Marine Inland Transit Insurance

 

Marine inland transit insurance in India is specifically designed to provide comprehensive coverage when transporting the insured's personal and business items by road.

 Inland transit insurance falls under marine insurance. Please note that inland transport insurance in India only covers goods transported by road such as transport of goods by train, truck, etc. This insurance policy does not cover forms of transport such as sea or air. Marine inland transit insurance certainly plays a very important role, as it covers damage and loss of the policyholder's goods such as various machinery and raw materials.

As a general rule, inland transit insurance provides coverage for goods transported within a country.

 There are many things to consider when purchasing a marine inland transit insurance policy.

 • The insurance policy applies only to goods transported within the country.

 • Premiums are usually calculated based on the type of goods being transported.

Let us look at this insurance policy in more detail in this article.

How is marine inland transit insurance different from other insurance policies?

General insurance policies cover property at a specific location, from risks and perils associated with the business and natural calamities. If manufactured goods, products or equipment have to be sent to another place, the loss or damage to goods in transit and the safety of goods in transit is covered by inland marine transit insurance. This type of coverage is for goods in transit are often excluded from basic property coverage. Features of this policy include:

Goods within the country are transported from one place to another. Such transits are insured for loss or damage to the goods due to various perils.

Any product that is manufactured, distributed can be transported. Once the sale is finalized the protection of goods in transit from entry point to destination, is taken care of by inland transit insurance.
 

Highlights of marine inland transit cover policy

Marine inland transit insurance covers products/goods when transported over land e.g.by truck or train. 

Cover is for loss or damage to the policyholder’s goods like different machineries, raw materials, finished products etc. during the transit. Inland transit insurance policy covers goods which are being transported within the country.

Premium on transit insurance is calculated based on the type of goods that are being carried.

Marine inland transit is for goods in transit and is significant for small-scale or medium-sized businesses as there is no import /export activity. Purchase orders within the country are frequently transported and insurance of these parcels helps minimize loss/damage to the goods.

Inland transit insurance policies are categorized under marine insurance.

What is covered?

Loss or damage to the subject-matter insured as specified, against all risks of loss or damage. This means that the cover is inclusive of all risks, i.e. all risks other than the exclusions mentioned in the policy are covered. Insurance policy is a wider cover and is restricted only by the exclusions specified in the policy for all risks cover.

Restricted and basic cover may also be chosen according to the requirement and risk exposure of the insured’s business.

There are three types of policies:

Inland Transit A (All risks)

Inland Transit B (Limited cover)

Inland Transit C (Basic cover)

What is not covered?

·       Loss, damage or expense attributable to willful misconduct of the insured

·       Ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured

·       Insufficiency or unsuitability of packing

·       Inherent vice or nature of the subject-matter insured

·       SRCC – Strikes riots or civil commotion – this peril can be covered on payment of additional premium

 

How are claims calculated and paid?

Collisions and cargo theft are the two most frequent causes of inland marine losses.

Basis of assessment shall be:

·       For total loss or non-delivery of the entire insured property or the subject-matter insured, the sum insured shall be payable.

·       For partial non-delivery, the proportionate amount of the sum insured

·       For shortage: proportionate sum insured

·       For damage to insured property: Cost of repairs in full subject to sum insured being found adequate;     otherwise, settlement will be in the same proportion as the sum insured bears to the full insurable value

 

Before purchasing a marine inland transit insurance policy consider the nature of your business and operations. One must analyze the length of transit, the route taken, the exposure to perils and the duration of transit. After weighing all the aspects, one must decide on the most appropriate insurance cover.

 

We at Zen insurance brokers assist in choosing the right Insurance cover to suit your needs. Write to us at enquiries@zeninsure.com

 

Disclaimer:   

Zen Insurance Brokers is an IRDAI registered broker which facilitates quick & accurate insurance broking services. We deal with only regulator approved products of insurers. We do not underwrite the products.