Truck Insurance in India: Types, Benefits, Renewal, Costs, Providers, and More

Truck insurance is a type of commercial vehicle policy which provides protection against damages to trucks in case of an accident, fire, theft or any manmade or natural calamity.

Key features Of Truck Insurance

Truck Insurance Price 2023

Truck insurance price is 8432+GST for private goods carrier and 15899 for public public goods transport vehicle whose gross weight is up tp 7500 kg.

Truck insurance price and cost vary based on the gross weight of the vehicle. As of 2023, the following rates apply:

Factors Affecting Truck Insurance Cost in India

1. Gross Vehicle Weight (GVW): Heavier trucks with higher GVW typically have higher insurance costs due to increased risk of accidents and damage.
2. Truck Age: Older trucks may have higher insurance costs as they are more prone to breakdowns and repairs.
3. Truck Make and Model: Different truck makes and models may have varying insurance costs based on their perceived risk factors, safety features, and repair costs.
4. Geographical Location: The location where the truck is operated, such as urban areas or regions with higher accident rates, can impact the insurance cost.
5. Usage of the Truck: The purpose and frequency of truck usage, such as personal use, commercial use, or long-haul transportation, can affect the insurance cost.
6. Driver’s Age and Experience: The age and experience of the truck driver can impact the insurance cost, with younger or less experienced drivers generally facing higher premiums.
7. Claims History: A history of past insurance claims or accidents may result in higher insurance costs due to increased perceived risk.
8. Coverage and Deductibles: The type and amount of coverage, as well as the deductible chosen, can affect the insurance cost. Higher coverage or lower deductibles may result in higher premiums.
9. Additional Add-Ons: Optional add-on coverages, such as zero depreciation, engine protection, and consumables coverage, can impact the overall insurance cost.
10. No Claim Bonus (NCB): NCB earned for not making any claims during the previous policy period can lower the insurance cost as it rewards safe driving behavior.

Truck Insurance for Commercial Vehicles: Requirements and Benefits

Truck insurance is a crucial aspect of owning and operating commercial vehicles in India. It not only fulfills the legal requirement for commercial vehicles to be insured but also provides a range of benefits to the owners. Here are some key points to understand:

Requirements for Truck Insurance for Commercial Vehicles:

• As per the Motor Vehicles Act, 1988, it is mandatory for all commercial vehicles, including trucks, to have a valid third-party liability insurance policy.
• The third-party liability insurance covers the owner’s liability towards third-party damages caused due to the insured vehicle’s involvement in an accident, including bodily injury or property damage.

Benefits of Truck Insurance for Commercial Vehicles:

• Financial Protection: Truck insurance provides financial protection against unforeseen events such as accidents, theft, natural disasters, and damages to the insured vehicle.
• Legal Compliance: Having a valid truck insurance policy ensures compliance with the legal requirement of mandatory third-party liability coverage for commercial vehicles.
• Peace of Mind: Truck insurance offers peace of mind to the owners, knowing that they are protected against financial losses arising from accidents or damages to the insured vehicle.
• Coverage Options: Insurance companies offer various coverage options, including comprehensive coverage, which provides protection against own damages in addition to third-party liability coverage.
• Add-Ons: Additional coverage options, known as add-ons, can be availed to enhance the coverage of the truck insurance policy, such as zero depreciation, engine protection, roadside assistance, etc.
• Customization: Truck insurance policies can be customized to suit the specific requirements of the commercial vehicle owners, taking into consideration the type of truck, usage, and other factors.
• Claim Assistance: In case of an unfortunate event, truck insurance provides claim assistance, including surveyor appointment, assessment of damages, and settlement of claim amount as per the policy terms.

Having proper truck insurance coverage is essential for commercial vehicle owners in India, providing financial protection, legal compliance, and peace of mind.

Now what does truck insurance policy cover?

ACCIDENTS

Any damage or total loss in case of an accident is covered in truck insurance policy.

FIRE

Commercial truck insurance ensures the truck owner is covered for financial losses in case the vehicle is damages or lost completely due to a fire hazard involving insured truck.

THEFT

Loss of vehicle because of truck is covered in comprehensive or first party tipper, lorry insurance.

NATURAL CALAMITY

Damages or losses caused due to any kind of natural calamity such as floods, landslides, storms are covered in commercial insurance policy for goods carrying vehicles.

TOWING DISABLED VEHICLES

Losses caused to or by a truck while its being towed are covered for claims in commercial truck insurance policy.

THIRD PARTY LOSSES

Third party property damages are covered by 7.5 lac and injuries or deaths of third party persons are covered by unlimited amount in a truck insurance policy.

What’s not covered?

Following are the exclusions in a goods carrying vehicle insurance policy
• General Wear & Tear
• Any loss or damage to the insured vehicle due to war, invasion or nuclear warfare etc.
• Mechanical or electrical breakdown
• Any loss or damage caused outside the geographical area of coverage as mentioned in the policy.
• Usual depreciation of the value of the goods vehicle.
• Driving without appropriate driving license.
• Non-accidental losses.
• Any loss occurred to insured vehicle while using the vehicle for racing or any illegal purposes.
• Any losses occurred while drunk driving of the goods carrying vehicle.

