Types Of Add-On Covers In Commercial Vehicle Insurance

Life on the road is filled with surprising turns, and for a commercial vehicle owner, those turns can be quite rough!

Take Amit, for example—a small business owner who relies upon his delivery truck as a lifeline. One fateful day, as he’s racing to meet an important client,  his truck unexpectedly turns down. The engine falters, and he ends up abandoned with a flat tyre. Suddenly, what should’ve been a smooth drive transforms into a head-scratching, wallet-depleting wreck.

Now, what if there was a way to ensure that these disruptions don't wreck your business or leave you scrambling for help?

Enter insurance add-ons, your ultimate safety net. These optional enhancements to your policy resemble an additional layer of safety, tending to explicit requirements and providing coverage to those unforeseen roadblocks.

In this article, we’ll delve into the world of add-ons for commercial vehicle insurance. We'll break down what they are, why they’re significant, and how they can give your insurance policy a serious upgrade.

Buckle up—it’s time to investigate how these add-ons can keep you cruising without a hitch!
 

What Are Add-Ons?

Add-ons are those additional layers of protection you can bolt onto your insurance policy, giving your coverage a boost for a little added premium.

Curious how to make your insurance roar? Check out how these add-ons can turn a plain policy into a robust safety net for every unexpected twist!
 

Types Of Add-Ons

Add-ons in a commercial policy can vary depending on the insurance company. Nonetheless, a few of the most typical ones are -

1. Engine & Gear Box Protector
   This add-on guarantees that the insurance company covers any consequential damage to the internal parts of the engine and/or gearbox of the Insured Vehicle. It explicitly addresses harm brought about by water entering the engine, leakage of lubricating oil, and any harm to the engine and/or gearbox due to any unplanned event, such as oil leakage, following an accident.
   
   With this cover, the insurer will compensate the insured for the following -
2. 1. Engine Repairs Or Replacement: Coverage includes repair or replacement of critical internal components of the engine, such as pistons, piston rings, pins, connecting rods, crankshaft, valves, valve seats/guides, and all related nuts and bolts within the engine assembly. It also extends to engine oil, gaskets, and sealants, as well as the cylinder head.
   2. Gearbox Repairs Or Replacement: Coverage for the repair or replacement of essential internal parts of the gearbox, including gears, shafts, bearings, gear oil, and gaskets within the gearbox housing.
   3. Labour Costs: The insurer will cover the labour costs incurred for overhauling the damaged engine and/or gearbox, ensuring your vehicle is back on the road without additional financial strain.
   4. Machining Charges: This includes expenses related to engine cylinder re-boring, compression testing, and other necessary machining processes.
       
3. Emergency Assistance Cover
   If the insured vehicle becomes disabled or immobilised due to loss or damage covered as per the policy schedule, the insurer will provide the following services -
4. 1. Alternate travel arrangements
   2. Accommodation arrangements
   3. On-the-spot minor repairs
   4. Towing assistance for accidents and breakdowns
   5. Emergency fuel delivery
   6. Ambulance referrals
   7. Translator services
   8. Flat tyre repair
   1. Battery jump-start services
   10. Vehicle repatriation
   11. Vehicle key services
   50. Medical evacuation
   1000. Legal services support
   14. Continuation or return journey assistance
        
5. Consumable Cover
   With this add-on, the insurer will cover the costs of consumable items if your insured vehicle or its accessories (if insured) are damaged due to any cause.
   
   For this endorsement, consumable items are those materials that, once used for their specific purpose, are either completely consumed or rendered unfit for continuous and permanent use. They’re the parts and supplies that can’t be reused in their original capacity once applied.
   
   But remember that consumable items include, but aren't limited to, nuts, bolts, screws, washers, grease, coolants, lubricants, engine and other oils, clips, AC gas, bearings, battery water, filters, sealants, gaskets, and tyres.
    
6. Depreciation Cover
   This add-on takes care of the depreciation costs, either partially or fully, on the parts that need to be replaced during repairs. So, if your vehicle’s parts are assessed for damage and need replacing, this coverage helps with the depreciation value.
    
7. Roadside Assistance Cover

Roadside assistance coverage is like having a trusty friend on standby, ready to jump in when things go awry. If you run into trouble, just give your insurance provider a shout. They’ll swoop in to help with everything from picking up your vehicle and arranging medical aid to towing, helping with battery jumpstarts, fixing minor issues, delivering fuel, and even sorting out alternative transportation.

6. Passenger Cover
   The Passenger Cover add-on lets you tailor your car insurance to offer extra protection for those riding along with you. It’s all about giving financial support if any of your passengers get hurt in an accident. This cover includes injuries, temporary or permanent disabilities, and even death, so you can drive knowing you’ve got a safety net for your passengers.
    
7. Protection Of Invoice Add-On
   The Protection of Invoice Add-On is like a safety net for your wallet when you’re making an insurance claim. In the event that something happens to your commercial vehicle, this add-on ensures you get back the full purchase price, not just the depreciated value. It bridges the gap between what your vehicle is worth now (Insured Declared Value) and what you initially paid for it. So, if your vehicle’s ever in a difficult situation, you’re covered for the full amount you spent, not just the current value.
   
   This add-on is a genuine lifesaver if your vehicle is stolen, as it covers the difference between its current insured value and the original amount you paid for it.
   
   However, just a fair warning: it’s only accessible for vehicles that are under three years of age.
    

In A Nutshell,

Add-ons are your ticket to turbocharging your commercial vehicle insurance. Whether it's safeguarding your engine, getting emergency help when you’re stuck, or covering those tricky consumable costs, these extras have got your back. Think of them as your insurance policy’s VIP section—enhancing protection and ensuring you’re never caught off guard. Just remember to pick the ones that fit your ride and peace of mind best.