Commercial Vehicle Insurance is a financial protection plan for vehicles used for business operations such as goods transport, passenger carrying, logistics, or specialized commercial activities. It covers losses arising from accidents, theft, fire, natural calamities, and third-party liabilities. In India, having at least Third-Party Liability Insurance is mandatory under the Motor Vehicles Act for all commercial vehicles.

Yes. Under the Motor Vehicles Act, every commercial vehicle must carry an active Third-Party Liability Policy. This covers injuries, property damage, or death caused to third parties. While Own Damage (OD) cover is optional, it is strongly recommended as it protects your vehicle against hazards like accidents, fire, or theft, reducing out-of-pocket business losses.

Commercial Vehicle Insurance includes three main categories:

• GCV Insurance (Goods Carrying Vehicles): Trucks, pickups, tempos transporting goods.
• PCV Insurance (Passenger Carrying Vehicles): Taxis, buses, vans, autos carrying passengers.
• Miscellaneous Vehicles: Cranes, bulldozers, tractors, construction equipment.

Each category has specific coverage, liability requirements, and premium factors based on vehicle usage.

Premiums depend on the type of vehicle (goods, passenger, or miscellaneous), seating capacity, tonnage, usage frequency, route risks, fuel type, and Insured Declared Value (IDV). Factors like add-ons, past claims, and No Claim Bonus (NCB) also impact the final cost. Passenger vehicles include passenger liability charges, while goods vehicles depend heavily on tonnage and cargo type.

GCV Insurance covers goods-carrying vehicles such as trucks, lorries, and tempos and focuses on cargo type, tonnage, and operational routes. PCV Insurance covers passenger-carrying vehicles such as taxis, buses, and vans and includes mandatory passenger liability premiums. GCV deals with goods risks; PCV deals with passenger risks — both require third-party liability by law.

Typically, you need the vehicle’s Registration Certificate (RC), permit type (goods/passenger), driver’s license, previous insurance policy (for renewal), fitness certificate, and any business-related documents depending on the vehicle category. Online renewal requires only basic details, after which the updated policy is issued instantly.