Third Party Commercial Vehicle Insurance

What is Third Party Commercial Vehicle Insurance?

Third-party commercial vehicle insurance, also known as third party commercial car insurance, covers losses arising from damages or injuries caused to a third party by a business’s vehicle. It is a mandatory type of coverage in the UAE.

In simple terms, if your insured commercial vehicle — such as a truck, van, or taxi — accidentally causes harm to another person, vehicle, or property, the insurance takes care of the compensation costs. It ensures that you, as the vehicle owner, are not burdened with unexpected expenses or legal liabilities following an accident.

This coverage is the minimum legal requirement for all commercial vehicles operating on UAE roads. Although it provides basic coverage, third-party commercial vehicle insurance offers essential financial protection and peace of mind for business owners and drivers who use their vehicles for work or transport.

Key Features of Third Party Commercial Vehicle Insurance

Third-party commercial vehicle insurance provides coverage for third-party bodily injuries, death, and property damage caused by insured vehicles. However, it does not cover damages to your own vehicle or personal medical expenses.

Check out the table below for the key features of this liability policy in the UAE -

Why Do You Need Third Party Insurance for Commercial Vehicles?

As per UAE laws, every vehicle — whether personal or commercial — must be insured to run on the road. However, when your vehicle is used for business purposes, insurance becomes even more important. After all, any damage can bring financial loss, impact on reputation, and much more.

Here are the key reasons why third party commercial motor insurance is essential beyond just meeting legal requirements -

Covers Damages to Third Parties

Accidents can happen at any time, especially for vehicles used regularly for deliveries, logistics, or transport. With this insurance coverage, however, you can get coverage for -

• Bodily injury or death of the third person involved in the accident
• Property damage to the third party’s vehicle or belongings

This means your business doesn’t have to pay from its own reserve if the vehicle causes an accident that harms others. This can protect you from financial burden or business loss.

Protects You from Financial Loss

Even a minor road accident can lead to large compensation claims from third parties. If your driver is at fault, the cost of repairing the other person’s vehicle or paying for medical expenses can be high.

With third party insurance for commercial vehicles, however, your business can avoid sudden financial strain. The insurer takes care of these expenses within the policy limits.

Builds Trust with Clients and Partners

With third-party car insurance for commercial vehicles, you can build trust among clients as it shows that your business is responsible and reliable.

Clients and partners are more confident working with companies that take safety and compliance seriously. It also helps when you apply for contracts or tenders, as insured fleets are often a basic requirement in the UAE.

Affordable Coverage

Compared to comprehensive commercial vehicle insurance, third-party plans are more affordable. You can easily purchase or renew them online through trusted platforms like Policybazaar.ae and stay compliant without spending too much. It’s a cost-effective way to meet UAE regulations and get basic protection for your business vehicles.

Which Types of Vehicles are Covered Under Third Party Commercial Vehicle Insurance?

Third-party commercial car insurance covers heavy, light, and delivery vehicles. Some of the common vehicle types are mentioned here -

• Car 
• Taxis 
• Small trucks
• Pickups 
• Cranes
• Forklifts
• Motorcycle
• School buses 
• Vans and other commercial vehicles

Inclusions and Exclusions of Third-party Commercial Motor Insurance

Let’s understand what is covered and what is not under third-party commercial vehicle insurance in the UAE -

How to Buy Third-party Commercial Vehicle Insurance in UAE?

Purchasing third party commercial motor insurance is easy with Policybazaar.ae. Follow these simple steps and find the ideal coverage for your vehicle -

➡️ Click on the button below

➡️ Fill out the form with the necessary details

➡️ One of our experts will call you back with the best options of third-party commercial vehicle insurance to choose from!

How to Raise Third Party Commercial Vehicle Insurance Claims?

While filing a claim for third-party commercial car insurance in the UAE, the steps are quite similar to standard motor insurance. Although the exact procedure may vary, here’s what you generally need to do -

• Contact the police and file a report of the incident 
• Connect with your insurer and ask to initiate a claim
• Share all the required details and documents with the insurer, which may include 
  • Policy number
  • Police report 
  • Contact details 
  • Photos and videos related to the incident (if any)
• Fill out the claim form and submit it to the insurer 
• Once your claim is approved, you will get the compensation amount from the insurer in the UAE

✍️ It’s important to note here that you will only get the compensation for the damage or loss of a third party, not your own vehicle.

Frequently Asked Questions