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5 Reasons Why Every Shipper Needs Transit Insurance


03, December 2025

Are you worried about your stuff getting damaged while transporting from one place to another? No worries Transit insurance is a shield against loss or damage of your stuff.

Folks, let us know more about transit insurance and its benefits.

So,

What is Transit Insurance?

Transit insurance is a part of logistics and shipping operations, providing coverage for goods while they are transported from one place to another. This insurance provides protection against various risks such as damage, loss, and theft that may occur during transportation.

Both private citizens and companies who frequently move goods are eligible to use it. The items are covered by the policy for the duration of the trip, starting at the point of origin and ending at the destination. The estimated cost of a policy or premium paid is ₹590 per travel. (it may vary sometimes)

Types of Transit Insurance

Various types of transit insurance policies that you can buy are listed below

  • Single Transit Insurance: This policies are designed for business owners who send out shipments occasionally. And the coverage is provided for a single voyage only. As soon as the shipment reaches its destination the coverage will cease.

  • Open Transit Insurance: Designed for frequent shippers, an open transit policy covers multiple shipments over a specified period, typically a year. This is a convenient option for businesses that regularly transport goods.

  • Third Party Carrier Insurance: This type of insurance protects your shipment when it is transported by a third-party carrier, such as a trucking company or freight forwarder. Then that carrier may not take risk of damage to the goods in it. You can, therefore, purchase this insurance plan to provide cover against the damage when the goods are transported through a third-party carrier

  • Multiple Vehicle Cover: If your shipment/ goods has more than one mode of transport, such as a combination of trucks, trains and ships, multiple vehicles will ensure your goods is protected throughout the journey. Multiple vehicles are covered under a single plan in this policy.

  • Customized Transit Insurance: Many providers offer customizable plans that can be tailored to the specific type of goods you're shipping, their value, the mode of transportation, and even the destination. This flexibility allows you to get the coverage you need without paying for unnecessary frills.

  • Overnight Vehicles’ Insurance Policy: If the goods have to be stored overnight in the vehicle, then this policy is recommended as it provides coverage for such goods.

  • Goods in transit Through Own Carrier Cover: If you are using your vehicle for transporting your goods, then this insurance will cover the goods against damages.

GR Sitara - Hosa Road Bangalore

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Why Transit Insurance policy is required?

The coverage offered by transit insurance provides businesses financial support, which may encounter considerable losses when their goods are damaged at the time of transit. In this way, it helps to keep the finances of a business stable even after encountering a loss.

You can customize the policy as per your business requirements; therefore, transit insurance policy is suitable for almost all types of businesses.

Benefits of Transit Insurance

Following are the benefits of buying a transit insurance policy-

  • Transit insurance policies offer global standard coverage. It means that they cover clauses that are internationally recognized.

  • There are multiple coverage options from top insurance providers.

  • The policy can be issued immediately online.

  • Just by providing limited information, you can get transit insurance cover.

  • One of the simplest ways of providing insurance coverage to your goods in transit.

  • This insurance policy offers coverage between all risks of damage or loss to goods

Transit Insurance Coverage

This covers physical damage to your goods caused by various events during transport, such as:

  • Collisions: Accidents involving the transporting vehicle (e.g., truck, train)

  • Overturning: If the transporting vehicle flips over

  • Sinking: In case of sea transport

  • Derailment: goods transported by train

  • Loss: Complete disappearance of your goods while in transit. This could be due to factors like hijacking or misplacement.

  • Loading and Unloading: While loading if damage occurs

  • Any type of man made or natural calamities

Who can afford Transit Insurance Policy?

Transit/transportation policies can be issued to the following parties-

  • Importers/Exporters

  • Manufacturers

  • Aggregators/Transporters

  • Custom House Agents

  • Traders

Documents needed to claim Transit insurance

For Claiming process, submit the following documents

  • Orginal policy document

  • Completed claim form

  • Proof of damage or loss

  • Documentation of the goods

  • Survey report

Transit Insurance Policy Exclusions

Transit insurance provides a financial safety net for shippers, but it is not full protection.
Understanding precisely which cases are excluded from coverage is essential for avoiding unexpected financial burdens. A thorough review of the insurance policies is required to detect potential gaps and take necessary steps.

Common Exclusions in Transit Insurance

Inherent Vice

Inherent vice refers to the inherent nature of goods that makes them susceptible to damage or deterioration during transit. This exclusion means that transit insurance normally does not cover losses caused by the products' inbuilt attributes. Perishable things, such as fresh produce or seafood, are vulnerable to spoilage due to natural biological processes, whereas delicate objects, such as glass or ceramics, are prone to breakage. While the carrier is responsible for taking adequate measures, the intrinsic nature of these commodities makes them susceptible to damage even under ideal conditions. As a result, these types of losses are typically not covered by transit insurance.

Delay or Loss of Market

Transit insurance protects your cargo from physical harm, but it is not a forecast for market trends. If your shipment arrives late and the value of the item falls due to market fluctuations, don't expect your insurance to cover the financial loss. This exclusion emphasizes the significance of mindful shipping tracking and risk mitigation techniques. While transportation insurance is an important safety net, it is critical to understand its limitations in safeguarding against market trends.

Consequential Losses

Consider a domino effect, in which just one horrible incident causes a chain reaction of financial tragedy. This is precisely what substantial losses mean in the context of transit insurance. While your shipment may be insured for direct damage, indirect financial consequences, such as lost earnings due to late delivery or the costs of business disruption, are frequently excluded. It's like insuring the house but not the furniture. While disappointing, understanding this constraint allows shippers to investigate additional coverage choices or establish backup plans to protect their bottom line.

Willful Acts

Willful Acts is a clear exclusion in transit insurance. This means that if the damage to your shipment is the result of purposeful activities by you, your workers, or anybody acting on your behalf, the insurance will not cover the loss. For example, deliberately underpacking fragile things to save money or an employee purposefully damaging goods while handling would fall into this category. Such purposeful activities, whether owing to negligence or malicious intent, void insurance coverage, leaving you liable for the resulting financial losses.

Acts of God

In the area of transit insurance, the phrase "Acts of God," rooted in the mystique of nature's sheer power, can be a double-edged sword. While these insurance frequently provide a protective screen against nature's wrath, their coverage can be as unpredictable as the elements themselves. Hurricanes, earthquakes, and floods - these catastrophic events, while beyond human control, may or may not find refuge under the insurance umbrella. It's a delicate dance between hope and uncertainty, and the fine print determines whether the insurance or the cruel hand of fate will bear your losses.

Transit insurance serves as a safeguard for your priceless belongings while they are being transported. Unexpected things can happen whether you ship frequently or just once. This insurance makes sure you won't be left holding the bag in the event that your shipment is lost, damaged, or stolen while traveling. It also provides financial protection and piece of mind. With so many options for policies, you may customize coverage to fit your needs and budget. Invest in transit insurance now to protect your assets and avoid having your shipment turn into a statistic.

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Most Frequently Asked Questions?

Who needs transit insurance policy?

Anyone who ships goods can benefit from transit insurance, including businesses, individuals, importers, exporters, manufacturers, and traders.

How can I get a quote for transit insurance policy?

Many insurance companies offer online quote tools for transit insurance. You can also contact an insurance agent to get a quote.

Is it possible to modify my transportation insurance coverage? 

Yes, a lot of insurance companies give customized plans. The value of your goods, the mode of transportation, and the particular risks you wish to be covered against will all influence the coverage level that you select.

GR Sitara - Hosa Road Bangalore

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