Truck Insurance

Know about truck insurance policies, their benefits, and coverages. Check the buy and claim process.
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Truck Insurance
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3 mins
10-August-2023

Truck insurance is a vital investment for owners and operators of commercial vehicles in India. A truck insurance policy safeguards your finances in case of any damage, accidents, or unfortunate events. Let us take a closer look at truck insurance in India:

What is commercial vehicle insurance?

Commercial vehicle insurance is for all types of commercial vehicles such as lorries, trucks, buses, taxis, and vans. This type of insurance policy is suitable for anyone owning a vehicle used for commercial purposes. It keeps you financially secure in case of any damages incurred to your vehicle due to accidents, fire, theft, or any natural disaster. Commercial vehicle insurance also covers third-party liabilities.

What is truck insurance?

Truck insurance is a type of commercial vehicle insurance. Truck insurance is specifically designed to provide coverage against unforeseen circumstances such as accidents, theft, and natural disasters. It covers your commercial vehicle against damages caused due to these events. Commercial truck insurance also covers liabilities that you may incur in case of injury, death, or damage to a third party's property.

Also check: Car Insurance Plan

Types of truck insurance

There are two types of truck insurance policies available in India:

Comprehensive truck insurance

This policy provides coverage against all kinds of damage caused by natural disasters, theft, and accidents. It also covers third-party liabilities and personal accident cover for the driver.

Third-party liability insurance

This policy covers only third-party liabilities such as injury, death, or property damage.

Also read: vehicle insurance

Features and benefits of truck insurance

You can easily get truck insurance policy online. Truck insurance offers several features and benefits that are vital for the owners and operators of commercial vehicles, such as:

  • Coverage against all kinds of damage including natural disasters such as floods, earthquakes, and hurricanes.
  • Legal liability coverage in case of accidental death, injury, or property damage of a third party.
  • Personal accident cover for the driver.
  • Coverage of medical expenses.
  • Financial security in case of theft, fire damage, or total loss of the commercial vehicle.

Why should I buy truck insurance?

• Legal requirement

Commercial truck insurance is often mandated by state and federal laws, ensuring you comply with regulations.

• Financial protection

It provides a safety net by covering potential liabilities stemming from accidents, property damage, or injuries, preventing financial setbacks.

• Asset protection

Safeguards your valuable business assets, such as your truck and cargo, from unforeseen perils like theft, accidents, or natural disasters.

• Liability coverage

Protects you from legal liabilities arising from accidents or injuries caused by your truck, preventing financial ruin and legal consequences.

• Business continuity

Helps maintain uninterrupted business operations by covering repair or replacement costs, minimising downtime and revenue loss.

• Reputation management

Demonstrates responsibility and reliability to customers and partners, bolstering your business's reputation in a competitive market.

Inclusions under truck insurance

Inclusions under truck insurance can vary depending on the specific policy and insurance provider. However, some common inclusions under this type of insurance policy include:

  • Liability coverage for bodily injury and property damage caused to a third party.
  • Collision and comprehensive coverage for damage caused to the insured vehicle in an accident, theft, or natural disaster.
  • Personal injury protection that covers medical expenses incurred during an accident for the driver and passengers.
  • Uninsured or underinsured motorist coverage that provides protection if the driver responsible for the accident is uninsured or has inadequate insurance coverage.
  • Cargo coverage for damage to the loaded goods.

Exclusions of truck insurance

Here are some exclusions of truck insurance policy.

  • Does not cover normal wear and tear.
  • Does not cover mechanical or electrical failures.
  • Does not cover damages caused by negligence, drunken driving or driving without a valid licence.

It is important to read the policy document carefully before making a purchase.

How to apply for truck insurance?

Here’s how you can apply for truck insurance.

  • Visit the insurance company's website and check for the preferred insurance policy for your truck.
  • Provide all the necessary information and documents such as the registration certificate and driving licence.
  • You need to enter the type of truck, its usage, and other factors as well to determine the premium.
  • The insurance company may conduct a basic inspection of the vehicle to assess the coverage offered and set the premium.
  • Make the payment online through any of your preferred payment methods.

You can also visit the nearest branch of the insurer to view the commercial vehicle policies available and directly buy commercial vehicle insurance offline.

How to claim for truck insurance?

You can file a claim in the following ways in case of an unfortunate incident or accident involving your truck:

  • Contact the insurance company's customer care immediately.
  • Provide all the necessary details such as the policy number, and vehicle registration number. Also, provide the date, time, and location of the incident.
  • An insurance representative may visit the scene of the accident to assess the damages and determine the compensation amount.
  • You can choose to file a cashless claim settlement or for reimbursement. For cashless facility, you need to take the vehicle to the insurer’s network garage. If you choose to go to any of your preferred garages, you can file for a reimbursement claim.
  • In cashless claim settlement, the insurer will directly pay the repair or replacement cost to the network garages. In reimbursement claim settlement, you will receive the claim amount in your registered bank account as per the policy terms and conditions.

Why is having truck insurance necessary?

Truck insurance is a legal requirement for truck owners in India, but there are many reasons why purchasing truck insurance is a wise investment. Here are some of the reasons why you should buy truck insurance:

Financial protection:

Truck insurance protects you from the financial burden of repairing or replacing your vehicle in case of an accident, theft, or natural disaster. The policy provides a cushion in case of unforeseen circumstances, safeguarding your finances.

Legal compliance:

It is mandatory by law to have truck insurance. The lack of insurance exposes the owner/operator to legal risks, including penalties and impounding of the vehicle.

Third-party liabilities:

Truck insurance provides coverage against third-party liabilities such as injury, death, or damage to property of third parties. You get financial compensation for third-party liabilities.

Reputation management:

Having truck insurance promotes good business practices, indicating that you are responsible and professional. This enhances your reputation, creating goodwill and boosting your brand image.

Customisable coverage:

Truck insurance policies come with various customisable coverage options to cater to your specific needs. This allows you to tailor the coverage to your unique needs, providing peace of mind and ensuring adequate coverage.

Truck insurance is a critical investment for owners and operators of commercial vehicles in India. Choose the right policy that suits your needs and provides adequate coverage. Keep yourself informed about the policy so that you can make appropriate claims when necessary. Ensure to read the policy document carefully and make informed decisions.

Frequently asked questions

Do I have to buy commercial truck insurance for my business?

If your business owns and operates a commercial truck, then purchasing commercial truck insurance is typically required by law. Additionally, it's a smart investment to protect your business from costly accidents and other unforeseen events.

What is covered by a commercial truck insurance?

Commercial truck insurance usually covers property damage, bodily injury, and cargo theft, as well as other risks associated with trucking. These policies can provide coverage for damages to your truck and other vehicles involved in an accident, as well as injuries to drivers, passengers, or pedestrians.

How to choose a truck insurance policy for your business?

When choosing a truck insurance policy, it's essential to consider the coverage amount, deductible amount, and the type of coverage required for your specific business needs. Additionally, it's smart to compare quotes from different insurance providers to find the best value for your premium.

What are the factors that will affect my truck insurance premium?

The factors affecting your commercial truck insurance premium include the coverage amount needed, the age and value of your truck, your driving record, and the number of miles driven per year. Other factors affecting your premium may include your company's location, the type of cargo carried, and the level of risk associated with your business.

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