Tractor Insurance

What Is Tractor Insurance?

A tractor insurance is a legally mandatory policy for all commercial vehicles as per the Indian Motor Act. It is an agreement between the insured and the insurer as per which the insurer is liable to provide coverage for any third party damages or liabilities. You can also extend the coverage and opt for a comprehensive truck insurance to cover damages caused to your own vehicle.

Features of Tractor Insurance

A tractor insurance policy comes with certain lucrative features and benefits. Some of the most common features and benefits offered by the tractor insurance companies in India:

• Cashless Garages: Tractor insurance companies come with a network of garages where you can repair your tractor on a cashless basis. This means you are not required to pay the bill after the repair at such garages, as the bill is settled by the insurance provider.
• Additional Covers: A commercial tractor insurance policy comes with a few add-on covers that increase the policy coverage. These covers can only be availed on the payment of an additional tractor insurance premium. Some of the add-ons available under a tractor insurance policy are IMT 23 that provides coverage against uninsured parts such as bonnet/bumper/etc, Zero Depreciation (Nil Depreciation/Depreciation Reimbursement), etc.
• No Claim Bonus: Most tractor insurance companies also offer a No Claim Bonus or NCB to policyholders. An NCB is a discount provided if the policyholder has not filed any claims during a policy term. NCB is granted for every claim-free year and can be accumulated to get a discount on the premium amount.
• Round-the-Clock Assistance: Most tractor insurance companies offer round-the-clock assistance to their customers for any queries related to claims filing or settlement.

Types of Tractor Insurance Plans

There are two types of commercial vehicle insurance policy provided in India to insure a tractor. You can check the details below.

1. Third Party Tractor Insurance: This type of tractor insurance only covers any third party liabilities occurring due to the insured tractor. It covers damages caused to the property or vehicle of a third party person by the insured vehicle. A third party tractor insurance is a legal obligation and failing to have the same can lead to a fine. Moreover, a third-party tractor insurance also provides personal accident (PA) cover to the owner-driver of the vehicle as per the compulsory PA cover.
2. Comprehensive Tractor Insurance: Comprehensive tractor insurance provides complete protection to the insured vehicle from own damages as well as third party damages. A comprehensive insurance plan offers coverage to your own vehicle against damages caused due to accidents, calamities, fire, theft, etc. A comprehensive tractor insurance is a package policy that provides own damage cover, personal accident cover as well as 3rd party coverage.

The following tractor illustrates the difference in the level of coverage offered by the two types of tractor insurance plans:

Why to Buy Tractor Insurance?

Tractor insurance is the best way to keep your tractor away from any damages and protect your business from any unforeseen financial losses. Here are some of the other reasons why you should buy an insurance policy for a tractor:

• Mandatory Requirement Under the Law: Under the Indian Motor Vehicle Act, it is mandatory for all tractors to at least have a third party tractor insurance to legally ply on roads. If anybody is found using a tractor without a valid tractor insurance policy, they shall be penalised under the law.
• Protection against Unforeseen Emergencies: Since emergencies don't come with a warning, it is always better to keep your tractors insured. A tractor insurance will offer protection from any unforeseen situations that may lead to major financial losses. Tractor insurance gives you a financial safety and compensates you for any losses that you may suffer.
• Reduces Chances of Financial Losses: A tractor insurance reduces the financial risks associated with your business. Insurance of tractor covers will cover your vehicle from any unforeseen loss or damage, thereby reducing your financial risk.

What are the Add-On Covers Available Under Tractor Insurance?

Add-on covers refer to the additional covers that increase the level of coverage of your tractor insurance on the payment of a higher premium amount. Following are some of the most common add-on covers offered by the best tractor insurance plans:

• Electrical Accessories Cover: This cover provides coverage for any loss or damage caused to the electrical accessories fitted in your tractor.
• Personal Accident Cover to Paid Drivers: By opting for this cover, the commercial tractor insurance policy extends the personal accident cover to the drivers who are being paid to drive the insured tractor by the policyholder.
• Liabilities to the Employees: In case the employee of the policyholder causes any damages or losses while driving the insured tractor, it will be covered by the tractor insurance policy.
• Bi-fuel Kit: This cover protects the bi-fuel kit installed in your tractor from any unforeseen loss or damages.
• Depreciation Reimbursement: With this cover, the depreciation value of your tractor will not be taken into account and you will be paid an IDV equivalent to the current market value of the vehicle at the time of claim settlement.
• No Claim Bonus Protection: If you purchase this add-on cover under your tractor insurance policy, you will be able to retain your No Claim Bonus percentage even if you make a claim during the policy term.
• Return to Invoice: This cover enables you to receive the invoice value of your tractor at the time of claim settlement instead of the insured declared value (IDV). The IDV is estimated by subtracting the depreciation value of the tractor from its current market value.

