What Is the Importance of Insuring Goods Carrying Vehicles?

Every vehicle hitting the road in India, including goods carrying vehicles, must be insured as per the Motor Vehicles Act of 1988. Goods carrying vehicles play a vital role in transporting goods efficiently, and businesses rely on them for punctual operations. So, any unexpected obstacles, such as accidents or damage, can disrupt the flow. In such instances, the importance of goods carrying vehicle insurance becomes evident, serving as a lifeline and providing essential support during unexpected challenges.

 

What is a Goods Carrying Vehicle Insurance?

An insurance policy for goods carrying vehicles, such as pickup trucks, heavy trucks, or three-wheeler tempos, that offers protection against damage to or caused by these types of vehicles. In the case of theft, fire, collision, or natural disaster, this policy covers the vehicles.

 

The Importance of Goods Carrying Vehicle Insurance

Wondering why is good carrying vehicle insurance important?  Here’s why

 

1. Efficient Protection

Goods carrying vehicle insurance can be in the form of Third-party Insurance or Comprehensive Insurance. Third-party Insurance shields against legal obligations with a third party. Comprehensive Goods Carrying Vehicle Insurance covers against both third-party liability and expenses from damage or loss of the policyholder's own vehicle.

 

2. Legal Compliance

Having insurance for goods carrying vehicles is not just a choice but a legal necessity. It is mandatory for vehicles using public roads in India to have, at a minimum, Third-party Insurance coverage. Adhering to this legal requirement ensures compliance with the law.

 

3. Protection Against Losses

Goods carrying vehicle insurance acts as a financial shield, offering protection against losses from natural disasters. This coverage becomes valuable in mitigating financial burdens from unexpected events.

 

4. Personal Accident Cover for Owner-Drivers

Apart from protecting the vehicle, commercial vehicle insurance often includes personal accident coverage for owner-drivers. This compensation mechanism helps overcome financial burdens due to injury or death of the covered person. 

 

Coverage under Goods Carrying Vehicle Insurance?

Unfortunate events can happen at any time and anywhere, so knowing what is covered under goods carrying vehicle insurance is important:

 

1. Accidents

Coverage includes any loss or damage from unexpected accidents that may occur while transporting goods from one location to another.

 

2. Theft

 

Goods carrying vehicle insurance covers losses or damages from the theft of the vehicle, whether it occurs with or without goods on board. But you should know that the goods are not covered under the insurance.

 

3. Fire

If there are any unforeseen fire incidents, the insurance policy provides coverage for any resulting losses or damages. This ensures financial assistance to mitigate the impact of fire-related damages.

 

4. Natural Calamities

Damages or losses incurred due to natural calamities such as earthquakes, floods, typhoons, and other similar events are covered under goods carrying vehicle insurance. This coverage extends financial support to address the aftermath of these catastrophic events.

 

5. Manmade Disasters

Goods carrying vehicle insurance also covers losses or damages caused by manmade disasters, including riots, strikes, and other disruptive events. 

 

6. Personal Accident Cover

For the vehicle owner/driver, the goods carrying insurance policy includes a personal accident cover. This provides compensation for accidental bodily injuries or death occurring while carrying goods from one place to another.

 

7. Third-Party Liabilities

Goods carrying vehicle insurance addresses third-party liabilities, covering any physical injuries or property damages caused by the insured vehicle during a road accident. This aspect ensures that the insured is protected from potential legal and financial consequences arising from such incidents.

 

Exclusions in Goods Carrying Vehicle Insurance Policies

Goods carrying vehicle insurance policies, while providing extensive coverage, come with specific exclusions that policyholders should be aware of. These exclusions define situations and scenarios where the insurance coverage may not apply.

 

1. Own-Damage for Third-Party Liability Cover

In cases where the goods carrying vehicle is insured solely against third-party liability, damages to the policyholder's own vehicle are not covered. So, it would be a wise decision to opt for a Comprehensive Insurance Policy for full vehicle protection.

 

2. General Wear and Tear

Routine wear and tear from regular vehicle use are standard occurrences. However, expenses associated with such circumstances are not covered under the goods carrying vehicle insurance policy.

 

3. Consequential Damages

The policy excludes the cost of repairs for damages from previous damage. This makes sure that claims are limited to incidents directly related to the current accident, preventing coverage for pre-existing issues.

 

4. Compulsory Deductible

The compulsory deductible amount, which the policyholder is obligated to pay at the time of a claim, is not covered by the policy.

 

5. Breach of Contract

If the terms outlined in the insurance policy agreement are breached during an accident, like if the goods carrying vehicle is used for purposes not specified in the policy, then the claim may not be covered.

 

6. Negligence

Damages from negligence, where the policyholder fails to take reasonable care, are excluded from coverage.

 

  a. Driving under the Influence of intoxications

Any damage from an accident where the driver is intoxicated is not covered in goods carrying vehicle insurance.

 

  b. Driving Without a Valid License

If the goods-carrying vehicle is involved in an accident and the driver does not hold a valid license, any resulting damage or loss may not be covered under the policy.

 

7. Violating Traffic Rules

Damage from accidents where traffic rules are violated is not covered under the goods carrying vehicle insurance policy.

 

Conclusion

Any business or individual who owns or operates a goods carrying vehicle must understand the importance of goods carrying vehicle insurance. It acts as a safety net for your business against damages to your vehicle.

Comprehensive Goods Carrying Vehicle Insurance offered by Shriram General Insurance provides coverage against a variety of issues, along with a speedy claim procedure. There are also Add-on options in insurance policies that can be customized by policyholders to meet their unique requirements.

 

FAQs

1. Is it possible to buy goods carrying vehicle insurance online?

Yes, you can buy goods carrying vehicle insurance online from reputed insurers like Shriram General Insurance through their website/mobile app. Also, buying online insurance is simple and hassle-free.

 

2. How do you choose the goods carrying vehicle insurance?

Here are the important factors to keep in mind while buying goods carrying vehicle insurance:

• Compare available plans
• Choose between the types of protection you need
• Know about the availability of add-ons
• Understand the claim process
• Go through the terms and conditions

 

3. What is preferable a Comprehensive Insurance or Third-party Insurance cover?

As per law, Third-party insurance is mandatory, but it offers protection only to third parties. So, it would be wise to opt for Comprehensive Goods Carrying Vehicle Insurance that offers protection even for your own vehicle.