Tractor Third Party Insurance

What is Tractor Third Party Insurance?

Tractor third party insurance is a type of tractor insurance policy that covers third party liabilities only. It pays compensation on behalf of the policyholder in case the insured tractor has caused property damages, vehicle damages or bodily injuries to third parties in an accident. However, this commercial vehicle insurance policy does not provide coverage for any own damages sustained by the tractor.

Key Features of Tractor Third Party Insurance

Here are some of the key features of third party tractor insurance:

• Third Party Liability Coverage Only – A tractor 3rd party insurance policy provides coverage only for third party liabilities. As a result, the affected third party is the beneficiary under this insurance policy.

• No Own Damage Cover – This type of policy does not provide own damage cover and therefore, any loss or damages sustained by the insured tractor is not covered by the insurance company.

• IRDAI Fixed Premium – The tractor third party insurance premium is fixed by the Indian Regulatory & Development Authority of India (IRDAI). Therefore, it cannot be manipulated by the insurance company.

• Legal Fees Covered – Third party insurance for tractors also covers the legal fees incurred by the policyholder if the third party accident case is taken to the Motor Accidents Claims Tribunal to decide the compensation amount.

What is Covered Under Tractor Third Party Insurance?

The following coverage is provided under a third party tractor insurance policy:

• Third Party Vehicle/Property Damages – It covers any damages caused to the vehicle or property of the third party by the insured tractor during an accident. The insurance company will cover the damages up to a maximum of Rs 7.5 lakh.

• Third Party Bodily Injuries – It covers any liabilities arising out of the insured tractor for causing bodily injuries to the third party in an accident. The maximum liability of the insurance company for paying compensation is unlimited.

• Personal Accident Cover – It provides compensation to the owner-driver of the insured tractor in case an accident leads to his/her death or disability. A personal accident cover of Rs 15 lakh is mandatory under the motor laws of the country.

What is Not Covered Under Tractor Third Party Insurance?

The third party insurance for tractor does not provide coverage for the following:

• Own Damages – It does not cover any loss or damages sustained by the insured tractor.

• Illegal Driving – If the driver was driving the insured tractor without a valid driving license, then any loss or damages to the vehicle will be excluded. 

• Contractual Liabilities – Any loss or damages sustained by the insured tractor while fulfilling any contractual liabilities will not be covered. 

• Drunk Driving – If the driver of the insured tractor was drunk at the time of the accident, then the resultant loss or damages will be excluded.

• Unauthorized Usage – It does not cover any loss or damages sustained by the insured tractor while it was being used for racing or speed testing.

• Intentional Damage – Any loss or damages caused to the insured tractor intentionally will not be covered under this policy.

• Negligence – It does not cover any loss or damages sustained by the insured tractor due to the negligence of the driver.

Benefits of Buying a Tractor Third Party Insurance Policy

Take a look at some of the lucrative benefits of buying a third party tractor insurance policy:

• Takes Care of Third Party Liabilities – The tractor third party insurance takes care of any third party accidental liabilities arising out of the insured tractor. Thus, the insurance company pays compensation to the affected third party on behalf of the policyholder.

• Helps to Abide by the Law – Buying a third party commercial vehicle insurance cover is mandatory for all commercial vehicles in India as per Motor Vehicles Act, 1988. With this policy, the tractor owner abides by the motor laws of the country and thus, avoids attracting a fine. 

• Protects from Financial Loss – When a third party person gets disabled or dies during an accident caused by the insured tractor, the compensation amount can be really high. Paying the compensation amount can lead to huge financial loss. But with a tractor 3rd party insurance policy, the compensation amount is paid by the insurance company and a monetary loss is prevented.

• Cost-effective Cover – Third party insurance is more affordable than a comprehensive policy as it offers coverage for the tractor for third party liabilities only. Thus, the tractor owner will have to pay a lower tractor third party insurance rate.

• Ensures Peace of Mind – An accident of the insured tractor can lead to major monetary losses in the case of third party liabilities. But with tractor third party insurance, a person can drive the tractor without worrying about third party liabilities.

How to Buy a Tractor Third Party Insurance Policy Online?

The process to buy a third party tractor insurance policy online is very simple. Follow the steps given below to buy tractor insurance third party online:

• Visit the website of Policybazaar Insurance Broker Private Limited
• Go to the ‘Insurance Products’ dropdown menu and click on ‘Commercial Vehicle Insurance’
• Fill in your name and mobile number in the form available on the page
• Select the type of vehicle as ‘Agricultural Tractor’ or ‘Goods Carrying Tractor’
• Choose the tractor brand, model, variant and year of registration
• Select the RTO where your tractor is registered 
• Third party tractor insurance plans from various insurers will be displayed
• Choose the plan you wish to buy and fill up the proposal form
• Pay the third party tractor insurance price online
• Once the premium has been received, your policy will be issued.

Tractor Third Party Insurance Renewal Process

Follow the steps given below for tractor third party insurance renewal on Policybazaar.com:

• On the homepage, go to the ‘Insurance Products’ tab on the menu bar and select ‘Commercial Vehicle Insurance’.
• In the available form, enter your name and mobile number to view free renewal quotes.
• Choose your tractor type along with its make, model, variant and registration year
• Select the RTO and the state where your tractor is registered
• Choose your existing tractor 3rd party insurance policy expiry date
• Select if you have raised any claims in the previous policy year
• Tractor third party insurance renewal plans from multiple insurers will be shown
• Select the renewal plan and pay the tractor 3rd party insurance price online
• As soon as the insurer receives the premium, your tractor third party insurance renewal will be done.

How to Raise a Tractor Third Party Insurance Claim?

Given below are the steps to raise a tractor third party insurance claim:

• File an FIR at the nearest police station if your tractor causes accidental injuries/damages to the third party
• Inform your insurance company about the accident as soon as possible
• The insurer will send a surveyor to assess the damages or injuries sustained by the third party.
• Submit all the required claim documents to the insurance provider.
• Based on the survey report and the submitted documents, your insurer will either accept or reject your claim.
• If the third party is grievously injured, the case will move to the court which will decide the compensation amount.
• The motor insurance company will pay the compensation amount to the affected third party on your behalf.

Documents Required to Raise a Tractor Third Party Insurance Claim

The following documents should be submitted at the time of raising a tractor third party insurance claim:

• Tractor insurance claim form 
• Copy of the third party tractor insurance policy
• Registration certificate of the insured tractor
• FIR/ charge sheet
• Driving license of the driver

Things to Keep in Mind While Raising a Tractor Third Party Insurance Claim 

Check out a few important things that you must keep in mind while raising a tractor third party insurance claim:

• Filing an FIR is mandatory in case of third party claims
• Remember to inform your insurer as soon as you file an FIR.
• The affected third party must have evidence of the policyholder’s fault in the accident.
• The motor insurance company has unlimited liability for third party physical injuries resulting from the insured tractor. Thus, they are liable to pay the compensation to the affected third party no matter how huge the claim amount may be.
• Do not raise a claim for minor third party damages as the whole procedure may be time-consuming.