COMMERCIAL

VEHICLE INSURANCE

ADITI KHANAL/ 01
PRATIK SAPKOTA/ 14
SAGAR BASNET/ 18
 COMMERCIAL VEHICLE INSURANCE

Commercial Vehicle:
Any motor Vehicle which is manufactured or adapted
and used for the carriage of goods which appears in the
Schedule under the Commercial Vehicle section.

Commercial Vehicle Insurance:

Commercial Vehicle insurance is an insurance policy that protects the
owner of the vehicle against any financial loss arising out of damage or
theft vehicle. Commercial vehicle coverage also includes damage
caused to a third party or property.
 TYPES OF COMMERCIAL VEHICLE INSURANCE

Comprehensive insurance:
 A comprehensive policy as offers you coverage for damages caused to your vehicle, third party or
property.
 This insurance safeguards your vehicle  against damages arising out of man-made and natural
calamities.
 It also covers the policyholder’s third party liability arising out of death, injury or property damage
caused to third-party by the insured’s vehicle.
Third Party Insurance:
 This type of insurance insures the policyholder against any legal liabilities arising out of damages
caused to third person or property.
 This type of commercial vehicle insurance policy does not provide any benefits to the vehicle and
only covers third party liability. 
 COMMERCIAL VEHICLE INSURANCE

Commercial Vehicle Insurance:

Commercial vehicle insurance is governed
by Motor Tariff which came into operation
from 2073.04.01 and it provides detailed
terms and conditions, premium rates as
well as policy forms, proposal forms,
endorsements for insurance of different
classes of vehicles.
 COMMERCIAL VEHICLE INSURANCE : POLICY
Section 1: Loss or damage to the vehicle insured
1. We will indemnify You if Your Vehicle is damaged or lost in the following
circumstances:-
(Insured Perils)
 fire explosion, lightning, self-ignition of vehicle or any parts of it
 by burglary (sedhamaari), theft using face mask
 earthquake
 flood
 landslide
 thunderstorm, hailstone, snow/frost
 by accidental external means
 whilst in transit by road, rail inland-waterways, lift/elevator or air
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 1: Loss or damage to the vehicle insured

2. If there is a need of replacement of mentioned parts due to loss/ damage of vehicle due to any
reason mentioned in 1, then it will be subject to a deduction for depreciation at the rates
specified below:
a) For all rubber, tyre and tube, lights, battery- 50%
b) Fibre glass made components - 30%
c) glass, air bags (with sensor) - 0%
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 1: Loss or damage to the vehicle insured

3. Rate of depreciation for all other parts will be as per the following schedule.
Age of vehicle from Date of registration Rate of Depreciation
of vehicle in Nepal (in percent)

Not exceeding 6 months Nil

Exceeding 6 months but less than 1 years 5%
Exceeding 1 years but less than 2 years 10%
Exceeding 2 years but less than 3 years 15%
Exceeding 3 years but less than 4 years 25%
Exceeding 4 years but less than 5 years 35%
Exceeding 5 years but less than 10 years 40%
10 years and more than 10 years 50%
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 1: Loss or damage to the vehicle insured

4. In case of compensation amount on partial damage to the vehicle, the amount is paid
deducting the depreciation (as mentioned in section 2 and 3) from the value of parts agreed on
the contract initially along with the voluntary and compulsory excess.
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 1: Loss or damage to the vehicle insured

5. Not liable to make payment in case of:
 depreciation, wear and tear, mechanical or electrical breakdown, failure or breakage
 damage to tyres and tubes in regular condition (but not in accident)
 damage to accessories by burglary, housebreaking or theft unless such vehicle is stolen at
the same time
 damage to Mudguard and paints only in case of total loss or constructive total loss
(otherwise not)
 Damage to the vehicle insured while the insured or other person is under the influence of
intoxicating liquor or drugs. (alcohol, drug)
 In case of damage to the vehicle insured after 35 days in case of end of insurable
interest/transfer of insurable interest.
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 1: Loss or damage to the vehicle insured

6. In case of damage to the vehicle due to insured perils, maximum liability cost for
transportation to nearby mechanic will not exceed as mentioned:

Particulars Distance to the mechanics shop

from place of accident
Distance Within 100 km More than 100
km
Maximum Rs. 10,000 Rs. 15,000
liability
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 1: Loss or damage to the vehicle insured

7. The Insured may authorize the repair of the Motor Vehicle necessitated by damage for which
the Company may be liable under this Policy provided that:

a. the estimated cost of such repair does not exceed the Authorized Repair Limit of Rs.5000.
b. Detailed estimate of the cost is forwarded to the Company without delay.
c. the insured shall give the Company every assistance to see that repair is necessary and the
charges are reasonable.
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 1: Loss or damage to the vehicle insured

8. Sum Insured- Insured’s Declared Value (IDV)
a. The Insured’s Declared Value (IDV) will be deemed as the sum assured which is fixed at
the commencement of the policy.
b. The IDV of the vehicle (and accessories if any fitted to the vehicle) is to be fixed on the
basis of the manufacturer’s listed selling price of the brand and model at commencement of
insurance/renewal and adjusted for depreciation as per the schedule below:
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 1: Loss or damage to the vehicle insured

