May 18, 2023
● In a team sport like football, multiple players work together to achieve a common goal. They require the right equipment and protective gear for each player to play well.
Similarly, an individual or an organisation may require multiple vehicles to work for the same business goals. And, the fleet of vehicles requires the right insurance coverage to protect each vehicle and its drivers.
● This is where Motor Fleet Insurance comes into play. Each vehicle is covered under a single policy, providing merged and comprehensive protection. Let us know more about Motor Fleet Insurance, its benefits, and its various types in the article below.
First, What is Motor Fleet Insurance?
Motor Fleet Insurance is a type of insurance policy that covers three or more vehicles under a single policy.
It can be purchased by individuals or companies who own multiple vehicles and want to protect them all with one policy.
The policy can be owned by a single individual or a group of owners.
➔A business can insure all the vehicles used by its employees under a single insurance policy. Any other vehicles utilised for business or commercial reasons may also be included in this policy.
➔Suppose you are a person who owns more than three vehicles. You can cover every vehicle under one policy.
Benefits of Motor Fleet Insurance
Here’s why you should consider buying Motor Fleet Insurance rather than individual policies for each of your vehicles -
👉Many Vehicles – One Policy
Motor Fleet Insurance allows you to cover all of your vehicles, whether private or commercial, under a single policy,
making it a convenient and cost-effective option for businesses and individuals who own multiple vehicles.
You can either group your vehicles into different categories for coverage or insure all of your vehicles in one single group.
● An added benefit is that you won’t have to keep a track of multiple premium payments for each of your vehicles, because they’ll be covered under one policy with one premium.
👉Can be Customised
The policy can also be customised to fit your specific needs and preferences, including premium deadlines, renewals, expiration dates, and so on. By having all of your vehicles covered under a single policy, you can simplify the process of managing your insurance coverage and ensure that all of your vehicles are protected.
👉Comprehensive and Third-Party Policies Can Be Combined
Motor Fleet Insurance allows you to choose a combination of both third-party and comprehensive policies, depending on your specific needs and the type of vehicles you own.
● For instance, say you have some older vehicles that are used infrequently and do not require comprehensive coverage. You can opt for a third-party policy for those vehicles. At the same time, if you have newer vehicles that you want to protect with a comprehensive policy, you can include them under the same Motor Fleet Insurance policy. This flexibility allows you to tailor the coverage to meet the specific needs of your vehicles and provides a cost-effective way to protect your entire fleet.
One insurance policy can cover all of your vehicles, which will also garner some premium savings and give you a chance to negotiate better terms of the policy.
Types of Motor Fleet Insurance
Typically, there are two types of Motor Fleet Insurance policies. They are –
Comprehensive car insurance provides all-around coverage. It covers damages and injuries caused to you, your vehicle, third parties, and their properties in an accident.
What is covered under a comprehensive policy?
Comprehensive insurance will compensate you for any loss or damage to your vehicle, including damaged parts and spare parts,
in the following situations -
1. Accidental run-over, collision, turnover, or incident.
2. Lightning, spontaneous combustion, or an external fire or explosion.
3. Burglary or theft.
4. If a third party deliberately caused the damages.
5. If the damage occurred while being transported by land, inland water, elevator, or lifting equipment. This includes loading and unloading operations associated with the aforementioned transportation.
Along with this, any damages or injuries caused to third parties and their properties will be covered by the policy.
A logistics company has a fleet of 4 delivery vans that operate on a daily basis across the state. To ensure comprehensive protection for their vehicles and drivers, the company purchases a comprehensive Motor Fleet Insurance policy. One day, a driver in the fleet got into an accident with another vehicle, causing damage to both vehicles and the other driver sustained injuries. Thanks to the comprehensive motor fleet insurance policy, the logistics company was able to cover the cost of repairs for both vehicles, medical expenses for the injured party, and the legal fees associated with the accident.
What does the insurance company do in case of an accident?
The insurance company will -
1. Restore your car to its original state after the accident by repairing it or any of its parts, accessories, or spare parts.
2. If you have consented to the same, pay the amount of loss or damage in cash.
3. In the event of a total loss, replace the damaged car unless you request the insurer to pay you the amount in cash.
4. If your car is rendered immobile after an accident, the insurer will cover all of the costs associated with securing and transporting it to the closest repair facility.
Now that we know what comprehensive insurance is and how it works, let us get to know about third-party insurance.
2️⃣Third-Party Liability Insurance
Third-party Liability Insurance is the minimum coverage that is mandated by law in the UAE. It provides coverage for death or bodily injury caused to third parties, as well as damages to third-party property caused by an accident involving your vehicle. It protects you from the financial liability of paying for such expenses from your pockets, up to the limits specified in the policy.
