With the growth in ecommerce seen all over India that has been accelerated by the onset of the pandemic, plenty of goods are in transit in different parts of the country. Risks to goods getting damaged during transit are covered through transit insurance policies. This transit insurance also covers the damages to goods that may occur due to derailment or overturning of vessels.
The value of the transit insurance premium is dependent on the goods being transported and the extent of risk being born by the policy holder, which is a business in this case. A transit insurance company is able to provide coverage for both finished and raw goods. It provides protection in case goods are passing through risky areas, or if their containers encounter devastating weather. Inland transit insurance is the name of the insurance covering goods being transported.
Advantages of Inland Transit Insurance
- Insurance cover is made available as per global standards, which means that if the goods are being sent internationally, they will covered as per the standards in the country of transport
- Policies can be customized as per company requirements; it is suitable for every kind of business
- The insurance cover is able to provide financial support to business that may encounter substantial losses due to damages. It keeps the finances of a company stable even after such a loss.
- Several insurance companies offer multiple coverage options
- The policy is issued online immediately
Common perils that are covered under the inland transit insurance include:
- Natural or Man-made Calamities
- Overturning of the transport vehicle
- Sinking of Vessel
- Vessel Gets Derailed
- Risks at the time of packing and unpacking
- Risks during loading and unloading
- Malicious Damages
- Collision of the Vessel
Who all can Purchase Transit Insurance Policy?
The following parties are eligible to buy transit insurance policies:
- Custom House Agents
Get Free Insurance Quotes
It is possible for businesses of all kinds to get free insurance quotes from insurance companies. These quotes will help the businesses to get the best rates every year. It becomes easier to forge a long term relationship with the help of these quotes. B2B customers are also very happy when they do not have to pay extra to get these quotes.
Documents Necessary for Claim
If goods in transit have suffered damages, the most suitable way to claim would be to provide the insurance broker in India with the following documents:
- Filled up Claim Form
- Copy of the Invoice
- Lorry Receipt
- Notice to the Carrier
- Shipping Details
- Pictures of the Damaged Goods
- Copy of the Policy
- FIR Report
- Any other document that the insurance provider needs
Losses may not be covered by the policy in the following conditions:
- Damage or loss due to inherent vice of subject matter being insured
- Damage or loss caused by inappropriate unpacking of cargo
- Damage or loss because of misconduct by the insured
- Damages or less caused by delays
Are Partial Losses Covered?
Businesses will need to check with their insurance brokers about partial loss coverage, though these losses are handled by insurance companies in many cases.
Climates have been changing across over the world within the last decade or so. Even if they do not change, cyclones do occur from time to time in India. Cyclone Tauktae recently hit the Arabian Sea and was classified as a very severe cyclonic storm. These cyclones have caused damage to items being shipped, which is why the policies are very important. They help secure businesses during periods with uncertain business climate and the actual weather conditions.
India has a great network of marine waterways that allow people and items to travel across the seas to countries such as Sri Lanka. With better inland transit relations with Bangladesh, more and more goods will be travelling between the two nations. This will mean more money for both nations, better relations, and the greater need for inland transit insurance.
The level of claim that the transit insurance company does not have to pay is called as deductible. Any claim will be paid only upon exceeding the deductible limit. Even after this, the company being insured will pay the deductible limit and the insurance broker will give the remaining amount.
Insurance is Available Online
Large amounts of information about inland transit insurance policies can be found online, especially on broker websites. Searches on Google will help business owners compare different areas covered by all policies. However, care must be taken to choose the insurance from a reputed broker in India. Information about the brokers can be obtained both through personal as well as online references. Going online makes the entire claim process very simple.