When a third party is harmed or suffers a loss due to an accident involving a company’s cars, motor trade insurance, also called road risk insurance, provides coverage. Individuals who own or operate a car dealership, a service station, or a garage are perfect customers for this type of insurance policy. Whatever the size of the business, whether it’s a part-time or full-time venture, it doesn’t matter. Everything from the worth of tools and machinery to the cost of a new automobile is covered by the Policy.
Types of motor vehicle insurance
Among the different types of motor vehicle insurance available, Private Car Insurance, Two-wheeler Insurance, and Commercial Vehicle Insurance are the most prominent ones.
Private Car Insurance
After finalizing your automobile booking, the car vendor would recommend you to purchase insurance coverage that would further act as protection for you and your vehicle. The motor trade insurance would protect you against any kind of unwanted damage, natural disasters like earthquakes and floods, damage or theft, an accident, and so on.
Private car owners can rest easy knowing that they are covered in the event of third-party property damage or bodily injury thanks to the government’s mandate that third-party liability is included in all policies. For further protection, automobile owners can choose to add on engine and gearbox protector and zero depreciation policies.
Two-wheeler Insurance
The Motor Vehicle Amendment Act of 2019 mandates two-wheeler insurance with personal accident and third-party coverage, just like it does for private cars. The insurance provides comprehensive protection for the owner against all kinds of losses and damages, both to his or her person and to his or her property. Insuring a two-wheeler does not cover things like normal wear and tear on the vehicle.
Commercial Vehicle Insurance
Insurance for commercial vehicle owners, as the name implies, is called commercial vehicle insurance. They must have insurance in place to ensure that their business will run smoothly at all times. If an accident or property damage occurs where your car is involved, you’ll be covered for any damages that arise, including loss of life or physical injury, or property damage. For commercial vehicles, such as trucks, public carriers, cars, private and taxis, etc., this sort of insurance is available.
What would your motor trade insurance cover?
- It protects the business from being held legally liable for any harm or death that may be caused to a third party as a result of the insured vehicle’s operation.
- When an insured incident results in damage to the insured vehicle and/or its accessories as specified in the policy’s terms, it is covered.
- Natural disasters, such as lightning, fire, earthquake, and floods, are all covered by this type of coverage.
- Natural disasters such as earthquakes, floods, earthquakes, earthquakes, earthquakes, earthquakes, earthquakes, and volcanic eruptions are not covered.
- It is possible to broaden the scope of the policy to include demonstrative driving.
- This policy excludes coverage for depreciation or any other type of indirect loss.
- In addition to the paid drivers, some insurance companies offer this policy with additional legal responsibilities for employees who travel in or drive the vehicle for a fee.
How does the motor trade insurance work?
It is not easy to buy motor trade insurance instantly, there is an appropriate procedure that is followed to purchase the insurance.
- Provide an application for the insurance
- The eligibility criteria are inspected by the insurer.
- Depending on the size of your business and how much money you make from selling cars, your insurance premium will be computed.
- You can apply for the specified amount in case of any vehicular damage.
- The insurer would check for the validation of your claim and revert back accordingly.
- In the case of a genuine claim, the organization settles it, on the contrary cases it is rejected.
Procedure to claim the insurance
Different insurance companies follow an altogether different procedure for the claims. Thus, it sometimes becomes important to compare the services of all. However, the basic process followed by most has been mentioned below.
- Immediately after the unfortunate event, notify the company in writing of the occurrence, including the time and date, as well as any damage or loss that resulted.
- To report a loss, phone the toll-free number of the insurance company, use the handheld device of a Relationship Executive, send an email to the firm’s email address, or go to the insurance company’s local branch office.
- All necessary papers, such as accounting records, sales receipts, invoices, balance sheets, and other reports requested by an insurance executive must be checked for authenticity in cooperation with the company’s on-call executives.
- If the insured incident is proven to be the cause of the death, the insurance proceeds are considered
- In accordance with the policy wording, compensation will be paid.
- All claims under this policy would be paid to the insured individual if the policy’s rules and conditions were followed.
- The insurance company will receive the policy amount, and the policyholder will receive the payment from the insurance company.
Exceptions of the motor trade insurance
Not all situations can be considered for an insurance claim. There are certain cases where you might feel the need for insurance but the company feels it otherwise. Some of the exceptions for motor trade insurance are as follows.
- Damage to the insured vehicle caused by a drunk or drugged driver will not be covered by the insurance policy.
- Insurance cannot be used in cases of contractual liability
- Damage to an insured vehicle caused by an unlicensed driver will not be covered.
- If the loss or damage does not exceed the limit insured, the insurance company might agree to replacement or repair of the vehicle or its accessories.
- Damage to tyres and tubes may not be covered until the entire insured vehicle is damaged because replacing expense is half the cost of the original tyres and tubes.
- Anyone who leaves the vehicle insured at the time of the occurrence will not be covered by this insurance, even if they are killed or injured.
Advantages of the motor trade insurance
You can only enjoy the benefits of this insurance if your plea is genuine. Some of the advantages of the motor trade insurance include
- The person who may be using the car for business or pleasure can be covered by an extension of the policy issued by the motor trade insurer.
- Under the terms of the policy, all charges and expenses incurred will be covered.
- When the invoice for the insured car is returned, a claim can be made under the Motor Trade Insurance Policy for the difference between the invoiced cost and the cost of a comparable new vehicle.
- As long as you’re driving the insured vehicle, you’re covered for any third-party property damage that occurs as a result of that use.
