Motor insurance for personal motorcycles used for commercial purposes
While a typical motor insurance policy covers you against legal liability from an accident (e.g. death or bodily injury and damage to third-party property), it does not provide commercial coverage. Some couriers and companies in Singapore commonly use motorcycles for delivery purposes - but often they do not have commercial coverage for their fleet.
What are the risks to them?
- Their insurer may repudiate liability if the insured motorcycle was used for commercial purpose.
- The company and/or driver may be liable for losses if the driver is found negligent.
- The insurer may cancel or refuse to renew the policy if the motorcycle was used for commercial purpose.
- There will be further complications to claims if the motorcycle accident involves a Malaysian-registered vehicle.
Couriers and other companies with fleets of motorcycles can have a contingency policy arranged to provide them with public liability coverage. A number of Singapore insurers can also offer them commercial coverage for their fleet of motorcycles. All they have to do is approach a GIA member who offers motor insurance to arrange a policy that can cover the fleet for commercial use.