What is the full form of GCV in Insurance?
The GCV full-form insurance is Goods Carrying Vehicles. GCV insurance corresponds to the insurance schemes of these vehicles. Goods-carrying vehicle insurance provides motor insurance for commercial vehicles used to transport goods. Commercial vehicles are those that are driven for business purposes, whether they transport passengers or commodities. Vehicles operated for pleasure come under private carriers.
Types of Insurance for goods carrying vehicles:
Insurance for goods-carrying vehicles can be covered as third-party liability insurance or as a comprehensive policy. Third-party coverage covers any liability for personal injury or property damage caused to a third party. Comprehensive coverage will protect you against unintentional damage or loss sustained as a result of an accident, as well as third-party liability affecting your car. With such coverage in place, you can be confident that you are covered in any event that arises while driving your vehicle.
Why is insurance for GCV mandatory:
GCV insurance is mandated by law under the Motor Vehicles Act. This insurance protects the third party against losses and damages in the event of an accident caused by the vehicle. It offers financial protection for the owners of the vehicles in the case of accidents. Also, it helps reduce their business risks as well in times of collisions, calamities, fires, thefts, etc.