smaller instalments.

This raises an interesting question: Is it possible to pay premiums for commercial vehicle insurance on EMIs? Look into this possibility and find out how it could make a difference in managing your business expenses.
 

What Is Commercial Vehicle Insurance?

Although it is designed especially for vehicles used in company operations, commercial vehicle insurance works similarly to conventional car insurance policies. This type of insurance offers essential financial security which also covers losses or damage to your car from fires, accidents, natural disasters, and other events. Commercial vehicle insurance can protect your company against unanticipated financial losses and ensure that activities carry on without interruption, even in the face of hardship.
 

Why Should You Buy Insurance For Commercial Vehicles?

Here are a few reasons why -

• Shield Your Business From Damage And Financial Loss
  The core of your business can greatly depend on your fleet of commercial vehicles. They are often in continuous motion, sometimes even nonstop. This means that they are more prone to damage and accidents than private vehicles because of their frequent use. Your business operations may be disrupted, and revenue may be decreased even if one of your commercial vehicles is out of commission due to damage. Because of this, it's essential to insure your commercial vehicles. It protects your company's finances by paying for losses that can arise from serious damage to your vehicles.
  
  For instance,
  Krish owns a popular cloud kitchen. He has 2 commercial vans for food delivery in and around the town. One day, one of his vans breaks down suddenly. Without the van, Krish faces delays, unhappy customers, and a drop in sales. Luckily, Krish had insured his vehicles. The insurance covers the repair costs, allowing him to quickly get back on track without a major financial hit.
   
• Safeguard Your Business From Third-Party Liabilities
  While on the road over extended periods of time, commercial vehicles traverse several routes and cities. The likelihood of mishaps or property damage is sure to rise when there are paid drivers operating vehicles. Because of this, your company may be exposed to large financial obligations in the sad event that one of your cars is involved in an accident resulting in injury or property damage.
  
  From a legal standpoint, your company may be forced to reimburse the court for damages. This could lead to substantial costs that can heavily impact your profitability. Luckily, third-party insurance provides essential protection. It provides up to Rs. 7.5 lakhs in property damage coverage and unlimited liability in the event of death or injury. It simply means that your company can be shielded from the financial impact of unforeseen events by purchasing this policy.
   
• Legal Requirement Of Third-Party Insurance
  In addition to offering protection against any liabilities, third-party insurance is actually a legal requirement. Regardless of whether it's a private or business vehicle, you must have at least third-party coverage for your vehicle. Failure to comply with this responsibility may result in legal ramifications, including fines, which could cause additional expenses for your business. Therefore, by making sure your vehicles are properly insured, you can ensure legal compliance and also protect your business from financial harm.
   

How Much Does A Commercial Vehicle Insurance Cost?

Several elements may influence the cost of commercial car insurance in India. Factors vary depending on the type of car, how old it is, the coverage you select, and the insurance provider you go with. The usual range of premiums is between Rs. 10,000 to 50,000 per year. However, because there are more risks involved and comprehensive coverage requirements, the premiums for heavy commercial vehicle insurance, such as trucks or buses, may be higher.

It is now time to get to the question of the day!
 

Is It Possible To Pay Commercial Vehicle Insurance Premium In EMI?

Unfortunately, you cannot pay commercial vehicle insurance on EMI. The Insurance Act of 1938, Section 63VB, states that insurance firms require the full payment to be paid upfront. This policy assists insurers in avoiding risk. If the premium is not paid in full, insurers may refuse claims or provide coverage for the duration of the premium payment period. Hence, to ensure ongoing coverage, the premium must be paid in full at a single point.
 

Wrapping Up,

Commercial vehicle insurance on EMI is not an option on the table yet, just as a marathon runner cannot divide a single lap into smaller halves. Although it may seem convenient to spread out payments, the insurance industry needs a lump sum payment upfront in order to cover the higher risks connected with commercial vehicles on the road. Thus, keep in mind that this is a single-run race rather than a relay competition.