Any vehicle, two-wheeler, three-wheeler, or four-wheeler that runs on public roads anywhere in India must have a motor insurance policy per the Motor Vehicle Act, 1988. Failing to produce an insurance policy for inspection upon demand by relevant authorities could lead you into trouble, and you may end up paying heavy penalties. Besides, insurance safeguards you from facing financial losses in case your vehicle meets with an accident, is stolen, or is damaged due to other reasons.
Motor vehicle insurance for commercial or non-commercial is basically of two types:
- Comprehensive Insurance— which covers damages to insured vehicles and the third party involved in accidents. This kind of policy is generally advisable and is expensive.
- Third-Party Insurance— which is mandatory as per the law and covers damages to a third party in case of an accident. These vehicle insurances are easily available online should you want to avoid visiting the offices of insurance providers or agents.
Below is the approximate cost of commercial vehicle insurance for a fair idea.
Type of commercial vehicle | Approximate Insurance cost |
| Small Commercial Vehicles (SCV): 3-wheeler, mini truck, autorickshaw | ₹5,000 to ₹15,000 |
| Medium Commercial Vehicles (MCV): Tractor, haulage truck, tipper | ₹15,000 to ₹30,000 |
| Heavy Commercial Vehicles (HCV): Heavy-duty commercial truck, bus | ₹30,000 to ₹1,00,000 |
Remember, these are only ballpark figures. The actual insurance cost will depend on factors such as your vehicle's age, the insurer's offerings, premium rates, features, etc. It is always best to check with multiple insurance providers for the latest cost. You can also compare the same on the internet with numerous comparison platforms.
