SecureNow : Best Multimodal Transport Operator (MTO) Insurance

Multimodal Transport Operators Insurance

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Cover liabilities such as physical loss or damage to the cargo

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Cover for errors & omissions, fines, and duties

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Advantages of Multimodal Transport Operators Liability Insurance

Meets Legal Requirements

Multimodal transport operator insurance helps the MTO operators and the enterprises who have converted into MTO, in getting the license by meeting the legal requirements as mandated by the law under section(3) of Multimodal Transportation of Goods Act,1993

Comprehensive Cover

A multimodal transport insurance policy covers losses from physical damage to the cargo or due to delay in delivery of consignment. It also provides coverage against consequential losses, errors & omissions, fines and duties and third party legal liability.

Safer Transactions

The number of multimodal transport operators has increased over the past few years. An MTO insurance policy facilitates safer and faster transactions between the transport providers and the trading companies who are operating on worldwide basis.

Fast Claims Settlements

Claim settlement process for an MTO insurance policy is fast and simple. Turnaround times are regulated by IRDAI. Claim process and documentation are handled by industry experts in order to ensure that claims get processed faster and efficiently.

Benefits of Multimodal Transport Operators Liability Insurance

Cargo Liability Cover

An MTO policy is designed to cover all the losses resulting due to physical damage or loss to the transported cargo and due to delay in delivery of shipment.
This policy provides coverage against consequential losses directly arising from the above mentioned condition
It also offers protection against losses arising from cargo's contribution to general average and salvage.

Regulatory Breach Cover

Multimodal transport operator insurance indemnifies the insured in respect of its legal liability to any claim arising from an unintentional breach of any regulation, legal or statutory provision
Policy also compensates for the penalties imposed by a duly constituted court, tribunal or government authority
Any breach directly related to import or export of cargo or immigration is also covered by the MTO policy.

Third party liability Cover

A multimodal transport insurance policy protects the insured for claims related to third party liability arising from an accident causing third party bodily injury or damage to someone's property.
An MTO policy covers those liabilities that an insured may incur while directly performing its insured services.
This policy also covers third party consequential losses directly arising from above mentioned conditions

FAQs

1. What is covered under a multimodal transport operator liability insurance policy?

The Policy covers legal liabilities arising out of:

Physical loss or damage to cargo while in care, custody and control of the insured, or a party who has contracted or sub-contracted to provide transport services
Consequential losses
Unrecoverable cargo's contribution to general average
Errors and Omissions
Fines & Duties
Third Party Liability

2. Whom does a multimodal transport operator insurance policy cover?

A multimodal transport operator insurance policy offers coverage to various transport providers such as MTOs, freight forwarder, hauliers, in-transit warehousing, shipping agents, packing and consolidating agents, clearing and forwarding agents, and custom house agents.

3. What modes of transport are covered under the MTO policy?

A multimodal transport operators insurance policy provides coverage for all modes of transport involved under one contract which could be either air, sea, road or rail movements. MTO policy will also cover if you are acting as agent for third party NVOC principles.

4. What is not covered under a multimodal transporters liability insurance policy?

Standard exclusions under a multimodal transporters liability insurance policy are financial guarantee and insolvency, criminal offenses, dishonest and fraudulent acts, unexplained loss or shortages, fines, penalties, punitive and exemplary damages. Claims arising from any known prior matters are also excluded from the policy.

1. What is the claims process for a multimodal transport operator liability insurance plan?

Policyholder should intimate SecureNow claims team and provide all the details regarding claim. Next, you need to submit the required documents along with duly signed claim form to us. We will later share the documents with respective insurer and coordinate with them. After the claim is scrutinised and approved, it will be settled.

2. How to ensure that my claims are paid?

In order to ensure that claims are paid you should share complete required details asked by the respective insurer. One should take all reasonable steps to avoid, minimise or mitigate a Claim. Also one should not be involved in any kind of criminal activity or dishonest and fraudulent acts. Delivering dangerous cargo should be avoided.

3. What are the documents required to file a claim under a multimodal transport operators liability policy?

Documents required would include copy of billing lading, survey report, original invoice and packing list together with shipping specification or weight notes. Copies of correspondence exchanged with the carriers or bailees and claim bill should be submitted. In case of any other additional requirements raised by the insurer then those documents should be duly submitted for the faster claim processing.

4. How much of my claim will be paid in case of two or more claims attributable to same incident or resulting from continuous or repeated exposure to the similar conditions?

