Free Consultation

Single Transit Policy

Safeguard your products from unwanted damage or loss during their journey with a comprehensive single transit policy tailored to your business needs.

Product Image
Coverage worth
50 Lakhs
at just
7,000*
annually

[object Object][object Object] Get STP Insurance in Minutes

Insurance Expert

Free Consultation

Insurance Expert

Free Consultation

50+ years of collective insurance experience

Star Icon

5,000 Cr+ of cumulative risks insured

What Is

Single Transit Policy in Marine Insurance?

Marine insurance policies protect goods throughout their journey from their starting point to their final destination. These policies cater to various modes of transportation, encompassing road, air, rail, sea, courier, and postal services, offering protection against potential loss or damage. A single transit policy is a subset of marine insurance that provides coverage for a specific journey between two points. It is crafted to shield cargo during transportation, whether by truck, railway, ship, or airplane, from its place of origin to its intended destination. This policy ensures protection throughout the entire movement, regardless of the transportation method chosen. Its primary aim is to cover a distinct shipment or transit event, distinguishing it from policies that offer continuous coverage for numerous shipments.

The most common causes of cargo loss or damage during transit include events such as explosions, fires, hijackings, collisions, accidents, and vehicle overturns. This policy also extends its coverage against a range of risks that cargo may encounter during transportation, including strikes, theft, and riots. Moreover, a single transit marine insurance policy can encompass meticulously crafted plans that cover malicious damage, theft, damages encountered during loading and unloading processes, non-delivery of items, and mishandling of cargo specific to the transit. The coverage offered can be meticulously tailored to align with your unique requirements. It is available for an extensive array of goods or cargo, irrespective of whether they are manufactured or traded by you.

Features of Single Transit Policy in Marine Insurance

  • Contrary to open or continuous marine insurance policies, which cover multiple shipments over a designated time frame, a single transit policy is devised specifically for a solitary journey or shipment.
  • The policy is fashioned to resonate with the exact transit event it ensures.
  • The coverage terminates once the shipment arrives at its destination.
  • It is conceptualized for businesses that sporadically dispatch shipments.
  • Single transit policies can be adjusted and tailored according to the unique needs of the insured and the characteristics of the cargo.
  • These policies are generally straightforward to secure and oversee, given that they aren't as extensive as perpetual marine insurance policies.
  • Owing to the coverage being restricted to just one shipment, the premium for a single transit policy tends to be lower in comparison to the more exhaustive and continuous marine insurance policies.

Who Needs

Single Transit Policy ?

Single transit insurance policies cater to a broad spectrum of businesses across diverse sectors. Below are a few instances of businesses that stand to benefit from adopting such a policy:

  • Exporters or importers with intermittent shipment schedules.
  • Enterprises that participate in trade exhibitions, fairs, or events necessitate temporary transportation of commodities.
  • Organizations that periodically transport high-value cargo.
  • Freight forwarders managing selective consignments.

Why Get

Single Transit Policy?

A single transit policy becomes invaluable if your enterprise engages in infrequent international trading but occasionally dispatches or receives merchandise across national boundaries. It facilitates the insurance of distinct consignments without binding you to an extended, comprehensive marine insurance scheme. Moreover, for exporters or importers navigating sporadic shipments, especially those dependent on seasonal demands, this policy is an apt choice, eliminating the obligations associated with ongoing marine insurance.

In scenarios where shipments are rare or irregular, investing in continuous marine insurance might not yield cost efficiency. The single transit policy grants you the liberty to insure only those consignments that mandate coverage, mitigating extraneous expenses. This selective approach to insurance acquisition can optimize cost management and resource allocation. Furthermore, different consignments might exhibit varying degrees of associated risks.

Customization is a hallmark of the single transit policy, enabling it to adapt its coverage scope to address the unique challenges faced by your cargo during transit. For instance, when you're involved in a trade fair or an exhibition, this policy can encapsulate the transit risks germane to that particular event, bypassing the necessity for an extended insurance engagement. Singular projects, especially those necessitating the transport of specialized or oversized cargo, can also benefit from the tailored protection offered by the single transit policy.

Coverages & Exclusions in

Single Transit Policy
CoveragesExclusions
A single transit policy encompasses a diverse range of coverages, such as:
Fire Accident
This coverage protects against damages resulting from fires. This includes expenses related to firefighting and damages caused by smoke and water, especially those resulting from fire extinguishing agents.
Collision, Overturning, or Derailment
This protects against physical damages or losses due to collisions, overturning, or derailments of transport vehicles. Ancillary expenses associated with salvage and recovery operations are also covered.
Sinking
This provision covers losses or damages stemming from the sinking or capsizing of a transport carrier. It also provides coverage for salvage, recovery expenses, and damages to other vessels or assets arising from the sinking incident.
Natural Calamities
This safeguards against losses caused by natural disasters, such as hurricanes, earthquakes, tsunamis, and storms.
Reconditioning Cost
In the aftermath of a covered loss or damage, this coverage compensates the carrier for expenses related to repairs or restorations to its original state. This can encompass machinery repairs, equipment replacement, the cost of replacing damaged or lost items, labor and material costs for reconditioning, and associated expenses like shipping and storage.
Explosion
If an explosion or a similar event occurs, this coverage protects your shipment and any cargo or property on board. Moreover, it accounts for salvage and recovery costs resulting from the explosion and potential liabilities for damages to other carriers and properties.

Single Transit Policy Claims Examples

Claim for Delivery Vehicle Accident
Incident
Imagine a situation where a small textile retailer in India has procured a substantial amount of high-quality fabrics from a supplier in a different city. The retailer has plans to move these fabrics by road to their store in preparation for a new collection's launch. Tragically, while en route, the delivery vehicle meets with an accident, resulting in substantial damage to the fabrics. The financial setback for the retailer is equivalent to the total cost of the fabrics.
Resolution
Smartly, the retailer wisely secured a comprehensive transit marine cargo insurance policy right from the moment their fabrics began their journey from the supplier to the store. This savvy decision paid off when the insurance company fully compensated the retailer for the damaged fabrics, substantially reducing the financial impact. Thanks to this insurance claim, the retailer smoothly replaced the ruined fabrics and successfully launched their collection as planned. This proactive approach not only protected against unexpected mishaps but also safeguarded the retailer's financial stability and reputation from potential harm caused by transportation risks and operational disruptions.

About Single Transit Policy in Marine Insurance

What is CIF+10% under marine policy claims? Plus Icon
What is CFR in marine insurance? Plus Icon
What is the per transit limit in marine insurance? Plus Icon
What is the main difference between CFR and CIF? Plus Icon
What is DAP in the shipping of goods? Plus Icon
What is the bill of lading in CIF? Plus Icon

Business Protection for SMEs & Startups

Get Business Insurance in MinutesGet Business Insurance in Minutes
Simple Digital & TransparentSimple Digital & Transparent
Schedule a call

Say hello to a spam-free zone! We respect your privacy and
won't bombard you with unwanted calls.

Free Consultation

Backed by The Best
Your Story
Indore-based BimaKavach caters to the Business Insurance needs of Small & Medium Enterprises

This is an article by YouStory written by Palak Agarwal and published on October, 2022

How do you get started?
Schedule a consultation to see how BimaKavach can reduce your risk.
Schedule a call

Say hello to a spam-free zone! We respect your privacy, and we won't bombard you with unwanted calls.

Free Consultation