Transit Insurance

India’s road logistics account for 71% of the country’s overall freight transport, according to the Ministry of Commerce and Industry.

India’s road network is the second largest in the world, spanning 65 million square kilometres over diverse geographical regions and weather conditions, exposing shipments to many different risks.

• Transit insurance helps cover the financial losses arising from loss or damage to goods in transit.

• Getting transit insurance safeguards businesses from substantial financial losses, protects high-value shipments and lowers supply chain risks.

• At TATA AIG, we offer transit insurance plans for domestic and international shipments with Single Transit and Annual Open Policy options.

• You can choose between Copper, Silver and Gold plans offering varying levels of financial protection at different price points. Plans may vary based on the product category and insured value.

• Our plans cover various risks, such as fire, theft, collisions, loading/unloading losses, water damage, and more.

• It does not cover scenarios such as mishandling of goods during transit, ordinary wear and tear, damage to temperature-sensitive goods, and other policy exclusions.

• The transit insurance premium is determined by various factors, such as the nature of goods, type of policy chosen, and mode of transport.

• To file a claim online, start by reporting the loss. Then, submit the documents and complete the surveyor inspection process for claim settlement.

• Coverage Beyond Transporter’s Liability: Most packers, movers and logistics providers have limited liability for the loss of your cargo that does not match its real value. Having marine insurance covers such liabilities and protects your business.

• Contractual Compliance: Many businesses require the supplier to have the goods insured through contractual obligations. Insurance coverage is mandatory for import-export businesses and global shipments. Not having marine transit insurance would void such contracts.

• Essential Risk Management: Businesses often ship goods worth lakhs or crores of rupees, resulting in catastrophic losses when such goods are damaged or lost during transit. A transit insurance plan reduces the supply chain risk and prevents disruptions to your business.

• Mitigates Geographical Risk: Long-distance hauling carries inherent risks, including rough handling, disruptions, adverse weather and natural disasters. Complex global geography increases the risk of losses for sellers with contractual obligations, making transit insurance necessary.

• Helps Businesses Maintain Profitability: Since a transit insurance policy covers all sorts of potential losses from accidents to theft and loading/unloading damage, it’s highly effective at mitigating business risks. Businesses can ensure their profitability and market value as they are secured.

• Flexible Transit Plans: We offer customisable plans with terms suitable for different product categories, shipment types, and freight value. You can choose from Gold, Silver, and Copper plans under single-transit and annual policies based on your needs and budget.

• Online Purchase and Comparison: You can compare different plans, their coverage benefits, and premiums online to choose the one that suits your needs. Once you find the right plan, you can pay online and purchase your policy.

• Global Presence: Our freight insurance plans cover both domestic inland and global shipments via road, rail, air, sea, or a combination of these modes. They cover the movement of import and export goods, including warehouse-to-warehouse transit.

• Affordable and Transparent Costs: Get affordable transit insurance charges starting at just ₹473. Existing customers can get exclusive discounts. You can check your premium online before purchasing and make an informed decision.

• Marine Loss Control Engineering (MLCE) Services: TATA AIG’s MLCE service is a key benefit that helps our business customers prevent cargo losses before they occur. Our global team provides accurate scientific analysis and tailored recommendations to identify hazards and threats.

• Easy Management with E-Marine Portal: Access innovative marine solutions through our e-marine portal. Use our transit insurance online services to send requests, download important documents and manage your policy

Inclusions

The transit insurance policy covers the loss or damage to the goods or cargo due to the following risks:

• Fire, explosions, and lightning.
• Total loss or damage to the goods during the time of loading and unloading.
• Collision of the goods-carrying vehicle.
• Breaking of bridges.
• Overturning or derailment of the cargo vehicle.
• Vessel or the craft being stranded or capsized
• Earthquake or volcanic eruption.
• Delivery at a different location due to bad weather.
• Collision of the goods-carrying vehicle with structures, animals or other objects.
• Rainwater damages the cargo.
• Theft or pilferage of part or total cargo.
• Intentional acts of anyone other than the policyholder and employees.
• Seawater, river water or lake water entering the goods-carrying vehicle.
• Loss or damage during unloading at an emergency port.
• Cargo intentionally disposed of to protect the ship during an emergency.
• War, strikes, riots, and civil commotion subject to policy conditions.

Exclusions

The transit insurance policy does not cover the loss or damage to goods due to the following reasons:

• Intentional and wilful misconduct of the policyholder.
• Careless or rough handling of insured goods in transit.
• Improper or insufficient packaging or unfit containers used during transit.
• Natural characteristics of the goods or cargo.
• Bulk cargo (free flowing, liquid, or dry form) shipped loosely or without packaging.
• Temperature-sensitive goods and cargo over the carrying capacity of the vehicle.
• Normal wear and tear of the goods.
• Delay, except when the reason is due to expenses payable.
• War, weapon, radioactive, or nuclear fission, unless specified and included in the policy.