What is covered under the third-party policy?
The insurance company will cover –
1. Any person, including passengers in a car, who suffers death or bodily injuries.
2. It will cover damages that are caused to the properties of a third party.
3. According to police investigations, the person that caused the accident (At-Fault Party) is financially liable for covering both third-party property damage and bodily injuries.
Here, the term "Third Party Property Damage" (TPPD) also refers to "other vehicles" that were damaged, as a result of the accident that the At-Fault Party caused.
Arun is a car lover and has 4 vehicles that he loves driving to different places. He purchases a third-party liability motor fleet insurance policy. One day, one of his cars accidentally collided with a pedestrian on a busy street, causing them severe injury. Because he had a third-party liability motor fleet insurance policy, Arun was able to cover the pedestrian's medical expenses caused due to the accident.
Exclusions Under Motor Fleet Insurance
Here are some situations that are excluded from the coverage of motor fleet insurance policies -
1) Indirect Losses
Any indirect losses you might sustain, as well as any decrease in the value of the vehicle due to usage, mechanical or electrical device failure, or breakdown.
2) Overloaded Vehicles
Any damages caused by an overloaded vehicle or one that is wider/longer/taller than permitted. It even excludes the damages caused because of having more passengers on board than are permitted. In both cases, the loss will be excluded from coverage if it is identified as the proximate cause of damage.
3) Tyre Damages
Any tyre damage that did not happen at the same time as the accident.
4) Vehicle Used for Other Purposes
If the vehicle is being utilised for any purpose other than what is specified in the insurance application.
A company has a fleet of trucks that are used to transport equipment to its job sites. When purchasing their motor fleet insurance policy, they specified that the vehicles would be used solely for commercial purposes. However, one of their employees took a truck to run personal errands during their lunch break. While driving, he got into an accident that caused significant damage to the truck and injuries to the employee and another driver. When the landscaping company submits a claim to their insurance provider, they find out that the policy only covers the vehicle if it is being used for commercial purposes. Since the employee was using the truck for personal errands when the accident happened, the claim got rejected.
5) Speed Test/Racing
If the accident's primary cause was a speed test or race that resulted in the car getting damaged.
6) Invalid Licence
If the driver of the vehicle has a suspended or revoked licence, one that does not comply with traffic legislation, or that has expired but not been renewed within 30 days of the accident.
7) Suspended Licence
If a court or other appropriate authority has suspended the driver's licence or if it has been suspended due to traffic regulations.
8) Inebriated Driver
If the driver was under the influence of drugs, alcohol, etc., while driving the vehicle.
9) Accidents Caused Elsewhere
Unless an extension is taken in the policy, any damages to the vehicle that are encountered outside of the defined geographical area will not be covered.
Any damages resulting from a war.
11) Off-road Damages
Unless you have purchased an off-road extension cover, any damages to the car that are caused off-road will not be covered.
Mr Nawaz privately owns two SUV cars. They are covered by comprehensive motor fleet insurance. Mr Nawaz used one SUV for off-road activities. The vehicle got damaged as a result and Mr Nawaz raised a claim for the same. However, since he did not purchase an off-road extension cover, the damages were not covered.
12)Damages due to Natural Disasters
Damages caused by natural disasters like floods, tornadoes, hurricanes, volcanoes, earthquakes, etc. - if the accident has happened due to such disasters or is somehow connected to them.
Who Should Buy Motor Fleet Insurance?
You should consider buying Motor Fleet Insurance if you are –
1️⃣A person who owns several vehicles.
2️⃣An organisation that owns multiple vehicles.
3️⃣A company that provides transportation services, such as taxi services, commercial transporters, or rent-a-car agencies.
How to Purchase Motor Fleet Insurance?
Though an end-to-end online purchase will not be possible for Motor Fleet Insurance, you can –
1. Visit us at Insure At Oasis. Or you can visit a broker or insurer of your choice.
2. After choosing “Motor Fleet Insurance”, enter the required information including your name, phone number, email address, and company name.
3. Once you enter it, click on "Submit."
4. Your information will be saved, and an executive will call you to discuss the insurance specifics and assist you with buying a policy.
Motor Fleet Insurance is a game-changer for businesses, organisations, and individuals that own multiple vehicles. By pooling together all vehicles under a single policy, Motor Fleet Insurance offers not only lower premiums but also unparalleled peace of mind. It eliminates the hassle of managing multiple insurance policies and can be very convenient for you.