Insurance For Trucks

[jopham]

A short introduction

Hi my name is john and I have been married to a Thai lady for 12 years. We are living in Australia. We have got about 20 rai of teak trees (8 years old),20 rai not in use and 170 rai of sugarcane and my Thai family has got about 200 rai of sugar cane and about 80 rai of bananas and rice.

I am in the process of buying a new Hino truck and trailer (3 200 000 Baht plus insurance and modification)

We or the inlaws have never bought a truck ever before and the truck dealer tolds us that the insurance is about 100 000 baht per year. Is this a resonable amount for insurance or should we pay less and which insurance company is the easiest/best to deal with?

Thank John

[Maizefarmer]

Questions:

1) what size 8, 10 or 12 ton?

2) Why are you purchasing new? A used one from a Hino dealer (with warranty) is a far better value purchase.

3) Do you want full comp or just 3rd party?

[C-sip-degree]

Hi there John,

What number plate are you intending to run with, would be another question to ask.

We run a couple of buses, example:

10mtr 43 seats and a 10mtr 34 seats.

Number plate: starting with 30 = Travel tour anyway inside of the Kingdom.

Number plate starting with 10 = Inside of a Province buying the road from a set point A to B return running the correct color.

We pay around 14,000bht per year to run on number 30 and 12,000bht on number 10. Years registration stickers and the lowest third party insurance from the transport department Roi-et available.

This price above doesn’t include the first-hand cost to set up number plate say number 30 is around 45,000bht but you now own this, same with number 10 =20,000bht buying the road from A to B taxes etc.... just to let you know also one transport check now every 6months is required (yellow sticker). If not the fine is heaps.

I personally think 100 000bht per year is ridicules price not reasonable at all. But there are factors that may lead you down that path?

MF has hit the nail on the head with his questions.

Again personally I wouldn’t buy new! Haven’t you been following the price of fuel in the Kingdom.

Best to go down to your local transport department with dedicated driver for rig “license upgrades take alot of time to achieve” and ask some questions first! Then you’ll be ready for the PTT station.

Cheers

C-sip

www.heavyequipmentthailand.com

[joeuk1]

We paid .

Transfer of ownership on two 6 wheel lorrys and for 3rd class insurence on both , plus registration of Crane we have installed on one of the lorrys grand total for all was just over 9k baht .

The lorry plus trailer that you are looking at sells secondhand 13/15 years old at 1 million baht they are in demand .

JB

[jopham]

Thanks you for your replies and advice

I am looking at buying a new Hino (model FM1ANLD) plus trailer because 1st I have been told that their fuel economie is up 10% better then the previous model and 2nd I and my family do not trust a second hand truck maintained by so called Thai mechanics.

In answer to Maizefarmer

Its a 10 Wheeler with 6 wheel drive and net payload on the truck is 17 ton and simular for the trailer. I think it its total gross weight is going to be higher than the maximun allowed (I think max is 40 ton, correct me if I am please) so we will not be able to fill right up.

I want full comp.

To C-sip-degree

I did not know that there was different number plates so I think we need the number plate starting with 30 because were the farm is located its near the borders of Phitsanulok, Sukothai, Kamphaeng Phet and Phichit provinces. Some of land is in Sukothai province but the bulk is in Phitsanulok province. The sugar mill we are using is locate in the province of Nahkon Sawan about 90 kilometers away.

Thanks John

[Maizefarmer]

Yup - 17ton sounds about right. Gross 40ton? - all depends on the length of the trailer.

Sounds like this is to primarily move cut cane - for yourselves and others (?)

I have never being able to get the figures to add up for cane, justifying the cost of a new unit. I looked at it a few years back as an possible busines option, but concluded I didn't have the time. But if you can get the figures to add up (justifying a new truck purchase) - go for it (I struggle to get figures to add up justifying the purchase of anything mechanical new).

It can be a good business but maintenance will be critical - don't skip on it. You''ll constantly be under pressurise to overload - just point blank refuse to.

[C-sip-degree]

Good points their MF totally true.

John,

I can’t tell you what number plate would suit either as I don’t know never looked into trucks.

30 for a Truck? For a Bus yes!

Ask about 80-81 also this might help.

Regards

C-sip.

[Maizefarmer]

My guess is that a straight forward commercial/haulage license plate will be best.

