Goods Carrying Vehicle Insurance and Its Types, Add ons

Find out What is Goods Carrying Vehicle Insurance and types of Insurance which effects the premium amount.

Goods Carrying Vehicles comes under commercial vehicle Insurance group. This may used for the purpose of transporting goods from one place to another.

Types of Goods Carrying vehicle

Goods Carrying Vehicles categorized in to 2 types

  • Other than 3 wheeled
  • 3 wheeled


Previously there are 4 types of Goods Carrying Vehicles are there

  • Public carrier – Other than 3 wheeled
  • Private carrier – Other than 3 wheeled
  • Public carrier – 3 wheeled
  • Private carrier – 3 wheeled

From 1st June 2022 Ministry of roads and transport published a gazette for Motor third party premiums. In this gazette Private carriers category is abolished. So from 1st June 2022 onward only 2 types of Goods carriers will be there.

Goods Carrying Vehicle Insurance premium mainly depends on following factors

Insurance premium mainly depends on following 4 factors.

  1. Insured Declared Value
  2. Geographical Zone
  3. Age of the Vehicle
  4. Gross Vehicle Wieght (GVW)

Insured Declared Value

IDV full form is Insured’s Declared Value of the vehicle, IDV also termed as SUM INSURED of the vehicle. It will be fixed at the commencement of each policy period for insured vehicle.

Geographical Zone

Whole country has been divided into three zones. Premium rate varies depending on zone where vehicle has been registered

  • Zone A : Chennai, Kolkata, Mumbai, New Delhi.
  • Zone B : All other State Capitals
  • Zone C : Rest of India

Age of the vehicle

Based on age of vehicle own damage cover (section I cover) premium will change in comprehensive/package policy.

Gross vehicle weight (GVW)

Based On GVW minimum IDV will be decided as per the below list

3 Wheeled with GVW not exceeding 1200 kgs.Rs. 5000/-
4Wheeled with GVW not exceeding 2000 Kgs.Rs. 5000/-
4Wheeled with GVW above 2000 Kgs. but below 6000 KgsRs.20,000/-
4Wheeled with GVW above 6000 Kgs. but below 12000 KgsRs.30,000/-
4Wheeled with GVW above  12000 Kgs.Rs.40,000/-

In Goods carrying Vehicle Insurance, Third party premium /Liability premium may decided by the Gross Vehicle Weight (GVW) of the particular vehicle. These vehicles Categorized as below

  • Below 7500 GVW
  • 7501 GVW to 12000 GVW
  • 12001 GVW to 20000 GVW
  • 20000 GVW to 40000 GVW
  • Above 40000 GVW

Types of Goods Carrying Vehicle Insurance

There are mainly 2 types of Passenger Carrying Vehicle Insurance

Liability Policy :

  • This Coverage also called as Third Party Insurance Coverage.
  • As per Motor Vehicle Act 1988 Third party Insurance coverage is mandatory for vehicle to ply on public places.
  • This covers Third Party Liability for bodily injury or death or both and Third party Property Damage.
  • These claims are settled through courts.
  • Legal Liability to Driver/Cleaner also included in Passenger Carrying Vehicle Insurance.
  • Personal Accident Cover for Owner-Driver is also included in this cover type.

Package Policy/Comprehensive policy

Along with Liability cover Package policy/Comprehensive policy covers damages to the vehicle Insured (also known as Own Damage cover).

Package policy divided into 3 sections are there

Section I :

Own damage cover to the Insured vehicle due to

  • Natural calamities : Fire, Explosion, Self-ignition or Lightning, Earthquake, Flood, Hurricane,
  • Other than Natural Calamities : Burglary, Theft, Riot, Strike, Malicious Act, Accident by external means, Terrorist Activity, Any damage in transit by road/rail/Inland waterway/Lift/Elevator or Air etc.

Section II :

Third Party Legal Liability

  • Covers for legal liability due to accidental damage for
  • Any permanent injury / death of a person or
  • Any damage caused to the property of a third party (TPPD)

Section III :

Personal Accident Cover

  • Motor insurance provides compulsory Personal Accident cover for individual owner of the vehicle who has valid driving license.
  • PA cover also is available for Paid Driver / Cleaner.

Add on Covers in Goods Carrying Vehicle Insurance

Add on covers will be selected on only package policies/Comprehensive policy.

This are additional covers on own damage cover.

Each company has their own names for the add-on covers. Some are

  • Nil depreciation cover or Bumper to bumper cover or Zero depreciation cover
  • Engine protect cover
  • IMT 23

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