Transit Insurance

The goods in transit are subjected to different kinds of risks. Hence, transit insurance is a policy taken to financially cover these goods against all sorts of risks or losses such as accidents, theft, fire, or any damages caused by natural calamities. 

These are meant to safeguard any losses/damages incurred by the commercial or private cargo while they are being transported from one place to another. It covers the entire journey of transportation of the goods or products, right from loading to unloading. Depending on the policy one takes, transit insurance might cover the packing and unpacking of goods, the full journey of transportation and the storage of the goods.

Suppose, Mr Singh, owner of a retail electronics shop, has an incoming cargo of electronics which he got from a wholesaler. Hence, he hires a transportation service provider to help with the shipping of the goods. He might choose to get a transit insurance policy to safeguard his finances lest his electronics suffer any damages that can be caused while they are in transit. In case of any unfortunate incident or mishap, any damage to the goods will not affect him financially since his transit insurance policy can cover the losses and give him a provision to raise a claim. 

Key pointers:

· Transit insurance helps to ensure that any loss or damage caused to goods in face of any mishap occurring during their journey of transportation can be claimed back. Specific transit insurance gives coverage of rail, road, water and air transportation.

· It is a service that reimburses consignors whose shipments are lost, stolen or damaged during movement from one place to another.

· It helps in protecting the transport businesses from the risk of loss and damage to a consignee’s goods or cargo while shipping their materials or equipment. It helps businesses to recover and restart again.

·         Transit insurance is extremely important as it ensures that the cargo owner suffers no financial loss due to damage incurred by the goods that are being shipped from one place to another. It covers both business goods and personal belongings.

Types of transit insurance: 

The different kinds of transit insurance policies available for shippers are:

1. Single transit insurance: This type of transit insurance is provided for single transit only, which means it will come to an end as soon as the goods reach their destination. It is most favourable for shippers that carry out transits occasionally.

2. Open transit insurance: Unlike single transit insurance, this type of policy provides coverage for multiple transits. It will provide insurance coverage for all the transport activities carried out in the policy period. It is best suited for business owners that send out transits frequently.

Bottom line: 

Thus, transit insurance helps to protect businesses from all sorts of financial risks and losses that can happen to damaged/lost goods while they are being shipped from one place to another. If you too have a shipment to deliver or want to hire a truck driver then Vahak, as a one-stop transport marketplace is always there to cater to all your transport-related needs.

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