Tractor Insurance is a commercial vehicle insurance policy that provides all-round protection to your farm tractor against any unforeseen loss or damages due to accidents, theft, fire or natural disasters. It covers the tractor from any legal liabilities that may arise due to causing injury or property damage to a third-party person. It also covers the wreckage of your tractor as a result of a contingency.Besides protecting your tractor from any possible damages or loss, tractor insurance policy also extends coverage to you and your family by offering personal accident cover.
In other words, a tractor insurance policy ensures that your tractor is safe and your farming activities continues without any breaks.
Types of Tractor Insurance Plans
Two types of tractor insurance plans are offered by commercial vehicle insurance providers in India. They are:
- Third Party Tractor Insurance – This type of tractor insurance covers any legal liabilities of the tractor owner as a result of any third party claims.It covers any damages caused to the property or vehicle of a third party person by the insured vehicle. This tractor insurance third party also covers the liabilities arising due to causing bodily injuries or death of a third party person. Moreover, a tractor third party insurance also provides personal accident cover to the owner-driver of the vehicle.
- Comprehensive Tractor Insurance – This type of tractor insurance provides complete protection to the insured vehicle. It covers the insured tractor against any loss or damages caused due to accidents, calamities, fire, theft, etc. along with the third party liabilities. It also covers any injuries sustained by the owner-driver of the tractor while driving, just like third party insurance for tractor. This means comprehensive tractor insurance is a package policy that provides own damage cover, personal accident cover as well as the coverage offered by tractor 3rd party insurance.
The following tractor illustrates the difference in the level of coverage offered by the two types of tractor insurance plans:
Third Party Tractor Insurance
Comprehensive Tractor Insurance
Third party property/ vehicle damage and bodily injuries to third party person
Own damage cover for the insured tractor
Personal accident cover for the owner-driver of the tractor
Features and Benefits of Tractor Insurance
Every new tractor insurance policy comes with certain lucrative features and benefits. Take a look at some of the most common features and benefits offered by the best tractor insurance companies in India:
- Cashless Garages – All tractor insurance companies come with a network of garages where you can avail repair work on your vehicle 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 –Every commercial tractor insurance plan comes with a few additional cover that helps to increase the policy coverage. These covers can only be availed on the payment of an additional tractor insurance price. Some of the add-on covers available under a tractor insurance policy are no claim bonus (NCB) protection, return to invoice cover, etc.
- No Claim Bonus – Most agriculture tractor insurance offer No Claim Bonus or NCB to policy holders if they do not file any claims during a policy term. NCB is granted for every claim-free year and can be accumulated to, eventually, get a discount on the premium amount.
- Round the Clock Assistance – Most tractor insurance companies offer round the clock assistance to its customers for any queries related to claims filing or settlement.
Reasons 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 reasons why you should definitely buy an insurance policy for tractor:
- Mandatory Requirement Under the Law – Under the Motor Vehicle Act of our country, it is mandatory for all tractors plying legally on Indian roads to at least have a tractor third party insurance. If anybody is found using a tractor without a valid tractor insurance third party, then he/ she shall be punished under the law.
- Unforeseen Exigencies –Emergencies don’t come with a warning. So it is better to keep your tractors protected from any unforeseen losses that may lead to major losses. Tractor trailer insurance gives you that safety and compensates you for any losses that you may end up suffering in case of an emergency.
- Reduces Chances of Financial Losses – Risks are a part of every business. If your assets, such as your tractors, are not insured under a valid agriculture tractor insurance policy, you may end up suffering huge losses. Insurance of tractor covers will cover your vehicle from any unforeseen loss or damage, thereby reducing your risk profile.
What is Covered underTractor Insurance?
Most tractor insurance companies provide coverage against any loss or damages caused to the farm tractor due to the following exigencies:
- Accidents – It covers the insured tractor from any damage or loss resulting out of an accident or collision.
- Theft –This policy provides compensation to the policyholder in case the insured tractor gets stolen.
- Natural Disasters –A farm tractor insurance also covers the vehicle from any loss or damages caused due to the incidents of natural disasters, such as floods, cyclones, earthquakes, tsunamis, landslides, etc.
- Liability to Third Parties– Any legal liabilities resulting out of causing property damage or bodily injuries tothird party person is covered under the tractor third party insurance. It also covers any third party claims arising due to causing the death of a third party person with the insured tractor.
- Personal Accident –It covers the treatment cost incurred by the owner-driver of the insured tractor in case he gets injured in an accident while driving the vehicle.
- Manmade Hazards –This policy provides coverage against any loss or damages caused to the insured tractor due to any manmade hazards, such as riots, terrorism, vandalism, strike, etc.
- Fire –It covers any damages as well as the resultant losses sustained by the insured tractor due to catching fire.
