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Transit Insurance

Transit insurance offers wide coverage to cargo from any physical damage or loss during transit via road, sea, air or rail.  

What is Transit Insurance?

Transit insurance or transport insurance policy for cargo covers a number of risks like damage to goods due to untoward perils such as earthquake, fire, explosion, and lightning.

Transit Insurance in India also recompenses damages resulting due to derailment or overturning of the vessel. Transportation insurance also covers loss of goods due to the sinking of the vessel. Nowadays, you can easily buy transit insurance online.

Transit Insurance Coverage

Transit insurance policy offers coverage to all types of cargo against risks associated with fire, collision, lightning etc.

The insurer shall offer compensation under the following circumstances:

  • The transit insurance policy covers loss or damage to the freight during international transit via air or sea
  • It covers riots, strike, war, and civil commotion

Types of Transit Insurance

The various types of transit insurance policies that you can buy are listed below:

  1. Single Transit - Such policies are designed for business owners who send out shipments occasionally. And the coverage is provided for a single voyage only. As soon as the shipment reaches its destination the coverage will cease.
  2. Customized Plan - A transit policy can be customized on the bases of the goods type, transaction limitations, location limitations, mode of transportation, and any other specific requirements.Transit insurance can be issued online and the premium can be paid through net banking or NEFT.

Benefits of Transit Insurance

Following are the benefits of buying a transit insurance policy-

  1. Transit insurance policies offer global standard coverage. It means that they cover clauses that are internationally recognized.
  2. There are multiple coverage options from top insurance providers
  3. Policy can be issued immediately online
  4. Just by providing limited information you can get transit insurance cover

Who can Buy Transit Insurance Policy?

Transit/transportation policies can be issued to the following parties-  

  • Importers/Exporters
  • Manufacturers
  • Aggregators/Transporters
  • Custom House Agents
  • Traders


Written By: PolicyBazaar - Updated: 01 February 2019

What documents are required to file a claim for a transit insurance policy?


Following documents would be required-

  • Billing lading
  • Original invoice
  • Survey report
  • Packing list
  • Shipping specification
  • Copies of correspondence exchanged with the carriers
  • Claim bill

Based on the situation, the insurer may ask you to submit further documents.


Can the partial loss of cargo be claimed under transit insurance?


Yes, the insurance provider shall compensate for the partial loss of goods being transported in the cargo.  A partial loss that is covered is of two types:

  • Any general loss that is voluntarily caused to avoid danger. For example, if the overloading leads to the sinking of the vessel, the goods might be thrown out of the vessel to save the ship and crew
  • The second types of losses are those that are covered under marine perils.

Does transit insurance cover damages caused while loading and unloading of the goods?


Yes, transit insurance policy covers loss or damage due to unloading or loading of the cargo from the vessel.  It can be purchased as an add-on benefit as it will cover the entire transit beginning from the loading till the unloading of the cargo at the final destination.


What is the deductibles/excess in a transit insurance policy?


It is the minimum amount that is deducted from your claim amount. The amount that the insurance provider is liable to pay is after deducting excess from the sum insured and other limits as per the policy terms. Also, excess helps the policyholder in avoiding administration costs by not filing minor claims that are lesser than the excess amount.

Average Rating
(Based on 4 Reviews)
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Transit Insurance Reviews & Ratings
4.5 / 5 (Based on 4 Reviews)
(Showing Newest 4 reviews)
Marhara, February 18, 2020
Online policy done
I got my transit policybazaar from policybazaar as recommended by my friend as he thinks that it is quite secured. I bought it online and got the policy documents within an hour.
Durgapur, February 17, 2020
Extraordinary coverage
It gives and covers the extra ordinary things. Such as the riots, strike war and civil commotion. I am really happy with the services and covers provided by the policybazaar.
Aallapalli, February 06, 2020
Better coverage
The best part of transit insurance which I took from policybazaar is that it covers the damaged goods which happens with natural calamities. And we all know in such areas these activities do happen
Adenigarh, February 03, 2020
Freight Charges
It covers the freight charges within the country and outside the country. The moment you load the products and unload the products at the place. It covers from first till end.

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