Inland Transit
Inland Transit
Don’t get confused by the term “Inland transit.” Unlike marine insurance, inland marine transit insurance covers products, materials, and equipment that are transported by water or land while being temporarily stored by a third party. Also, just with commercial property insurance or marine insurance, all your risks cannot be addressed. If you are in the shipping business, you might need additional coverage. Inland marine transit insurance can provide specific coverage to deal with the risks that your business faces.
Let’s have an in-depth look at inland transit insurance for a better understanding.
What is Inland Transit Insurance?
Inland transit insurance comes under marine insurance and can be explained as an insurance policy that offers coverage for unforeseen losses or damages caused to the commodity that is transported between the origin point and destination within the country. It is also referred to as domestic transit insurance.
Although this insurance is part of marine insurance, the transit should be within the borders of the country.
Types of Inland Transit Insurance
The types of export and import insurance are:
This aforementioned policy is best suited for a single voyage or commodity in transit and for businesses that do not transport their goods frequently.
The open policy covers multiple transits occurring within a given period of time, usually one year.
This particular policy covers all types of transactions, including sales, purchases, and internal transfers.
Why You Need Inland Transit Insurance
The inland transit insurance under marine insurance plays a significant role by covering damage or loss to the policyholder’s goods during the transit. If you are into shipping, export/import business, then here are a few things that you must keep in mind while thinking of buying marine insurance:
- Inland transit insurance coverage is only offered for goods that are transported domestically.
- The premium on transit insurance is usually calculated on the basis of the types of goods that are being carried.
- Commodities in transit insurance plans are suitable for small-scale or medium-sized businesses that do not have the necessity to import and export their goods.
Benefits of Inland Transit Insurance
Inland transit insurance has a lot of features. Some of the features worth mentioning are :
- The Marine Transit Insurance Plan offers wide-ranging risk coverage.
- Some inland transit insurance policies also cover the non-delivery of consignments in case they disappear mysteriously.
- Any loss resulting from the package being lost overboard or dropped whilst loading/unloading from the vessel could be covered under marine transit insurance.
- The policy gives protection to the purchase of transit and domestic sales from various risks like fire, sinking of vessels, lightning strikes, and derailment of the carrying vehicle covered under marine transit insurance policies.
- It also gives coverage for the different losses or damages caused due to the carelessness of the transporter, like wrong allotment, overloading, and an untrained driver.
- The inland transit policy gives protection to transit from anywhere to anywhere in India, across multiple dispatch locations of the client.
What is Covered Under Inland Transit Insurance?
The inland transit insurance policy gives various types of coverage based on Inland Transit Clause (ITC) A and B and Institute Cargo Clause (ICC) A and B. Below are some of the commonly provided coverage options:
- Coverage Under ITC B : The policy provides coverage for all points under ITC B, like fire, lightning, collision of vehicles, and overturning/derailment of the carrying vehicle.
- Coverage Under ITC A : The policy will offer protection from situations like handling loss, accidents during loading, unloading, theft, malicious damage, hijacking of goods, or any other risk that’s not specifically excluded.
- Coverage Under ICC B : Under ICC B, the policy provides coverage against conditions like vessels being sunk or capsized, derailment of land conveyances, the collision of vessels with any external object, and entry of seawater into vessel craft.
- Coverage Under ICC A : Risks like wilful misconduct, ordinary leakage, insufficient packing, delay, inherent vice, and loss or damage due to insolvency or financial default of the owner or vessel operator.
What is Not Covered Under Inland Transit Insurance?
Some of the major exclusions under the Marine Inland Transit Insurance Policy are:
- Wilful misconduct
- Ordinary leakage and loss in weight-volume
- Insufficient packing
- Delay
- Inherent vice
- Unfitness of the container
- Nuclear perils
- War risks, strikes, riots, and civil commotion.
How to File a Claim Under an Inland Transit Insurance Policy?
The claim process under any insurance policy is always easy. If your goods in transit encounter any mishaps that lead to damage or loss, you will first have to intimate the same to your insurer along with the details, like photographs, a policy copy, the value of the goods transported, and the approx value of the damaged goods.
The insurance company will appoint a surveyor, and based on the inspection, the claim will be settled/rejected.
Documents Required:
The documents needed to file a claim for transit insurance online are:
- Duly filled and signed claim form
- Copy of policy document
- Invoice of the goods transported
- Details of the carrier
- Evidence of the incident and damage that occurred
- Any other documents as asked by the insurance company
To Sum Up,
The marine insurance category is very broad, which is why there is a vivid categorization of various types of marine insurance. As per your needs, requirements, and guidelines, an appropriate type of marine insurance can be narrowed down and selected to be put into action.
A team of experts at Policy Wings will assist you with customized domestic transit insurance policies. We will find you an Inland Transit Insurance quote from a wide range of insurance companies to make sure you receive comprehensive coverage. Reach out to us today!
Frequently Asked Questions
The packers and movers take out such insurance to cover household materials such as furniture and home appliances.
The insurer considers the historical analysis of the claims incurred for specific commodities. Based on the average claim incidence and the severity of such claims, insurers arrive at their expected claim cost. Further, they will add operating expenses to arrive at the breakeven price for commodity insurance.
Deductibles are the level of claims that the insurance company will not pay in case a claim request arrives. Only when a claim exceeds the deductible limit is eligible for payment. Whereas the insured pays the amount deducted and the rest is paid by the insurance company.
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