ImageCargo Insurance Policy: Buy Goods in Transit Insurance online in India

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  • > Quick Guide to Cargo Insurance
  • > Frequently Asked Questions
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The Benefits of Cargo Insurance


Cargo insurance will be designed based on the kind of goods, sending limit for each transaction, per location limit required, type of mode used, typical normal losses and transit frequency.

Open Policy

Marine Cargo insurance can be an open declaration policy. An aggregate sum assured is specified for the full year. All transits thereafter are covered with a declaration at the end of each month.

Fast Issuance

Policy issuance is fast. Payment happens through Netbanking or NEFT. Online policy can be issued for immediate coverage. Soft copy of the policy can be used for documentary evidence of the insurance

Comprehensive Cover

Inland Transit Clause A could be bought for all risk coverage. Sum Assured could be enhanced by additional 10% to cover incidental expenses in case of loss. Add-ons such as 'loading risks' could be bought.

Quick Guide to Cargo Insurance

What Is Cargo Insurance?

Cargo insurance, or marine cargo insurance, safeguards goods during transportation by sea, air, or land. In India, it crucially aids international trade by protecting sellers and buyers from potential financial losses during transit. The policy covers goods and carriers, addressing risks like theft, damage, loss, and related expenses including freight charges.

In India, open cover policies, ideal for frequent trade, are prevalent. Additionally, specific cover policies are common for single shipments. Businesses involved in global trade highly recommend commercial cargo insurance, though it is not mandatory.

Cargo insurance provides coverage for cargo owners, with Institute Cargo Clauses specifying terms. Sum insured varies, considering rail and road transport risks. It offers financial security by covering damage or loss costs during transit, fostering trust between buyers and sellers.

To secure a marine cargo insurance policy in India, businesses can approach insurance companies for assessments and quotes. Insurance brokers can assist in comparing policies. In summary, cargo insurance coverage is pivotal in India's international trade, providing financial security and building trust. Regular traders may opt for open cover policies, while occasional traders can consider specific cover policies.

What Is the Difference Between Freight Insurance and Cargo Insurance?

Here is a table summarizing the key difference between Freight Insurance and Cargo Insurance:

FeatureFreight InsuranceCargo Insurance
Provided byCarrier or TransporterShipper or Owner of Goods
CoversLimited liability for damage or loss of goods during transportationSecure comprehensive and full value coverage for the goods during transportation
ResponsibilityCarrier or Transporter is responsible for providing coverageShipper or Owner of Goods is responsible for obtaining coverage
Coverage LimitCovers only a limited amount per kilogram of goodsCustomizable to cover specific risks and covers the full value of goods
AvailabilityThe carrier may include it as part of their serviceThe shipper or owner of goods must obtain it separately

What types of Cargo Insurance are available?

Understanding the cargo insurance meaning is essential for businesses, as it defines the protective coverage against financial losses. The two main types of marine cargo transit insurance policies include:

  • Open Cover Policy - It is a long-term solution for businesses involved in regular trade.
    It allows a single exporter or importer to make flexible declarations for multiple shipments throughout the year. Adjustable to business needs, it spans one year, covering risks like cargo loss, theft, and non-delivery.
  • Specific Cover Policy - It is a short-term solution, tailored for single shipments. It provides complete coverage for goods during transit, suitable for occasional or high-value shipments requiring increased protection. Valid for the shipment duration, it's tailor-made and includes coverage for expenses like freight charges and customs duties.

Why Do You Need Cargo Insurance?

Cargo insurance is vital to protect against financial losses resulting from the loss or damage of goods during transportation. It covers risks associated with long-distance shipping, including natural disasters, theft, or accidents. Ensuring trust with customers, it's also a prerequisite for securing international trade financing from banks and financial institutions.

Benefits of Purchasing Cargo Insurance

Several advantages of cargo insurance, include:

  • Financial Protection - Guards businesses from financial impact because of goods loss or damage.
  • Compliance - Essential for international trade financing, meeting requirements set by banks.
  • Risk Management - Manages risks in long-distance, multi-mode transportation across countries.
  • Customer Satisfaction - Builds trust, showing commitment to safeguarding goods during transit.
  • Competitive Advantage - Comprehensive cargo insurance provides a competitive edge, offering enhanced protection.
  • Flexibility - Personalized policies allow tailoring coverage to fit unique business needs and risk profile.

