Inland transit insurance - how

[swamy]

Dear All,

Our company entered purchase contracts with heavy capital goods/heave machinery suppliers to purchase. We need to take inland transit insurance policy. How to take, what are the documents to be submitted. Can any one explain about it and procedure. Our first supplier asked us to submit that policy.

Some one said better to take comprehensive transit insurance policy to cover all suppliers. What to do, separate policy to each supplier or single policy to cover all? What it covers, premium details, validity etc.

Can we include in that policy insurance coverage for storage and erection. Please explain.

Thank you all...

[v.r.s.nathan]

Swami - You can take Inland Transit Insurance. This Policy broadly covers the risk of physical loss or damage to the Insured’s goods (machinery, raw materials, finished goods etc.) during transit under a contract of affreightment.
There are two types of covers -
1. “Basic Risk Policy” covers loss or damage to specified goods caused by fire, lightning, breakage of bridges, overturning of vehicles, collision with or by carrying vehicle, subject to specified exclusions.
2. “All Risks Policy” covers all risks of loss or damage to specified goods, subject to exclusions.
Sum Insured - This is an agreed value policy. Normally, insurance is taken for CIF+10%
Premium - Rate depends on factors like nature of cargo, scope of cover, packing, mode of conveyance, distance and past claims experience. For this please check with local general insurance company.

[swamy]

Is it required to take separate policy to each supplier or can we take a single policy by covering all machinery and suppliers?

[v.r.s.nathan]

Is it required to take separate policy to each supplier or can we take a single policy by covering all machinery and suppliers? If you know the insured value of all the goods to be imported than go ahead and take single policy. But I would suggest to take separate policy for each supplier, so that it would be easy for you to manage and realy helpful in case of any claim.