Did you know that while you were busy throughout the day delivering cargo in your goods vehicle, there have been at least eight incidents of cargo theft in the world? And, it doesn’t stop here. Did you know that the same cargo that you were shipping via road stands the maximum risk of theft? No, we are not making this up. This is what the BSI and TT Club Report says. Startling as all the data might seem, it, nonetheless, paints a scary picture for the transportation and logistics sector.
For an industry that thrives on shipping cargo, it is a perpetual threat. No wonder then most of the transporters choose to get their cargo insured. But if you haven’t considered this yet, it is time for you to think, “Where can I get cargo insurance?”. And we are here to help you exactly with this– just so you can move on from “Where can I get cargo insurance” to “I’ve got my cargo insurance figured out!” So let’s get started!
What Is Cargo Insurance?
Shipping cargo from one place to another is fraught with risks and dangers. Some of these you may foresee, for example, when the weatherman warns against heavy rainfall along the area of your route, but you have an urgent delivery scheduled for today. So you are prepared to use your resources, like packaging, sheltering, or insuring the cargo, in advance to safeguard the cargo.
But most of the risks come like a bolt out of the blue–road accidents, collisions, mishaps, theft, and misplaced or lost goods, among other things. One thing common to both types of dangers is loss or damage to the cargo which in turn leads to your financial loss as well.
This is where cargo insurance steps in to offer you monetary security. Even if your cargo is fully or partly damaged, the cargo insurance policy will cover the losses incurred, depending on the kind of policy you have.
Why Is Cargo Insurance Needed?
If the above scenarios were not enough to convince you of cargo insurance, let us illustrate through the example of Mr Gupta.
Mr Gupta runs a Kolhapur-based transport and logistics company that ferries shipments and cargo across the country. He is someone who strongly believes in maintaining the quality of his services and so he goes out of his way to ensure the safety of cargo. So when he had to ship a huge cargo from Kolhapur to Pune, it was obvious for him to get the cargo insured, even though the route and the journey were not too long.
As his fleet of trucks was passing through the highway, one of the trucks got a flat tyre. The repairing work made that particular truck lose the track of the fleet. The same truck was suddenly attacked by a group of thieves who ran away with a major part of the cargo. Mr Gupta immediately raised a claim with his insurance company for the lost goods. Even though the theft meant a loss of Rs 2.5 lakhs for Mr Gupta, paying only Rs 800 for the cargo insurance helped him in recovering from the loss. The claim reimbursed a good amount and so he was in no way financially affected by the theft.
This makes it pretty clear why cargo insurance is needed–to give you financial security in case of unforeseen damage or loss to the cargo.
Where can I get cargo insurance?
Cargo insurance is easily available online. You can get in touch with Vahak where you can talk to our agents regarding your cargo insurance needs and seek their guidance on the same. Meanwhile, keep the following pointers in mind while buying cargo insurance:
- Cargo insurance can be of two types depending on the mode of transportation: marine cargo insurance–meant for cargo shipped via sea routes, and land cargo insurance–for cargo shipped via road. As a truck driver, it is natural that you would require land cargo insurance for ferrying goods in your commercial vehicle.
- While considering buying cargo insurance, make a note of what the company has to offer. Carefully look at the incidents and events that the cargo insurance policy covers.
- Another thing to keep in mind is the charges for cargo insurance. Usually, the industry norm is 0.15% of the total value of goods. For example, if you are shipping cargo containing cotton worth Rs 1,50,000, in your commercial vehicle, then as per this standard charge you need to pay 0.15% of Rs 1,50,000 which will amount to Rs 225 only. So by paying a reasonable amount of Rs 225 (in case the company charges 0.15% of goods value), you can ensure the safety of cargo worth rs 1,50,000.
- Try to be honest and accurate in your declaration of the goods. The nature of goods and their total value should be informed to the cargo insurance company beforehand.
- Cargo insurance usually covers a period of 7-10 days, depending on the approximate duration of the shipping as well as the company’s policies.
No doubt, cargo insurance is of utmost importance when it comes to shipping goods in the transportation and logistics sector. One can easily invest a small sum to get their cargo insured against damage to the goods.
If you are still wondering Where can I get cargo insurance, then you should get in touch with Vahak and our team will help you get the correct answer.
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