Cash in-Transit Insurance There is always a risk of damage or loss to any type of property in transit. The causes can be numerous such as vandalism, theft, natural disasters, and many man-made calamities. Businesses engaged in cross-border international trade obtain a marine insurance policy. This policy safeguards their shipments and properties from losses or damages caused by named and unnamed perils. Do you know that insurance coverage is equally important for domestic businesses who transport their consignment through land mode? Every mode of transport involves various perils. Domestic businesses can also secure their goods, currency, or property in any manner by availing of transit insurance.
There are various types of transit insurance, such as goods in transit insurance, cash in transit insurance, multiple vehicle cover, single transit insurance, etc. Transit insurance covers the transportation, loading, off-loading, packing, unpacking, and storage of goods during the entire process. Depending on the requirement, businesses can choose the type of transit insurance/transport insurance that suits their business need.
What is a cash-in-transit insurance policy?
Cash-in-transit insurance policy is also known as a money-in-transit insurance policy in India. Money transactions are an essential part of any business. When you are dealing with money transactions, risks are inevitable, and the losses to business can be huge. Hence, it is important for businesses to secure such important monetary transactions by buying a cash-in-transit insurance policy.
Cash-in-transit meaning: Cash-in-transit refers to money that is being carried from one destination to another or money held in a safe in the insured’s premises. The term money encompasses cash, currency notes, coins, and cheques issued by banks, Government treasury, and India post. It also includes bank drafts, postal orders, postal stamps, pay orders, money orders, and traveller’s cheques, etc.
The cash-in-transit insurance policy covers money loss during transit. During an unforeseen event, the policy also covers money held in a safe on the insured’s premises.
The sum insured in this transit insurance policy depends on the amount of cash/money in transit. It also considers the money/cash held in the safe. The cash-in-transit insurance policy must explicitly mention the company’s limit to liability in any one loss. The single carrying limit, often called the limit, defines maximum coverage. The premium for in-transit cash insurance is based on the single carrying limit, safety, or security measures adopted by the business and the distance involved in the money-in-transit.
Who can buy currency in-transit insurance?
Securing money transactions is extremely important for every type of business. Cash-in-transit insurance policy is vital for manufacturing businesses and industrial undertakings that deal with large amounts of money for their day-to-day transactions.
For example, you are carrying cash and a cheque from your business premise to the bank for paying salary to your employees If you get robbed, the cash and cheque have been snatched. Though you need to file an FIR at the police station, you don’t need to worry about the possible monetary losses when you have money in-transit insurance.
Salient features money in-transit cash insurance
The following are the salient features of a cash in transit insurance policy:
- The policy covers the loss of money in transit due to an accident, robbery, or theft
- The policy covers the loss of money held in the insured’s safe or strong room due to robbery, theft, housebreaking, holdup, or by any unforeseen event.
- The policy covers the loss of money from the insured’s premises due to theft or robbery during business hours.
- The policy covers the loss of money due to an accident or any fortuitous incident on the business premise.
- In case of robbery, housebreaking, or theft, the policy covers repairing or replacing the insured’s damaged safe or strong room.
- The policy offers round-the-clock financial protection to businesses that deal with huge monetary transactions on a day-to-day basis.
It is also important to know the limitations of transit insurance online when you are buying one for your business. There are many exclusions to money in-transit insurance, such as loss due to riot, strike, and terrorism, error or omission, loss due to fraud by an employee, loss due to legal liability, etc.
In summary, these robust features of money in Transit Insurance help secure cash carried, mitigate consequential loss, and protect assets en route. This policy safeguards money entrusted to any person (insured or an authorized employee), emphasizing the importance of a locked safe transit. Explore coverage for loss occasioned by riot and shortage due to error or omission. Ensure comprehensive protection with Cash Transportation Policy tailored for your financial security. This policy ensures protection for assets, whether being transported by an Ensure to know the features and exclusions of money in transit insurance policy and avail the best-suited one for your business to secure all the monetary transactions crucial for the business.
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About The Author
Simran
MBA Insurance and Risk
With extensive experience in the insurance industry, Simran is a seasoned writer specializing in articles on marine insurance for SecureNow. Drawing from 5 years of expertise in the field, she possesses a comprehensive understanding of the complexities and nuances of marine insurance policies. Her articles offer valuable insights into various aspects of marine insurance, including cargo protection, hull insurance, and liability coverage for marine-related risks. Renowned for their insightful analysis and informative content, Simran is committed to providing readers with actionable information that helps them navigate the intricacies of marine insurance with confidence.