Coverage Provided in Cargo Marine Insurance Plans?

Cargo Marine policy ensures financial security by addressing damages and losses in the following situations:

  • Goods are in transit via sea, air, or land
  • Goods in-transit, storage, and delays because of overwhelming events
  • Loss arising out of theft or non-delivery of goods during transportation
  • Loss caused by improper packing or handling of goods
  • General average losses, which is the proportional sharing of losses incurred during a voyage among all parties involved
  • Covers salvage charges or cost of recovering damaged/lost goods
  • Covers suing charges, labor expenses and Freight charges
  • Customs duties, which is the tax paid on goods imported or exported

What Does Cargo Insurance Not Cover?

Some common exclusions include Loss or damage because of or caused by:

  • Improper packing, labeling, or documentation of goods
  • Inherent vice or nature of the goods
  • Delay in delivery
  • War or political unrest
  • Intentional misconduct or fraud
  • Nuclear radiation
  • Normal wear and tear of goods

How to Purchase the Best Cargo Insurance Policy Online in India?

Purchasing an open marine cargo policy online in India is a straightforward process with just a few steps:

  • Research - Browse the internet to find information about insurers providing policies.
  • Compare - Evaluate coverage, rates, and terms from various providers to find the best fit.
  • Apply - Complete an online application with business and goods details.
  • Payment - Make a secure online payment using credit card, debit card, or net banking.
  • Receive Policy - Policy documents sent to your registered email; review for accuracy.
  • Renewal - Monitor and renew online before policy expiration to maintain continuous coverage.

Explore 'cargo insurance near me' options to find providers, like SecureNow, offering personalized goods-in-transit insurance online.

Does Cargo Insurance Have Any Limitations?

Policy limitations encompass coverage limits, potentially affecting businesses with valuable goods. Exclusions within policies may restrict coverage for specific types of loss. Providers causing settlement delays may affect cash flow, and premium costs vary based on goods, destination, and coverage.

What Is Cargo Insurance Claim Procedure?

The claim procedure generally involves the following steps:

  • Notify Carrier - Immediately inform the transporting carrier of any discovered loss or damage.
  • File Claim - Submit a claim within 15-30 days, with necessary documentation.
  • Assessment - Insurance provider assesses and may request additional documentation for validation.
  • Settlement - Validated claims result in a settlement covering goods, shipping fees, and related expenses.
  • Appeal- Dissatisfied businesses can appeal through the insurance provider's process or seek legal assistance.

Frequently Asked Questions

Marine Cargo Insurance in India offers three main coverage types:
  • All-Risk, providing comprehensive protection for goods during transit;
  • Restricted, with specific exclusions or limitations; and Free of Particular Average (FPA)
  • Safeguarding against total loss because of specific perils
  • A bill of lading is a contract between shipowner and shipper, outlining carrier liability and confirming cargo receipt. The filled bill of lading illustrates the carrier's responsibility to deliver the cargo as described to consignee.
    The per-sending limit is the maximum expected cargo value during a single transit. Align this limit with your business needs to impact premium calculation and claim settlement. Consult our in-house insurance experts to determine suitable limits for effective coverage and risk management.


    What is a Cargo Marine Insurance Policy

    The cargo marine insurance policy is a specially designed insurance cover for goods in transit. It offers coverage to freight against all types of losses or damages from external causes during transportation whether by land, sear or rail.

    Usually, cargo insurance policies are freely assignable. However, in case of insured goods being personal belongings of a person, cannot assign policies.

    Read More

    How does Marine Cargo insurance work?

    Marine cargo insurance policy is a category of property insurance that provides protection to a property that is transit. The losses to the property in transit can incur due to certain perils associated with transport by sea, by air, or inland waterways. Marine cargo insurance provides coverage to the goods and the means of transportation from damages caused due to wheather issues...
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    What is Inland Transit Clause A in marine insurance?

    Marine Inland Cargo Insurance or Transit Coverage Insurance solutions will help you in safeguarding yourself from the various risks associated with the goods when they are in transit. With marine inland transit coverage, you are able to avail coverage against loss, damage, or destruction. Which can happen to goods while they are in transit over land transportation such as by goods tranis or trucks. Marine inland transit insurance is usually suitable for those goods which are being domestically transported.

    Read More

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