Types Of Truck Insurance

• Third Party Insurance – A third party truck insurance is a commercial vehicle insurance that covers any legal liabilities resulting from any third-party damages caused by the insured vehicle. It covers third-party property or person damage caused by the insured vehicle or the vehicle being carried. It also provides personal accident coverage for the truck’s owner-driver.
• Comprehensive/First Party insurance – It protects the insured vehicle completely by covering third-party liabilities as well as own vehicle damage. In addition to third-party person and property damage coverage, it also includes any loss or damage to the insured vehicle caused by fire, accidents, natural disasters, vandalism, or theft. This insurance, just like a third party plan, also covers the owner/driver of the vehicle for personal accidents

Truck Insurance Add-Ons To Enhance Your Protection

• Zero Depreciation: Provides coverage without factoring in depreciation, ensuring higher claim payouts.
• Engine Protection: Covers damages to the truck’s engine, gearbox, and other internal parts due to water ingression or oil leakage.
• Consumables Coverage: Covers the cost of consumables such as lubricants, nuts, and bolts used during repairs.
• Roadside Assistance: Provides assistance in case of breakdowns, accidents, or other emergencies while on the road.
• NCB Protection: Protects the No Claim Bonus (NCB) earned, allowing it to be retained even in case of a claim.
• Invoice Protection: Provides coverage for the invoice value of the truck in case of theft or total loss.
• Return to Invoice: Covers the difference between the insured declared value (IDV) and the invoice value of the truck in case of total loss or theft.
• Personal Accident Cover for Passengers: Provides coverage for the passengers traveling in the truck in case of accidental injury or death.
• Loss of License: Provides coverage in case the truck driver loses their driving license due to a covered event.
• Emergency Accommodation and Transportation: Covers the cost of accommodation and transportation in case of truck breakdown or accident.

How to buy commercial truck insurance online?

Follow these simple steps to purchase online truck policy –

• Provide details related to your truck including the type of carrier, registration details, vehicle information and vehicle weight.
• Prices for policies offered by different insurers will be quoted.
• Select the insurance plan you want to buy.
• Choose the add-on covers of your liking (if any). 
• Pay the insurance price for the selected plan online through the payment methods provided.
• Provide the documents that you are required to submit.
• The policy will be issued and a softcopy will be mailed to you. 

Renewing Truck Insurance in India – Step by Step

• Step 1: Gather all necessary documents, such as previous policy details, vehicle registration certificate, and ID proof.
• Step 2: Compare insurance policies from different insurers to choose the best option for your truck.
• Step 3: Contact your chosen insurance company or agent to initiate the renewal process.
• Step 4: Fill out the renewal form with accurate and updated information.
• Step 5: Pay the premium amount as per the selected policy and coverage.
• Step 6: Submit the required documents and payment proof to the insurance company.
• Step 7: Once the payment is confirmed, the insurer will issue the renewed truck insurance policy.
• Step 8: Receive the renewed policy document via email or physical copy.
• Step 9: Verify the details mentioned in the policy document for accuracy.
• Step 10: Keep the renewed truck insurance policy safely for future reference and compliance with legal requirements.

Benefits of Buying/Renewing Truck Insurance Online

A commercial auto insurance policy comes with a number of lucrative benefits. Here are a few of the key benefits –

• Network Garages- Commercial truck insurance companies provide cashless garages. It enables you to get your truck fixed without any cash transaction at one of the insurer’s network garages.
• Claim Assistance- In the event of an emergency, the owner/driver of the goods carrier can contact the insurer’s support team at any time for help. They aim to answer all of your questions and assist you in properly registering your claim.
• No Claim Bonus- No Claim Bonus, or NCB, is a benefit that is awarded to a commercial vehicle insurance policyholder for not filing any claims during the preceding policy duration. It is offered in the form of a discount percentage that may be accumulated and utilized to reduce the cost of insurance for truck.
• Add-On Covers- The best commercial insurance companies provide several add-on covers that can be utilized to enhance the protection of trucks. It does, however, come with an additional cost. Some of this add-on coverage include zero depreciation, roadside assistance, debris cleanup costs, and so forth. 

Truck Insurance Claims: Process and Tips

Truck insurance claims can be a complex process, and it’s important to be familiar with the steps involved and some tips to ensure a smooth experience. Here are some key points to understand:

Process for Truck Insurance Claims:

• File a claim with your insurance provider as soon as possible after the incident, providing all the necessary details such as policy number, truck details, location of the incident, and description of damages.
• The insurance company may appoint a surveyor to assess the damages and determine the claim amount.
• Submit all the required documents, such as the claim form, original policy document, FIR (in case of theft or accident), repair estimates, and other relevant proofs as requested by the insurance company.
• The insurance company may conduct an investigation, if required, to verify the claim and assess the liability.
• Once the claim is approved, the insurance company will settle the claim amount as per the terms and conditions of the policy, which may include deductibles, depreciation, and other applicable charges.

Tips for Truck Insurance Claims:

• Be prompt in filing the claim and provide accurate information to avoid delays or claim rejection.
• Keep all the necessary documents handy, including the policy document, truck registration papers, and other relevant proofs to facilitate the claim process.
• Follow the claim process and provide all the requested documents and information promptly to the insurance company.
• Cooperate with the insurance company’s surveyor or investigator, if appointed, and provide all the necessary assistance for a fair assessment of damages and liability.
• Keep records of all communication with the insurance company, including claim-related correspondence, emails, and phone calls.
• Review the claim settlement offer carefully and seek clarification if needed before accepting or rejecting it.

Documents Required At The Time Of Claims

• 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)
• Vehicle’s keys (in case of theft)
• Non-traceable certificate (in case of theft) 

Top 10 Truck Insurance Companies In India

List of top 10 best insurance providers for trucks in India

1. Royal Sundaram General Insurance
2. Magma HDI General Insurance
3. Reliance General Insurance
4. GoDigit General Insurance
5. Iffco Tokio
6. Tata AIG
7. ICICI Lombard
8. United India
9. National Insurance
10. New India Assurance

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