Truck Insurance

What Is Truck Insurance?

A truck insurance is a legal contract between the insurance company and the policyholder that provides financial aid to the policyholder from any unforeseen incident causing loss or damage to the truck during the transportation of goods. Having at least a third party commercial vehicle insurance for your truck is mandatory as per the Indian Motor Vehicle Act as trucks are heavy goods carrying and are prone to cause third party liabilities and damage.

What are the Features of Truck Insurance?

A truck insurance policy comes with a variety of lucrative features. Some of the key features of commercial truck insurance are given below:

• Cashless Garages: Commercial truck insurance companies offer cashless garages facilities. It allows you to get your truck repaired at one of the network garages of the insurer on a cashless basis.
• Claim Assistance: The insurers offer a dedicated customer support and claim assistance facility for the insured truck.
• No Claim Bonus: No Claim Bonus or NCB is a discount that is offered to the policyholder of a business truck insurance for not making any claims in the previous policy tenure and reduces the premium.
• Add-On Covers: Insurance companies offer a variety of add-on covers that can be used to enhance the protection of a truck insurance policy for an additional premium. Some of the most popular add-ons are zero depreciation cover, roadside assistance, debris removal expenses, etc.

Why to Buy Truck Insurance?

Buying a truck insurance policy is extremely important to be prepared for any unforeseen emergencies such as accidents, third party death/liabilities, etc involving the insured truck. You can check some of the most common reasons to buy truck insurance below.

• Mandatory by Law: As per the Indian Motor Law, it is mandatory for all trucks plying on Indian roads to have at least a valid Liability-Only commercial vehicle insurance policy. If you fail to own a third party policy, you can be penalized under the law. Insurers also offer an optional package policy if you want all-round protection for your truck as well as third party liabilities.
• Prevents Financial Losses: Since trucks are used to carry out commercial activities, any damage/ loss caused to or by the truck can result in major financial losses. To avoid any monetary loss to your business, it is wiser to buy the best truck insurance for your trucks.
• Prepares for Unforeseen Emergencies: A truck insurance prepares and saves you from any unforeseen emergencies. Your commercial vehicle can not only cause damage or loss of property but can also lead to loss of life. Hence, the right commercial vehicle insurance for your truck will help you stay prepared for any unannounced emergencies and also give you the necessary peace of mind.

Types of Trucks Covered Under Truck Insurance

A truck insurance policy covers all trucks that are used for commercial purposes. Broadly, commercial trucks can be divided into four types:

• Mini Truck: This is the smallest sized truck with an engine capacity of less than 1000 CC. It is also called a micro-truck and is usually used for local, commercial, and hyperlocal pick-ups.
• Light Truck: Also known as light-duty truck, this type of truck has a payload of less than 1814 Kg (or 4000 pounds) and is usually used to transport goods from one city to another. It is also widely used by e-commerce companies for daily transportation.
• Medium Truck: This type of truck is bigger than the light-duty trucks but is not more than 11,793 Kg in size. It is usually used to transport bigger goods, such as furniture, etc.
• Heavy-Duty Truck: Also known as Off-Road truck, it is the largest-sized truck that is mostly used to carry building materials and for towing.

Types of Truck Insurance Plans

Based on the coverage provided, there are two types of plans offered by commercial truck insurance companies:

Truck Insurance Liability Only Policy

A third party/liability only truck insurance covers any legal liabilities caused by the insured truck to a third party. It provides coverage for damages caused to a third-party property or person from the insured truck or by the vehicle being towed by the insured truck. It also offers personal accident cover for the owner-driver of the truck.

Truck Insurance Package Policy

This type of commercial truck insurance provides complete protection to the insured truck by covering third-party damages as well as own vehicle damage. It also covers any loss or damage caused to the insured truck due to incidents of fire, accidents, natural calamities, vandalism, or theft and provides a personal accident cover to the owner-driver of the truck.

Difference Between Third Party vs Comprehensive Truck Insurance

The following table highlights the key differences between a third party (liability-only) truck insurance and comprehensive (package policy) truck insurance:

Truck Insurance Price

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

Every commercial truck insurance comes with certain add-on covers that can be used to enhance the existing coverage available under the policy by paying an additional premium amount. Below is a list of some of the add-on covers offered by commercial truck insurance companies in India:

• Zero Depreciation Cover: It ensures that you get the entire claim amount without any deductions related to depreciation based on the age of the truck or its repaired/ replaced parts.
• Roadside Assistance: Under this cover, you will be able to avail roadside assistance service in case of an unforeseen emergency such as a flat tyre, battery assistance, minor repairs, fuel assistance, towing facility and spare keys amongst others.
• Return to Invoice: This cover allows you to get a claim amount equivalent to the invoice price of the truck at the time of purchase by bridging the gap between the market invoice value and IDV of your truck.
• No Claim Bonus Protection: It ensures that you are able to retain your NCB even if you have made a claim during the previous policy year.
• Engine and Gearbox Protect: This cover enables you to extend your policy coverage by protecting the engine and gearbox of the truck from any consequential damages.
• Loss of Revenue: With this cover, you are covered for any loss of revenue that your business might suffer due to the insured truck under repair in the garage.
• Debris Removal Expenses: It covers any expenses incurred on removing debris, wreckage, cleaning up or transporting goods from the insured truck to another vehicle in case the truck is not in a condition to carry the goods after the accident.

How to File Claim for Commercial Truck Insurance Online?

There are two types of claims that can be administered under truck insurance - cashless claims and reimbursement claims. Take a look at the steps that need to be followed to make a truck insurance claim online:

How to Make Cashless Truck Insurance Claims?

