Single Transit Policy

Before moving on to the single transit policy, it is important to fully understand what marine insurance is and why it is required.

Marine insurance, as the name suggests, is a type of insurance that offers coverage for the transit of ships and cargo via marine channels. In other words, it offers coverage for the risks faced by cargo owners, ship owners, terminal handles, and other stakeholders involved in the sea shipping business.

But that’s not it. Marine insurance policies from reliable providers also offer coverage for the transportation of goods via other channels. You can get a policy depending on your specific needs and requirements.

Coming to the question — why is it required? Here is the answer.

As discussed earlier, transportation of goods via seaways is a risky process. You need to ensure timely delivery while ensuring your shipment reaches its destination in a safe and sound condition.

However, that’s not always the case. Various natural and manmade situations can result in the full or partial loss of the shipment. When this happens, you need to bear a hefty financial burden in order to recover those losses.

For this reason, investing in a good marine insurance policy becomes a necessity rather than an option.

A single transit policy is a type of marine insurance that provides cargo coverage for a single journey or a one-time transit operation. This type of policy is designed to offer complete protection to the cargo right from its source to its intended destination via multiple modes of transportation such as trains, trucks, aeroplanes, or ships.

A single transit policy is a great option for you if you fall under any of the following categories:

Occasional Shippers

A single transit insurance policy is an ideal option for occasionally making marine shipments. Instead of buying an annual marine insurance plan, you can purchase a single transit plan every time you need to transport goods through marine channels.

Small and Medium Business Owners

SMEs or small and medium business owners often fall short on budget, which may stop them from investing in an annual marine insurance policy. For such businesses, a single transit policy is a great option as it is highly cost-effective as compared to annual insurance plans.

High-value Shipments

The single transit policy is a good choice for businesses and individuals who deal in high-value goods like antiques. It offers a broader coverage and ensures that your valuable items reach their destination in perfect condition.

Note that the need for a single transit marine insurance policy depends on various factors such as the nature of the shipment, mode of transportation, distance between source and destination, and type of potential risks, among few others. Hence, make sure to consider all these factors when choosing the right one-time transit policy for yourself.

Besides cost-efficiency and broad coverage, a single transit policy has many other benefits as mentioned below:

Broader Coverage

One of the most significant advantages of buying a single transit policy is that you get comprehensive coverage for your goods regardless of their transportation mode. It means you do not have to buy different policies for transporting shipments via roadways, railways, airways, and seaways. You can buy a single policy for all your needs.

Cost-effective

Buying a single transit policy becomes much more cost-effective because you do not have to purchase multiple policies for different transportation modes. Besides, it is a great option for infrequent transporters who do not want to invest in an expensive annual transit plan.

Tailored Policy

Another major advantage of a single transit policy is that it can be tailored to your specific requirements. It means you get all the features in your insurance policy you are paying for.

Easy Claims Settlement

Filing a claim in the case of a single transit policy is much easier and straightforward as compared to full marine insurance. It is quick and hassle-free as it doesn’t involve a lot of paperwork and calculations.

Simple Policy Management

Buying a single transit policy instead of having a separate policy for different modes of transportation makes policy management easier. You do not have to deal with the hassle of paying multiple premiums, checking deductibles, etc., every single month.

Peace of Mind

Last but not least, a single marine transit policy helps businesses achieve greater peace of mind, knowing that their shipment is well protected throughout the journey and they do not need to bear the financial burden in case of any mishap.

A majority of single transit policies in marine insurance offer coverage for the following situations:

• Ship sinking

• Fire accidents

• Collision

• Derailment

• Stranding

• Forwarding cost

• Overturning

• Natural calamity damage

• Jettison

• Washing overboard

• Theft

• Malicious damage

• Damage while loading/unloading

• Breakage of bridge

• Contact of the carrier with animal/structure

• Delivery of cargo at a different location due to poor weather

Ensuring a timely delivery of your cargo via waterways is just one side of the story. You also need to ensure that your goods reach the intended destination the same way they have left the origin.

However, that is not always possible, as you never know what unprecedented situations your freight may have to go through during the transit.

This is why investing in good marine insurance becomes increasingly important. However, if you are an infrequent marine shipper or transport or on a budget, you buy a cost-effective single transit insurance.

By having a marine single transit inland policy, you can safeguard yourself from any financial loss arising from any unforeseen event your cargo gets subjected to. Tata AIG offers marine insurance that offers flexible coverage, financial protection against cargo loss or damage, and more.

This blog has outlined everything you need to know about single transit policy in marine insurance. We hope it helps!

What is not covered in a single transit policy?

The following situations are not covered by a majority of single transit policies:

Intentional damage

Bad packaging

Unsuitable container

War risk

Willful misconduct of the policyholder

Temperature sensitive goods

Delay

Normal wear and tear

Overloaded cargo

Strikes

What is the validity of a single transit policy in marine insurance?

In most cases, the single transit policies come with a validity of around three months. It means, you can make the claim during this period if your shipment is subjected to any unforeseen circumstance during transit.

Note that the validity period for a single transit policy can vary from one insurance company to another. So, make sure to confirm the same with your provider.

I make shipments via waterways very frequently. Can I still buy a single transit policy?

If you make frequent shipments throughout the year through marine channels, then an annual marine insurance will be a standard solution for you. However, if you are on a budget and make only a handful of shipments per month, then you can definitely purchase a single transit policy.