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What is Tractor Insurance?: Complete Information in English | Coverage, Add-ons & More Complete Guide!
Bangladesh is an agricultural country with more than 70% of its land under agriculture. Therefore, agriculture is the main source of livelihood for the majority of the population of Bangladesh. Tractors are an important component of the agricultural process as they help the farmers in the process of cultivation and harvesting. This is why tractors are very popular and in demand among farmers and landowners who use their land for cultivation. Farmers suffer substantial economic losses when tractors break down. Hence tractor insurance policy becomes a must.
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Apart from the need to cover financial loss, since tractors are a type of vehicle, they require a valid insurance policy due to the provisions of the Motor Vehicle Act. Hence tractor insurance policy is mandatory for tractors. Tractor insurance policies are sold by many insurance companies. These policies are covered under commercial motor insurance policies and they provide coverage for farm or commercial tractors.
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What is tractor insurance?
A tractor insurance policy is a commercial motor insurance policy that covers damage to the tractor. There is also a third-party liability coverage where the policy also covers the damage caused by the tractor.
Top 3 Features of Tractor Insurance Policy
Tractor insurance plans have the following salient features-
- Generally, a comprehensive tractor insurance policy is offered by insurance companies in the form of a commercial motor insurance policy.
- The sum assured of the policy is calculated as the market value of the tractor after deducting appropriate depreciation based on the age of the tractor. The sum insured is called the Sum Assured Declared Value (IDV).
- The policy is issued for one year.
Who can buy tractor insurance?
Tractor insurance policies can be purchased by legal owners of a tractor who wish to secure financial loss arising out of damage to their tractor and also meet the provisions of the Motor Vehicle Act.
What is covered under the tractor insurance plan?
The following examples of losses are included in a tractor insurance plan under the commercial motor insurance policy category –
- Loss of tractor due to natural calamities like earthquakes, lightning, road slip or landslide, flood, storm, cyclone, etc.
- Fire, robbery, theft, strikes, riots, etc. cause damage to tractors due to man-made causes.
- Third-party liability is faced when the tractor causes bodily injury to another person or when the tractor damages another person’s property.
- Personal accident cover for tractor owner/driver who provides lump sum benefits in case of accidental death and disability.
Add-ons under Tractor Insurance Plan:
Under some tractor insurance plans, you may also find add-on or optional coverage features. These add-ons are available at an additional premium Common add-ons you can choose from include the following –
- Personal accident cover for salaried drivers
- Covers for tractor electrical accessories.
- Legal liability to salaried drivers and employees
- Coverage for dual-fuel kits.
- Return to the invoice where the invoice value of the tractor is paid in case of theft or total loss
- Protection of No Claim Bonus in case of a claim
What is not covered under the tractor insurance plan?
The following examples are generally excluded from the scope of coverage of most commercial motor insurance policies, especially tractor insurance policies:
- Depreciation and general wear and tear of the tractor and its parts due to use.
- Any type of electrical or mechanical breakdown.
- Any kind of electrical or mechanical breakdown.
- Violation of tractor usage limits and compensation due to such violation.
- Damage for driving a tractor without a valid driving license.
- The tractor was damaged when driven under the influence of alcohol or drugs.
or expelled from India.
- Consequential damages after damages.
- Damage caused by war, insurrection, insurrection, and similar threats.
How is the premium calculated for a commercial motor insurance policy, i.e. tractor insurance plan?
The premium for a tractor insurance policy is calculated based on the following factors –
- Policy IDV.
- Tractor Makes, Models, and Variants.
- Type of fuel.
- is corrected.
- Age of the tractor.
- Place of Registration.
- No Claim Waiver If no claim is made and the policy is being renewed.
How to make a claim under a tractor insurance policy?
1. To make a claim under your tractor insurance policy, the following steps should be followed –
2. You must notify the insurance company immediately after making the claim
3. In the case of a self-damage claim, the insurance company usually sends a surveyor to arrange an on-the-spot survey of the damage. You must not drive your vehicle before the survey is completed
4. Alternatively, the insurer may ask you to take your vehicle to the nearest networked garage where the survey will be done.
5. Once the survey is completed the insurer will accept your claim and you can get the cashless repair done
6. In case of a third-party claim, you need to inform the insurance company and also file a police FIR. The claim will then go to the Motor Accident Tribunal which will determine the financial liability The liability will then be paid by the insurance company
7. If the tractor is stolen, you need to file a police FIR and inform the insurance company. If the police cannot find your tractor, the insurance company will issue the IDV and settle your tractor insurance claim
Documents required for commercial motor insurance policies, such as tractor insurance claims:
To make a valid claim under your tractor insurance policy, the following documents must be submitted:
1. Claim form which should be filled and signed by the policyholder
2. Tractor RC Book
3. Driving license
4. FIR copy (in case of a third party or theft claim)
5. Original repair bill
6. Picture of the damaged tractor
7. Letter of offer
8. Discharge Voucher issued by garage etc.
Settlement of claims under commercial motor insurance policy y, i.e. tractor insurance scheme
Tractor insurance claims will be settled on a cashless basis if the tractor is repaired at a garage attached to the insurance company. However, if the repair is done at a non-network garage, you will have to bear the initial cost of the repair. Then, when you submit the original bill and claim form, the cost will be paid by the insurance company within 7-10 days of submitting your claim.
How to buy tractor insurance?
To buy commercial vehicle insurance for your tractor, you can contact any insurance company that offers policies. You can buy a policy through the company branch office by submitting all documents of your tractor like RC book, PUC certificate, challan, etc., and your KYC documents. Alternatively, the plan can be purchased online from the insurance company’s website. To buy online you need to fill out the application form and pay the premium online. Once the premium is paid, the policy will be issued.
Currently, some of the companies that offer tractor insurance in India include the following –
1. IFFCO TOKYO
2. So is HDFC
3. SBI General Insurance
4. Magma HDI
Tractor insurance policy renewal
Renewing your tractor insurance policy is quite easy. You can get a policy renewal from the same company by paying the renewal premium. You can also change the insurer and choose another policy for your tractor. At the time of renewal, you must avail of any No Claim Bonus under your policy. No Claim Bonus is a premium waiver that insurance companies allow if you have not made a claim under your policy. The exemption is allowed after each claim-free year and if there are consecutive claim-free years, the exemption is also multiplied. This discount allows you to avail of discounts on renewal premiums making it more affordable.
Hence, a tractor insurance policy is a popular commercial insurance policy for tractor owners who suffer losses due to tractors. The policy pays for the financial loss to the tractor owners and provides them with financial security. So, if you have a tractor that you use for business purposes, insure it and protect yourself from possible financial loss in case of emergency.
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Frequently Asked Questions:
How to find the network garage name for cashless repair?
Details of network garages in your area can be checked online on the insurance company’s website. You can also call the insurance company’s claim helpline number and locate the nearest networked garage for cashless repairs.
Can my tractor insurance claim be denied?
Yes, your tractor insurance claim may be rejected by the insurance company. Claim denial usually happens when your policy lapses, when you claim for an excluded cover or when the claim process is not followed properly.
Tractor insurance renewal mandatory?
As per the Motor Vehicle Act, your tractor needs valid insurance coverage. Hence, buying and renewing a tractor insurance policy is essential to comply with traffic laws.
Will the insurance company pay a claim if a person dies from a tractor?
Yes, third-party death is covered under the third-party liability coverage available under tractor insurance plans. Thus, in case of the death of a person, the insurance company will pay the claim as directed by the Motor Accident Tribunal.
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