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  • > The Benefits of Multimodal Transport Operator Insurance
  • > Quick Guide to Multimodal Transport Operator Insurance
  • > Frequently Asked Questions
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The Benefits of Multimodal Transport Operator 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.

Quick Guide to Multimodal Transport Operator Insurance

Multimodal Transport Operator (MTO) Insurance

The Multimodal Transportation of Goods Act, 1993 established a legal responsibility on the multimodal transport operators (MTOs), licensed operators, liable for any loss or damage to the goods entrusted to them for transportation.

MTO Insurance is designed to protect freight forwarders and transportation operators from legal liabilities arising by virtue of their operations. All marine and cargo liabilities for the below list are covered under such a policy:

  • Freight Forwarders
  • MTOs
  • Haulers
  • Ship Agents
  • Clearing and Forwarding Agents
  • Custom House Agents
  • Packing & Consolidating Agents

An MTO insurance policy also covers for in transit warehousing.

Multimodal Transport Operators Liability Insurance Policy

Multimodal transport operators liability insurance (MTO) is a type of insurance that provides coverage for damages or losses that occur during the transportation of goods by multimodal transport operators. These operators handle the transportation of goods by multiple modes of transportation, such as road, rail, air, and sea. Multimodal transport operator insurance policy is designed to protect these operators against the risks associated with transporting goods over long distances through multiple modes of transport.

MTO insurance covers a range of liabilities, including physical damage to goods, delay in delivery, loss of cargo, and damage to third-party property. It also covers liability for injuries or death caused to third parties during the transportation process. MTO insurance is typically purchased by freight forwarders, logistics companies, and other businesses involved in the transportation of goods.

The coverage provided by MTO insurance varies depending on the terms and conditions of the policy, but it typically includes a range of risks associated with the transportation of goods, including theft, accidents, natural disasters and other unforeseen events. It is important for businesses involved in multimodal transportation to carefully review the terms and conditions of MTO insurance policies to ensure they have adequate coverage for their specific needs. There are many leading insurers who offer this transport operators liability insurance online.

Why Choose MTO Insurance Policy Online?

Buying Online Multimodal Transport Operator Insurance policy offers several benefits to policyholders. Here are some of the advantages of purchasing MTO insurance online:

  • Convenience - Buying MTO insurance online is a convenient option as it can be done from the comfort of your home or office at any time of the day or night. This saves you the time and effort of visiting an insurance broker or company in person.
  • Cost-effective - Online MTO Insurance policy is often cheaper compared to traditional policies sold through agents or brokers. This is because online insurers have lower overhead costs and can pass on the savings to their customers.
  • Wide range of options - Online MTO insurance offer a wide range of coverage options to choose from, including cargo insurance, liability insurance, and hull insurance. This enables policyholders to tailor their coverage to meet their specific needs.
  • Instant quotes - Online MTO Insurance policy provide instant quotes, making it easy for policyholders to compare prices and coverage options from different insurers. This helps policyholders make informed decisions when purchasing their policy.
  • Easy claims process - Online MTO insurance policies usually have a simple and streamlined claims process. This makes it easier for policyholders to file a claim and receive compensation for any damages or losses.
  • 24/7 customer support - Online insurers often offer 24/7 customer support, enabling policyholders to get assistance and advice whenever they need it.

In summary, buying Online Transport Operator Insurance policy is a convenient, cost-effective, and flexible option that provides policyholders with a wide range of coverage options, instant quotes, and easy claims processing.

Benefits of a Multimodal Transport Operators Insurance Policy

Below are the possible benefits of an MTO Insurance Policy:

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.
  • MTO insurance 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.
  • This 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

  • This 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.
  • Such a policy also covers third party consequential losses directly arising from above mentioned condition

Cover under Multimodal Transport Operator (MTO) Insurance Policy

A Multimodal Transport Operator Insurance Policy could cover 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 subcontracted to provide transport services
  • Consequential losses
  • Unrecoverable cargo's contribution to general average
  • Errors and Omissions
  • Fines & Duties
  • Third Party Liability

Note: This is an indicative list only. Your policy copy will have the details of all the coverages under the MTO insurance policy.

How to Get MTO Insurance Certificate

To obtain a Multimodal Transport Operators (MTO) insurance certificate in India, you need to follow the below steps:

  • Choose an insurance company - Select a reliable insurance company that offers MTO insurance policies.
  • Submit the required documents - Submit the necessary documents, including company registration certificate, PAN card, and other relevant documents.
  • Provide the details of the transportation agreement - Provide the details of the transportation agreement between the company and the client, including the scope of services, freight rates, and liability limits.
  • Pay the premium - Pay the premium amount for the MTO insurance policy, which will be calculated based on the transportation agreement and other factors.
  • Receive the certificate - Once the insurance company processes your documents and payment, they will issue the MTO insurance certificate.

Having an MTO insurance certificate is crucial for companies engaged in the transportation of goods. It protects them from legal liabilities arising from any damage or loss of cargo during transportation. It is advisable to choose a reliable insurance company that provides comprehensive coverage at a reasonable premium.

Documents Required for Multimodal Transport Operator (MTO) Insurance Policy

Documents required would to claim for a multimodal transport liability insurance include:

  • Copy of billing lading
  • Survey reports
  • Original invoice
  • Packing list together with shipping specification or weight notes
  • Copies of correspondence exchanged with the carriers or bailees
  • Claim bills

In case of any other additional requirements raised by the insurer then those documents have to be submitted as soon as possible for a faster claim processing.

Multimodal Transport Operator (MTO) Insurance Policy Claim Process Online in India

The first step in the claim process for an MTO policy is intimating the insurer about the damage or loss. With us it is easy. You can just intimate us by writing on along with the basic details of the claim. SecureNow’s claims team will reach out to you and ask for further documentation, if needed, in the process. You will have to submit the mentioned documents along with the duly signed claim form. We will share the documents with the insurer. After the claim is scrutinized and approved, it will be settled. SecureNow will coordinate in this whole claim process and will update you for any status change. You can trust us for your insurance!

Frequently Asked Questions

An MTO insurance covers for claims arising from any third-party involved in the transport chain, for loss or damage to cargo, or errors and omissions. It protects multimodal operators and freight forwarders from legal liabilities arising due to loss or damage to the cargo.
Yes, a policy as such covers for all modes of transportation sea, air, road and rail, as part of a single contract.
To obtain a specialized policy as such, you need expert advice. Reach out to us, by providing your basic details and indemnity details and we’ll share you the quotes online. You can then choose to buy it online. We’ll get back to you for further details. As soon as we understand your requirements, we’ll work on procuring the best policy for you. After you’ve made payment for the policy, your multimodal transport cargo liability insurance coverage starts.


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The Liabilities Of Freight Forwarder And How It Can Be Covered.

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