8. Sum Insured- Insured’s Declared Value (IDV)
Age of vehicle from Date of registration of vehicle in % of depreciation for
Nepal fixing IDV

Not exceeding 6 months Nil

Exceeding 6 months but less than 1 years 5%

Exceeding 1 years but less than 2 years 10%

Exceeding 2 years but less than 3 years 15%
Exceeding 3 years but less than 4 years 25%
Exceeding 4 years but less than 5 years 35%
Exceeding 5 years but less than 10 years 40%
10 years and more than 10 years 50%
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 1: Loss or damage to the vehicle insured

8. Sum Insured- Insured’s Declared Value (IDV)
c. IDV of vehicles beyond 10 years of age or more and of obsolete models of the vehicles
(i.e. models which the manufacturers have discontinued to manufacture) is to be determined
on the basis of an understanding between the Company and the Insured.

d. IDV shall be treated as the ‘Market value’ throughout the policy period without any further
depreciation for the purpose of Total Loss/ Constructive Total Loss (CTL) claims.
 
e. Constructive Total Loss : The Insured vehicle shall be treated as a CTL if the aggregate
cost of repair of the vehicle, exceeds 75% of the IDV of the vehicle.
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 1: Loss or damage to the vehicle insured

9. In case of total loss or constructive total loss, the payment amount from the insurer should
excluding of compulsory and total excess. The salvage value of the vehicle is to be agreed
mutually between insured and insurer with reference to surveyor report.
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 2: Liabilities to Third Party

1. Insurer should indemnify the insured in the event of an accident caused which the Insured
shall be legally liable to pay in respect of: -
a. death of or bodily injury to any person caused by or arising out of the use (including the
loading/unloading of the vehicle).
b. damage to the property caused by the use (including the loading and/or unloading of the
vehicle) provided always that:
 The company shall not be liable in respect of damage of property belonging to or held in
trust by or in the custody of the Insured.
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 2: Liabilities to Third Party

2. The company will pay all costs and expenses incurred with its written consent.
3. In terms of and subject to the limitations of and for the purposes of this Section the Company
will indemnify any Authorized Driver who is driving the Motor Vehicle provided that such
Authorized Driver:
a. shall as though he were the Insured observe fulfil and be subject to the Terms of this Policy
insofar as they can apply
b. b. is not entitled to indemnity under any other policy.
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 2: Liabilities to Third Party

4. The Company may at its own option:
a. arrange for representation at any inquest or fatal inquiry in respect of any death which may be the
subject of indemnity under this Section
b. undertake the defense of proceedings in any Court of Law in respect of any act or alleged offence
causing or relating to any event which may be the subject of indemnity under this Section.

5. In the event of the death of any person entitled to indemnity under this Policy the Company will in
respect of the liability incurred by such person indemnify his/her personal representative according
to the terms and condition of the Policy.
 COMMERCIAL VEHICLE INSURANCE : POLICY
Section 2: Liabilities to Third Party

6. The insurer undertakes to pay Nature of injury Compensation amount

(in Rs.)
compensation in the following Permanent total disablement from injury 500000
situation:
Irrecoverable damage to both eyes 500000
a. Bodily injury: In case of bodily Damage to lower part from wrist or above of 500000
injury, occurrence of medical wrist on both hand and,
Damage to parts from above ankle joint or from
expenses to third party , the insurer ankle joint downward
will pay the compensation if the Damage to lower part from wrist or above of 250000
document is confirmed by the wrist on one hand and,
authorized person seeing the Damage to parts from above ankle joint or from
ankle joint downward on one hand
doctor report of the following Loss of sight of one eye 250000
amount : Any other bodily injuries (as per the scale Proportionate damage
designated by the expert on physical injuries)  in respect of Rs.
If more than one injury arises then the 500000.
total compensation amount should not Medical expenses resulting from accident Maximum limit of
exceed Rs. 500000. 3,00,000
 COMMERCIAL VEHICLE INSURANCE : POLICY
Section 2: Liabilities to Third Party
6. The insurer undertakes to pay compensation in the following situation:
b. Hospital expense: If the injury to the third party due to accident result in hospitalization, per day 500 will be
given for maximum of 45 days.
c. Ambulance cost: If the third party has to be taken to hospital from the accident spot, less of actual cost and
10000(maximum) will be paid. This is including in medical expenses cost (discussed on a).
d. Funeral cost: In the case of the death of third party, the funeral expense of Rs. 50,000 per dead (within the
boundary of total Rs.5 lakhs per dead) will be compensated upon knowing. In the case of this expense, if the
commercial vehicle owner already compensated the third-party claimant at the time of death, then they should
present the bill or receipt to the company. Then the company while going through death claim settlement
process should deduct the funeral expense and should pay the remaining death claim settlement amount to
claimant and, funeral expense should be refunded to the commercial vehicle owner.
e. Death: If the death of the third party is proved from credible sources as per the law then the company will
compensate the total of 5 lakh rupees per dead including the funeral expense. In addition to this, if the third
party dies during the course of treatment then the company will compensate the maximum of 3 lakhs per dead
including the necessary and actual treatment expenses.
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 2: Liabilities to Third Party

7. Limits of liability

S.N. Nature of Vehicles Maximum liability limit Maximum liability limit in case
in case of injury or death of loss or damage to property of
of third party (in Rs.) third party (in Rs.)
1 Commercial Vehicles 50 lakhs 50 lakhs
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 2: Liabilities to Third Party

8. The company will compensate, subject to terms and conditions of the policy, the damage to
property of the third party due to the commercial vehicle accident. While settling this claim, the
depreciation will not be subtracted from the settlement amount.

