Commercial Vehicle Insurance 

Commercial Comprehensive Insurance Package

  •  About policy 
  •    Scope of cover 
  •    Sum Insured 
  •    Additional Covers 
  •    Discounts Available 
  •    Exclusions 

About Policy

At Magma HDI, we realise that an unfortunate incident like a vehicular accident can occur at anytime. Which is why, we have designed our Commercial Motor Policy to be your companion in difficult times. This policy is designed to adequately cover any loss or damage sustained by your vehicle. Additionally, it also addresses the compulsory Third Party Liability clause as required by the Motor Vehicles Act.

Here's what you need to get started


Scope of cover

Third party liability:The policy protects you and your vehicle against any legal liability arising out of the use of the vehicle towards third parties leading to bodily injury to / on death of a person and any damage caused to third party property.

Loss or damage to the vehicle:The Commercial Motor Policy also covers you against any loss or damage caused to your vehicle or its accessories due to the following natural and / or manmade calamities.

  • Natural calamities: Fire, explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide.
  • Man-made calamities: Burglary, theft, riot, strike, malicious act, accident by external means, terrorist activity, and any damage in transit by road, rail, inland waterway, lift, elevator or air together with loss or damage to the vehicle itself.

Sum Insured

At Magma HDI, we insure all vehicles at a fixed value, known as Insured's Declared Value (IDV). IDV is calculated on the basis of your vehicle manufacturer's listed selling price (plus the listed price of any accessories) after deducting the depreciation for every year as per the following rates.

Age of the vehicle % of Depreciation
Not exceeding 6 months 5%
Exceeding 6 months but not exceeding 1 year 15%
Exceeding 1 year but not exceeding 2 years 20%
Exceeding 2 years but not exceeding 3 years 30%
Exceeding 3 years but not exceeding 4 years 40%
Exceeding 4 years but not exceeding 5 years 50%


However, if the price of any accessory in your vehicle is not included in the manufacturer's listed selling price, then the actual value (after depreciation) of it can be added to the 'sum insured' over and above the IDV.


Additional Covers

You may also choose to add any of the following covers at a nominal charge.

1. Personal Accident Cover:Compulsory personal accident cover of Rs. 1 lakh, in case of two-wheelers and Rs. 2 lakhs for other class of vehicles for *individual owners of the vehicle while driving. Please note, this is not applicable for a company owned vehicle.

Moreover, you and the other occupants of the vehicles can also be covered for 'personal accident' for a maximum capital sum Insured of Rs.1 lakh per person, in case of two-wheelers; and Rs. 2 lakh per person for other class of vehicles. You may also opt for higher limits in personal accident cover.

* Available only if the owner of the vehicle holds a valid driving license

2. Additional Legal Liabilities:While applying for a Commercial Motor Policy, you can also opt for the following additional legal liabilities at an additional premium:

  • Paid driver / conductor / cleaner employed in operation of vehicle.
  • Employees traveling in / driving the vehicle other than paid driver.
  • Non-fare paying passengers.

3. Bi-fuel Kit:The CNG-LPG bifuel kit can also be covered by paying additional premium.

4. IMT 23 Cover for lamps, tyres/tubes, mudguards, bonnet / side parts, bumpers, headlights and paint works  For a nominal, extra premium, our Policy will also cover you on all the above mentioned vehicle parts.

5. Overturning:We also provide cover for overturning damages in mobile cranes/ drillings rigs/ mobile plants/ excavators/ navvies/ shovels/ grabs and rippers at an additional premium.


Discounts Available

In our constant endeavour to provide you with the best services, we also offer you a host of discounts on your Commercial Motor Policy.

No Claim Bonus:If you do not make a claim during the Policy period, a No Claim Bonus (NCB) is offered on renewals. This discount can go as high as 50%. (NCB will only be allowed provided the Policy is renewed within 90 days of the expiry date of the previous policy).

Other Discounts:

Voluntary Excess Discount:A further discount on the premium is available if you opt for a Voluntary Excess (available only for private cars and two wheeler) in addition to the Compulsory Excess. (Compulsory Excess is the amount of loss which the insured has to bear in each and every claim.)

Automobile Association Membership:You can also avail additional discount if you are a member of a recognized Automobile Association in India (available only for private cars and two wheelers).

Anti-theft Devices:In case you have installed an ARAI approved anti-theft device in your vehicle, you are eligible for a discount of 2.5 % on the OD Premium to a maximum of Rs. 500/- for four-wheelers and Rs 50/- for two-wheelers.



However please note, while every effort is made to give you the best possible services, any loss/damage to the vehicle and/or its accessories will not be covered if caused by the following:

  • Normal wear, tear and general ageing of the vehicle
  • Depreciation or any consequential loss
  • Mechanical / electrical breakdown
  • Vehicle being used otherwise than in accordance with limitations as to use
  • Damage to / by a person driving the vehicle without a valid license
  • Damage to / by a person driving the vehicle under the influence of drugs or liquor
  • Drunk driving
  • Loss / damage due to war, mutiny or nuclear risk

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