Commercial Vehicle Insurance Quick Read Truck Tips

How to Calculate Heavy Truck Insurance Premium and File a Claim

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In spite of following all necessary guidelines, on some unfortunate days, your commercial vehicle might encounter a collision or undergo damages due to a natural calamity like landslides or storms. In such a situation, the commercial insurance policy comes to your rescue. It helps you to compensate for the loss and run your business uninterruptedly.

Depending on the type of plan you have purchased, the insurance companies offer repairing charges of the insured vehicle, medical expenses of the driver involved in the accident, repairing cost of the other vehicle involved in the accident, and third-party property damages. Have a look at the details about the ‘Claiming Process’ for truck insurance.

How to Calculate Heavy Truck Insurance Premium?

Before going into the details of the claiming process for a commercial insurance policy, let us have a brief overview of the calculation of premium for heavy trucks. In general, most companies follow the formula:

Premium = Own Damage Premium – (No Claim Bonus + Discounts) + Liability Premium as fixed by the IRDAI + Charges of Add-ons

Have a look at some of the factors required for calculation.

Vehicle Make and Model

You need to enter details like the make, model number, and age of the goods carrier for calculating the heavy truck insurance premium. The value of the premium decreases with the age of the vehicle.

Gross Vehicle Weight (GVW) of the truck

The premium value increases with the rise in GVW.

Area of Registration

If a cargo carrier plies on rough terrains or disturbed Geographical locations where there are chances of vandalism, the premium for insurance goes higher.

What are the preliminary information required for initiating a commercial vehicle insurance claim?

If your truck meets with an accident or undergo damages due to natural calamities or human-made interruptions, then you can apply for an insurance claim on the company website. Upload the insurance policy number, name of insured, contact details, vehicle number, date and time of the accident, location of the incident, name of the driver, copy of the FIR (in case of accidents) on the insurance company portal for swift processing of the claim. It is also mandatory to add a brief description of the incident, which led to the damage of the insured or third-party vehicle.

What are the different types of claim settlement processes?

In general, there are two types of commercial vehicle claim processes:

Cashless Claims

Here, you do not have to pay for any repairing charges of the insured vehicle at the service centers. The insurance company settles the bill on behalf of you for all the damages mentioned in the policy. However, you must get all the repairs done at the network garages mentioned on the company portal. The insurance provider may not cover the damages if you take the vehicle to any other service center, even if it is close to the accident site. In case of bodily injury of the driver, the insurance company also settles the medical bills and hospital stay of the insured at the network hospital.

Reimbursement Claims

If you opt for a reimbursement claim, then you need to settle the bill for repairing the truck at the service station. After this, you can apply for the reimbursement claim to the commercial vehicle insurance company stating your policy number, date and site of the accident, and a copy of the invoice of the garage. The advantage of a reimbursement claim is that here you can undertake the repairing at any service station of your choice. The insurance company processes the claim and disburse the payment after getting clearance from the surveyor.

What should the driver of the insured vehicle do when his truck meets with an accident?

If your insured goods carrier meets with an accident, the insurance company will cover all the risks mentioned in the policy. However, for the successful processing of the claim, you need to abide by the guidelines recommended by the insurance company.

First of all, note down the registration number, name and contact details of the driver of the other automobile involved in the accident. If witnesses are available, note down their names and addresses. Inform the police about the incident, and ask them to register an FIR (First Information Report) regarding the collision. Do not forget to intimidate the insurance company about the accident. The company has the right to reject your claim if you do not inform them about the incident within the stipulated time.

What are the documents required for successful processing of accident claims?

  •       Duly signed claim form
  •       Copy of FIR
  •       Registration certificate (RC) copy of the truck
  •       Copy of driving license of the driver
  •       Invoice and payment receipt from the service center

How to proceed with the insurance claim if your goods carrier gets stolen?

If your vehicle gets stolen, you need to immediately file an FIR at the nearest police station and inform the insurance company about the theft. Here is the list of documents you require for processing the theft claim

  • Duly signed claim form
  • Original FIR
  • RC copy of the truck with original keys
  • Duly signed RTO transfer papers with Form 28, 29, 30 and Form 35 (if the goods carrier is hypothecated)
  • Copy of driving license of the driver who usually drives the insured cargo carrier
  • A no trace certificate issued by the police authority

These were all the prerequisites for the claim initiation process. If the insured fulfills all the formalities and submits all relevant documents, then the insurance company appoints a surveyor to inspect the case. After the surveyor presents his report, the insurer disburses the payment at the earliest possible time.

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Also read: A Guide to Commercial Vehicle Third Party Insurance

Also read: Everything You Should Know About Full Coverage Truck Insurance