To a farmer, tractors are known to be the most valuable asset and to safe guard this asset either from theft or from any perils; ICICI Lombard has come up with the Tractor Insurance. This comprehensive insurance package is also known to cover third party liability and personal accident as well.
The policy protects the vehicle from fire, self ignition, theft, accidents, terrorist activity, malicious acts, etc. A Tractor is a fixed asset and requires maintenance and hence it is subjected to depreciation. The rates of depreciation in respect to the parts replaced are mentioned below:
- For the replacement rubber, nylon and plastic parts, fifty percent depreciation is charged as per the law.
- For fiber glass components, thirty percent depreciation is charged, and
- No depreciation is charged in case of the replacement of parts that are made from glass.
- The depreciation rates for all parts including wooden parts would be charged according to the schedule.
Insurance cover is also available against third party liability in the event of an accident that is caused by the usage of the vehicle. In such a case the insured is eligible to get insurance cover against the legal liability.
Like all other insurance policy this one too has some limitations or exclusions which are mentioned below:
- The accidental loss that has been occurred outside the geographical area.
- This policy does not offer insurance cover against contractual liability.
- Insurance cover is not available to any accidental loss that is caused by the usage of nuclear weapon.
- The general insurance company is also not liable for the indemnification of the liabilities that are related to war, invasion or rebellion.
These are some of the features of the Tractor Insurance policy of ICICI Lombard general insurance.