Comprehensive Guide to Transit Insurance
Whenever goods are transferred from one place to another, there is always the risk of damage involved, which results in financial loss and damage to the reputation of many logistics companies.
This is why it becomes important to keep transit insurance as a protection for your goods during transportation.
Understanding Transit Insurance
Transit marine insurance is a policy that safeguards your business goods when they are transported from one place to another. If your goods are moved between two locations, a transit insurance coverage policy will ensure that they are covered in case of unwanted events.
Types of Transit Insurance Policies
A single insurance policy is entitled to protect goods in a single trip. This type of policy is mainly suitable for businesses that send single shipments.
In an open insurance policy, coverage is provided for one year. Generally, it covers multiple shipments, so there is no need to buy insurance separately for every shipment.
A customised transit insurance policy coverage plan allows transporters to adjust their insurance policy according to their requirements. It suits businesses and transporters who ship multiple goods to various locations.
Third-party transit insurance coverage is needed when you ship goods through vehicles that are not owned by you. This way, the goods are covered when transported via a third-party vessel.
A multiple-vehicle transit insurance coverage policy is when you must use multiple vehicles to transport your goods. Here, multiple vehicles will be covered under a single plan.
What is Covered in Transit Insurance
- Damage caused to the insured goods by accidents, collisions or natural calamities.
- Coverage against goods lost due to partial and total theft or pilferage.
- If the goods are damaged while loading, unloading, mishandling, or ineffective packaging.
- Goods that are damaged due to fire or explosion.
- Loss incurred to insured goods during a collision.
- Third-party liabilities mean you are protected if your insured vehicle causes damage to others or their property.
- Financial losses when the transportation of goods is delayed due to accidents or natural disasters.
Benefits of Transit Insurance
Transit cover insurance provides global coverage, which means that even if you are transporting goods internationally, you can easily meet the coverage requirements of any country where the goods are mainly transported.
Transit Insurance also provides financial help to certain business units that are always on the go and face losses. This is especially applicable in situations where goods are damaged in transit.
Therefore, the policy can be adjusted per the business’s requirements and is suitable for all.
Transit coverage can help protect businesses from huge losses and protect their bottom line, as any losses and accidental damage to goods are reimbursed by the insurers.
Things to Keep in Mind While Choosing Transit Insurance Coverage
- Choose the right insurance policy
- Verify the insurance policy
- Maintain accurate documentation
- Ensure adequate security measures
Conclusion
If you run a shipping or logistics business, consider buying transit insurance online to provide holistic coverage for the losses you may face. This can protect your bottom line and offer reimbursement for huge losses.
When looking for a reliable plan, it’s also important to check insurers and the services they offer policyholders. For example, Tata AIG offers its policyholders online claims processes.
Frequently Asked Questions
What Are the Documents Needed for Transit Insurance?
- Invoice of the original goods
- Survey Report
- Bill of Lading
- Shipping Details
- Copies of Correspondence between the carriers
- E-way bill
- Any other documents as needed by the insurance company
What is the Process of a Transit Insurance Claim?
You should immediately inform the insurer about the claim. Upon receiving a notification, the insurer will provide you with a claim reference number and share the surveyor details if appointed, or in other cases, a letter of request will be shared for further processing of the details.
What are The Coverage Limits Provided Under Transit Insurance?
Limitations depend completely on the insurer and the terms of the policy. So, before getting transit insurance, evaluate the policy limitations on a priority basis. In addition, be sure that it covers all the goods that you are shipping.