9. In the event of accident involving indemnity under this Section to more than one person the
Limits of Liability shall apply to the aggregate amount of indemnity to all persons indemnified
and such indemnity shall apply in priority to the Insured.

10. Other conditions, deductibles and exceptions in insurance policy will remain same.
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 3: Towing Disabled Vehicles

If the insured vehicle is being used for the purpose of towing any one disabled mechanically
propelled vehicle and in any case the damage to the insured vehicle takes place, the insurer
would indemnify the policyholder.
Provided always that:
 such towed vehicle is not towed for reward
 the company will not be liable in respect of damage to such towed vehicle or property
being conveyed thereby.
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 4: Discount in Premium amount in case of no claim

1. If not claim is made under this policy in any year, then on next renewal period following
discount is allowed on premium amount (excluding on personal accident insurance),
Duration of no claim Discount
One Year before renewal date 15%
Two years before renewal date 25%
Three or more years before 30% No claim bonus No claim bonus No claim bonus
renewal date applicable for applicable for applicable for
one year one year two year
   

But, in case of total loss or constructive total No claim Claim No claim

loss claim, the insurer doesn’t provide NCD 0 1 2 3

accumulated anymore and it has to be initially

started.
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 4: Discount in Premium amount in case of no claim

2. If the insured comes to insure new vehicle of same category within 365 days of the change in
ownership of previously insured vehicle, then after declaring no occurrence of any accident, the
insurer should provide NCD.

3. If the new insured comes to insure within 365 days of change in insurable interest,

4. If you switch insurer before a year is up, you can file a NCD certificate and obtain discount on
your premium.
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 4: Discount in Premium amount in case of no claim

5. Within 35 days of termination of Policy, if the insured takes new insurance policy, then NCD
would be applicable.

6. If there is change in ownership of insured vehicle from company to their employee, employee
would be provided NCD. This is only applicable if there is contract to use exclusively by
employee with the company.

7. The legal heir after transfer of ownership can obtain NCD.

 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 5: General Exceptions

1. The insurance company shall not be liable under this policy in respect of:
a. Any accidental loss or damage and/or liability caused sustained or incurred outside the geographical
area;
b. Any claim arising out of any contractual liability;
c. Any accidental loss damage and/or liability caused due to driving by any other person other than
mentioned person (in policy).
d. Damage caused due to contamination by radioactive material.
e. Any accidental loss or damage or liability directly or indirectly caused from nuclear weapons
material.
f. Any accidental loss damage and/or liability directly or indirectly or proximately in connection with
war, invasion, the act of foreign enemies, hostilities or warlike operations (whether before or after
declaration of war), civil war, military or usurped power.
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 5: General Exceptions

2. Unless the insured does not take additional endorsement related to above mentioned in 1, the
damage occurred/ liability occurred through this would not be covered.

3. Any consequential loss arising out from any accident.

 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 6: Conditions
1. Notice shall be given in writing (printed or handwritten) to the Company immediately upon
the occurrence of any accidental loss or damage in the event of any claim and thereafter the
insured shall give all such information and assistance as the company shall require. Every letter
claims and/or process or copy shall be forwarded to the Company immediately on receipt by the
Insured. In case of theft or criminal act which may be the subject of a claim under this Policy
and insured shall give immediate notice to the Police.
2. The insured shall take all reasonable steps to safeguard the vehicle from loss or damage and to
maintain it in efficient condition. Company shall have at all times free and full access to examine
the vehicle or any part. In the event of any accident or breakdown, the vehicle shall not be left
unattended without proper precautions being taken to prevent further damage or loss. If the
vehicle be driven before the necessary repairs are effected any further damage to the vehicle
shall be entirely at the Insured’s own risk.
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 6: Conditions
Duration from Percentage of
3. The Company may cancel the Policy by sending Fifteen inception of policy Annual Premium
days’ notice to the Insured at the Insured’s last known address One week 10%
and in such event will return to the Insured the premium paid One month 20%
less the pro rata (non-penalty method on termination) portion Two month 30%
for the period the Policy has been in force. Three month 40%
Four month 50%
Fifth month 60%
Six month 70%
4. The policy will be cancelled at any time and provided that Seven month 80%
no claim has arisen up to this time, the Insured shall be Eight month 90%
entitled to a return of Premium less Premium at the Short More than eight 100%
Period rates (Penalty method) for the Period the Policy has month
been in force.
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 6: Conditions
5. If at the time of occurrence of an event that gives rise to any claim under this Policy there is in
existence any other insurance covering the same liability, the Company shall not be liable to pay
or contribute more than its rateable proportion of any compensation, cost or expense.

