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Marine Inland Transit

Inland Transit Clauses, in India, are formulated by the Tariff Advisory Committee.  The three main categories of Inland Transit Policies are (1) Basic Cover, provided by the Inland Transit (Rail/Road) Clause B; (2) All Risks Cover, provided by the Inland Transit (Rail/Road) Clause A; and (3) Fire Risks only, provided by Inland Transit (Rail/Road) Clause C.

Basic Cover (Clause B)

Risks Covered

Physical loss of or damage to the insured goods by:

  1. Fire
  2. Lightning
  3. Breakage of bridges
  4. Collision with or by the carrying vehicle
  5. Overturning of the carrying vehicle
  6. Derailment or accident of like nature to the carrying railway wagon or vehicle

Basic Cover (Clause A)

Risks Covered

All risks of loss of or damage to the insured goods.

Basic Cover (Clause C)

Risks Covered

Physical loss of or damage caused by:

  1. Fire
  2. Lightning

Exclusions:

      Exclusions are applicable to all three sets of the clauses shown above.  The exclusions are:
      1. Loss, damage or expense attributable to willful misconduct of the assured;
      2. Ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the cargo insured;
      3. Loss, damage or expense caused by insufficiency or unsuitability of packing or preparation of the cargo insured (for the purpose of this clause, Packing shall be deemed to include stowage in a container or lift-van but only when such stowage is carried out prior to attachment of the insurance or by the assured or their servants)
      4. Loss, damage or expense proximately caused by delay even though the delay be caused by a risk insured against;
      5. Loss, damage or expense caused by inherent vice or nature of the cargo insured;
      6. War, civil war, revolution, rebellion, insurrection or civil strife arising therefrom, or any hostile act by or against a belligerent power;
      7. Capture, seizure, arrest, restraint or detainment and the consequences thereof or any attempt threat;
      8. Derelict mines, bombs or other derelict weapons of war;
      9. Loss, damage or expense caused by strikers, locked out workmen or persons taking part in labour disturbances, riot or civil commotions;
      10. Loss, damage or expense resulting from strikes, lock-outs, labour disturbances, riots or civil commotions;
      11. Loss, damage or expense caused by any terrorist or any person acting from a political motive.

      Extensions:

      The basic cover may also be endorsed to cover extraneous risks on payment of extra premium, such as:-
      • Theft, Pilferage and Non-Delivery (TPND)
      • Rainwater damage
      • Freshwater damage
      Strikes, Riots and Civil Commotion risks (SRCC) may be added to both types of covers on payment of extra premium.  

      War Risks in Inland Transit Policies cannot be covered.

      Duration of Cover:

      Clauses (A) and (B):

      The Transit Clause of Inland Transit (Rail/Road) Clauses A & B provides that:

      THIS INSURANCE COVER
      ATTACHES
      ATTACHES
      from the time the goods leave the warehouse and/or the store at the place named in the policy for commencement of the transit; and

      CONTINUES during the ordinary course of transit including customary trans-shipment, if any; and 

      TERMINATES 
      1. on delivery to the final warehouse at the destination named in the policy; or
      2. in respect of transit by Rail only or Rail and Road, on expiry of 7 days after arrival of the railway wagon at the final destination railway station;
      3. in respect of transit by road only on expiry of 7 days after arrival of the vehicle at the destination town named in the policy.
      WHICHEVER shall first occur.

      The period of 7 days is calculated from the midnight of the day of arrival of railway wagon at the destination station or the vehicle at the destination town.

      This period of 7 days provided may be extended whilst the goods are lying in the Railway/Road Carrier premises or any other warehouse affording identical cover as provided in the policy for a period of not exceeding 8 weeks (in addition to the 7 days already provided) at additional rules subject to the following clause:

      "The cover provided under this policy notwithstanding anything contained herein to the contrary, is extended to include a further period .........weeks whilst the goods are lying in the Railway/Road carriers premises or in clearing and forwarding agents warehouses or bonded warehouses at the destination beyond the period of 7 days mentioned in the Inland Transit clause."

      If the cover is required beyond 8 weeks, it is only granted under a separate Fire and/or Burglary policy(ies).

      Clause (C):

      The duration of cover provided under Inland Transit (Rail/Road) Clause C is somewhat different.   The insurance attaches with the loading of each package into the wagon or truck for the commencement of the transit, continues during the ordinary course of transit, including customary trans-shipments, if any, and ceases immediately on unloading.

      1. at the destination railway station in respect of rail transit; OR
      2. at the destination point in respect of transit by road

      Other Covers:

      All the three types of covers incorporate the following clauses:-
      1. Claims (Insurable Interest)
      2. Benefit of Insurance (not to Inure)
      3. Minimizing Losses (Duty of Assured Clause)
      4. Avoidance of Delay (Reasonable dispatch clause)
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