Insurance coverage is necessary for every kind of motor vehicle, whether it be a private or commercial vehicle. Three-wheeler commercial vehicle insurance is a type of policy that provides coverage to three-wheeler vehicles (tempos, small trucks, auto-rickshaws, etc.) used for commercial purposes such as transporting goods from one place to another or carrying passengers.

It is important to know that third-party insurance is mandatory to guard against damage to third parties or their properties. On the other hand, getting comprehensive insurance for commercial vehicles in India is not mandatory. Still, it is advisable to protect your vehicle in an accident. Thus, understanding the nuances of each type can prevent financial setbacks and ensure adequate coverage.

Importance of Three-wheeler Insurance Policy

Three-wheeler insurance protects against various challenges such as accidents, theft, damages due to natural disasters and third-party liability. It serves as a financial barrier in the event of an accident.

In countries like India, it is mandatory to obtain insurance for your vehicle. Failure to do so may indicate you do not have adequate insurance coverage, which might restrict you from driving your vehicle on public highways.

Now, before proceeding to the section that discusses the important things to consider while buying three-wheeler insurance in India, you must first know about the types of coverage and insurance policies for commercial three-wheelers.

Types of Insurance Coverage for Three-wheelers

Things to Consider When Selecting a Three-wheeler Insurance Policy

With so many alternatives available today, it's critical to choose an easy-to-understand, reasonably priced insurance that insures you and your business from loss in all scenarios and guarantees a prompt settlement of claims. That is, after all, the most crucial component of a three-wheeler insurance policy!

Here are a few things to consider that will help you pick the right auto rickshaw insurance:

1.The Right Insured Declared Value (IDV)

This is the manufacturer’s selling price of the three-wheeler you want to insure (including its depreciation). It reflects the maximum amount the insurer pays if your vehicle is destroyed beyond repair or stolen. Essentially, it is your vehicle's current market worth minus depreciation.

The IDV is essential since it directly affects your insurance rate; a greater IDV results in a higher premium before renewing your coverage. So, while looking for the right three-wheeler insurance online, you must ensure your IDV is stated correctly.

2.Review and Evaluate Add-Ons

While choosing the appropriate insurance for your three-wheeler, consider the add-ons available to extract maximum benefits. The add-on options can include zero depreciation cover, roadside assistance cover, towing expense cover, consumables cover, key and lock replacement cover, EMI protection cover, etc. You can opt for the add-ons that will enhance the policy coverage.

3.Claim Settlement Ratio

The claim settlement ratio is an important metric for determining an insurance company's credibility. It explains the possibility of the insurance paying you for your loss.

The Claim Settlement Ratio is determined as the number of claims settled in a year divided by the total number of claims received in a year multiplied by 100. The greater the ratio, the less likely a claim will be rejected.

Thus, you must choose an insurance company that will settle claims quickly, as this is the most important aspect of any three-wheeler insurance.

4.Coverage

It is important to evaluate your requirements, check the coverage, inclusions, and exclusions, and review the necessary terms and conditions.

5.Premium

You can calculate the approximate insurance cost for commercial vehicles via the insurance premium calculator. With the help of the calculator, you can buy a policy that is high on benefits but low on costs. For this, you can share the details with the insurer, select the plan, and customise the plan with add-ons. Then, the insurer will provide you with the cost of three-wheeler insurance.

6.No-claim Bonus

The NCB benefits the insured in discounted premiums for not filing any claim during a policy year. If the owner avails of this benefit by not filing a claim, they can avail of a discount on their premium for the upcoming year. So, when opting for a policy, you must check with the insurer about the NCB discount.

7.Deductibles

You can check for compulsory and voluntary deductibles. Opt for the voluntary deductibles once you have read the terms and conditions and assessed your capacity to pay such deductibles.

8.Cashless Garages

It is also important to check with the insurer about the cashless repair facility through the cashless network garages.

While opting for a three-wheeler insurance policy, it is important to compare commercial vehicle insurance quotes and consider all the factors.

So, when you buy any policy online, it is important to compare different plan options and select the one that best suits your needs. This makes it easier for you to choose a policy, calculate the premiums, determine the coverage, estimate how add-ons can enhance your policy coverage, and evaluate other factors as well.

How to Buy and Renew Commercial Vehicle Insurance Online?

To buy commercial vehicle or auto rickshaw insurance online, you need to sign up with an insurance company of your choice and then go through the following steps:

1. Firstly, you can enter the commercial vehicle’s registration number, mobile number and check out the prices.
2. You can then opt for the appropriate plan, add-ons, and IDV and proceed with it.
3. It is important to enter your personal, nominee, and vehicle details and then make the payment for them.
4. After completing the payment process, it is compulsory to complete the KYC verification process as well.
5. Once it is done, you will receive the policy document via email, SMS and WhatsApp.

Documents Required to Buy Three-Wheeler Insurance Online?

To get three-wheeler insurance online, you will be required to have these documents:

• Vehicle Registration Certificate (RC)
• Last year’s commercial vehicle insurance policy, if applicable
• Any document among these for KYC verification - PAN/Aadhar/DL/Voter id/Form 16/Passport

Final Words

When looking into insurance for your three-wheeler, you should evaluate issues such as premium cost, coverage limitations, and additional perks provided by different insurers. Comparing auto insurance quotes and reading the terms and conditions of each policy will help you make an informed decision that meets your needs and fits within your budget.