How Does Commercial Truck Insurance Work?

 Commercial truck insurance covers trucks that are used to carry goods from one place to another. These trucks help businesses in faster transportation of raw materials and finished products. Due to continuous functioning, which involves long-distance traveling; the vehicles are exposed to all kinds of risks such as accidents, natural calamity, and major wear and tear. All such risks involve costs, which at times can turn exorbitant. Commercial truck insurance falls under the ambit of commercial vehicle insurance offered by IFFCO Tokio.

A comprehensive commercial truck insurance policy makes sure that the customer‘s business runs uninterrupted. It helps the truck operators to run their business smoothly without any surprise costs.

Some of the areas for which commercial truck insurance cover policies are used are:

  • Delivery of produce, grocery, frozen food.

  • Transportation of building material.

  • Moving company.

  • Automotive Hauling.

  • Container Hauling.

  • Livestock movement.

  • Restaurant supplies.

  • General Freight.

  • Delivery of furniture, materials, etc.

  • Transportation of dirt, sand, and gravel.

What are the Key Features of a Commercial Truck Insurance Policy?

There are different kinds of trucks and their functions vary. Some trucks are used to carry raw material and finished goods to different places whereas some trucks are used to carry only garbage into dump areas. Then, there are tow trucks to tow vehicles. We also have box trucks, flatbed trucks, and tank trucks to name a few.

The type of function of the vehicle, the amount of distance it plies every year and what they haul will finally determine the type and amount of coverage the vehicle needs.

What Kind of Risks Does a Commercial Truck Insurance Policy Cover?

  • It covers risks such as cost of injuries and medical expenses for the injured party in case a truck driver employed with the business is involved in an accident. It will also have cover for a legal defense to safeguard against third-party action, whether or not the insured’s company is at fault in an accident.

  • It covers the cost of damage to the insured’s vehicle from an accident or any other untoward incident like vandalism, theft, etc.

  • It provides coverage for damage or theft of items being hauled by the vehicle.

Commercial Truck Insurance Rates

A business customer can easily access commercial truck insurance rates online. At IFFCO Tokio, we provide the most competitive rates for truck insurance.

Now, trucks are goods carrying vehicles as opposed to passenger-carrying commercial vehicles. Some of the details to be entered by customer include:

  • Type of carrier.

  • Vehicle details.

  • Registered details.

  • Vehicle weight.

A customer can see comparative truck insurance rates and buy what is suited to his requirements. The payment can be made online via debit/credit card and internet banking. The customer needs to send certain relevant documents via email. The rest of the tasks like submitting the documents, coordinating with IFFCO Tokio (the truck insurance company) and getting the policy issued to the customer can be done via IFFCO Tokio’s website.

Commercial Truck Insurance Quotes

The commercial vehicle insurance premium is higher for 4-wheelers as compared to three-wheelers. In other words, the premium rate for a truck is, therefore, higher than that of an auto-rickshaw.

Moreover, the cubic capacity of the vehicle and licensed carrying capacity are two factors that determine the premium rates in commercial vehicle insurance.

There is also a provision of reducing the premium by accumulating NCB that is, no claim benefit. Competitive premiums can be offered to those who are members of the Automobile Association.

Commercial Truck Insurance

Package Policy: This covers loss or damage to the truck. The loss or damage can be due to accidents or thefts. It also includes third party liability insurance which is a compulsory policy for every motor vehicle owner in India.

Liability only Policy: This covers third-party liability for injuries, fatalities, and property damage. It also includes personal accident cover for a driver who is also the owner.

The liability only cover is narrower in scope than the package policy.

A customer can request a quote in the e-portal if he is interested to buy truck insurance. He needs to input the following details:

  • Type of Policy.

  • Name of Insured.

  • Business Type.

  • Period of Insurance From.

  • Period of Insurance To.

  • From Location.

  • To Location.

  • Material Type.

  • Sum Insured.

  • Status of cargo.

  • Mode of Transit.

  • Mode of Packaging.

  • Basis of the sum insured.

  • Name.

  • Email ID.

  • Mobile no.