India is an agriculture-oriented country where more than 70% of its land is under agriculture. Agriculture, therefore, may be the primary source of livelihood for many of the population of India. Tractors are an essential element of the agriculture process because they help farmers in the cultivation and harvesting process. That's the reason tractors are extremely popular and in-demand among farmers and land-owners who use their lands for cultivation purposes. When the tractor faces damage, the farmers face a substantial financial loss. For this reason tractor insurance policies become necessary.

Besides the need to cover financial loss, since tractors are a kind of vehicle, they require a legitimate insurance plan on them due to the provisions from the Motor Vehicles Act. Tractor insurance coverage is, therefore, compulsory for tractors. Tractor insurance policies are sold by many people insurance providers. These policies fall under the commercial car insurance policy policies plus they offer coverage for farm or commercial tractors.

What is tractor insurance?

A tractor insurance policy is really a commercial motor insurance policy which covers tractors against damages suffered. There's also a third party liability wherein damages caused by tractors are also compensated through the policy.

Top 3 Features of tractor insurance policies

Tractor insurance coverage have the following salient features –

  1. Usually, a comprehensive tractor insurance plan is offered by insurance companies as a commercial car insurance policy policy
  2. The sum insured from the policy is calculated because the market value from the tractor after deducting appropriate depreciation based on the tractor's age. The sum insured is known as Insured Declared Value
  3. The policy is disseminated for a period of one year

Who can buy tractor insurance?

Tractor insurance plans can be bought by legal owners of a tractor who wish to secure the financial losses faced when their tractors are damaged and also fulfil the provisions from the Cars Act.

What is covered under tractor insurance plans?

Tractor insurance coverage, under commercial car insurance policy policy section cover the next cases of damages –

  1. Damages suffered by the tractor due to disasters like earthquakes, lightning, road slides or landslides, floods, storms, cyclones, etc.
  2. Damages suffered through the tractor due to man-made causes like fire, burglary, theft, strikes, riots, etc.
  3. Third-party liability faced once the tractor physically hurts other people or once the tractor damages another individual's property
  4. Personal accident cover the owner/driver of the tractor which pays a lump sum benefit in case of accidental / accident death and disablement

Add-ons under tractor insurance plans:

Under some tractor insurance plans, there are also add-ons or optional coverage features. These add-ons can be found at an additional premium. Common add-ons which you can choose range from the following –

  1. Personal accident cover for a paid driver
  2. Cover for electrical accessories of the tractor
  3. Legal liability towards paid drivers and employees
  4. Coverage for bi-fuel kit
  5. Return to the invoice where the invoice worth of the tractor is paid in the event of theft or total loss
  6. Protection of the no claim bonus in the event of a claim

What isn't covered under tractor insurance plans?
The following instances are commonly excluded in the scope of coverage on most commercial motor insurance policy, especially tractor insurance policies:

  1. Depreciation and normal deterioration from the tractor and it is parts due to usage
  2. Any type of electrical or mechanical breakdowns
  3. Violating the constraints of using the tractor and suffering damage because of such violations
  4. Damages suffered once the tractor has been driven with no valid driving license
  5. Damages suffered when the tractor was driven under the influence of alcohol or drugs or maybe it was driven outside India
  6. Consequential losses suffered after a damage
  7. Losses incurred due to war, rebellion, mutiny and other alike perils

How are premiums for commercial car insurance policy policy, i.e. tractor insurance plans calculated?
Premiums of the tractor insurance policy are calculated with respect to the following factors –

  1. IDV of the policy
  2. Make, model and variant from the tractor
  3. Fuel type
  4. Modifications are done
  5. Age from the tractor
  6. Place of registration
  7. No claim discount in case no claims happen to be made and the policy has been renewed

How to create a claim under a tractor insurance policy?
To create a claim beneath your tractor insurance policy, the next steps should be followed –

