What is Commercial Vehicle Insurance?
A Commercial Vehicle carries goods or passengers from one place to another. It is solely used for commercial and profitable purposes.
Commercial Motorcar Insurance will provide insurance for vehicles that are used for business purposes apart from personal use. The insurance covers a commercial vehicle against third-party liabilities and damages caused by fire, lightning, riots, strikes, floods, cyclones, malicious accidents, external explosions, theft and burglary.
The primary goal of a commercial vehicle is to cover the losses due to third-party liabilities and other damages mentioned above.
Commercial motorcar insurance is important to keep your business running smoothly. Shriram General Insurance Philippines (SGI Philippines) provides insurance for your commercial vehicle at affordable rates, which covers you during damages and losses that occur from unforeseen events.
Who Needs Commercial Vehicle Insurance?
Commercial Vehicle insurance is specifically designed for vehicles used for business purposes. A business owner who uses their vehicles for commercial purposes will benefit from commercial vehicle insurance.
If an unfortunate event, like an accident or some mishap, happens on the road, then the commercial vehicle will provide coverage for the damages listed below.
- Vehicle’s Own Damage
- Injury or death of the passenger in the insured vehicle
- Injury or death of the third party
- Damages to properties of the third party
- Vehicle theft
In some cases, insurance providers will also provide services like towing and minor roadside repairs. However, the services provided will differ from one insurance provider to another.
Why is it Important to Have Commercial Vehicle Insurance?
Driving on roads can be scary, and without insurance, you can get exposed a lot. Road and weather conditions can have a major impact on a person’s driving. Imagine carrying a load and adjusting to the road and weather conditions, which can be hectic. This can turn a normal situation into a freak accident in just a fraction of a second.This is why commercial vehicle insurance is important and how it will help people during unforeseen situations. Opting for commercial vehicle insurance will cover you, the vehicle, and the employees while you carry out your daily operations without any delay.
Risk increases while driving commercial vehicle
Vehicles used for transportation process usually have a heavy load. Additionally, vehicles used for such purposes run for a longer time when compared to those of personal use vehicles. Commercial vehicle carries expensive equipment, goods and other products. So having a commercial vehicle insurance will protect your employees as well as your employees during accidents. Commercial vehicle insurance will safeguard and provide financial protection during such situations. Aside from safeguarding you from financial burdens, it will also cover your employee’s injury and other expenses.
Provides better coverage
Commercial vehicle insurance provides more coverage than private car insurance. Most insurance providers cover medical payments, liabilities, and property damage. However, these coverages are primary coverage provided by insurance providers, and you can customise the coverage according to your business needs.
Provides higher insurance limits for your business
Private motor insurance coverage and commercial vehicle coverage may vary due to differences in usage. A private vehicle will only be used for personal purposes, and the coverage will be limited. In contrast, a commercial vehicle will be used more, so the insurance coverage will also be wide enough. Commercial vehicle insurance will cover higher limits of liabilities and other damages that are listed in the policy document. And in the long run, commercial vehicle insurance will help you with a lot of costs regarding liability and other damages. They will not burn your savings and protect you during unforeseen events.
Types of Commercial Insurance Policies
Passenger-carrying vehicle insurance
Passenger-carrying vehicle insurance is applicable for vehicles transporting people from one place to another for commercial purposes. The insurance provides protection to the vehicles in case of damage or loss which occurs due to man-made and natural disasters. Apart from that, the passenger-carrying vehicle insurance covers the following
Goods carrying vehicle insurance
Good-carrying vehicle insurance applies to vehicles transporting goods from one place to another. The timely transportation of these goods helps improve business. Accidents can sometimes occur, so insurance will help during unforeseen conditions. The insurance will cover own damage and third-party liabilities.
Types of Commercial Vehicles
Passenger Carrying Vehicles
Passenger-carrying vehicles are those used by commercial companies to transport people. The primary goal of passenger carrying vehicles is transporting passengers and used in fields like tourism and other regular passenger transport services.
