Anyone using a bike for commercial work must follow specific insurance requirements. According to the Motor Vehicles Act, 1988, every vehicle owner using public roads needs an insurance policy. In fact, riders must carry the Insurance Certificate in the vehicle as proof.
The policy covers legal liability towards third parties for accidental death, bodily injury or property damage. It also offers financial protection against risks such as accidents, theft and natural calamities.
How Is Insurance for Commercial Bikes Different from Private Bikes?
Now, using a bike for commercial purposes such as delivery, courier service, or hired rides is very different from using it for personal commute. Therefore, it is only natural that if you use a private bike insurance policy for commercial work, your claim will be rejected. So, it is important to understand the essential requirements before using your bike for business.
- Higher Premium
A commercial bike is on the road longer and faces heavier traffic. Sometimes it might also be used by different riders. However, since they are used to carry goods or hired rides, this increases financial risk and usually attracts higher premiums.
- Customise Riders as Required
Choose riders as you see fit along with your commercial 2-wheeler insurance. For example, brands such as Bajaj General Insurance offer riders such as zero depreciation, engine protection and roadside assistance.
- Follow the Claim Requirements
Inform your insurer about an accident or theft within the required time. Do not start repairs before the insurance surveyor inspects the damage. Some commercial uses may also require documents such as permits or fitness certificates.
What Are the Types of Commercial Vehicle Insurance Plans?
There are 2 main types of commercial vehicle insurance for bikes. They are third-party liability insurance and comprehensive bike insurance. Here is how each type of commercial bike insurance plan is different from the other:
- Third-Party Insurance
It is the basic cover that is required for any commercial vehicle in India to cover injuries, death or property damage to other people caused by your vehicle.
- Comprehensive Vehicle Insurance
This type of insurance provides wider protection. Along with third-party liability, it can also cover damage to your own vehicle. The situations it covers include accidents, fire, theft, floods and earthquakes.
What Are the General Inclusions and Exclusions of Commercial Vehicle Insurance?
When you have clarity about what your 2-wheeler insurance covers and excludes, you can avoid unpleasant surprises during a claim. However, these might vary with insurance plans and companies. Here are some of the general exclusions and inclusions:
Coverage
The following are some common situations and losses that may be covered under a commercial vehicle insurance policy, subject to the policy terms.
- Damage caused by events such as earthquakes, cyclones and hurricanes.
- Partial or total loss caused by theft, burglary or housebreaking.
- Damage caused by fire, self-ignition or explosion.
- Third-party damage such as bodily injury or death caused by the insured vehicle.
- Damages due to road accidents or collisions.
Exclusions
Certain situations and types of losses may fall outside the scope of the policy, meaning the insurer may not provide coverage for them.
- Normal wear and tear and depreciation of the vehicle.
- Losses that are a result of civil war or nuclear events.
- Liabilities arising from a contract involving the owner or driver.
- Accidents while driving without a valid licence or under the influence of alcohol.
- Using the vehicle outside the permitted use, such as using a private vehicle as a taxi.
Final Words
Finally, note that it is possible that you bought your bike for personal use, but your usage changed over time. And when you start using it for deliveries, rentals or other commercial work, it is essential to inform the insurer promptly.
The insurer will update your 2-wheeler policy as per your current usage. This will ensure that the claims process is smooth and does not face rejection from the insurance company.