Commercial Vehicle Insurance
Get the Best Insurance Plan that fits for your Need
What is Commercial Vehicle Insurance?
Business vehicle insurance in the UAE is available for cars, bikes, and other types of motor vehicles that are used for commercial purposes. It is mandatory under the law for all vehicle owners in the UAE to purchase basic third-party insurance.
Who Needs Commercial Vehicle Insurance?
Any individual or business entity that uses motor vehicles for commercial activities would require commercial vehicle insurance. This typically involves the transportation of goods or passengers from one place to another in exchange for money.
What are the Types of Vehicles Covered Under Commercial Vehicle Insurance?
Cars used as cabs or taxis
Cars owned by companies
Two-wheelers used for delivery
Large goods vehicles such as cargo vans and delivery trucks
Construction vehicles
Food trucks and utility trucks
Box trucks and towing trucks
What are the Types of Commercial Vehicle Insurance Plans in the UAE?
Third party Insurance
This basic vehicle insurance policy is mandatory in most countries, including the UAE. It covers the loss or damage suffered by other people due to the insured vehicle. An accident can cause bodily injuries to other people and/or damage their properties. Third-party insurance pays for medical treatment expenses and other legal claims that may arise due to the accident. Please note that this insurance policy does not cover own car damages and injuries to the driver.
Comprehensive Insurance
Comprehensive vehicle insurance covers third-party liabilities and injury/loss/damage suffered by the owner/driver due to the accident involving the insured commercial vehicle. It pays for the legal expenses and settlement costs if lawsuits are filed against the driver by an affected third party. Further, the policy also covers any loss or damage caused by theft, natural calamities, and man-made disasters.
Commercial Auto Insurance Add-Ons
Roadside Assistance Cover
Roadside Assistance add-on cover provides support in the event of a sudden vehicle breakdown. It pays for services such as towing, changing flat tires, fuel delivery, and garage repairs & replacement.
Consumables Cover
This covers the cost of consumable substances such as engine oil, grease, nuts & bolts, screws, bearings, washers, etc
Zero Depreciation Cover
A standard depreciation is charged by the insurer on the vehicle and its components during claim settlement. A zero depreciation add-on cover helps you avoid this charge and maximize the claim amount.
Engine Protection Cover
Engine protection add-on covers the loss due to the electrical or mechanical breakdown of the engine
Back to Invoice Cover
Return to invoice add-on cover is beneficial during vehicle theft or damage. It helps the owner receive compensation equal to the vehicle’s invoice value. In the absence of this cover, the insurer typically pays the insured declared value (IDV) that may be lower than the invoice value.
Personal Accident Cover
Personal accident cover provides compensation if the vehicle driver gets severely injured or dies in an accident. It covers injury, disability, and death.
Passenger Assistance Cover
Passengers may also get injured during accidents. This add-on cover pays for their medical treatment and transportation expenses.
No-Claim Bonus Retention Cover
This add-on cover helps policyholders to avail of discounts (on premium payable) even if they have filed a claim during a policy period. Otherwise, the no-claim bonus is only given for claim-free years.
What is Covered in Commercial Vehicle Insurance?
- Bodily injuries and death of other people; damage to public properties (covered under third-party liability insurance)
- Own vehicle damage due to accidents, natural calamities, and man-made disasters such as riots & strikes
- Loss or damage caused by other uninsured vehicles
- Theft of the vehicle
- Fire and explosions
- Death, disability, and bodily injuries to the driver (covered under personal accident insurance)
What is Not Covered in Commercial Vehicle Insurance?
- Driving under the influence of alcohol or other intoxicants
- Driving without possessing a valid driving license
- Damages caused intentionally to claim insurance compensation
- Use of vehicle for unlawful activities or other purposes such as speed racing
- Regular wear and tear of the vehicle
- Mechanical or electrical breakdown
- Use of vehicle for activities that are not related to the business
- Damages caused by war, war-like situations, or nuclear explosions
- Use of the insured vehicle outside the specified geographical limits
Why Choose Commercial Vehicle Insurance from Prominent Insurance Brokers?
We are amongst the top insurance brokers in the UAE with a distinguished track record of 20+ years in the insurance sector.
The company offers a wide range of insurance policies that are specifically designed to meet your requirements.
We have sold over 26,000 motor insurance policies and successfully settled 6,000+ claims.
We ensure fast settlement of claims supported by a dedicated claims management team.
The policyholders enjoy significant cost savings with attractive discounts on premiums and other value-added services.
We offer guidance from a professional team of insurance advisors to help you choose the right policy.
Prominent Insurance Brokers has forged partnerships with the top insurance companies in the UAE.
Documents Required to Buy Commercial Vehicle Insurance
Emirates ID (for both citizens & residents)
Valid passport with a valid resident visa (for residents)
Driving license of the vehicle owner/driver
Company’s trade license (if applicable)
Registration number and certificate for the vehicle
Other relevant details such as vehicle model, engine number, chassis number, etc
Details of the previous vehicle insurance policy (if applicable)
Benefits of Buying Commercial Vehicle Insurance
Comprehensive Coverage
Both third-party liabilities and own losses can be covered under commercial vehicle insurance. Insurance coverage is available even if the vehicle is used for personal reasons. A wide variety of commercial vehicles can be covered.
Single Insurance Coverage
Most insurance providers offer motor fleet insurance to cover all your commercial vehicles under a single plan. This reduces documentation and generates significant cost savings for your business.
Availability of Add-On Covers
Several add-on covers are available for policyholders to enhance their insurance coverage and customize the policy according to their specific needs
Flexibility
It is possible to buy commercial vehicle insurance for single and multiple vehicles. If the vehicles are of different types, you can categorize them suitably to get optimal benefits.
Convenience
The procedure for purchasing or renewing commercial vehicle insurance is simple and hassle-free. You can purchase/renew the policy for multiple vehicles at one go.
Frequently Asked Questions About Commercial Vehicle Insurance
Is it mandatory to purchase commercial vehicle insurance in the UAE?
Yes, As per the UAE motor vehicle laws, it is mandatory for all vehicle owners to purchase basic third-party liability insurance. However, buying comprehensive vehicle insurance is advisable for better protection.
What are the eligibility criteria for purchasing commercial vehicle insurance in the UAE?
Any individual or business entity that owns vehicles intended to be used for commercial purposes in the UAE can purchase this insurance policy. The individual or business must be a citizen or a resident of the UAE.
What is the premium amount for business vehicle insurance in the UAE?
The premium for business vehicle insurance varies based on the type of vehicle and the insurance provider. Several other factors, such as sum assured, type of insurance policy, vehicle model, past claims, etc., also influence the premium.
Can I claim insurance benefits if my commercial vehicle is damaged while it was used for personal reasons?
Yes. Commercial vehicle insurance also covers the loss or damage to the vehicle if it is used for personal reasons.
What is the difference between commercial vehicle insurance and fleet insurance?
Both commercial vehicle insurance and motor fleet insurance cover business vehicles. However, fleet insurance requires a minimum of three vehicles to provide coverage. Commercial vehicle insurance can be purchased to cover a single vehicle.
Disclaimer : The commercial vehicle insurance policy or plan may have limitations, exclusions, and other terms and conditions that may affect coverage. please read the policy wording documents carefully as they detail the terms and conditions under which your policy will cover your vehicle.