Specific Transit
Specific Transit
Every business has some risk, and if your business involves transporting goods or cargo from one place to another, then it gets more risky. Be it the oceanic turmoil, damaged railway tracks, unpredictable roads because of bad weather, and more. There are many dangers. Thus, it is advised to choose the right marine insurance plan and be aware of its types. One essential type of marine insurance is specific transit insurance. Learn in-depth about the specific transit insurance under marine insurance.
What Do You Mean By Specific Transit Insurance?
The specific transit policy covers specific goods for a specified journey/voyage. Thus, the cargo, name of the ship, its value, port of loading, and discharge are all known, and the risk is also well defined.
It shields goods in transit for a specific/single trip from a broad range of risks that comprise all the damage to the shipment in case of fire, explosion, lightning, earthquake, sinking, vessel damage, risks encountered at the time of loading, unloading goods, and much more.
Types of Specific Transit Insurance
The types of export and import insurance are:
The overnight cover is offered for items to be transported or stored in the vehicle overnight. When choosing this policy type, make sure the insurance also covers when the product is just stored in the vehicle.
At times, traders are gearing up for transport deliveries in multiple vehicles. So, choosing a policy that covers a specific number of vehicles at a specific time is important.
The aforementioned policy will provide coverage for specified products such as paintings, electronic equipment, artifacts, etc.
Specific transit coverage will provide insurance for commodities that are shipped in their own vehicles, of any type.
Highlights of Marine-Specific Transit Insurance
Some of the important highlights of specific transit insurance are :
- Customers will get coverage for specific voyages under a specifically tailored policy whenever required.
- To understand the risks, the customer must provide details of the consignment, conveyance mode, packaging, and voyage details.
- The premium amount of the marine-specific transit policy is paid before the start of the journey.
Why Do You Need a Specific Transit Policy?
There are many reasons to buy a specific transit policy for your business, such as:
- To safeguard against physical loss during transportation, i.e. if you ship expensive, rare artifacts, there is always a risk that they could sustain damage at the time of transportation. Specific transit insurance can protect goods from any loss, damage, or theft during transit.
- To meet the contractual requirement-like if you are transporting goods to someone (office goods), they may require you to have a transit insurance policy as a condition of the contract.
- to protect you against liability. The transit insurance policy will offer you liability coverage if you are held responsible for damage to someone else’s property at the time of transportation.
- To get peace of mind. Having a specific transit insurance policy can give you peace of mind as it will protect your goods at the time of transit
What is Covered Under the Marine Specific Transit Policy?
The marine-specific transit insurance policy gives coverage to all risks according to ICC (A) and ITC (A) and basic coverage according to ICC (B) and ITC (B), all for a specific one-time transit. Other than the coverage under these clauses, you can also customize the policy to get coverage against the following risks :
- War & SRCC : With a specific transit policy, you will get coverage for situations like wars, strikes, riots, and civil commotion in import and export, whether it’s inland or international.
- TNPD : Basic coverage of specific transit insurance involves protection against theft, pilferage, and non-delivery of commodities.
- Storage Coverage : The policy also offers coverage for the storage of goods before the delivery of the specific cargo to its final destination.
What is Not Covered Under the Marine Specific Transit Policy?
Every policy has some exclusions. Some of the exclusions under the marine-specific transit insurance are:
- Ordinary weight loss
- Wilful misconduct of assured goods
- Ordinary leakage of liquid cargo and wear and tear of the vessel/goods.
- Improper packaging of the goods
- Deliberate damage, rats, and vermin
- Nuclear weapons
- Insolvency of carrier
How Is the Premium Calculated for Export and Import Insurance?
In marine export and import insurance, the premium is calculated based on several factors. Some of the common factors are :
- Types of Goods Transported : The premium amount can be high if the goods in transit have an increased risk of damage. So extra caution should be taken to transport the goods, thus making the premium charges high.
- Mode of Transport : The mode of transport used to shift the goods from one place to another can impact the premium for the policy. As different modes of transport involve different types of risk, the premium will vary.
- Vehicle Type : The premium amount will also vary depending on the type of vehicle used for transporting the goods. Payable premiums will be high if the used vehicle is large and carries a high risk.
- Age of the Vehicle : The age of the vehicle can also impact the premium amount for marine exports and import insurance. Premiums will be on the higher side if the vehicle has been in use for a long time because the risk of wear and tear will also be high.
- Trading Limits : Trading limits and tonnage can also impact policy premiums. If the limit is high, the premium will be high.
How To Claim Specific Transit Insurance Cover?
In order to claim specific transit insurance cover, you first have to inform the insurer. The insurer will appoint a surveyor who will survey the incident and submit a report.
Documents Required:
The documents needed to file a claim for transit insurance online are:
- Invoice for the goods in the original
- The survey report
- Bill of lading
- Duly filled and signed claim form
- Shipping details
- Details of the carrier
You will also be asked to submit additional documents in order to approve the claim.
To Sum Up!
If you are in the field of relocation, or relying on third-party courier companies, it becomes essential to get specific transit insurance. Sometimes you will be transporting expensive jewels, and sometimes it will be an important business consignment. All this requires one-time transit insurance, and specific transit insurance is the best policy for such cases.
At Policy Wings, we offer you the right type of policy that suits both your requirements and budget. Connect with us and enjoy comprehensive protection.
Frequently Asked Questions
A deductible can be defined as the amount of a claim that the insurance company won’t pay. If the claim amount exceeds the deductible limit, only then is the amount paid. The deductible will be paid by you and the rest will be paid by the insurance company.
Yes, even if the goods are partially damaged, the insurance company would cover the financial loss that you have suffered.
The goods carried on the deck of a vessel are subject to a greater hazard than those carried in holds, and it is unusual to cover deck cargo under an all-risk policy. The rates of deck cargo are generally much higher than those of cargo in the holds.
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