What will be important is keeping the truck road worthy and all operating docs up to date - and keeping your involvement low profile: if the local cops learn that it's "f'rang money" in the truck and the hualage business, there's a fair chance your driver will be hasseled a bit more than usual (e.g. light not working, overloading, poor strap downs, poor treads ... and on and on it goes). But be willing to stomach a certain amount of backhanders - its part and parcel of maintaining a commercial vehicle on the road and all have to pay up something to keep the local cops happy.

I wish you all the best - and keep the forum posted on how it goes: haulage is the one business that ex-pats don;t seem to have got much involved in - but with the amount of ex-pats living in Thailand I would have thought an ex-pat road transport business (targeting the ex-pat market e.g. furniture into and out of POA's*, small business manufacturing, local distribution .....) could be quite successfull, if only because communication and a sense of security is more easy to establish between ex-pats than it would be with a Thai.

* Ports Of Arrival

Edited August 1, 2008 by Maizefarmer

[jopham]

I really do not know if sugarcane farming is very proffitable or so so. Last year we planted 35 rai and used the crop to plant 135 rai.

The family planted 2 1/2 year ago 12 rai and has grown to 200 rai. They tell that they use 1 ray to plant 4 rai and they have not sold any sugarcane yet. This year will be the first time that we will sell to a sugarcane mill.

The truck will be mainly used for our family, no plans to do any contractwork untill we know what we are doing. We have no expirements with sugarcane.

The family told us that the 100 000 baht insurance inculdes rego, insurance and truck comes with number plates valid for the whole of Thailand.

The truck will be ordered next week and delivery wil take 8-9 weeks so we will come to thailand at the end of october and have a look.

Thank John

[jopham]

Post 5 should have read

(I think max is 40 ton, correct me if I am WRONG please) instead of (I think max is 40 ton, correct me if I am please) I have to learn how to edit and spellcheck on this webside.

Thanks John

[Maizefarmer]

I really do not know if sugarcane farming is very proffitable or so so. Last year we planted 35 rai and used the crop to plant 135 rai.

The family planted 2 1/2 year ago 12 rai and has grown to 200 rai. They tell that they use 1 ray to plant 4 rai and they have not sold any sugarcane yet. This year will be the first time that we will sell to a sugarcane mill.

The truck will be mainly used for our family, no plans to do any contractwork untill we know what we are doing. We have no expirements with sugarcane.

The family told us that the 100 000 baht insurance inculdes rego, insurance and truck comes with number plates valid for the whole of Thailand.

The truck will be ordered next week and delivery wil take 8-9 weeks so we will come to thailand at the end of october and have a look.

Thank John

Agreed- 35 rai cane is pointless - you are really looking at 200rai, and ideally 400 for the "economics" of sugar cane to start making much sense.

I wish you all the best - good luck - personally I'd be very keen on seeing how this purchase fits in economically, so please do feed back some figures.

On another note - cane transport logistics in Thailand are a complete mess - come harvest everyone is gunning to get haulage to the mill (or pickup sites) before anyone else, otherwise they all get caught in the waiting ques. You are going to get nagged and nagged every time the truck is ideal to rent it out. Think it over carefully - it can be a good earner.

[slapout]

I lived in south La for several years, big sugar cane fields. We use to dread cutting season as the highway was crowded with cane trailers pulled by tractors heading to the mill. The mills were set up about ever 15 to 20 mile so no one had a long transport time, but que time was another story. Transport of cut cane for 40 miles would have eliminated most of the cane farmers in a hurry just due to the investement required for truck trailer. Grain farmers for the most part invested as little as possible in trucks to haul grain to elevator as it sit in barn for 11 months out of the year. About the only way a new truck investment could be justified was with those people who were custom cutters (6 to 7 month/year) or those who kept the truck on the road in other commercial ventures, such as hauling produce, rock for road repair, etc. Best of luck in your venture

[ThaivisaInsurance]

Good Morning chaps, may we suggest you ask your own Thai Visa Insurance Broker to check the insurance & quotes for you ?

http://insurance.thaivisa.com/quote-form

[slapout]

Did that a few weeks ago and the price quoted was some what higher than local quote 1500baht) on a 14,000 baht 1 year policy. Granted it was not for same type vehicle etc. but I did compare apple to apple on coverage etc and this was my finding.