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.
Physical loss of or damage to the insured goods by:
All risks of loss of or damage to the insured goods.
Physical loss of or damage caused by:
Exclusions are applicable to all three sets of the clauses shown above. The exclusions are:
The basic cover may also be endorsed to cover extraneous risks on payment of extra premium, such as:-
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.
The Transit Clause of Inland Transit (Rail/Road) Clauses A & B provides that:
THIS INSURANCE COVER
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
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).
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.
All the three types of covers incorporate the following clauses:-