6. In case of termination of the Policy, the Policy would cease from 12:00 PM local time.

7. Time and date of the commencement of Policy will be as stated in the Policy.

8. If adequate information is not disclosed to the insurer along with disclosure of false facts, then
insurer would not pay claim amount.
 COMMERCIAL VEHICLE INSURANCE : POLICY
Section 6: Conditions
9. Within 35 days of change in ownership of the Vehicle, if the new owner does not take relevant
insurance, then the policy will terminate thereafter. But liability relating to passenger, Driver,
Conductor, Helper, security personnel, insured employee along with third party will be covered
throughout the Policy duration.

10. Within 35 days of sale of vehicle, if the written notice is provided to the insurer, then this
policy can be transferred to new owner.
a. new owner should submit the insurance proposal form and insurer transfers the policy with
the issue of endorsement.
b. If current insurer obtain discount on no-claim, new owner would not be entitled to NCD.
c. Whatever written in (a) and (b),
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 6: Conditions
11. Unless issue of stamped receipt from insurer, the premium paid is not validated.

12. Insurer would not be liable for any damage after 3 months of its occurrence. But, in case of
the processing claim, the insurer would indemnify the insured or any third party.

13. Violation of Principle of utmost good faith (disclosure of false facts, intentionally gaining
profit on mutual consent of insurer along with another person) results in complete termination of
benefit under this policy.
 COMMERCIAL VEHICLE INSURANCE : POLICY

Section 6: Conditions
14. If the insured has not sued against insurer within 3 months of Rejection of claim or Within
given time frame mentioned in law, the insured hasn’t filed case against the insurer in Appellate
Court (In accordance to Insurance act ,2049, the insurance board has decided in favour of
insurer), results in complete termination of benefit under this policy.

15. If any conflict arises, it is resolved according to the Insurance Act, 2049.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

We agree with you that we will provide coverages as shown for the Commercial Vehicle(s) listed
in the declaration for which this endorsement is attached.

Endorsement 1: Voluntary Excess

1. In case of policy issued with any discount on premium amount mentioned in policy schedule,
on damage to vehicle or any of its accessories, insurer will not be liable to compensate first
Rs. …..

2. Payment from the insurer if includes the liability of insurer under voluntary excess, then the
insurer has to provide amount under voluntary excess.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 2: Compulsory Excess

1. In any claim payment made under section 1, Rs. amount as compulsory excess is to borne
by insured himself/herself. But in case of total loss, compulsory excess is not deducted during
claim payment.

Endorsement 3: Third party Liability

2. Section 1, Section 3, and Section 4 is not applicable for commercial vehicle insurance.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 4: Liability to commercial vehicle passenger

1. Considering the excess premium paid, this Policy shall be extended and the Company
undertakes to pay compensation as per the following scale for bodily injury/ death sustained by
the passenger of the vehicle in direct connection with the vehicle insured or whilst mounting
into/dismounting from or traveling in the insured vehicle as passenger, caused by violent
accidental external and visible means which independent of any other cause shall within 183
days of such injury to the passenger in the case of injury and to the passenger’s beneficiaries in
the case of death.
a. Case of injury or disablement:
The Company undertakes to pay compensation to passengers of the vehicle per person as
per the following scale for bodily injury, disablement or the hospital expenses during
treatment on the basis of doctors’ report and the necessary proof presented by credible and
legal sources.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 4: Liability to commercial vehicle passenger

Nature of injury Compensation for injury (in Rs.)

Death 5 lakhs.
Permanent total disablement 5 lakhs.
Permanent loss of sight of both eyes 5 lakhs
Loss of two limbs or permanent disablement of bodily parts above lower 5 lakhs
limbs
Loss of one upper limb or one lower limb and permanent loss of one sight 5 lakhs

Loss of sight of one eye 2 lakhs 50 thousand

Loss of one upper limb or loss of one lower limb or permanent disablement 2 lakhs 50 thousand
of bodily parts above the upper limb
Any other bodily injuries (as per the scale designated by the expert on Proportionate to the bodily damage in respect
physical injuries) of percentage of .
 
Hospital expenses incurred for the treatment caused by accidental external Maximum - 3 lakhs
and visible means which is independent of any other cause (Necessary and actual expense)
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 4: Liability to commercial vehicle passenger

1.
b. Hospital expense:
If it is proved that the passenger is injured and is admitted in hospital for treatment then the
company will pay/compensate Rs. 500 per day for maximum of 45 days by staying within
the boundary of medical treatment expenses.
 
c. Ambulance expense:
If the injured passenger is to be taken from the accident location or current hospital to the
next hospital for treatment then the company will compensate the minimum of Rs. 10000
or the actual ambulance expense by staying within the boundary of medical treatment
expenses.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 4: Liability to commercial vehicle passenger

1.
d. Funeral expense:
In the case of the death of passenger, the funeral expense of Rs. 50,000 per dead (within the boundary of total
Rs.5 lakhs per dead) will be compensated upon knowing. In the case of this expense, if the commercial vehicle
owner already compensated the third-party claimant at the time of death, then they should present the bill or
receipt to the company. Then the company while going through death claim settlement process should deduct
the funeral expense and should pay the remaining death claim settlement amount to claimant and, funeral
expense should be refunded to the commercial vehicle owner.
 
e. Death:
If the death of the passenger is proved from credible sources as per the law then the company will compensate
the total of 5 lakh rupees per dead including the funeral expense. In addition to this, if the passenger injured
due to the commercial vehicle accident, dies during the course of treatment then the company will compensate
the maximum of 3 lakhs per dead including the necessary and actual treatment expenses.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 4: Liability to commercial vehicle passenger

2. For the passengers not buying tickets the insurance company will compensate, as per (1), as:
 Passengers who are less than 1 year old will be compensated 25% of the compensation
designated to ticket buying passengers.
 Passengers who are in age between 1 year old and 5 years old will be compensated 50%
of the compensation designated to ticket buying passengers.