Goods Carrying Vehicles
Goods carrying vehicles transport goods from one place to another for commercial purposes. The goods-carrying vehicles are further sub-divided into categories • Large-goods carrying vehicles • Small-goods carrying vehicles Large-goods carrying vehicles are used to transport small to large items like furniture, electrical appliances, trailers and daily essential goods. Heavy motors are usually used to carry these goods.
Why Choose SGI Philippines General Insurance Co. Inc. Commercial Vehicle Insurance?
SGI Philippines provides commercial vehicle insurance at affordable rates. We have shifted to a digital platform, so it is easy to purchase, renew, and initiate a claim.
SGI Philippines aims to provide an instant commercial vehicle policy with minimal documentation and a speedy application process. Additionally, the renewal process has also been made easy and quick with the improved digital platform.
Eligibility Criteria for Buying Commercial Vehicle Insurance
- Unit or Vehicle year model should be not more than 10 years old
- The road worthy
- Business should be legally operated
- Registered from Land Transportation Office in the Philippines
What’s Covered Under Commercial Vehicle Insurance Policy?
- Loss/ Damage to the vehicle (LD)
- Auto Passenger Insurance ( Auto PA)
- Excess 3rd Party Liability for Bodily Injury/Death (EBI)
- 3rd Party Liability for Property Damage(PD)
- Acts of Nature (AON)
- Vehicle Theft ( Theft)
How to Calculate Commercial Vehicle Insurance Premium?
Motor Insurance premiums are computed by multiplying the applicable rate per thousand, as to type of usage of the vehicle, which should always be compliant to the tariff Rate prescribed by the Insurance Commission to the current Fair Market Value of the vehicle. Expanded coverage and add-ons can be included by paying additional premiums.
Factors Affecting Commercial Vehicle Insurance Premium
- Age of the vehicle
- Usage
- Road Worthiness
- Loss Ratio or History of the company/ insured
- Other portfolio accounts for business considerations
Benefits of Buying Commercial Vehicle Insurance
Purchasing commercial vehicle insurance has many benefits, and the first benefit is safety. Driving heavy vehicles can be risky and affect others travelling on the road. So, it is recommended to purchase commercial vehicle insurance, which provides financial protection during unforeseen events. Additionally, it will provide peace of mind and benefit during third-party liabilities.
How to Buy/Renew Commercial Vehicle Motorcar Insurance?
01.
Present a clear copy of the vehicle’s Certificate of Registration and Official Receipt
02.
4 sides pictures of the unit
03.
Approved quotation of the Assured and his instructions to issue the policy contract
04.
For renewal accounts, just email SGI Philippines of the Renewal Notice indicating your renewal premium and policy number and we will send you your policy copy
Documents Required for Filing a Commercial Vehicle Insurance Claim
- Clear copy of the units Official Receipt and Certificate of Registration
- SGI Philippines Policy Copy / Policy Number
- Official Receipt that the premium has been paid
- Driver’s License
- Pictures of the damages
- Estimate (if available)
- Police Accident Report/ Notarized Affidavit with date of accident/time/complete narration of what happened/how accident happened
- If this is a 3rd Party Property Damage / Bodily Injury Claim
- Clear copy of the units Official Receipt and Certificate of Registration of the 3rd Party Claimant
- Certificate of No Claim from the 3rd Party’s insurance provider
- Driver’s License with OR
- Pictures of the damages
- Estimate
- Official receipts if Bodily Injury Claim
- Medical Certificate
- Government IDs of the claimant
- Contact Number/ Email Add of the claimant, preferably the number is a viber number also for inspection purposes.
How to File a Commercial Motorcar Insurance Claim at SGI Philippines?
The first step is to call and inform the SGI Philippines Claims Team and the team would assist you with all the required documents claims.
How to Download Your Commercial Motorcar Insurance Policy Copy?
Upon purchase of the Motor Insurance with SGI Philippines, after receipt of your payment via bank transfer or direct deposit to the bank under the account of SGI Philippines, a PDF file of the policy will be sent to your designated email address, and you can download or print your policy, according to your preference.
