Truck insurance is customized commercial vehicle insurance designed to cover commercial trucks from any damages or losses caused due to accidents, fire, natural disasters, theft and third-party liabilities. It protects trucks that operate within a business and carry out commercial activities for them, such as goods transportation, pick-up & drop services, automotive hauling, etc.
In other words, a commercial truck insurance policy provides financial protection to a business that uses trucks for commercial activities in case of unforeseen adversity.
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 as 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 are 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 level of coverage, there are two types of plans offered by commercial truck insurance companies:
Truck Insurance Liability Only Policy:
This type of commercial truck insurance covers any legal liabilities arising out of any damages 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 liabilities as well as own vehicle damage.In addition to the coverage for third party person & property damage, it also covers any loss or damage caused to the insured truck due to incidents of fire, accidents, natural calamities, vandalism or theft. Similar to the liability only plan, this policy also provides personal accident cover to the owner-driver of the truck.
Truck Insurance Liability Only Policy
Truck Insurance Package Policy
Own damage cover
Third party person or property damage caused by the truck
Third party person or property damage caused by the vehicle being towed by the truck
Personal Accident (PA) cover for owner-driver of the truck
Features and Benefits of Truck Insurance
A truck insurance policy comes with a variety of lucrative features. Take a look at some of the key features of commercial truck insurance:
- Cashless Garages: Commercial truck insurance companies come with cashless garages facility. It allows you to get your truck repaired at one of the network garages of the insurer on a cashless basis.
- Claim Assistance: In case of an emergency, the owner-driver of a motor truck cargo can contact the support team of the insurer anytime for claim assistance. They work towards clearing all your queries and help you register the claim successfully.
- No Claim Bonus: No Claim Bonus or NCB is a benefit that is rewarded to the policyholder of a business truck insurance for not making any claims in the previous policy tenure. It is provided as a discount percentage that can be accumulated and used to gain discounts on the commercial truck insurance cost.
- Add-On Covers: Best commercial truck insurance companies offer a variety of add-on covers that can be used to enhance the protection of a truck insurance policy. However, it comes with an extra truck insurance price. Some of these add-on covers are zero depreciation cover, roadside assistance, debris removal expenses, etc.
Reasons to Buy Truck Insurance
Buying a truck insurance policy is extremely important to stay prepared for any unforeseen emergencies involving the insured truck. Take a look at some of the reasons why buying commercial truck insurance is a must:
- Mandatory by Law: As per the Indian Motor Law, it is mandatory for all trucks plying on Indian roads to have a valid Liability-Only policy. People who fail to own a policy that provides truck liability coverage can be penalised under the law. However, you have the choice of opting for a package policy if you want all-round protection for your truck.
- Prevents Financial Losses: Since trucks are being 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: Emergencies come unannounced. They can not only cause damage or loss of property (truck) but can also lead to loss of life (truck driver).They can also cause damage or loss to a third party. But with insurance of truck, you can stay adequately prepared for any unfavourable circumstances involving your commercial truck.
What is Covered under Truck Insurance?
A commercial truck insurance policy provides coverage to the insured truck under the following circumstances:
- Accidents: It covers any loss or damage caused to the insured truck following an accident
- Fire: This insurance for a truck covers any damages caused due to the insured vehicle because of catching fire
- Natural Disasters: In case natural calamities, such as flood, lightning, etc cause loss or damages to the insured truck, it will be covered by this pickup truck insurance
- Theft& Vandalism: If the insured truck gets stolen or vandalised in an unfortunate incident, the loss or damages resulting out of it will be covered under this truck insurance policy
- Personal Accident: In case the insured truck meets with an accident leading to the injury or death of the driver, it will be covered by the commercial vehicle insurance provider
- Third Party Losses: Any damages caused to a third party person, property or vehicle by the insured truck will be included in this policy
- Towing Disabled Vehicles: This heavy truck insurance also covers any damages caused to a third party by the vehicle being towed by the insured heavy-duty truck
What is Not Covered in a Commercial Truck Insurance?
Not all adversities involving the insured truck is covered by the commercial truck insurance companies. Here is a rundown of the list of exclusions under a truck insurance policy:
- Driving Without a Valid License: In case the owner-driver is found driving the insured truck without a valid driving license, then the losses suffered will be not be covered
- Contributory Negligence: Any damages caused to the insured truck due to the contributory negligence of the owner-driver will not be compensated by the insurance company. For example, driving the truck despite the flood
- Drunk Driving: If the truck driver causes any loss/ damages to himself/ the truck or a third-party due to the driving the insured truck under the influence of alcohol, the insurance company will reject claims arising out of it
- Consequential Damages: In case the insured truck suffers any loss or damage which has not directly resulted out of an accident or any other covered reason, it will not be covered under this policy. For example, damage to the truck engine due to improper handling of the vehicle post an accident
What are the Additional 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. However, additional coverage can be enabled on the payment of an additional premium amount only. 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 on the truck’s age or its repaired/ replaced parts.
- Roadside Assistance: Under this cover, you will be able to avail roadside assistance service in case of an emergency on road. These services include 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 Commercial Truck Insurance Online Claim?
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
- Insurer will make a physical inspection of the truck
- Network garage will make the repair work estimation
- 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)
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
- Truck insurance policy will be issued
How to Renew Commercial Truck Insurance Policy?
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. 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 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 ismuch smaller in size and has lesser capacity.
- Age of the Truck: The more the age of the truck, the lesser will be the truck insurance price. 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. Thus, the liability on the insurance company reduces.
- Engine CC: The engine cubic capacity (CC) of the truck also matters at the time of buying pickup 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 lower truck insurance estimate 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 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 in the truck insurance price at the time of policy renewal.
Things to Keep in Mind While Buying the Best Commercial Truck Insurance Policy
Many insurance providers in India offer truck insurance. The decision to go with mini truck insurance or heavy truck insurance can be quite tricky. To help you choose the best truck insurance for your motor truck cargo, 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 at the time of the claim. It is important to choose the right IDV as both the truck insurance price and the coverage will depend on it.
- Truck Insurance Quote: It is important to compare the commercial truck insurance online quote offered by various insurance companies in India. The smartest thing to do is to compare on Policybazaar truck insurance prices and select low cost 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. Go for a low cost commercial truck insurance plan that offers most add-on covers that you need.
- 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.
- Claim Settlement Ratio: Every truck owner should look at the claim settlement ratio of the various commercial truck insurance companies in India. Higher claim settlement ratio means there are higher chances of your claims to get settled.
Ans: You can compare commercial truck insurance quote online on Policybazaar. It allows you to compare the truck insurance cost, IDV, service benefits, incurred claim ratio and additional covers offered by various insurers on Policybazaar truck insurance page. Making the right comparisons can help you buy the best commercial truck insurance.
Ans: Yes. You can buy a few optional covers at the time of buying mini truck insurance or heavy truck insurance. They include personal accident covers for paid drivers, truck accessories cover as well as legal liability cover for employees.
Ans: Yes. The truck insurance price once paid can be refunded only in the case of policy cancellation, provided no claims were made before cancellation.
Ans: If you plan to sell your truck, you can transfer the commercial truck insurance policy on the name of the new owner of the insured truck. However, the No Claim Bonus will not be transferred to the new truck owner as the NCB is rewarded to the policyholder for not making any claims and not to the truck.
Ans: In case you forget to renew your commercial truck insurance policy, you will not be liable for making any claims with your insurance provider. Not only will you lose your accumulated NCB but can also be penalised for not having valid insurance for the truck.
Written By: PolicyBazaar - Updated: 25 July 2020