This insurance provides coverage for goods being transported over land only from one place to another. The scope of coverage is restricted to Fire, Theft or Accidental Means and subject to Express Exclusions of the Policy.
Cover commences from the time goods leave the place of warehouse continues during the ordinary course of transit and terminates upon delivery at destination. Temporary storage during ordinary course of transit and the process of loading and unloading are also covered.
There are three methods of issuing a Goods In Transit Policy:
- A voyage policy may be issued for a single transit. Premium is charged for the insured transit and cover terminates upon delivery at destination.
- A time policy may be issued specifying the limit anyone transit/conveyance. Provisional premium is charged at inception based on rate applied to total estimated carryings. This provisional premium will be adjusted at end of period of insurance at rate on actual total carryings as declared by Insured. The Insurers maximum liability would be the actual loss or specified limit anyone carrying on the policy.
- A policy may be issued based on Limit of Liability representing the total/aggregate value of transits during the period of insurance. After a claim, the Limit of Liability is diminished by the amount of claim made until the total Limit of Liability is exhausted. The Insured may choose to include a reinstatement of loss clause to maintain for the full Limit of Liability after a loss. The Insured shall be liable to pay an additional premium at the rate of the policy calculated on the amount of loss on a pro-rata basis from the date of such loss to the expiry of the current period of insurance.
- War risks and Nuclear risks
- Wear, tear and depreciation
- Temporarily housed in the course of transit for the purpose of storage making up packing or processing .
- Specific Goods as listed in the policy.
- Dishonest act, theft or pilferage by any employee of the Insured.