Trucks aid various companies in moving raw materials and finished goods more quickly. However, due to the continuous and laborious operations of long-distance travel, they are exposed to a variety of dangers, such as accidents, normal wear and tear, natural disasters, and many more.
All of these dangers come with expenses, which occasionally can be extremely high. Therefore, purchasing a truck insurance policy enables truck drivers to manage their businesses without incurring any unexpected costs.
This page will highlight some of the most important aspects of truck insurance that one should be aware of before purchasing it. But before that, let’s quickly understand what the term exactly means.
What Is Meant By Insurance Policy For Truck?
Truck insurance is a specific kind of commercial vehicle insurance plan designed to cover trucks used for commercial reasons, such as trucks used for deliveries, pick-ups, and the transportation of goods, among other things. Any business needs truck insurance because it financially protects the relevant commercial vehicle from any damages that may be brought on by collisions, accidents, fires, natural disasters, and thefts.
It is required by law that the truck owner, at the very least, have a “Liability Only” coverage in place, which covers third parties against any losses and damages his truck might cause. Yet considering the dangers that trucks can encounter, it’s usually preferable to have a standard package policy that will safeguard both the owner’s truck and owner-driver.
Types Of Truck Insurance Plans Available In India
Based on the level of coverage, there are basically two types of truck insurance policies available in India:
- Comprehensive Truck Insurance: By paying for both own vehicle damage and third-party liability, this policy totally covers the insured truck. It also covers any loss or damage to the insured vehicle brought on by fire, accidents, natural catastrophes, vandalism, or theft, in addition to coverage for a third-party person and property damage. This insurance also covers the owner/driver of the vehicle for personal accidents, just like third-party coverage.
- Third-Party Truck Insurance: Commercial vehicle insurance, called third-party truck insurance, covers any resulting legal obligations from any third-party harm the insured vehicle may cause. It covers injuries or property damage to third parties brought on by the insured vehicle or the vehicle being transported. The owner-driver of the truck is also covered for personal accidents.
What’s Covered & What’s Not Covered Under A Truck Insurance?
Truck insurance provides coverage for the following circumstances:
- Accident: Truck insurance policies provide coverage for any damage or total loss in the event of an accident.
- Theft: The insurance also covers vehicle loss due to theft.
- Fire: Commercial truck insurance guarantees that the owner of the truck is protected from financial losses in the event that the vehicle sustains damage or is totally lost as a result of a fire hazard involving the insured truck.
- Natural Disasters: Truck insurance will also cover any losses or damages resulting from natural disasters like floods, lightning, etc., to the insured truck.
- Personal Accident: The commercial truck insurance provider will pay for any damages if the insured truck is involved in an accident that results in the driver’s injuries or death.
- Third-Party Losses: This policy will cover any injuries or property damage that the insured truck causes to third parties.
- Towing Disabled Vehicles: The truck insurance also covers any harm a vehicle being towed by the insured heavy-duty truck may cause to a third party.
Equally vital is understanding what your truck insurance policy does not cover so that there are no unpleasant surprises when you file a claim. Here are some of these exclusions:
- Driving under the influence of alcohol, drugs, or any other intoxicating substances
- Driving without a valid driving license
- General wear and tear of truck
- Damage due to war, invasion, or nuclear warfare
- Electrical or mechanical breakdown
- Contributory negligence
- Consequential damages
- Non-accidental losses.
Types Of Add-On Covers Available Under Truck Insurance
Every truck insurance policy comes with a few add-on covers that may be included to enhance the current protection provided by the policy. One may purchase such covers by paying a higher premium than the normal.
Below are some of the important add-on covers that one should consider including with their truck insurance policy:
- Roadside Assistance Cover: In the event of a roadside emergency, the insured will be able to use the roadside help service under this coverage. These services range from spare keys and flat tyre help to battery assistance, basic repairs, and fuel assistance.
- Zero Depreciation Cover: This cover guarantees that the insured will get the full amount of his claim, with no reductions for the truck’s age-related depreciation or the cost of any repairs or replacements.
- No Claim Bonus Protection Cover: It guarantees that the insured can keep his NCB even if he has filed a claim in the prior policy year.
- Return To Invoice Cover: By bridging the difference between the market invoice value and IDV of the insured’s truck, this coverage enables him to receive a claim amount that is equal to the invoice price of the truck at the time of purchase.