3. If the commercial vehicle under accident is carrying the passengers exceeding the limit as
previously mentioned in insurance policy, then the company will settle the claim on the basis of
the numbers of seat.
 
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 4: Liability to commercial vehicle passenger

4. No compensation shall be payable in respect of death or bodily injury directly or indirectly
wholly or in part arising or resulting from or traceable to (a) intentional self-injury suicide or
attempted suicide physical defect or infirmity or (b) an accident happening whilst such person is
under the influence of intoxicating liquor or drugs.

5. Other conditions, deductibles and exceptions in insurance policy will remain same.
 
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 5: Insurance regarding commercial vehicle driver, co-driver, checker, helper,

security guards or others workers’ accident
1. In consideration of the payment of an additional premium, it is hereby understood and agreed
that this Policy shall be extended and the Company undertakes to pay compensation to
commercial vehicle driver, co-driver, checker, helper, security guards or others workers as per
the following scale for bodily injury/ death within 183 days of accident to the affected in case of
injury and to their beneficiaries in the case of their death.
a. Case of injury or disablement:
The Company undertakes to pay compensation to commercial vehicle driver, co-driver,
checker, helper, security guards or others workers of the vehicle per person as per the
following scale for bodily injury, disablement or the hospital expenses during treatment on
the basis of doctors’ report and the necessary proof presented by credible and legal sources.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 5: Insurance regarding commercial vehicle driver, co-driver, checker, helper,

security guards or others workers’ accident
Nature of injury Compensation for injury (in Rs.)

Death 5 lakhs.
Permanent total disablement 5 lakhs.
Permanent loss of sight of both eyes 5 lakhs
Loss of two limbs or permanent disablement of bodily parts above 5 lakhs
lower limbs
Loss of one upper limb or one lower limb and permanent loss of one 5 lakhs
sight
Loss of sight of one eye 2 lakhs 50 thousand
Loss of one upper limb or loss of one lower limb or permanent 2 lakhs 50 thousand
disablement of bodily parts above the upper limb
Any other bodily injuries (as per the scale designated by the expert Proportionate to the bodily damage in
on physical injuries) respect of percentage of .
 
Hospital expenses incurred for the treatment caused by accidental Maximum - 3 lakhs
external and visible means which is independent of any other cause (Necessary and actual expense)
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 5: Insurance regarding commercial vehicle driver, co-driver, checker, helper, security guards or
others workers’ accident
1.
b. Hospital Expense:
If it is proved that the commercial vehicle driver, co-driver, checker, helper, security guards or others workers
is injured and is admitted in hospital for treatment then the company will pay/compensate Rs. 500 per day for
maximum of 45 days by staying within the boundary of medical treatment expenses.

c. Ambulance expense:
If the injured commercial vehicle driver, co-driver, checker, helper, security guards or others workers is to be
taken from the accident location or current hospital to the next hospital for treatment then the company will
compensate the minimum of Rs. 10,000 or the actual ambulance expense by staying within the boundary of
medical treatment expenses.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 5: Insurance regarding commercial vehicle driver, co-driver, checker, helper,

security guards or others workers’ accident
1.
d. Funeral expense:
In the case of the death, the funeral expense of Rs. 50,000 per dead (within the boundary of
total Rs.5 lakhs per dead) will be compensated upon knowing. In the case of this expense,
if the commercial vehicle owner already compensated the third-party claimant at the time
of death, then they should present the bill or receipt to the company. Then the company
while going through death claim settlement process should deduct the funeral expense and
should pay the remaining death claim settlement amount to claimant and, funeral expense
should be refunded to the commercial vehicle owner.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 5: Insurance regarding commercial vehicle driver, co-driver, checker, helper,

security guards or others workers’ accident
1.
e. Death:
If the death of the commercial vehicle driver, co-driver, checker, helper, security guards or
others workers is proved from credible sources as per the law then the company will
compensate the total of 5 lakh rupees per dead including the funeral expense. In addition to
this, if the commercial vehicle driver, co-driver, checker, helper, security guards or others
workers, injured due to the commercial vehicle accident, dies during the course of
treatment then the company will compensate the maximum of 3 lakhs per dead including
the necessary and actual treatment expenses.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 5: Insurance regarding commercial vehicle driver, co-driver, checker, helper,

security guards or others workers’ accident
2. No compensation shall be payable in respect of death or bodily injury directly or indirectly
wholly or in part arising or resulting from or traceable to (a) intentional self-injury suicide or
attempted suicide physical defect or infirmity or (b) an accident happening whilst such person is
under the influence of intoxicating liquor or drugs.

