Truck Insurance in UAE

What is Commercial Truck Insurance?

Truck insurance in the UAE offers financial protection for commercial trucks used to transport goods. It’s a type of commercial vehicle insurance plan that covers expenses arising from accidents, theft, fire, or damage to third parties.

Having at least third-party truck insurance is mandatory in the UAE, as it ensures road safety and safeguards the vehicle from third-party liabilities. Furthermore, this insurance coverage is essential for businesses engaged in goods transportation, logistics, construction, and fuel delivery. It ensures the safeguarding of their assets and maintains business continuity in the UAE.

What are the Key Features of a Truck Insurance Policy?

A truck insurance policy comes with a range of features and benefits, and some of them are listed here:

• It covers the liabilities arising from third-party bodily injury, death, and property/vehicle damage. 
• It covers the cost of repair of the insured truck if it is involved in an accident. 
• Many plans offer add-on coverages that provide extensive protection for your truck. 
• You can easily get your truck repaired at network garages at no extra cost, as most insurers offer this service.

Why Buy Truck Insurance in the UAE?

Here’s why you should buy truck insurance in the UAE:

Mandatory by Law

Every commercial truck must be insured to operate legally on the UAE roads. It is compulsory to have a valid TP liability insurance policy; failing to do so can lead to severe consequences, including hefty fines, vehicle impoundment, and legal action.

Prevent Financial Losses

Whether your business uses a mini or a heavy-duty truck, even a small accident can lead to major financial setbacks. With truck insurance, you can stay worry-free and focus on growing your business instead of handling repair or damage costs. The policy takes care of expenses related to your vehicle’s loss or damage, as well as any third-party liabilities.

Business Continuity

As mentioned earlier, commercial truck insurance helps reduce the financial risks that come with unexpected incidents. It allows you to allocate your funds to business growth rather than vehicle repairs or liability expenses, which helps in business continuity.

What is Covered and Not Covered Under Truck Insurance?

The following are the key inclusions and exclusions under commercial truck insurance in the UAE:

Types of Trucks Covered Under a Truck Insurance Policy

Truck insurance covers various types of trucks used for business operations. Typically, trucks are classified into four categories in the UAE, and all can get covered with this policy:

• Mini truck- A mini truck, also called a micro-truck, is the smallest truck type with an engine size of less than 1000 CC. It’s commonly used for local or hyperlocal pick-ups and small commercial deliveries.
• Light truck- Also known as a light-duty truck, it is used to transport goods between cities and has a payload capacity of up to 1814 kg (4000 pounds). These trucks are often used by e-commerce and local delivery businesses.
• Medium truck- Medium trucks are larger than light-duty trucks and usually weigh up to 11,793 kilograms. They are typically used to carry heavier loads such as furniture and bulk goods.
• Heavy truck- A heavy-duty truck, sometimes referred to as an off-road truck. This is widely used by construction and transportation businesses, as it is designed for towing and transporting heavy materials such as construction and building supplies.

What are the Types of Truck Insurance Policy in UAE?

You can find two types of commercial truck insurance policies in the UAE that are discussed below:

Third-Party Liability Commercial Truck Insurance

Third-party liability truck insurance covers only the damage, injury, or loss caused to another person or their property by your insured truck. It does not cover your own truck damage or loss. This is the basic and legally required type of commercial vehicle insurance for trucks in the UAE.

Comprehensive Commercial Truck Insurance 

Comprehensive truck insurance provides extensive protection for your commercial truck. Unlike third-party liability insurance, it covers damage to your own truck from accidents, theft, fire, or natural disasters, along with third-party liability. You can opt for this policy if you want higher coverage and protection for the truck.

How to File a Claim for Commercial Truck Insurance in the UAE?

To get the commercial truck insurance claim easily, follow the steps given below:

• Notify your insurer immediately after an accident or loss
• Visit your nearest police station and file a report 
• Submit required claim documents, such as a police report, policy details, and other documents listed in the next section
• Get your truck assessed by the insurance surveyor (typically assigned by the insurance company)
• Based on the assessment or investigation, the insurer will approve the compensation amount 
• Once your claim is approved, you will get the compensation for the third-party liabilities, and in case of your own vehicle damage, you can take it to the network garage for complete repairs

Documents Required to Make a Truck Insurance Claim

While making a claim against new truck insurance in the UAE, you need to submit the following documents:

• Completed claim form 
• Emirates ID
• Driving licence
• Police report 
• Vehicle registration document 
• Photos or videos as evidence of the accident (if possible)
• Final bill or repair invoice

In certain cases, the insurer may request some additional documents to assess or approve your claim.

How to Buy Truck Insurance Online in the UAE? 

The process of purchasing online truck insurance is straightforward with Policybazaar.ae. Follow the steps mentioned below:

• Go to the homepage and choose the ‘Business Insurance' section 
• Start the process by clicking on ‘Commercial Motor Insurance’
• Enter the required information in the lead form, given on the screen 
• Submit the form, and it’s done— one of our representatives will get back to you soon

We have a team of experts who make it easy for you to find the perfect truck insurance coverage that fits your business needs and budget. We also let you explore a wide range of options from top providers and compare them all in one place– so you can choose the best coverage with no hassles.

Factors Affecting the Commercial Truck Insurance Prices in UAE

Before getting the insurance, it’s important for businesses to compare various truck insurance quotes in the UAE. You need to understand that there are several factors affecting the premium of this insurance in the UAE, and here we have mentioned the major ones:

• Type of the Truck: The make, model, and size of the truck significantly impact the insurance premium. Heavy-duty or specialised trucks usually cost more to insure due to their higher replacement costs and greater risk exposure than light commercial trucks.
• Usage and Purpose: How the truck is used– for goods transport, construction, or logistics– affects the insurance rate. Vehicles operating in high-risk environments or carrying hazardous materials generally face higher premiums than those used for standard transport purposes.
• Driver’s Profile: It's another factor that plays a major role in determining the cost of truck insurance in the UAE. Generally, insurance companies charge lower rates for experienced drivers with clean records, while frequent traffic violations or accident history may lead to higher insurance costs.
• Coverage Type: Comprehensive coverage is more expensive than TP liability insurance because it offers broader protection, including own-damage and theft. The choice of add-ons or extra coverages also increases the overall premium.
• Claims History: If your commercial vehicle has frequent or recent claims or a history of accidents, you may face high charges for commercial vehicle insurance.

Frequently Asked Questions