What is Motor Fleet Insurance?
Motor fleet insurance, aka commercial fleet insurance, is an insurance plan curated for companies with two or more vehicles. The plan aims to insure several vehicles (cars, minibuses, trucks, HGVs, and taxis) under a single insurance policy.
According to the policy norms, the insurance provider provides a single motor insurance policy to cover multiple vehicles or the entire fleet. As a result, you need to pay a single premium for insuring all your vehicles. In addition, the risk is shared over the entire fleet; hence, motor fleet insurance has affordable premium rates.
Who needs Motor Fleet Insurance?
In the UAE, motor fleet insurance is a unique approach to insure numerous vehicles under a single policy. It is easy to manage, hassle-free, and economical. In the UAE, the following individuals are eligible to purchase motor fleet policy:
- Cab companies, commercial transporters, etc.
- A person owning three or four vehicles
- Any organisation or individual with a large fleet of automobiles for commercial purposes
Why Buy Motor Fleet Insurance
- Hassle-free and convenient
- Higher flexibility
Common Risks Covered by Motor Fleet Insurance Policy
Protection for the vehicle
- Compensates loss due to fire, theft, self-ignition, and damage from accidents. Natural disasters are also covered, including earthquakes, floods, storms, landslides, and rockslides.
- Terrorist activities, riots, strikes, or any other hateful act are all considered covered causes of vehicle damage.
- The policy also covers vehicle damage while in transit by land, air, or water.
Third-Party liability insurance
- If your vehicle causes bodily harm to a person, your commercial fleet insurance will cover the resulting legal liabilities. Furthermore, the insurance covers all legal expenses if the victim brings a lawsuit against your company.
- The insurance will also cover any deaths that result from an accident in which your car is involved.
- This insurance also covers damage to other people's property by accident involving your car.
- Reimburses the paid driver's legal obligations related to using the business vehicle.
- Damage to the bonnet, bumpers, tyres, and vehicle tubes can also be covered.
Major Inclusions of Motor Fleet Insurance
From a commercial vehicle's loss or damage to the third-party liabilities brought on by your business vehicle, all are covered by motor fleet insurance.
- It provides coverage for loss or damage to company-owned commercial vehicles during an accident or because of particular risks, including fire, explosion, thunderbolt, and natural disasters.
- The policy also provides coverage for third-party legal liability resulting from property damage and physical injury.
- Furthermore, a motor fleet insurance policy includes coverage for the employee's medical costs in the event of an accident.
Note: The specifics of the inclusions under your motor fleet insurance coverage will be in the policy wording.
Major Exclusions of Motor Fleet Insurance
- Accidental injury while driving a car under the influence of alcohol or drugs.
- The policy does not cover malicious negligence.
- Consequential damages
- Vehicle depreciation value due to wear and tear
- Electrical and mechanical failure
- Failing brakes
- engine damage due to oil leakage
Common Factors to Determine the price of Motor Fleet Insurance Plans
The cost of motor fleet insurance relies on several variables, including the type of cars, the number of vehicles to be covered, how the vehicles are used, the location, and the insured declared value (IDV). In addition, any additional coverage you choose to include in the policy, including coverage for vehicle accessories, will also affect the premium price. Despite this, when calculated, the cost of a motor fleet insurance would be less than 1% of the vehicle's value, which is a very nominal amount compared to the possible loss that could happen if we do not have insurance in place.
Commercial Motor Fleet Insurance is one of the effective solutions for business owners and multiple private vehicle owners. It helps them to avoid paying for multiple insurance plans and the hassle of managing them. So, don't forget to check out our Motor Fleet Insurance plans and subscribe to one that’s most suitable for you.