3. Other conditions, deductibles and exceptions in insurance policy will remain same.
.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 6: Vehicles Laid Up

1. Whatever be written in the insurance policy, if the insured vehicle is laid up in garage and not in
use then during this period all liability of the Company under this Policy in respect of the vehicle
insured is suspended save only in respect of loss or damage to the said vehicle caused by:
 fire explosion,
 lightening,
 self-ignition or lightning of the vehicles or the vehicles’ parts,
 burglary, housebreaking,
 hailstorm, snow or frost,
 theft or riot strike malicious damage terrorism or
 storm tempest flood inundation or earthquake perils.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 6: Vehicles Laid Up

2.
In case of subsection (1) the Company will deduct from the next renewal premium the sum of
discount amount and the No Claim Discount (if any) shall be calculated on the next renewal
premium after deduction of such sum.
While taking account of the base of No claim Discount, the previous year laid up time should be
deducted and remaining time should be proportionately considered then discount should be
provided accordingly.
In addition, if the additional premium is being paid then the time of insurance can be extended.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 6: Vehicles Laid Up

3.
If the insurance policy is to be renewed fully with cancellation of endorsement, then the time
period of laid up commercial vehicle will be calculated and the Company will deduct from the
next renewal premium the sum of discount amount.
No claim discount (if any) shall be calculated on the next renewal premium after deduction of
such sum. In addition, if the additional premium is being paid then the time of insurance can be
extended.

4. Other conditions, deductibles and exceptions in insurance policy will remain same.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 7: Transfer of Interest

1.
It is hereby understood and agreed that as from …/…/……. the interest in the Policy is
transferred to and vested in ……….... of ………………. carrying on or engaged in the business
or profession of ……………. who shall be deemed to be the Insured and whose proposal and
declaration dated .. /…/…. shall be deemed to be incorporated in and to be the basis of this
contract.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 7: Transfer of Interest

2.
Provided always that for the purpose of the No Claim Bonus, no period during which the interest
in this Policy has been vested in any previous insured shall accrue to the benefit of new insured.

3.
Other conditions, deductibles and exceptions in insurance policy will remain same.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 8: Insurance regarding Strike, Riot, Anger/Hatred

1.
In consideration of the payment of an additional premium, it is hereby understood and agreed
that this Policy shall be extended and the Company undertakes to pay compensation of the loss
incurred due to strike, riot, anger or hatred.

2.
This insurance shall not cover any loss or damage occasioned by or through or in consequence,
directly or indirectly, of any of the following occurrences, namely a war, invasion, act of foreign
enemy, hostilities or warlike operations (whether war be declared or not), civil war, mutiny, civil
commotion assuming the proportion of or amounting to a popular rising, military rising,
political riots, insurrection, rebellion, revolution.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 8: Insurance regarding Strike, Riot, Anger/Hatred

3. Insured must be responsible to proving that the loss or damage is not incurred due to the
reasons specified in the sub-section (2). In failing to prove so, the company is not liable to pay
the claim.
[Link] be written in the insurance policy, there is no provision of refunding the additional
premium in full or in part even if the insured request the cancellation of the effect of this
endorsement before the insurance policy contract expires.
5. Other conditions, deductibles and exceptions in insurance policy will remain same.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 9: Terrorism and Catastrophic Event

1.
In consideration of the payment of an additional premium, it is hereby understood and agreed
that this Policy shall be extended and the Company undertakes to pay compensation of the loss
incurred due to terrorism and catastrophic event.

2.
Other conditions, deductibles and exceptions in insurance policy will remain same.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 10: Replacement Parts

1.
Whatever be written in the insurance policy contract, in the event that spare parts or accessories for the repairs
of Your Vehicle are not available in the country then, our liability for such spare parts/accessories, under
conditions of the insurance policy, shall be,
a. the price quoted in the latest catalogue or price list issued by the manufacturer or their
agent/representative,
b. in the event no such latest catalogue exists the price at previous catalogue plus reasonable cost of
transport (except air freight).
c. reasonable cost of fitting such spare parts/accessories.
2.
Other conditions, deductibles and exceptions in insurance policy will remain same.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 11: Restriction to Extra Hazardous Work

1.
The loss or the damage of the insured vehicle, its parts or any related due to extra hazardous
natural work will not be compensated by the insurance company.

2.
Other conditions, deductibles and exceptions in insurance policy will remain same.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 12: Trailer/ trolley (carrying goods) insurance

1.
In consideration of the payment of an additional premium, it is hereby understood and agreed
that this Policy shall be extended to trailer/ trolley.
2.
The insurance company will not be liable to compensate the claim if the trailer/trolly carrying a
person/s suffers any physical injuries or death due to an accident.

3.
Other conditions, deductibles and exceptions in insurance policy will remain same.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 13: Power tiller (carrying goods) insurance

1.
In consideration of the payment of an additional premium, it is hereby understood and agreed that
this Policy shall be extended to power tiller.

2.
The insurance company will not be liable to compensate the claim if other person/s, except driver
and one helper, riding in tractor and power triller suffers any physical injuries or death due to an
accident.

3. Other conditions, deductibles and exceptions in insurance policy will remain same.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 14: Agriculture, Forestry vehicle insurance

1.
This company will be liable to the loss or damage to the vehicle arising out of the operation of
tools of trade as well as to the third party of the agriculture forestry vehicles while working with
permit.

