Transporting goods from one place to another within India is a regular process followed by most manufacturers. They want to get their products to reach end consumers across different Indian states. While these goods are in transit, there is an expected risk of some kind of damage or loss. It is hard to predict accurately if a specific despatch of goods will reach the destination safely without suffering any damage.
You might have heard that goods transported through the ship to distant destinations are insured even before they are placed in transit. But do goods that are intended to be shipped by road need insurance as well? Let’s dig deeper into inland transit insurance to know more.
What is Inland Transit Insurance?
As the name suggests, marine inland transit insurance is one way to cover the risk of damage or loss to business-related goods while they are in transit over land. Since risk factors arise based on the quantity as well as the value of the goods, the insurance premium varies according to both of these.
The standard inclusions of this insurance policy cover the risks related to loading or unloading of goods, any unexpected events like road accidents, theft, fires, and similar other perils.
What to Consider While Buying Transit Insurance Policy
Buying a transit insurance policy with adequate coverage is crucial for all businesses that regularly transport goods of any significant value to nearby or distant locations. Whether you are a retailer, manufacturer, supplier or transporter, you should buy transit insurance to cover possible damages or losses to goods in transit. Here is what you need to consider at the time of buying this type of insurance policy:
- Buy a Policy with Adequate Coverage
The premium for a transit insurance policy depends on the value of the goods in transit. Let’s say you are transporting goods worth INR 10 Lakhs. If you choose a policy that offers maximum coverage for goods worth INR 4 Lakhs, you may not receive claim amounts adequate to cover an unfortunate loss-causing event.
Hence you must ask your insurer about the maximum coverage limit available for goods of a specific value. Your insurer can inform you about the most suitable insurance plan that fits your needs.
- Check if the Policy Includes Vehicles Overnight Cover
For transporting goods to a distant destination the journey might include overnight stays. It is hard for drivers of commercial vehicles to drive continuously for a prolonged period, and taking breaks in between is essential. However, overnight stays away from loaded vehicles during transits also present a source of risk.
Keeping this risk in mind, some insurance providers offer marine inland insurance that includes an overnight cover by default. However, you may find some insurers offering this cover as an add-on that comes at an extra premium cost. You should check if overnight coverage comes as a primary feature of the policy under consideration, or if you need to buy it additionally.
- Ask About Covering Multiple Vehicles in One Policy
If you are a transporter involved in delivering goods for diverse types of clients, chances are high that you would be using multiple commercial vehicles for your transportation. If this is the case as per the requirements of your clients, you need transit insurance for all the vehicles.
Buying a separate transit insurance policy for each vehicle may turn out to be a costly affair. It would be better if you cover all your vehicles under one policy. If this is acceptable as per your policy’s terms, you can save significant amounts of money.
To sum up, a suitable marine inland transit insurance will provide essential coverage to cover various types of financial losses that might occur during inland transport. If you are seeking advice for selecting the best type of policy or the right insurer for your business needs, SecureNow will help you make the best choice!