Here are guidelines which are attached with the duration of the marine inland transit insurance clause –

Clause (A) and (B)

The insurance becomes valid from the time the goods leave the warehouse or place of storage as mentioned in the inland transit insurance policy document, and it is terminated either:

  1. On the successful delivery of goods to the consignees or the final warehouse or place of storage of the other party as mentioned in the policy document
  2. In respect of the transit by train only, or rail and road, on the expiry of seven days after the arrival of the railway wagon at the railway station
  3. Where the goods are being transported by road only on the expiration of seven days after the arrival of the vehicle at the destination as mentioned in the policy document.

The inland transit insurance shall remain active if there is a delay, forced discharge or deviation which is beyond the control of the policyholder. Also, the tenure of seven days is computed from the midnight from the day of arrival of railway wagon at the destination station or the vehicle at the destined city.

In certain situations, it is feasible to extend the period of seven days, provided the goods are lying in the road/railway premises or any other warehouse which has been specifically identified in the policy. Here the coverage will be extended for eight weeks (in addition to the seven days which are already given).

Clause (C)

In case of Clause (C), the duration provided is different. Here, the insurance is attached with the loading of each package into the truck for the commencement of the transit. It continues during the ordinary course of transportation as well, which includes customary transshipments, if any and ceases to exist immediately after unloading-

  • At the destined railway station if it is a rail transit; or
  • At the destined point if it is a road transit

Case: 1

Established in 2000, L.S Engineering has earned a name for itself in the engineering sector in a short span of time. Considering the risks involved in the transportation of goods from one place to another, the company has also purchased an inland transit insurance policy for the safe transportation of its goods domestically.

Read More: What is Marine Insurance?

Last year, the company bagged a deal with M.J Automobile and according to which, the latter had to send engineering items to the former.

In this case, the coverage of inland transit insurance policy started from the time the goods left the warehouse of L.S Engineering until they reached their destination.

Here the duration of inland transit insurance was like this –

  • 1st July 2016 – S Engineering sent its consignment of engineering items via railway.

The inland transit insurance cover started from the time the goods left the warehouse of L.S Engineering.

  • 4th July 2016 – Goods reached the destination of M.J Automobile.

The inland transit insurance stayed active till the time; they reached the warehouse or destination as stated in the policy document.

Case: 2

Z.S Paper signed a contract of engineering items with L.J Engineering, according to which the latter had to sell engineering goods to the former.

Read More: What is increased value clause in marine inland transit insurance?

In this case, L.J Engineering had an inland transit insurance policy with it. It means, here the duration of inland transit insurance would be like this –

  • The time the goods left the warehouse of L.J Engineering
  • The time when engineering goods reached the warehouse of Z.S Paper

Here, L.J Engineering transported goods through railway. However, when goods reached at the destined railway station, heavy rainfall made it difficult to transport goods from the railway station to the warehouse of Z.S Paper. As a result, goods were kept in the warehouse only.

In this case, inland transit insurance cover extended the coverage for eight weeks more, which included seven days also which was already spent on the railway station.

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