Regardless of whether you have just one vehicle or a fleet of hundreds, any vehicle used for commercial purposes in Hong Kong must be insured if it goes onto the road. At first glance, insurance for corporate vehicles is largely similar to that available for individual private cars, but there are some key differences you should be aware of.
Third party coverage is the most basic form of motor insurance available in Hong Kong that meets the minimum car insurance coverage requirements set out by the Transport Department in Hong Kong.
As the name suggests, third party coverage plans cover the policyholder/driver from liability stemming from injury, death, or damage caused to a third party. Note: If you or a driver is in an accident while driving a corporate vehicle, third party coverage will only cover damage done to people or property. It does not cover damage done to your vehicle or injuries sustained by your drivers.
The biggest difference between third party insurance for corporate vehicles and individual policies is in what these plans cover. For commercial vehicles all third party plans sold will cover at the mandatory amount of HKD 100,000,000 for any one event resulting in injury or death of a third party. But, when it comes to damage to a third party's property, commercial vehicle insurance plans will usually only cover between HKD 500,000 and HKD 1,000,000.
The No Claims Discount (NCD) is a popular feature of many motor insurance policies that sees discounts offered on premiums for drivers who drive without an accident or submitting a claim for a number of years, and it is available for commercial vehicle insurance as well.
That said, it does function slightly differently in that for corporate vehicles, the NCD will usually start at 10% after one year of claims-free driving but it will only go up to a maximum of 30% discount. This is due to the fact that commercial vehicles do see a higher risk of being in an accident than their individual counterparts.
It should also be noted there that the NCD is not transferable to different policy types. For example, if you have an individual motor insurance policy with a 30% NCD you can not transfer this to a corporate vehicle insurance policy, and vice versa. You can however transfer it from one corporate policy to another.
Kwiksure has helped thousands of companies insure their vehicle fleets with commercial vehicle insurance. We can help you identify your options and secure the best plan that meets your needs.
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Commercial vehicle insurance plans sold as comprehensive coverage take the coverage offered by third party plans and add on additional coverage that sees the driver and your vehicle covered as well.
All drivers of commercial vehicles must secure at least this level of coverage if they want to be legally allowed to drive on the roads in the city