  1. You should inform the insurance company immediately after claims occurs
  2. In case of own damage claims, the insurance company usually arranges to have an on-the-spot survey from the damages by sending a surveyor. You should not move your automobile prior to the survey continues to be done
  3. Alternatively, the insurer can ask you to bring your vehicle towards the nearest networked garage where the survey could be done
  4. After laptop computer has been done the insurer would approve your claim and you may get cashless repairs done
  5. In the situation of third party claims, you need to inform the insurance company and also file a police FIR. The claim would go to the motor accidents tribunal which would specify the financial liability. The liability would, then, get paid through the insurance company
  6. If the tractor is stolen, you need to file a police FIR and inform the insurer. When the information not able to trace your tractor, the insurance company would pay the IDV and settled your tractor insurance claim

Documents required for commercial motor insurance policy, i.e. tractor insurance claims:

To make a valid claim beneath your tractor insurance policy, the following documents need to be submitted:

  1. The claim form which should be filled in and signed by the policyholder
  2. RC book from the tractor
  3. Driving license
  4. FIR copy
  5. Repairs bills in original
  6. Photographs from the damaged tractor
  7. Subrogation letter
  8. Discharge voucher from the garage, etc.

Claim settlement under commercial motor insurance policy, i.e. tractor insurance plans

Tractor insurance claims would be chosen a cashless basis when the tractor is repaired at a garage which is tied-up with the insurance company. However, when the repairs are carried out at a non-networked garage, you would then need to bear the repair expenses initially. Thereafter, whenever you submit the original bills and claim form, the expense would be reimbursed by the insurance provider within 7-10 times of submission of your claim.

How to purchase tractor insurance?

To buy commercial vehicle insurance for the tractor, you are able to approach any insurance provider providing the policy. You can buy the insurance policy with the branch office of the company by submitting all of the documents of your tractor like the RC book, PUC certificate, invoice, etc. and your KYC documents. The program can, alternatively, be bought online from the website from the insurance company. To purchase online you would need to fill the application form and spend the money for premiums online. Once the premiums are paid, the insurance policy would be issued.

Currently, a few of the companies that offer tractor insurance in India include the following –

  1. IFFCO Tokio
  2. HDFC Ergo
  3. SBI General Insurance
  4. Magma HDI

Renewing tractor insurance policies

Renewing your tractor insurance policy isn't very difficult. You will get the policy renewed from the same company by paying the renewal premium. You may also switch insurers and go for another policy for your tractor. When renewing, you need to utilise any no claim bonus that you have beneath your policy. No claim bonus is a premium discount that the insurance company allows if you haven't made any claims under your policy. The discount is allowed after each claim-free year and when you will find consecutive claim-free years, the discount also multiplies. This discount lets you avail a price reduction on the renewal premium and make it less expensive.

 

So, a tractor insurance plan is a popular commercial insurance policy for tractor-owners which covers the damages caused in addition to faced through the tractor. The insurance policy pays the financial loss suffered by the those who own a tractor and provides them financial security. So, for those who have a tractor that you simply use for commercial purposes insure it and protect yourself from possible financial losses in case of a contingency.

 

Frequently Asked Questions:

  1. How do I get the name of the networked garage for cashless repairs?
    The facts of the networked garages in your town could be checked online on the insurance company's website. You can also call up the claim helpline quantity of the insurance company and find out the nearest networked garage for cashless repairs.
  2. Can my tractor claim be rejected?
    Yes, your tractor claim could be rejected through the insurance provider. Rejection of claims usually is the place your policy has lapsed, when you claim for an excluded cover or when the claim process is not properly followed.
  3. Is renewing tractor insurance compulsory?
    As per the Cars Act, you need a valid insurance cover on your tractor. So, buying and renewing a tractor insurance plan is essential to adhere to the traffic laws.
  4. If an individual is killed by the tractor, would the insurer pay claims?
    Yes, death of a third party is covered under 3rd party liability coverage which is available under tractor insurance coverage. Thus, in the event of death of the individual, the insurer would spend the money for claim as directed by the motor accidents tribunal.

RELATED ARTICLESMORE FROM AUTHOR

LEAVE A REPLY