In cases where there are two or more claims attributable to same incident or resulting from continuous or repeated exposure to the same or similar conditions, the limit of indemnity and deductible applicable under a multimodal transport operator policy will be applied on one claim and the claim will be payable accordingly.

1. How is the premium determined for a multimodal transport operators liability insurance policy?

Premium of a multimodal transporter liability insurance depends upon several factors such as limit of indemnity, gross revenue, number of TEUs (Twenty Foot-Equivalent Units) being delivered. As every factor can result in change of overall policy premium rates, hence all the factors are deeply analysed by our experts along with client's requirement

2. How to start my coverage of a multimodal transport operator liability insurance?

To start the coverage of a multimodal transport operator liability insurance policy, one should submit the below mentioned documents timely:-

Premium cheque
Proposal Form
Mandate Letter
Any other document as required the respective insurer

3. What is the best way to start a multimodal transport operator liability insurance policy?

In order to get the best deal along with optimal coverage, it is advised to take the help of an insurance expert such as SecureNow. You can compare pre negotiated quotes and then can choose the most suitable plan for you. You can pay the policy premium through cheque, DD, net banking directly to the insurance company you choose to go with.

4. How does the premium change due to past claim experience under a multimodal transport operators insurance?

There is no fixed calculation for the loading of the premium charged due to past claim experience. Premiums do get impacted due to past claim experiences but it further depends on various other factors such as type of claim, insurer's claim experience for the category, claim status, final claim amount paid etc.

1. What is the difference between a carrier legal liability and an MTO policy?

Differences between a carrier legal liability and an MTO are:

Carrier Legal Liability provides coverage for road movements whereas, an MTO policy provides coverage for all modes of transport involved under one contract.
Carriers Legal Liability covers the legal liability of insured for actual physical loss of or damage to goods while being transported within India only by a vehicle specified. Whereas MTO policy takes care of all marine liabilities of the logistics industry.
For an MTO, it is mandatory to have its services insured in order to get the license whereas the carriers who want to take this insurance should be registered under the Carriers Act.

2. What are the different types of multimodal transport organisations?

There are various types of organisations operating as MTOs which majorly can be grouped under two categories :-

1. Vessel Operating MTOs who are the individual shipping companies or groups of consortia of shipping companies and the large exporters
2. Non-Vessel Operating MTOs who are freight forwarders, road transport operators, railways and airlines

3. What are the requirements stemming from Multimodal Transport Operators Liability Act?

In view of the provisions of Section(3) of the Multimodal Transportation of Goods Act (MMTG), 1993, no person shall carry on or commence business on multimodal transportation unless he is registered under the Multimodal Transportation of Goods Act,1993. “Multimodal Transport Contract ” to mean” a contract under which Multimodal Transport Operator undertakes to perform or procure the performance of Multimodal Transportation against payment of freight”.

4. What do you mean by a multimodal transport document?

Multimodal transport document is a document evidencing contract for performance of combined transport. This document is issued when the transportation of goods involve more than one mode of transport. Hence, in multimodal transport document, the carriers are called multimodal transport operator, who are liable for safe carriage of goods to place of delivery.

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Proposal for Multimodal Transport Operators Liability	Quote
Total Premium (INR, excluding taxes)	₹ per annum

Covers Opted For
No of TEUs
AOA:AOY	1.1
Territory	Worldwide
Jurisdiction	India
Deductible	US$ 2,500 on each and every claim
Sections Covered
Liability of Cargo
Third Party Liability
Professional Indemnity
Fines & Penalties
Claim Expenses
Services Covered
MTO
Freight Forwarder Air and Ocean both
Packaging and consolidation
Road Hauling
Custom Agent/CHA
Intransit warehousing
Exclusions
Suit in or arising from Sanctioned Countries
Dangerous Cargo
Financial Guarantee & Insolvency
Bullions, precious stones, cash, bonds, negotatiable instruments or securities, mobile, telephones, livestock or fresh flowers
International contract of carriage
Custom Duty, Sales or Excise Tax or similar fiscal charge
Criminal Offences
Bodily injury of insured's employees, employees of any sub-agent or sub-contractor, or any third party deemed to be an employee
Dishonest and Fraudelent Acts
Unexplained loss or shortages
Known Prior Matters and Notifications
Fines, Penalties, Punitive and Exemplary Damages
Conditions
Basis of Coverage	Claims Made
Filled-up Proposal Form
Claim Intimation Time	Immediately
Quote valid for 1st time buyer
No known or reported losses
Note : These are indicative prices. Insurance is the subject matter of solicitation.

Multimodal Transport Operators Insurance

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Advantages of Multimodal Transport Operators Liability Insurance