How to File Claims for Tractor Insurance?

You can file a tractor insurance claim online in case of any unfortunate event. The following section highlights the steps to file a tractor insurance.

How to Make Cashless Tractor Insurance Claims?

Cashless claims can only be made if you get your damaged tractor repaired at one of the network garages of your insurance provider. The following steps should be followed to make a cashless claim under agriculture tractor insurance:

• Notify your insurance company about the emergency
• Your tractor will be surveyed for damage assessment
• An estimation of the required repair work will be made by the cashless garage
• Your commercial tractor insurance provider will approve the repair work
• The tractor will be repaired at the network garage
• Once the repair work has been completed, the repair bill should be handed over to the insurance company
• You will also have to submit the claim form along with other required documents
• The tractor insurance company will make the bill payment directly to the network garage

In case the tractor has been damaged beyond repair or has been stolen, the agriculture tractor insurance company will directly pay the claim amount to the policyholder.

Steps to Make Reimbursement Claims Under Tractor Insurance

Reimbursement claims refer to the claims where the insured tractors are repaired at non-network garages of the tractor insurance companies. To make a reimbursement claim under the tractor insurance policy online, follow the steps given below:

• Notify your insurance provider about the accident or emergency
• Your insurer will make a physical inspection of the tractor
• The repair work estimation made by the garage has to be submitted to the insurance company
• The insurance company will approve the repair work
• The insured tractor will go for repair work at the garage
• After the repair has been made, pay the entire tractor repair bill
• Submit all the required documents to the insurance company, including the claim form
• The submitted documents will be cross-checked by the insurer
• You will be paid the claim amount

Documents Required to Make a Tractor Insurance Claim

At the time of making a claim under your tractor vehicle insurance online, you will be required to submit the following documents:

• Duly signed claim form
• Copy of the tractor Registration Certificate (RC)
• Copy of your driving license
• Photographs of the damaged tractor
• Copy of police FIR (in case of third party liability claims)
• Original estimate of loss
• Keys of the tractor (in case of theft claims)
• Non-traceable certificate (in case of theft claims)
• Original repair bill from the garage
• Repair bill payment receipt
• Discharge voucher from the garage

How to Buy Tractor Insurance Online?

It is advisable to buy tractor insurance online as the procedure is quick and transparent. Moreover, you can purchase online insurance for a tractor without stepping out of your house. If you are looking to buy tractor insurance online, follow the steps given below:

• Go to policybazaar.com and choose commercial vehicle insurance tab
• Enter all the required information about your tractor, such as vehicle registration details, location, etc.
• You will be able to see a list insurance plans and their premiums
• Select an insurance policy for tractor that fits your budget and requirements
• Choose any optional and add-on covers if required
• The final tractor insurance premium will be displayed
• Pay the tractor insurance price online using internet banking, debit cards or credit cards
• You will be issued with a new tractor insurance policy

How to Renew Old Tractor Insurance Online?

It is extremely easy to renew your old tractor insurance online. To renew your online insurance of tractor, follow the steps given below:

• Go to the renew section of the tractor insurance policybazaar.
• Fill up all the details that you will be asked for, including your old tractor insurance details.
• Choose the type of plan and provider that you want to go for. You can either choose a third party plan or could go for a package policy.
• Customize your policy and include any add-ons if required
• The tractor insurance plans will be displayed along with their premiums.
• Make a payment towards comprehensive or third party tractor insurance price online
• Your old tractor insurance policy will be renewed

Factors That Affect the Tractor Insurance Premium

Many factors play an important role in estimating a tractor insurance premium.It is important to check the tractor third party insurance price as well as the premium for the comprehensive policy offered by different tractor insurance companies before choosing a plan. Take a look at some of the factors affecting the best tractor insurance price below:

• Type of Tractor Insurance Policy: The tractor insurance premium highly depends on the type of coverage you opt for. In case of a third party tractor insurance, the premium will be lower than that of a comprehensive tractor insurance policy because of a lower level of coverage.
• Make and Model of the Tractor: The make and model of the tractor impacts the tractor insurance price. If your tractor is an advanced model, tractor insurance amount that you will be required to pay, will be much higher than a basic tractor with regular features.
• Geographical Location: The geographical location where you will be using your tractor also affects your tractor insurance price. If the tractor will be used in a risky area that is more prone to accidents, then the tractor insurance rates will be higher as compared to the tractors being used at safe places.
• Age of the Tractor: The age of your tractor is another factor that determines the tractor insurance price. The older your tractor is, the lesser the premium. This is because older vehicles have lower market value and thus, have lesser IDV.
• Engine Capacity: Farm tractor insurance rates are also affected by the engine capacity of the tractor. If the engine capacity of the tractor is higher, you will end up paying a higher tractor insurance premium.