Difference between Fleet and Business Motor Insurance?
Fleet vehicles, especially fleet cabs, are very commonly seen these days. The word fleet, in relation to vehicles, refers to a group of vehicles that belong to a company. These include two-wheelers, cabs, busses, lorries, etc. Fleet vehicles also require insurance as per the laws of India. This is where the fleet motor insurance plans come in handy. A fleet insurance plan is a common vehicle insurance plan that covers multiple fleet vehicles at once. A business motor vehicle insurance, on the other hand, is a policy that offers coverage for a single commercial vehicle. Take a look at this article to know all about fleet insurance, and business motor vehicle insurance and what differentiates the two.
Commercial Fleet Insurance Policy
The fleet insurance company offers a single motor insurance policy to cover a number of vehicles. This is a very handy form of motor insurance as it offers several benefits. The fleet vehicle company needs to pay a single premium at a single time and all the fleet vehicles remain covered. The risk is shared between the vehicles and so the commercial fleet insurance cost is competitive.
Benefits of Fleet Insurance
Easy to manage: The best advantage is that you get to manage the policy in a simple manner. There is just one premium and one due date to worry about. You don’t have to worry about missed renewals, as all the vehicles covered under the insurance plan get their coverage renewed simultaneously.
Cost-effective: The plans are very cost-effective. The commercial fleet insurance cost is very economical in India, making it handy for you to keep the vehicles covered.
Coverage for Vehicle: All the damages incurred in an accident, such as bodily dents and bumps, mechanical failures, damage to accessories, etc are covered in the plan. It is not uncommon for fleet vehicles to have road accidents, so this coverage proves to be extremely crucial. Also, if your fleet vehicle is stolen or damaged beyond repair due to a fire or natural calamity, you will get compensated for it.
Coverage for Drivers: The employees of your company, who drive the fleet cabs or busses, are essential members of your business family. This is why it is your duty to keep them safe while they are on the road. A commercial motor fleet insurance plan offers a personal accident cover to all the fleet vehicle drivers and this goes a long way in ensuring their wellness. If they get injured in a road accident, the plan pays for their medical treatment. If they die or get disabled, their family gets financial compensation.
Legal Coverage: Many a time, commercial fleet vehicles get involved in accidents and the third party files legal charges against the fleet company. The litigation expenses are high and can cost you, the owner, a lot of money. The fleet insurance plans offer third-party covers that include legal expenses that are incurred when dealing with a litigation charge. This is another very beneficial use of the commercial fleet insurance plans.
As you can see, these benefits are very significant and allow you to keep your fleet vehicles protected in a comprehensive and wholesome way.
Understanding business Motor Vehicle Insurance
A business motor vehicle insurance plan is a type of vehicle insurance plan that covers a single commercial vehicle. This may be a car, a bus, a truck, or a van. There are many good business motor vehicle insurance plans available in India. The leading motor insurance companies offer these plans at affordable rates. The plans cover the vehicle as well as the owner/driver.
Benefits of business Motor Vehicle Insurance
Coverage for vehicle
You may own a commercial four-wheeler, a bus, an autorickshaw, a pick-up truck, a lorry, or even a tractor. While these vehicles may add a lot of value to your business and commercial earnings, they also pose the risk of getting involved in a road accident. An accident can be very expensive for you. From getting the car repaired to ensuring it’s fit to go back on the road, you need to spend a lot of money. The commercial motor insurance plans come in handy here as they cover the damages incurred by the vehicle in a road accident.
Coverage for driver
Your employees are important to you too, so you need to ensure they are safe and protected at all times. The commercial motor insurance plans offer a personal accident cover too. If the driver dies or is injured in a road accident, the motor insurance policy covers the financial damages and pays compensation to the injured and/or his nominees.
Third party coverage
An accident involving a large commercial vehicle such as a bus or a truck can cause widespread third party damages too. In the absence of a commercial vehicle insurance plan, you have to compensate for all the third party costs. Thankfully, the plan takes care of these expenses and keeps you and your finances protected.
These are some good benefits that tell you why you need to insure your commercial vehicle with a good business motor vehicle insurance policy.
Commercial vehicle insurance v/s fleet insurance – the main difference
As you can clearly see from the points mentioned above, the main difference between the two lies in the scope of coverage. While a commercial vehicle insurance plan only covers a single vehicle, a fleet insurance plan covers a number of vehicles at once. The motor insurance business in India is growing and as a result, you get some excellent plans under both categories. So go ahead and make a list of your requirements and then find the plan that suits you and your commercial or fleet vehicles the best.