Commercial Vehicle Insurance Terms Explained
Motor Vehicle
Any vehicle propelled by any power, using the public roads and highways and Registered with Land Transportation Office
Motor Insurance
any kind of insurance pertaining to the ownership, maintenance and use of the vehicle
Motor Car Policy
Standard policy terms and conditions are the same for all insurance companies approved by the Office of the Insurance Commission
Physical Damage Insurance
covers loss or damage to the insured vehicle caused by the insured perils specified in the policy
Liability Insurance
refers the 3rd Party Bodily Injury which the insured may do to people or members of the public in general and Property Damage of real or personal property of such people.
Commercial Vehicle
vehicle used for transport of goods such as pick-ups, Delivery Van, Trucks, Trailers etc.
Claim
When the insured raises a request to their insurance company to compensate them for policy covered damages/losses to their vehicle, it is called a “Claim”.
Deductible
It is a portion of the claim amount that the insured agrees to pay. Generally, the higher the deductible amount selected, the lower the premium payable.
Premium
It is the fee that the insured pays to the insurance company in exchange for a specific financial protection.
Benefits of Buying Commercial Vehicle Insurance
Purchasing commercial vehicle insurance has many benefits, and the first benefit is safety. Driving heavy vehicles can be risky and affect others travelling on the road. So, it is recommended to purchase commercial vehicle insurance, which provides financial protection during unforeseen events. Additionally, it will provide peace of mind and benefit during third-party liabilities.
How to Buy/Renew Commercial Vehicle Motorcar Insurance?
01.
Present a clear copy of the vehicle’s Certificate of Registration and Official Receipt
02.
4 sides pictures of the unit
03.
Approved quotation of the Assured and his instructions to issue the policy contract
04.
For renewal accounts, just email SGI Philippines of the Renewal Notice indicating your renewal premium and policy number and we will send you your policy copy
Documents Required for Filing a Commercial Vehicle Insurance Claim
- Clear copy of the units Official Receipt and Certificate of Registration
- SGI Philippines Policy Copy / Policy Number
- Official Receipt that the premium has been paid
- Driver’s License
- Pictures of the damages
- Estimate (if available)
- Police Accident Report/ Notarized Affidavit with date of accident/time/complete narration of what happened/how accident happened
- If this is a 3rd Party Property Damage / Bodily Injury Claim
- Clear copy of the units Official Receipt and Certificate of Registration of the 3rd Party Claimant
- Certificate of No Claim from the 3rd Party’s insurance provider
- Driver’s License with OR
- Pictures of the damages
- Estimate
- Official receipts if Bodily Injury Claim
- Medical Certificate
- Government IDs of the claimant
- Contact Number/ Email Add of the claimant, preferably the number is a viber number also for inspection purposes.
How to File a Commercial Motorcar Insurance Claim at SGI Philippines?
The first step is to call and inform the SGI Philippines Claims Team and the team would assist you with all the required documents claims.
Commercial Motorcar Insurance Terms Explained
Motor Vehicle
Any vehicle propelled by any power, using the public roads and highways and Registered with Land Transportation Office
Motor Insurance
any kind of insurance pertaining to the ownership, maintenance and use of the vehicle
Motor Car Policy
Standard policy terms and conditions are the same for all insurance companies approved by the Office of the Insurance Commission
Physical Damage Insurance
covers loss or damage to the insured vehicle caused by the insured perils specified in the policy
Liability Insurance
refers the 3rd Party Bodily Injury which the insured may do to people or members of the public in general and Property Damage of real or personal property of such people.
Commercial Vehicle
vehicle used for transport of goods such as pick-ups, Delivery Van, Trucks, Trailers etc.
Claim
When the insured raises a request to their insurance company to compensate them for policy covered damages/losses to their vehicle, it is called a “Claim”.
Deductible
It is a portion of the claim amount that the insured agrees to pay. Generally, the higher the deductible amount selected, the lower the premium payable.
Premium
It is the fee that the insured pays to the insurance company in exchange for a specific financial protection.
Frequently Asked Questions
In SGI Philippines, we have a large network of reputable car dealer service centres and accredited repair shops, nationwide, that you can choose from. Your satisfaction and quality of service is our priority, hence we prefer that you engage the services of our accredited shops to ensure quality of repairs.
Yes, subject to acceptance of the Insurer.