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What are Inland Transit Insurance coverages in Marine Insurance?

  • Author :
  • TATA AIG Team
  • Published on :
  • 12/04/2024
  • 2 min read

Marine inland transit insurance policy refers to a type of insurance coverage that protects goods while they are transported by land. This is typically from the point of origin to the final destination. It provides financial compensation for marine losses or damages incurred during the transportation. This offers a safety net for the businesses involved in the movement of goods.

In the marine industry, where goods are frequently transported via various modes such as road, rail or inland waterways, inland marine insurance policy plays a crucial role. It ensures that businesses are protected against potential risks and uncertainties that are associated with the transportation process. This safeguards their assets and promotes smoother operations.

What is Inland Transit Insurance Policy and Why is it Important?

Unlike traditional marine cargo insurance, the inland transit insurance policy protects goods and cargo transported by various modes of inland transportation. It serves as a crucial financial shield for businesses involved in the transportation of goods. It offers protection against a wide range of risks and perils that can occur during transit.

Without adequate insurance coverage, businesses risk significant financial losses due to high-risk incidents. Unforeseen events like theft, damage from accidents, natural disasters, and fire may occur while goods are in transit over land.

The marine inland transit insurance policy mitigates the risks associated with transporting valuable cargo over vast distances and facilitates international trade and commerce.

What Does Marine Inland Transit Insurance Policy Cover?

The marine inland transit insurance policy covers movable property during transit or temporary storage which fills gaps left by standard marine insurance policy. The movable property includes items such as tools, equipment, and high-value items. This type of insurance is particularly crucial for businesses that frequently transport high-value items.

Such policies may offer ‘all-risks’ coverage which protects against any peril that is not specifically excluded or any named perils listed in the clauses of the marine inland transit insurance policy. This flexibility allows businesses to tailor their insurance coverage to suit their specific needs and risk exposures.

Moreover, inland marine insurance policies differ in how they value damaged or destroyed property, which can significantly impact the compensation received by policyholders.

Some inland marine insurance policies reimburse losses based on the replacement value of the property at current market prices without factoring in depreciation. On the other hand, some calculate payments based on the actual cash value of the property while considering depreciation.

Businesses must carefully consider their options for inland marine insurance policies to ensure they have adequate coverage for their valuable assets. By understanding the nuances of coverage types and valuation methods, businesses can make informed decisions when selecting a policy. This ensures that they choose a coverage that best aligns with their risk management strategies and financial objectives.

What Does Marine Inland Transit Insurance Policy Not Cover?

The marine inland transit insurance policy often has exclusions that encompass damage resulting from insects, wear and tear, mould, floods and earthquakes. Moreover, the coverage under the marine inland transit insurance policy typically does not extend to the following aspects: Vehicles

Stationary property located within business premises

Goods transported by sea or air

Damage incurred before shipment

These exclusions are vital for all policyholders to understand as they explain details of the boundaries of the coverage provided under a marine inland transit insurance policy. This can significantly influence risk assessments as well.

Understanding what is not covered is as crucial as understanding what is covered. It gives policyholders the ability to make informed decisions and seek additional coverage where necessary.

Types of Inland Marine Insurance

Marine Single Transit Inland Policy

  • Single transit insurance in marine insurance is a tailored type of coverage that is designed to protect merchandise or cargo during a single journey or transport operation. It is a customised policy that offers safeguarding for cargo as it travels from its point of origin to its designated destination. This could be using different modes of transportation like trucks, trains, ships or even aeroplanes.

  • This specialised insurance ensures that the cargo is covered throughout the entire transit process. It provides financial protection against potential risks and hazards that may occur during transportation. The marine single transit inland policy mitigates the financial impact of any unforeseen events or damages that could occur during transit.

Contractor’s Equipment Floater

  • A Contractor’s Equipment Floater is a specialised insurance policy that provides coverage for the loss, damage, or theft of a contractor's equipment or tools. This coverage extends to various locations which include the contractor’s business premises, job sites or during transit.