2.
Other conditions, deductibles and exceptions in insurance policy will remain same.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 15: Construction equipment/ vehicle insurance

1.
This company will be liable to the loss or damage to the vehicle or to the third party of the
construction equipment/ vehicles, except for the loss or damage to the vehicle arising out of the
operation of tools of trade, while working with permit.

2.
Other conditions, deductibles and exceptions in insurance policy will remain same.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 16: Cover for Vehicles Imported Without or Less Customs Duty
1. The company will be liable to compensate either on the basis of market value of commercial
vehicle or on the basis of discounted custom duty.

2. Compensation amount
a. If on the basis of market value:
i. If the loss or damage to the vehicle is partial then, the company will compensate as for
the provisions on other vehicles.
ii. If there is total loss or constructive total loss to the vehicle, then the company will
compensate proportionately in respect of its salvage value and the discounted custom
duty.
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT

Endorsement 16: Cover for Vehicles Imported Without or Less Customs Duty
2. Compensation amount
b. If on the basis of discounted custom duty:
i. If the loss or damage to the vehicle is partial then, then the company will be liable to
compensate the proportionate amount in respect of the market value and the decided
compensation amount i.e. average clause will come in place.
ii. If there is total loss or constructive total loss to the vehicle, then the company will be
liable to compensate the decided compensation amount.
3. Other conditions, deductibles and exceptions in insurance policy will remain same.
.
COMMERCIAL VEHICLE INSURANCE : POLICY
COMMERCIAL VEHICLE INSURANCE : POLICY
COMMERCIAL VEHICLE INSURANCE : COMPREHENSIVE INSURANCE POLICY
COMMERCIAL VEHICLE INSURANCE : COMPREHENSIVE INSURANCE POLICY
COMMERCIAL VEHICLE INSURANCE : COMPREHENSIVE INSURANCE POLICY
COMMERCIAL VEHICLE INSURANCE : SCHEDULE
COMMERCIAL VEHICLE INSURANCE : SCHEDULE
COMMERCIAL VEHICLE INSURANCE : COMPREHENSIVE INSURANCE POLICY
COMMERCIAL VEHICLE INSURANCE : SCHEDULE
COMMERCIAL VEHICLE INSURANCE : SCHEDULE
COMMERCIAL VEHICLE INSURANCE : THIRD PARTY POLICY ( TRUCK/PICKUP)
COMMERCIAL VEHICLE INSURANCE : THIRD PARTY POLICY ( TRUCK/PICKUP)
COMMERCIAL VEHICLE INSURANCE : SCHEDULE
COMMERCIAL VEHICLE INSURANCE : COMPREHENSIVE POLICY (TRUCK/PICKUP)
COMMERCIAL VEHICLE INSURANCE : COMPREHENSIVE POLICY (TRUCK/PICKUP)
COMMERCIAL VEHICLE INSURANCE : COMPREHENSIVE POLICY
(TRUCK/PICKUP)
COMMERCIAL VEHICLE INSURANCE : SCHEDULE
COMMERCIAL VEHICLE INSURANCE : SCHEDULE
COMMERCIAL VEHICLE INSURANCE : COMPREHENSIVE POLICY
(TRUCK/PICKUP)
COMMERCIAL VEHICLE INSURANCE : PROPOSAL FORM
COMMERCIAL VEHICLE INSURANCE : PROPOSAL FORM
COMMERCIAL VEHICLE INSURANCE : PROPOSAL FORM
COMMERCIAL VEHICLE INSURANCE : PROPOSAL FORM
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT
COMMERCIAL VEHICLE INSURANCE : ENDORSEMENT
 COMMERCIAL VEHICLE INSURANCE : KNOCK FOR KNOCK
RELATED PROVISION
 If two insured vehicles collide with each other, then corresponding insurer should pay for their
respective damage to insured vehicle. The responsibility to inspect whether the other colliding vehicle
is covered under another policy is of insurer.
 The joint accident of insured vehicles results in liability to third party but who’s fault cannot be
determined. Then, chosen insurer pay the compensation amount according to the law and can claim
from insurer of another insured vehicle.
 Collision between vehicle results in death or injury to passenger, driver, conductor, checker, helper,
security officer then insurer pay for the compensation. Then, such sum can be claimed from the
vehicle found to be guilty.
 If insured vehicle and uninsured vehicle collide with each other, then primarily compensation is paid
by insured vehicle. If uninsured vehicle is found to be guilty then insurer of insured vehicle can claim
from uninsured vehicle. But if, insured vehicle is found to be guilty, then uninsured vehicle can claim
from insurer of insured vehicle.
COMMERCIAL VEHICLE INSURANCE : COMMISSION AMOUNT

 If the insurance business is directly done without involvement of insurance broker, ten percent
discount on premium amount (except premium on third party and Dangerous Group).
 COMMERCIAL VEHICLE INSURANCE : COMPREHENSIVE CLAIM
SETTLEMENT PROCEDURE

• Notice of accident should be filed with the insurers.

