What are the important features of Specific Transit insurance?
Welcome to our short video blog on the important features in Specific Transit Insurance. Through a compelling case study, we’ll showcase how these features act as true saviors for businesses. Discover how comprehensive, tailored policies, and prompt claims handling provide businesses with peace of mind, protecting their valuable assets. This blog explore the power of Transit or Transport Insurance, and its invaluable importance in today’s dynamic business landscape.
Case Study
In 2015, Excel Electronics secured a big contract to export 500 electronic items to an Eastern nation. The contract comprised of LED, mobile devices, and washing machines. Before dispatching the consignment, a diligent packaging team thoroughly examined and approved it.
After 7-day transit period, when the consignment arrived at its destination it was discovered as wet during the unloading process. The substantial damage to the consignment was attributed to the packaging team’s negligence, resulting in water-related harm.
Consequently, the buyer initiated legal proceedings against the seller, seeking compensation more than the agreement. Since the sellers had a Specific Transit Insurance, it therefore approached the insurer for claim settlement. It provided the insurer with proofs and agreement on proposal and acceptance of the contract mutually agreed upon. The seller was hence saved to pay higher compensation.
Important features of Specific Transit Insurance Includes:
- Insured Interest- For effecting marine insurance like any other insurance, the assures must have insurable interest. If there is no such interest, the policy would be a wagering contract and thus it is void.
- Proposal and acceptance- A contract for insurance becomes concluded when there is a proposal to the assured and as insurer accepts the contract, irrespective of the issue of policy.
- Consideration- Here the premium is called Consideration which is captures in the contract and computed on the basis of an assessment of proposal form.
- Issuance of Policy- Policy can be considered as effective legal evidence in a court of law when it’s prepared, stamped/signed and finally issued to the assured party.
- Utmost good faith- The doctrine of utmost good faith is covered in sections 19, 20, 21 and 22 of the Marine Act of 1963
To summarize, insurance in transit offers protection for goods and assets while they are being transported, ensuring peace of mind during the entire journey. It not only offers insurance of goods in transit via sea, but also inland transit insurance.
SecureNow is available to provide assistance in finding the appropriate specific transit insurance. To avail our support, you can call at 96966 83999 or send an email to support@securenow.in, sharing your goods insurance requirements.