Disclaimer: The above lists are not exhaustive and subject to terms and conditions. Please refer to the policy document for complete details.

TATA AIG offers Single Transit and Annual Open plans. We have three types of transit insurance plans (Gold, Silver, Copper) with different levels of coverage. The coverage available under each plan also varies for domestic and international transit.

Here is a quick overview of the plans. The differences in coverage for domestic and international transit are explained in the following sections.

• Single Transit Policy: Covers one trip. Copper and Silver are the single transit plans.
• Annual Open Policy: Covers multiple trips till the sum insured is exhausted. Gold is the annual open policy.

Quick Comparison

Here is a quick comparison of the benefits of TATA AIG transit insurance plans:

For Domestic Transits

Disclaimer: The available plans depend on your transit insurance terms, including invoice value and commodity type.

For Import/ Export

Disclaimer: The available plans depend on your transit insurance terms, including invoice value and commodity type.

A marine transit insurance policy is suitable for any business that transports goods regularly or needs to ship expensive goods.

Manufacturers, exporters, importers, suppliers, traders, logistics companies, and other business organisations can purchase transit insurance. They must be registered as sole proprietorships, partnership firms, private limited companies, or other legally recognised business entities.

Here’s why transit insurance is important for different types of businesses:

• Scroll to the top of this page to find the transit insurance calculator.

• Select ‘New Customer’ or ‘Existing Customer’. Enter your mobile number if you are an existing customer, or select your cargo type if you are a new customer.

• Provide the required details, including the type of voyage, invoice value, and contact details and click on ‘Get Plan’.

• Select one of the available plans based on your preferences and click on the ‘Buy’ button.

• Provide your business details, review your personalised transit insurance quote, and complete the payment.

• Once you find a damaged or missing shipment, report it to TATA AIG via our helpline (022-6489-8282) and the relevant port authorities, carriers, and other bailees.

• Go to our claim portal or open our mobile app to file an online claim. Enter your policy number, policy start date, and date of loss, click on ‘Confirm’, and save the claim number.

• Provide further information, including loss details, invoice details and claimant details and furnish documents such as shipping invoices and packing lists to verify your claim.

• A surveyor appointed to process your claim will investigate the cause and extent of damage and prepare a survey report.

• We will verify and process your claim and send you the approved reimbursement based on our policy terms.

• Original policy or transit insurance certificate.

• Original copies of shipping invoices, together with packing lists and weightment notes.

• Original bill of lading, airway bill and other contracts of carriage.

• Survey reports, loss reports and other documentary evidence of damage to the shipment.

• Landing remarks/account and weightment notes at the final destination.

• Correspondence shared with carriers, port authorities and other responsible parties regarding their liability for loss or damage.

• Any other documents as required for claim processing.

Transit insurance charges depend on multiple factors, including the type of policy chosen, the nature of goods, and the mode of transport.

Here’s how some of the key factors affect the transit insurance premium:

• Insured Value of Goods: The value of goods, freight charges, and the percentage of insurance value declared for coverage can affect the premium.

• Type of Policy: Different tariff rates are charged for single-trip and open annual plans and basic and all-inclusive plans.

• Mode of Transportation: Domestic and global transit, as well as air, water and rail freight charges, lead to different premium rates.

• Shipping Routes: The origin, destination and route of cargo transit affect premium rates.

Given the complexity of manual calculations, using a marine insurance online calculator is the perfect way to get accurate estimates of your costs. You can find our calculator at the top of this page.

The Marine Insurance Act, 1963, encompasses all rules regarding marine and transit insurance in India. It defines what’s covered, standard terms, perils, etc. Explore the recent changes made to the Act and changes in other insurance regulations:

• The IRDAI (Insurance Products) Regulations 2024 have removed the requirement for IRDAI’s approval on marine insurance products and tariff wordings. This gives insurers more flexibility in developing new transit insurance products.

• The General Insurance Council will now appoint surveyors and loss assessors through a random selection system. Surveyors must be allocated within 24 hours.

• Every insurer must appoint a Product Management Committee to oversee the entire product lifecycle, including pricing, suitability, complaints and claim experience. A customer information sheet must accompany every policy.

• Insurers are now mandated to adopt board-approved policies on the protection of policyholders’ interests, group underwriting practices, claim settlement timelines and grievance redressal procedures, aligning with IRDAI’s recommendations.

Transit insurance plans safeguard businesses from substantial financial damages due to loss, theft or damage of their cargo shipments within India and during international transit.

It provides a wide financial net that ensures your business can meet contractual obligations, mitigate supply chain risks and maintain profitability.

TATA AIG’s transit insurance policy provides flexible coverage with a host of benefits, including comprehensive coverage, global support and digital policy management. We offer single-trip and annual plans tailored to your goods and shipment value while keeping the costs affordable. Explore our plans today.