To register a cashless truck insurance claim with your insurer, follow the steps given below:

• Inform the insurance company about the emergency incident
• The insurer will make a physical inspection of the truck
• Network garage will make the repair work estimation
• The insurer will approve the repair after which the repair work will start at the network garage
• Post repair, the bill is submitted to the insurance company
• Fill up the claim form and submit all the other required documents
• The bill will be settled directly with the network garage

In case of a total loss, the insurance company will pay the claim amount directly to the truck owner.

Steps to Make Reimbursement Truck Insurance Claims

Follow the steps given below to make reimbursement claims under your commercial truck insurance policy:

• Inform your insurer about the unfortunate incident
• A physical inspection of the damage will be made
• The repair work estimate needs to be submitted to the insurer
• The truck goes for repair after approval
• Pay the entire repair bill amount after the repair work has been completed
• Submit all the documents to the insurance company
• After evaluation, the claim amount will be paid to the policyholder

Documents Required to Make a Truck Insurance Claim

The following documents need to be submitted at the time of filing a truck insurance claim:

• Copy of Registration Certificate (RC) of the truck
• Original loss estimate
• Original repair bill or invoice
• Repair bill payment receipt
• Police FIR (in case of third party liabilities)
• Cars keys (in case of theft)
• Non-traceable certificate (in case of theft)
• Receipts/Challans/Permit, if applicable

How to Buy Commercial Truck Insurance Online?

The process to buy commercial truck insurance online is very simple. Follow the steps given below to buy a truck insurance policy:

• Select truck insurance and enter the details required
• Provide details related to your truck including the type of carrier, registration details, vehicle information and vehicle weight
• Commercial truck insurance prices for plans offered by different insurers will be displayed
• Select the plan you want to purchase
• Choose the add-on covers that you want (if any)
• Pay the truck insurance price for the selected plan online through net banking or debit/ credit cards
• Upload the documents that you need to submit
• A truck insurance policy will be issued

How to Renew Commercial Truck Insurance Policy?

A truck insurance policy can be easily renewed online. All you have to do is to go to the renewal section. Provide the details of your existing policy and other information needed. Choose the plan you want to renew. Select the additional covers that you want to add or drop from the policy. Pay the truck insurance price online using a debit card, credit card or internet banking. A commercial truck insurance policy will be issued to you.

Factors That Affect the Premium of Truck Insurance

Several factors affect the truck insurance price that is quoted by insurance providers in India. As per truck insurance experts, below is the list of some factors that determine the truck insurance cost:

• Type of Truck Insurance Policy: The type of truck insurance that you plan to purchase majorly impacts the premium cost. Given the lower level of coverage, the truck insurance quote for a liability-only policy will be much less than that of the package policy.
• Make and Model of the Truck: The make and model of the truck matters a lot when buying a truck insurance policy. The cost of mini truck insurance will be much lesser than heavy truck insurance as it is much smaller in size and has lesser capacity.
• Age of the Truck: The older the truck is, the lesser will be the truck insurance premium. This is because the market value of the truck decreases with its age, which in turn lowers the Insured Declared Value (IDV) of the vehicle.
• Engine Capacity: The engine cubic capacity (CC) of the truck also matters at the time of buying truck insurance. The commercial truck insurance quote will increase with the rise in the engine CC of the truck.
• Type and Purpose of the Truck: Top commercial truck insurance companies also determine the type and purpose of the truck while quoting a premium amount. A heavy-duty truck will have a higher truck insurance premium than a mini truck as it will carry fewer goods, leading to lower liability on the insurer.
• Service Location of the Truck: The service location of the truck decides the risk factor of the vehicle. Trucks plying in hilly areas are more prone to accidents than a truck plying in a small city. Thus, the greater the risk of the location, the higher will be the commercial truck insurance cost.
• No Claim Bonus: If the policyholder has a No Claim Bonus (NCB) because of not making any claims during the previous truck insurance policy term, he can use it to get a discount on the truck insurance price at the time of policy renewal.

Things to Keep in Mind While Buying a Commercial Truck Insurance Policy

Many insurance providers in India offer truck insurance. The decision to choose the right truck insurance can be quite tricky. To help you choose the most apt truck insurance for your truck, here is a list of things that you should keep in mind while buying insurance for a truck:

• Size and Purpose of the Truck: The size of the motor truck cargo and the purpose for which it is being used should be considered while choosing a plan. If the truck is smaller in size and is used for pickups, you can go with mini truck insurance or pickup truck insurance. On the other hand, if you have bigger trucks with huge load capacity you can opt for heavy truck insurance.
• Insured Declared Value: The IDV refers to the maximum amount that the insurance company will pay the truck owner in case of theft or if their truck is damaged beyond repairs (the damage cost is 75% more than the current market value of the truck). It is important to choose the right IDV as it directly affects the truck insurance premium.
• Quote Comparison: It is important to always compare the commercial truck insurance quotes offered by various insurance companies in India. You can easily do this on policybazaar.com and select the truck insurance that best suits your requirements.
• Add-On Covers: A prospective buyer should also look for the additional covers offered by top commercial truck insurance companies to get maximum coverage at the best price.
• Service Benefits: Before selecting a plan, truck owners should compare the service benefits offered by the various commercial truck insurance companies in India. Choose an affordable commercial truck insurance plan that provides maximum service benefits at the best cost.
• Claim Settlement Ratio: Every truck owner should look at the claim settlement ratio of the various commercial truck insurance companies in India. A higher claim settlement ratio indicates faster and hassle-free settlements.