• If damage is a major one, the accident may be reported before the vehicle is removed from the
spot so that the insurers can arrange for spot inspection of damage.
• The vehicle may then be moved to a workshop, preferably to authorized workshop, for estimation
of repair charges.
• On receipt of completed claim form and estimate of repairs the insurers will arrange detailed
inspection of damage and cost of repairs will be ascertained.
• The insurers will ensure that a person duly licensed drove the vehicle at the time of accident and
that the vehicle is the one insured in their books. To that end, they will verify the Registration
Certificate and the Driving license of the driver who drove at the time of the accident.
COMMERCIAL VEHICLE INSURANCE : COMPREHENSIVE CLAIM
SETTLEMENT PROCEDURE
• Upon completion of the above procedure, the repairers will be authorized to carry out repairs. The
insurer may undertake to settle the repair bills directly with the garage or reimburse the insured.
• Insurers would like to collect the damaged parts for which replacements have been allowed, as
salvage.
• In case of theft of the car or its accessories, it has to be reported to the police and final report
should be submitted.
• In case the cause of loss is not established, it is for the insured to prove that the loss or damage has
occurred due to an insured peril.
• On agreement of claim amount between the insured and the insurer, the claim is settled.

• Excess as stated as per the Policy terms and condition will be deducted from the claim payable.
COMMERCIAL VEHICLE INSURANCE : THIRD PARTY CLAIM
SETTLEMENT PROCEDURE

 If a third party has sent you a legal notice asking for a claim, do not communicate with the party
before informing your insurance company. Also remember not to make any financial
commitments or out-of-court settlements before speaking to your insurer first.
 Submit a copy of the notice to your insurer.
 You will also have to submit copies of the Registration Certificate of the car, the driving license
and the FIR.
 The insurer will verify the documents and assess the accident and if found satisfactory, you will
get a lawyer appointed by them.
 If the court directs you to pay the damages to the third party thereafter, the insurance company
will directly pay the dues to the third party.
 COMMERCIAL VEHICLE INSURANCE : CLAIM
SETTLEMENT

Required document for Third Party Liability

 Claim intimation
 All copy of blue book (both vehicle)
 Copy of driving license (both vehicle)
 Original Quotation
 Original Claim bills
 Report of Driving person
 Properly fill-up claim form
 Original police report
 COMMERCIAL VEHICLE INSURANCE : CLAIM
SETTLEMENT

Required document for Third Party Liability

 Copy of original policy
 Copy of premium receipt
 Copy of vehicle fitness
 Copy of route permit
 Photograph depicting accident occurrence
 Surveyor report if any surveyor employed
 COMMERCIAL VEHICLE INSURANCE : CLAIM
SETTLEMENT

Required document for Third party or passenger medical claim

 Claim intimation
 Original Medical bills
 Copy of Hospital documents
 Copy of Discharge summary if hospitalized
 Copy of Nursing record if possible
 Copy of Citizenship Certificate
 Original Police Record
 Copy of blue book
 copy of Driving license
 Report of Driving person
 COMMERCIAL VEHICLE INSURANCE : CLAIM
SETTLEMENT
Document required for death of third Party/ Driver/ Conductor/ Helper
 Claim intimation
 All copy of blue book
 Copy of driving license (both vehicle)
 Copy of Death Certificate (if Death Case)
 Copy of ghatanasthal muchulka
 Copy of Original Citizenship certificate
 Copy of Postmortem Report (if Death Case)
 Original police report
 Copy of Relationship Certificate
 Copy of Driver report taken by government lawyer
 Original copy of document (to provide insurance compensation) written by District Administration office
COMMERCIAL VEHICLE INSURANCE : CLAIM FORM
COMMERCIAL VEHICLE INSURANCE : CLAIM FORM
COMMERCIAL VEHICLE INSURANCE : CLAIM FORM
COMMERCIAL VEHICLE INSURANCE : CLAIM FORM
COMMERCIAL VEHICLE INSURANCE : CLAIM FORM
COMMERCIAL VEHICLE INSURANCE : CLAIM FORM
COMMERCIAL VEHICLE INSURANCE : CLAIM FORM
COMMERCIAL VEHICLE INSURANCE : CLAIM FORM
COMMERCIAL VEHICLE INSURANCE : PREMIUM RATES
COMMERCIAL VEHICLE INSURANCE : PREMIUM RATES
COMMERCIAL VEHICLE INSURANCE : PREMIUM RATES
COMMERCIAL VEHICLE INSURANCE : PREMIUM RATES
COMMERCIAL VEHICLE INSURANCE : PREMIUM RATES
COMMERCIAL VEHICLE INSURANCE : PREMIUM RATES
COMMERCIAL VEHICLE INSURANCE : PREMIUM RATES
COMMERCIAL VEHICLE INSURANCE : PREMIUM RATES
COMMERCIAL VEHICLE INSURANCE : PREMIUM RATES
COMMERCIAL VEHICLE INSURANCE : PREMIUM RATES
COMMERCIAL VEHICLE INSURANCE : PREMIUM RATES
COMMERCIAL VEHICLE INSURANCE : PREMIUM RATES
COMMERCIAL VEHICLE INSURANCE : PREMIUM RATES
COMMERCIAL VEHICLE INSURANCE : PREMIUM RATES
COMMERCIAL VEHICLE INSURANCE : PREMIUM RATES
COMMERCIAL VEHICLE INSURANCE : PREMIUM RATES
COMMERCIAL VEHICLE INSURANCE : PREMIUM RATES