- Debris Removal Expenses: It pays for any costs associated with clearing the scene of the accident, cleaning up the mess, or shifting products from the insured truck to another vehicle if the truck is no longer fit to transport them.
- Engine & Gearbox Protection Cover: This cover allows the insured to increase the scope of his insurance coverage by shielding the truck’s engine and gearbox from incidental harm.
Factors Affecting The Premium Amount Of Truck Insurance
According to a few insurance experts, the following factors primarily affect the premium amount of truck insurance:
- Type & Model Of Truck: While purchasing a truck insurance policy, consideration should be given to the truck’s make and model. Due to its smaller size and lower capacity, a mini truck’s insurance will be far less expensive than a large truck’s insurance.
- Usage Of Truck: A lot also depends on the type of goods being transported in the truck. Heavy goods carrying trucks are more susceptible to damage on the road than light goods carrying trucks. Therefore, their insurance premium amounts will also differ.
- Engine CC: While purchasing truck insurance, the truck’s engine cubic capacity (CC) is also important. The cost of commercial truck insurance will climb as the truck’s engine cubic capacity does.
- Service Location: Driving in a crowded metropolis is very different from driving on country roads. The risk insured’s truck poses to other riders depends on where he drives it. When purchasing truck insurance, the premium will be determined by the location where the insured drives.
- Credit Score: This contains all of the financial elements that go into determining the premium, such as bankruptcies, payment history, collection, unpaid debts, turnover, and all financial information about the company.
Buying Process Of Truck Insurance
Though there are many platforms available to purchase a truck insurance policy, choosing Probus Insurance can provide you with many benefits like a hassle-free process and prompt customer care service. With the platform, one can purchase the policy either through offline or online method, both of which are discussed below:
The customer first needs to go to the company’s official website to buy its truck insurance online. On the other hand, consider choosing a third-party insurance service provider like Probus Insurance that may offer quick and hassle-free purchase of your truck insurance.
Following that, one must follow the instructions, provide the required information, and complete the online payment in order to successfully finish the purchasing process.
The customer can visit the closest branch if he wants to buy insurance in person. He can get all the information he needs about truck insurance when he visits the branch. If the problems persist, he might be able to receive support by contacting the insurance provider. The company’s customer care team will try to solve its customer’s queries as soon as possible.
Things To Remember While Purchasing Truck Insurance
Today, the market is filled up with numerous truck insurance providers that promise to offer comprehensive protection for your vehicle at a competitive price. As a result, it is crucial that an individual puts in a lot of time and effort before choosing the best service provider to purchase the policy. Before choosing truck insurance from a service provider, consider the following important factors:
- Choose the right coverage amount
It is very important to get the right kind of coverage if the insured wants to get the most out of his truck insurance policy. Getting insurance for third-party liability and vehicle damage is frequently perceived as being adequate. To get the most protection out of the truck insurance policy, consider various perspectives clearly.
- Select the right Insured Declared Value (IDV)
The insurance company’s maximum payment to the truck owner at the time of the claim is referred to as the IDV. It is crucial to select the appropriate IDV because it will affect both the cost and the scope of coverage for the truck insurance.
- Check the Claim Settlement Ratio (CSR) of the company
The claim settlement ratio earned by the major truck insurance providers in India should be examined by every truck owner. The insured’s claims are more likely to be settled by the company if the claim settlement ratio is higher.
- Compare service benefits
Truck owners should also examine the service benefits provided by the various commercial truck insurance firms in India before choosing a plan. Select a commercial vehicle insurance policy that is reasonably priced and has the most service features.
- Look for required add-on covers
A potential customer of truck insurance should also check out the extra protections that the best commercial truck insurance providers give. Get a cheap commercial truck insurance policy that provides the most add-on coverage.
Frequently Asked Questions
Yes. If a policy is cancelled and no claims have been filed prior to the cancellation, only then may the truck insurance premium that has already been paid be reimbursed.
Absolutely, if your truck is damaged in a traffic accident and you take it to one of your insurance company’s network garages, you will only be responsible for your deductible payment; the insurer will cover the remaining balance.
A truck insurance policy can provide coverage for light, medium, heavy-duty, and small trucks.
You won’t be able to file any claims with your insurance company if you forget to renew your commercial truck insurance. You could face penalties for not having valid truck insurance in addition to losing your accrued NCB.
The following persons need truck insurance:
- Independent truck drivers and owner-operators
- Any business or organization with trucks and transportation-related activity
- Commercial transportation businesses