  • This policy safeguards valuable equipment used by contractors in their day-to-day operations. This ensures financial protection against unexpected events that could result in the loss or damage of precious equipment.

  • Whether the equipment is on-site or at the contractor’s office or even in transit between locations, this policy provides comprehensive coverage to mitigate the financial risks associated with equipment-related incidents.

  • Contractors rely on equipment floaters to safeguard their essential tools and machinery. This gives them the space to focus on their work without worrying about potential financial losses due to equipment damage, loss, or theft.

Electronic Data Processing (EDP) Insurance

  • The Electronic Data Processing (EDP) Insurance is designed to shield businesses from potential losses or damages to essential equipment. This equipment includes items such as desktop computers, mainframes, laptops, tablets, and other devices that are used for data processing or data storage.

  • These policies provide coverage for a variety of perils, including fire, floods, theft, and electrical disturbances. This ensures that businesses are financially protected against unforeseen events that could disrupt their operations.

  • Electronic Data Processing (EDP) Insurance offers comprehensive protection to safeguard valuable equipment which ensures business continuity. This makes it an essential risk management tool for the well-being of businesses.

Bailee Insurance

  • Bailee Insurance shields businesses from liabilities for damage to customer’s property while under their care for services, repairs, or storage. It applies to businesses acting as custodians, such as dry cleaners, computer repair services, and pet boarding facilities.

  • This coverage ensures that businesses are financially protected against potential claims or lawsuits arising from damages to customers’ property while in their possession. Bailee insurance is essential for businesses entrusted with the care of customers’ belongings, providing peace of mind and protection against unforeseen incidents that could result in financial loss or legal liabilities.

Accounts Receivable Insurance

  • Accounts Receivable Insurance shields businesses from financial losses due to damage or destruction of accounts receivable records caused by covered perils or customers’ non-payment of invoices.

  • This coverage ensures that businesses are compensated for outstanding debts. This safeguards against potential revenue loss resulting from unexpected circumstances or customer defaults.

  • By mitigating the risk of financial instability arising from unpaid invoices or record loss, accounts receivable insurance provides protection that is crucial for businesses. This policy ensures continuity of business operations as well as provides financial stability in challenging situations.

Installation Floater

  • Similar to a Contractor’s Equipment Floater, an Installation Floater is a specialised insurance policy that protects contractors against theft, damage, or destruction of property. Unlike a Contractor’s Equipment Floater, an Installation Floater covers not only equipment but also materials and supplies during transit or while awaiting installation at a job site.

  • This coverage safeguards contractors from financial losses incurred due to unforeseen events such as theft, vandalism, or accidents that may occur during transportation or storage. Providing coverage for both movable and stationary property installation floaters ensures that contractors are adequately protected against potential risks that could disrupt their operations or incur substantial costs.

  • Whether the property is in transit or awaiting installation, this insurance policy offers essential financial security. This enables contractors to mitigate risks while maintaining business continuity throughout construction projects.


Inland transit insurance in marine insurance plays a pivotal role in safeguarding goods during transportation. With tailored coverage options and protection against a range of perils, it is truly indispensable for businesses involved in transporting valuable cargo.

However, investing in a cargo insurance policy from a trusted insurance provider like Tata AIG is essential for a policyholder's peace of mind. With Tata AIG’s flexible coverage, all insured cargo is protected throughout the journey, up until delivery.

Moreover, the company’s seamless website allows for the comparison of various insurance packages which lets policyholders choose a marine insurance policy that aligns with their financial objectives.


Does inland transit insurance cover delays in delivery?

No, delivery delays are generally not covered under inland transit insurance policies.

Can perishable goods be covered under a marine insurance policy?

Perishable goods require specialised insurance coverage as they are excluded from standard marine insurance policies.

Does inland transit insurance cover international shipments?

The provision of insurance coverage for international shipments depends on the insurance provider.

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Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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