Inland Transit Insurance Frequently Asked Questions

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This policy covers loss, destruction or damage to the goods whilst in transit by a lorry, train or any other land conveyance or whilst temporarily housed in the ordinary course of transit within the territorial limit caused by named perils or accidental means.
As the name implies, the policy offers to cover goods transported domestically and on land (not by sea or aerial modes), and most insurers will provide an All-risk cover assuming that the risk is palettable.

This policy does not cover:-

  • loss of any liquid gas or goods from containers by leakage or spilling unless cause by fire, accident to the conveyance or object
    falling on to the conveyance
  • war and allied risks
  • loss or damage caused by weather, atmospheric conditions, wear and tear, moth, vermin, insects, damp, mildew, rust, defective
    packing, hooks or slings, delay, loss or market, depreciation or deterioration, contamination, fermentation or spontaneous
    combustion or consequential loss of any kind.
  • theft or pilferage in which any employee of the insured
  • loss or damage occasioned by confiscation, nationalisation, detention, requisition or willful destruction by authorities.
  • loss or damage whilst the property is temporarily housed in the course of transit for the purpose of storage, making up, packing or
  • any act of terrorism

Any inland deliveries by company of any size would benefit from having an Inland Transit Insurance to protect their cargo whilst on delivery to customer. Any loss of goods when damaged, destroyed or stolen will result in non-delivery of goods, potentially leading to contract fustration, financial lost due to delays or even legal suits for non-performace of contract. Legal liabiliities are formed immediately when a sales purchase agreement is forged between buyers and sellers.
Take for example In a Sales and purchase contract for fertilizers, the seller has entered into an agreement to either deliver the goods from its farms to the customer’s factory (domestic) or to the port of loading (exports). The seller assumes the liablities of the goods whilst in transit from farm to factory: Vice versa, the buyer will arrange for its own Inland Transit insurance policy to cover the logistic leg from port to factory, on assumtion that the buyer only arrange for marine cargo insurance until the port of destination (CIF)

Policy coverage is dependent largely on the nature of your request. I.e. If this insurance is for a One-off delivery to a local buyer, the policy limit will need to cover the value of the goods itself, based on the shipment/ delivery value. It will be more complicated to estimate for multiple deliveries of different shipment value & goods, and the total exposure of all vehicles and goods value have to be considered before structuring the policy.

The law does not require sellers to arrange for Inland Transit for deliveries within the country but some private contracts will need the seller to provide insurance cover for goods in transit, especially if the goods value is huge and/or if this is a speciality fabricated product.

The premium you have to pay may vary depending on type of goods, the limit per conveyance, the frequency of sending, the coverage required and the experience of the Insurer to write this risk. Insurance underwriters will consider the value of the goods in conveyance to mainly determine the amount of premium charged, and typically the higher the value of the goods, the more expensive it is to insure this voyage due to the potential claims payment if these goods are damaged, destroyed or lost while in transit.
Loose packaging, or items not stored in proper containers may lead to goods damage caused by items knocked about in the delivery vehicle. Long voyages across uneven roads or off-road terrains may also cause damages to sensitive equipments or machines the carrier is transporting.

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