Most business owners including manufacturers, retail shop owners, traders, and farmers require transportation of raw materials or finished goods from one place to another within the country. Even though the process has now become very simple given the development of efficient modes of transit, it is still sought with risks to the cargo in many forms. Accidents occur despite the necessary safety measures being taken by business owners.
According to a report by a statistics firm, commercial cargo vehicles accounted for 19% of the 100,000 vehicle accidents in 2012. The above figures only account for truck accidents which are on a constant rise. Similarly, the scene on the railway systems is also not very praiseworthy. It is thus advised to be prepared for losses or damage to cargo, and one of the ways in which one can secure the goods in transit is to avail an inland transit policy.
Let’s look at the main advantages of the most sought after cover:
1. It Covers Loss due to Damage to your cargo Resulting from a Third-Party Cargo
• Bulk carriers transport multiple cargoes within one vehicle, which could be dangerous for some goods.
• Properties like leakage, heat, explosion, etc. may damage the whole cargo if sufficient space or handling care is not provided in storing the cargo.
• For example, a lot of goods like cotton, grains, etc. are inflammable. Some liquid substances/chemicals, if leaked, can spoil the other assets as well.
• Controlling the cargo mix being loaded to the transport may not be possible for the trader.
2. It Covers Loss Due to Natural Disasters
• Natural disasters are often responsible for delay and damage to valuable consignments, leading to falling business revenues. For example, floods in South India have been the primary culprit of losses to the extent of Rs. 20,000 crore in 2015.
• Frequent occurrences of the cyclone in coastal areas leads to delay in the delivery of finished products, thus forcing the businesses to bear huge losses.
• Landslides in hills are major cause of concern for transporters in the hilly regions.
3. Insurance Cover Can Be Extended to Include Additional Perils& Distance
• There can be unpredictable threats to your cargo in case you deal with transportation of products in areas that are politically unstable.
•These areas are more prone to strike, riots and civil commotion which can occur suddenly before you can do anything about it.
• Inland transit insurance offers extensions in the form of additional perils during strikes and civil commotion.
• It also takes care of the fact that any delay in delivery will require an extended insurance umbrella for the time the cargo remains on the transport.
4. It Is Easy to Avail and Transferable
• The major advantage of availing a marine transit insurance policy is that it can be availed quickly and only a proof of insurance is required to be transferred while transferring the insured goods.
• Quotes can be availed online through the portals of online insurance advisors like Secure Now by filling in simple details about the cargo.
• The policy is issued quickly based on the information given, and if required, it can be transferred easily in the name of another person.
5. It is Customizable
• Based on your business requirements, you can opt for anall-risk cover, basic cover, or specific risk cover.
• As the name suggests, an all-risk cover will ensure protection against damage to the cargo from all kinds of mishaps, subject to exclusions.
• The type of cover one chooses will depend on the kind of business and the amount and type of goods being transported. For example, a top textile firm may prefer an all-risk policy given the wide variety of products it deals in. On the other hand, a corn farmer may choose a specified policy covering only a limited number of risks, depending on the threats in his business.
• It is also customizable as per your transport frequency, for example, a one-off transit, regular trade, annual turnover, etc.
How to Buy Inland Transit Insurance?
Buying marine cargo or inland transit policies has become easier and more time efficient with the online services offered by insurance advisors. Online insurance advisors like the award-winning insurance advisory portal Secure Now, offer multiple quotes and a simple process to avail the policy with just a few clicks. Further, they can assist your claim processing and management of the policy too.
By: Rajveer Khanna