Inland Transit vs Marine Cargo insurance
If your business involves the transportation of finished or unfinished goods or raw materials, you probably need a form of marine insurance. Several types of such insurance options are available depending on the need, but for someone involved in the transit of goods, cargo protection is of utmost importance. Marine insurance could be via any sort of conveyance, namely, ship, road, rail or mail. The article below shall delve into the differences between the two most common types of marine insurance- inland transit and marine cargo insurance.Read more
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Before we dig deep into the difference between these two insurance types, let us first understand what they mean.
Inland Transit Insurance
Inland transit insurance is specifically designed to provide extensive coverage to the insured’s goods or cargo while they are being transported within the country. Also, sometimes referred to as domestic transit insurance, this insurance is part of marine insurance, however, the transit should be within the borders of the country. This policy is the best available option to protect goods from damage or losses while in transit.
Marine Cargo Insurance
If your business is involved in the import and export of goods or is expanding to overseas markets, marine cargo insurance is a must. This insurance policy can offer protection for your shipments as transit to different countries encompasses higher risks and a different set of laws. The conveyance can be in form of sea, land or aerial.
Inland Transit vs Marine Cargo Insurance
Since we have now put some light on the basic concepts of inland transport and marine insurance, we shall now focus on the factors that differentiate one from another.
|Differentiating Factor||Inland Transit Insurance||Marine Cargo Insurance|
|Meaning||Inland transit insurance is the coverage for insured shipments or goods when being transported domestically mostly by land.||Marine cargo insurance provides coverage for the import or export of goods from one nation to another, by the means of land, air or sea.|
|Means of transport||Typically, this insurance doesn’t cover the transport of goods by sea or air.||This insurance usually includes any means of transportation.|
|Geographical location||Within the country’s borders||International trade|
|Coverage clauses||This insurance provides coverage under two types of clauses:
Inland Transit Clauses (A): Coverage for all types of damages excluding rainwater damages
Inland Transit Clauses (B): Coverage for only accidental damages
|This insurance provides coverage under:
International Cargo Clause (A): Coverage for all types of damages excluding rainwater damages
International Cargo Clause (B): Coverage for only accidental damages
|Common perils covered||Some common perils covered are:
Manmade or natural calamity
|Some common perils covered are:
If cargo leaves the port of distress
Why Buying an Insurance Is Important?
Be it inland transit insurance or marine cargo insurance, goods in transit must be insured. We list down a few reasons why buying an insurance policy for your shipment is a must.
- Regardless of the precautions you take, accidents can sometimes be inevitable.
- Losses incurred can be huge.
- Carrier's limit of liability is fixed to a certain amount and they shall pay only to that extent.
- Settling of claims has fastened due to digitalization and cross-functioning
Marine insurance and inland transit insurance aren’t complicated; however, it is always a great idea to understand the differences and the need of the shipper and then navigates various insurance providers before making a buying decision.