A sort of insurance coverage that safeguards commodities and merchandise while they are being transported from one place to another is called transit insurance, often referred to as shipment insurance or cargo insurance. This insurance is particularly important for businesses engaged in shipping and transportation as it helps minimize monetary losses that may result from various risks encountered during the transit of goods.
Transit insurance typically covers a range of perils and risks, including but not limited to:
1. Cover for various risks.
2. Package policy to facilitate convenience through a single document.
3. Judicial management of loss assessment.
4. Fund allocation based on clear indemnity guidelines.
5. Selection of cover of your choice.
TYPE OF POLICIES
Types Of Transit Insurance for Goods Transit Insurance Policies Can Be Offered in Multiple Variants. These Variants Are as Follows –
SINGLE TRANSIT POLICY
This Policy Covers One Particular Journey and Is Suitable for Businesses That Do Not Transport Their Goods Frequently. The Policy Would Cover the Goods Which Are Being Transported on A Particular Journey Only.
SPECIFIC VOYAGE POLICY
In Marine Insurance, Policies Are Issued to Cover a Specific Single Transit. This Cover Ends Once the Cargo Arrives at Destination.
OPEN POLICY
This Policy Covers Multiple Transits Occurring Within a Given Period of Time Which Is, Usually, One Year. So, If Businesses Transport Their Goods Frequently, They Can Buy This Policy and Ensure Coverage for Multiple Trips Without Buying a Different Policy for Each One. An Open Cover Is an Agreement Not a Policy, Here the Insurer Will Accept Insurance of All Shipments Made by The Assured, Within the Terms of The Cover for A Fixed Period, Usually for A Period Of 12 Months. However, Stamped Policies or Certificates of Insurance Are Issued Against the Declaration Made by The Assured. This Open Cover Is of Great Convenience to The Clients Engaged in Regular Import/Export Trade Businesses. This Is an Annual Cargo Insurance Contract Expressed in General Terms and Affected for A Sum That Is Sufficient Enough to Cover a Number of Dispatches Until the Sum Insured Is Exhausted by Declarations. The Open Policy Is Also Known as The Floating Policy, Which Saves the Assured the Inconvenience of Affecting Individually for The Insurance of Goods Which Are Dispatched Within the Country. This Policy Also May Cover Both Incoming and Outgoing Consignments from Anywhere in India to Anywhere in India. The Sum Insured Under the Policy Should Ordinarily Represent the Assured’s Estimated Annual Turnover for The Goods.
ANNUAL TURN OVER POLICY:
This Agreement Covers Transit of Raw Material, Semi Finished & Finished Products Pertains To Insured’s Trade I.E. Export, Import, Inter Depot Movement Incidental Storage from Originating Point to Destination Point On Seamless Basis. The Key Features of ATOP Are: - The Sizable Saving in Premium, This Is Charged Only on Your Sales Turnover. Availability Of Seamless Cover with All Movement of Goods Which Are Automatically Covered. Expect No Hassles of Submitting Periodical Declaration of Movements to the Insurer, Only Monthly/Quarterly Sales Figures Are to Be Submitted. Facility To Make Payment of Premium on Basis of Half yearly/Quarterly.
OVERNIGHT VEHICLES’ INSURANCE POLICY
If The Goods Are to Be Stored Overnight in A Vehicle, This Policy Is Suitable as It Covers the Goods in Such Cases. Some Providers Also Offer a Cover Where You Get an Overnight Cover as Standard and Some Provide It with An Extra Payment. If Your Trade Requires Storing Tools or Goods in Your Vehicle Overnight, Then You Need to Check Whether This Aspect Is Covered in Your Policy. Goods In Transit (Carrier’s) Cover If Your Goods Are Transported Using the Transport Vessel of a Third-Party Carrier, The Carrier Might Not Undertake the Risks of Damage to Your Goods. You Can, Therefore, Buy This Policy to Cover the Damages When the Goods Are Being Transported Using Another Carrier Service.
Again, As the Name Suggests This Policy Provides the Carrier with The Ability to Handle Commercial Settlements with Their Customers; Due to Loss or Damage of Goods or Livestock Which Was Insured by The Carrier. There Are Two Types of Cover Provided Here – Comprehensive Which Covers Against All the Losses or Damage to Goods Caused Due to Accident, Natural Causes or Humane Slaughter and The Other One Is a Cover Provided for Defined Events Such as Damage Caused Due to Major Events Like Fire, Flood, Collision, Overturning, Impact; It Can Also Be Extended to Things Like Theft, Non-Delivery, Etc.
GOODS IN TRANSIT (OWN VEHICLE) COVER
If Your Own Vehicle Is Being Used for Transporting the Goods, This Cover Would Insure the Goods Against Possible Damages. As The Name Suggests It Covers for Major Transit Risks and Theft of Goods Carried in Any Vehicle Owned And/or Operated by The Insured; But Not Pertaining to Only a Specific Vehicle. It Is a Simple and Inexpensive Cover Which Mainly Suits Smaller Businesses and Farmers with One Or More Vehicles Used for Collection and Delivery of Goods. Multiple Vehicles Cover If Multiple Vessels Are Used in The Transportation of Goods, This Policy Can Be Taken to Cover the Goods Being Transported Through Different Vehicles. The Policy Would Cover Multiple Vehicles Under a Single Plan. It Is Possible at Times That the Provider Will Cover Multiple Vehicles with Only One Policy and Also Offer a Good Rate. If Your Business Has More Than One Vehicle Which Requires Being Insured Then This Type of Cover Can Prove to Be Time Saving as Well as Less Costly.
TRANSIT INSURANCE COVERAGE
Export /Import Policies Can Be Extended to Cover War And /Or SRCC Perils on Payment of An Additional Premium.
What Is Covered Under Transit Insurance?
Transit Insurance Coverage Includes Common Perils Which Might Cause Damage to The Goods Which Are Being Transported. These Perils Against Which Transit Insurance Protects the Goods Are as Follows:
·Inland Transit Policies Can Be Extended to Cover The Following Perils on Payment of Additional Premium:
IN CASE OF A CLAIM, WHAT DOCUMENTS WOULD BE REQUIRED?
If You Face a Claim in Your Transit Insurance Policy, You Would Have to Submit the Following Documents for Claim Processing –
