Commercial vehicle insurance is designed to protect vehicles used for business purposes, including trucks, delivery vans, bikes, buses, and other vehicles. For Filipino business owners who use vehicles for operations, commercial vehicle insurance is critical because accidents and other unforeseen events can occur at any time, resulting in costly repairs, business downtime, and legal issues.
Compared to private car insurance, commercial vehicle insurance policies are designed to cover higher risks. Furthermore, this type of insurance policy is intended for vehicles used frequently for extended periods and carrying heavy loads. Therefore, if you own a business and have vehicles that help in business operations, insurance becomes a must, and along with that, you need to understand coverage and the claim process - to recover easily after an accident.
But before we discuss that, let us get facts clear -
What counts as a commercial vehicle?
The list includes trucks, cargo vans, delivery vans, buses, utility vehicles, and other company-owned service units used for business operations.
Truck & commercial vehicle accidents: Common causes
Road & traffic conditions: Poor road maintenance, heavy traffic, flooding, and unclear road signs often contribute to accidents & collisions.
Driver & vehicle factors: Fatigue, overloading, mechanical failure, and lack of regular maintenance are common causes of accidents.
Note that insurance providers often consider all of the above factors when evaluating a claim application.
Photo from FreepikCommercial vehicle insurance: When to file a claim
You should file a commercial vehicle insurance claim immediately after an accident or collision involving vehicle damage, third-party bodily injuries/death/property damage, theft, and vandalism.
Note that a delay in filing a claim may result in claim denial.
Types of commercial vehicle insurance coverage available -
- Compulsory Third-Party Liability (CTPL) insurance
- Comprehensive insurance
- Acts of God/Nature
- Theft
- Fire
- Cargo coverage
Also Read: Why every truck business needs Comprehensive Truck Insurance in the Philippines
How to file a commercial or truck insurance claim: Step-by-step guide
Step 1: Ensure everyone’s safety
It is essential that you first ensure the safety of yourself, the co-driver (if present), and others. If needed, call for medical assistance.
Step 2: Report the accident to the authorities
Report the incident to the local authorities, especially if major injuries, an accident, or third-party damage are involved. Obtain a police report, as it will help with the claims process.
Step 3: Notify your insurance provider
It is crucial to inform your insurer of the incident; ideally, do so within 24 to 48 hours. You can do so by calling your agent or insurer’s hotline number. Some insurers also allow online or app-based claim filing.
Step 4: Vehicle inspection
The insurer will assign an adjuster to inspect the vehicle and assess the repair cost. You may be asked questions about the incident; ensure you provide accurate, truthful information.
Step 5: Claim evaluation & approval
Once you have filed the claim form and submitted all the required documents, the insurer will review the claim application and all the other documents. After which, your claim will be approved or rejected.
Also Read: Truck/Commercial Vehicle Insurance 101: What Filipino business owners need to know
Commercial vehicle insurance claim: Requirement, timeline, & rejection reason
Photo from FreepikDocuments required to file a commercial vehicle insurance claim
Here’s a list of commonly needed documents while filling a claim -
- Vehicle’s OR/CR
- Driver’s license
- Insurance policy copy
- Claim form
- Police report
- Photos of damage
- Repair estimate
Claim approval timeline
A commercial vehicle insurance claim is usually decided within 7 to 15 days. It depends on several factors, such as the complexity of the case and the completeness of the documents.
What about vehicle repair? As for the repair work, it typically begins after approval.
Also Read: Does commercial vehicle insurance cover cargo loss or theft?
Common reasons for claim rejection
A commercial vehicle insurance claim can get rejected due to the following reasons -
- Late filing of an insurance claim
- Incomplete document submission
- Involvement of an unauthorised driver
- Misrepresentation of facts
- Policy exclusions
- Invalid or expired policy
Also Read: Tips for choosing the best commercial vehicle insurance provider in the Philippines
Tips to ensure fast claim approval
Here are a few tips that you can practice to ensure that your commercial vehicle claims get approved -
- Keep all the documents organised.
- Make sure you report the accident immediately.
- Ensure only authorised drivers are employed for the job.
- Take care of the regular vehicle maintenance and service.
- Understand your policy thoroughly - its inclusions, exclusions, and limits.
Bottom line
It is essential for every Filipino business owner with commercial vehicles under their belt to understand ‘how to file a commercial vehicle insurance claim. You see, only by understanding the correct steps, process, required documentation, and understanding the policy terms, can you avoid delays in the claim process. Thus, allowing you to enjoy a stress-free work life with no delays in business operations.
Remember, a well-informed policyholder is always a step ahead after an accident or unfortunate event.
Also Read: Top 7 risks covered by truck and commercial vehicle insurance
FAQs
Q1. How long after an accident do I have to file a commercial vehicle insurance claim?
Ans. A commercial vehicle policyholder is recommended to file a claim within the first 24 to 48 hours after the accident.
Q2. Can I file a claim without a police report?
Ans. For minor incidents, a police report may not be required; however, if it involves significant damage and medical assistance, a police report is required.
Q3. Who can file a commercial vehicle insurance claim?
Ans. The policyholder or an authorised representative can file a commercial vehicle insurance claim.
Q4. Does overloading affect commercial vehicle insurance claim approval?
Ans. Yes, vehicle overloading may lead to claim rejection. This practice should be avoided at all costs, as it is risky.
Q5. Can I choose my own repair shop?
Ans. Some commercial vehicle insurance providers allow you to choose your own repair shop; however, it should be subject to approval, i.e., accredited by the provider.
Q6. How long does claim approval take?
Ans. It usually takes 7 to 15 days, or longer, to receive a verdict on an insurance claim. The duration depends on the complexity of the case and the completeness of the documents.
Q7. Does commercial vehicle insurance cover flood-related damages?
Ans. Yes, given that the policy includes coverage for Acts of God.
Q8. How can I track the status of my commercial insurance claim?
Ans. Most insurance providers offer online or SMS-tracking services.
Q9. Will my premium increase after filing a commercial vehicle insurance claim?
Ans. Your premium may increase after you file a claim. The hike depends on factors such as claim history, driver location, age, and driving history.
Q10. Does an expired vehicle registration affect the claim?
Ans. Yes, if the vehicle’s registration has expired, the claim may be rejected.
Q11. Are driver injuries covered under commercial vehicle insurance?
Ans. It depends on the policy inclusions; however, if personal accident coverage is present, injuries will be covered.
Q12. What should I do if the claim is denied?
Ans. In case your insurance claim gets denied, you can either appeal the matter to your provider or escalate the matter to the Insurance Commission.
Q13. What is commercial vehicle cargo insurance?
Ans. This insurance is designed to cover goods or merchandise that are being transported by commercial vehicles like trucks and vans.
Q14. Does commercial vehicle insurance cover theft?
Ans. Yes, but only if security requirements are met.
Q15. Who regulates commercial vehicle insurance claims in the Philippines?
Ans. The Insurance Commission handles all insurance claims in the Philippines.
Also Read: Business on wheels? Ask these 10 questions before buying commercial vehicle insurance