- Towing Disabled Vehicles –The Mahindra tractor insurance also covers any damages caused to the insured tractor while being towed by another vehicle.
Tractor Insurance Optional Covers:
Commercial tractor insurance comes with certain optional covers that you can use to enhance your policy coverage. Some of them are:
- Electrical Accessories – This cover provides coverage for any loss or damagecaused to the electrical accessories fitted in your tractor.
- Personal Accident Cover to Paid Drivers –By opting this cover, this 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.
What is Not Covered in a Tractor Insurance?
Certain damages caused to the insured tractor are excluded from the scope of coverage of an insurance policy for tractor. Following is the list of exclusions under agriculture tractor insurance:
- Normal Wear & Tear – Any damages sustained by the insured tractor due to natural wear and tear with respect to time will be excluded.
- War and Nuclear Perils –This policy does not cover any loss or damages caused to the insured tractor as a result of war, war-like situation, nuclear reaction or nuclear weapon.
- Depreciation –Any reduction in the value of your tractor due to normal ageing or depreciation will not be covered under this insurance of tractor.
- Drunk Driving –If you cause any damages to the insured tractor, a third party or to yourself due to driving the vehicle under the influence of the alcohol, then your insurer will not pay for the losses.
- Consequential Damages/ Loss –In case your tractor sustains any damages which are not directly caused due to fire, accidents, theft or any other covered reason under Mahindra tractor insurance, it will not be covered.
- Electrical or Mechanical Breakdown –This tractor road run insurance does not cover any claims related to the electrical or mechanical breakdown of the vehicle.
- Damage due to Overloading –Any damages caused to your tractor because of extra strain or overloading will not be covered.
- Driving Without a License –In case you are caught driving the insured tractor without a valid driving license, then the losses incurred will be excluded under this policy.
- Contributory Negligence – If your tractor suffers from any damages due to your contributory negligence, then it will not be covered by theinsurance of tractor. For instance, driving your tractor despite tsunami warning.
What are the Add-On Covers Available Under Commercial Tractor Insurance?
Add-on covers refer to the additional covers that increase the level of coverage of your Mahindra 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:
- 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 Online?
Two types of claims can be filed under tractor insurance online. The first one is the cashless claim and the second is the reimbursement claim. Here is a runthrough of the steps involved in making both cashless and reimbursement claims under tractor insurance online:
How to Make Cashless Tractor InsuranceClaims?
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:
- Notifyyour insurance company about the contingency
- 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 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 your tractor’s 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 billfrom 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 tractor without stepping out of your house. If you are looking to buy tractor insurance online, follow the steps given below:
- Go to commercial vehicle insurance and select tractor insurance
- Enter all the required information about your tractor, such as vehicle registration details, location, etc.
- You will be able to see a list of tractor insurance policybazaar has available along with the tractor insurance rates
- Select an insurance policy for tractor that you want to go ahead with
- Choose any optional and add-on covers that you want to include in your tractor insurance policy (if any)
- Upload all the required documents (if any)
- The final tractor insurance amount that you need to pay for the policy 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 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 policybazaar tractor insurance third party plan or could go for a package policy.
- If you want to add or remove any add-on covers, now is the time.
- You will receive tractor insurance online quote.
- 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 Price
Many factors that play animportant role in estimatingfarm tractor insurance rates.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 cost largely depends on the type of coverage you opt for. In case you decide to buy policybazaar tractor insurance third party, its premium will be lesser than that of the 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’ll be required will be much higher thana basic tractor with regular features.
- Geographical Location –The geographical location where you will be using your tractor also affects your tractor insurance quote. If the tractor will be used in a risky area which is more prone to accidents, then the farm 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 would be the farm tractor insurance cost. 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 higher tractor insurance amount.
Ans: Yes. Most tractor insurance companies cover trailers along with the tractor under an insurance policy for tractor.
Ans: No. You cannot insure all your tractors under one insurance policy for tractor. Each of your tractors needs to have its own tractor insurance policy to ensure equal protection.
Ans: Yes. It is possible to insure a personally imported tractor in India, provided the said tractor is available in India as a standard production model and has been registered in India.
Ans: The farm tractor insurance cost depends on several factors such as the type of tractor, level of coverage and the geographical location where the tractor will be used.You can also check the tractor insurance rates by visiting policybazaar tractor insurance page.
Ans: Some insurance companies do cover the insured tractors if they are being used for personal reasons. However, it is best to check with your insurance provider if they cover your tractor in case you use it for personal use.
Ans: In case you are selling your tractor to someone else, you can transfer your existing commercial tractor insurance policy to the new buyer. However, the No Claim Bonus will not be transferred and will remain with you as it is awarded to the vehicle owner for not making any claims and not to the insured tractor.
Written By: PolicyBazaar - Updated: 06 May 2020