Do you want to know more about the transit insurance that packers and movers offer? Moving to a new place can be an exciting yet stressful experience. Whether you want to move within a city or across the country, you need to protect your goods in transit. One aspect that often gets overlooked while moving is insurance for goods that you want to shift. Ensuring your goods are insured in transit is crucial. Remember, moving from one place to another involves several risks. In this blog, we will delve into the types of moving or transit insurance and their coverage and charges.
What is Transit Insurance?
Transit insurance is a crucial form of coverage that protects goods during transportation. It is also called moving insurance or transport insurance. It covers the risks involved in road, air, and sea transit. In India, transit or transport insurance is important for households shifting their goods. Most Indian packers and movers offer insurance coverage for belongings on long-distance moves. If you opt for moving insurance, you will get financial protection against loss or damage to the goods in transit. Your goods are safe from unforeseen events like accidents, theft, or natural disasters.
Packers and movers will levy an extra amount as an insurance fee. They will calculate the transit insurance charges based on the total volume of insured goods. In general, they charge up to 3% of the total value of the declared goods. You can use online transit insurance calculators to know the cost of transit insurance. You can also buy moving insurance from a third party like Policybazaar.com or Coverfox.com.
Types of Moving Insurance (Transport/Transit Insurance)
Transit insurance, also called moving insurance, typically comes in two main types. All companies that offer transport or relocation services also provide insurance coverage. Usually, they offer moving insurance to their customers in the event of a long-distance or intercity move. The two types of transit or transport insurance are as follows:
- Goods in Transit Insurance
- Comprehensive Insurance (All-Inclusive Transit Insurance)
1. Goods in Transit Insurance
Goods-in-transit insurance is the most basic type of moving insurance. It provides coverage for damages or losses that occur during the goods transportation. It typically covers risks like accidents, fire, theft, and natural disasters. However, it does not cover damages caused during packing, loading, or unloading. Goods-in-transit insurance comes at a minimal premium. Movers or insurance providers will charge based on the declared value of the goods.
Getting insurance for goods in transit is easy. You can ask your movers for the same. If your movers and packers do not offer transit insurance, you can buy it from third parties. Additionally, you can buy it online from portals like Policybazaar.com. In most cases, your packers and movers will provide transit insurance. You must collect the original insurance certificate from your movers.
Note:
- Goods-in-transit insurance won’t compensate for any losses or damages before and after transportation.
- Goods-in-transit insurance fee is 1.5% of the declared value of goods.
2. Comprehensive Insurance (All-inclusive Transit Insurance)
Comprehensive insurance provides wider coverage compared to transit insurance. It covers damages or losses caused by all types of risks—mishandling, breakage, and accidents. Coverage includes not only damage in transit but also in packing, loading, unloading, and storage.
Furthermore, comprehensive or all-inclusive transit insurance may include:
Full Value Protection
Protection includes coverage for repair, replacement, or cash settlements of insurable goods.
Declared Value Protection (Custom Insurance)
Protection includes coverage for only those items you want to get insurance for. You will need to tell your movers for what items you want insurance.
Note:
- All-inclusive insurance offers more comprehensive protection. Thus, you will need to bear a higher premium as it covers a broader range of risks.
- The packers and movers insurance fee for all-inclusive coverage is 3% of the costs of declared items.
- It is essential to read the policy to understand any exclusions or limitations carefully.
Transit Insurance Charges and Rates
What are the transit insurance charges and rates? What are the packers and movers insurance charges? Lots of confusion among customers! It is often seen that different movers levy different fees for insurance coverage —1.5%, 2%, 3%, and 4% Why so?
What is the actual transit insurance rate?
Well, let’s understand the transit insurance charges. The charges for moving insurance in India vary depending on several factors.
- The type of insurance
- The type and value of the goods
- The distance of the move
- The insurance provider
If you buy goods-in-transit insurance, you will have to pay 1.5% of the total cost of the declared goods in transit. If you buy all-inclusive insurance, the fee will be 3% of the total costs of declared goods in transit. However, the transit rate may differ depending on the policy coverage and other factors. Thus, you must make it clear before you agree to opt for the insurance coverage offered by your movers and packers.
Here are a few key points to consider regarding moving insurance charges:
1. Premium Rates
Premium rates for moving insurance are usually a percentage of the declared value. Different insurance providers may have varying premium rates. So, comparing quotes from multiple companies to find the best deal is a nice idea. Generally, the transit insurance premium is 1.5% of the declared value. While the comprehensive and all-risk insurance premium is 3% of the declared value.
2. GST Charges
In addition to the insurance premium, there might be additional charges, such as taxes. Clarifying these charges with the insurance provider upfront is essential to avoid any surprises. Packers and movers levy GST at 18% on the insurance fee.
3. Declared Value
Moving insurance premiums are calculated based on the declared value of the goods. You must provide an accurate assessment of the value of your items. This ensures adequate coverage. Under-insuring may lead to insufficient compensation. Over-insuring could result in unnecessarily higher premiums.
Examples of Transit Insurance Charges
| Insurable Item | Value |
| Air Conditioner | Rs. 32,500 |
| Refrigerator | Rs. 21,000 |
| Washing Machine | Rs. 23,000 |
| Microwave Oven | Rs. 8,000 |
| Sofa Set | Rs. 43,000 |
| Almirah | Rs. 18,500 |
| Cooler | Rs. 12,000 |
| Geyser | Rs. 8,000 |
The sum of the total value of declared goods: Rs. 32,500 + Rs. 21,000 + Rs. 23,000 + Rs. 8,000 + Rs. 43,000 + Rs. 18,500 + Rs. 12,000 + Rs. 8,000 = Rs. 166,000
Goods in transit insurance charges
Total applicable goods-in-transit cost: 1.5% of the total value of declared goods + GST @18%
= 1.5% of Rs. 166,000 + 18% of (1.5% of Rs. 166,000)
= Rs. 2,490 + 18% of Rs. 2490
= Rs. 2,490 + Rs. 448.20
= Rs. 2,938.20
All-inclusive insurance charges
Total applicable all-inclusive insurance cost: 3% of the total value of declared goods + GST @18%
= 3% of Rs. 166,000 + 18% of (3% of Rs. 166,000)
= Rs. 4,970 + 18% of Rs. 4,980
= Rs. 4,980 + Rs. 896.40
= Rs. 5,876.40
Please remember that the calculations above are provided as examples only.
Concluding Words
When planning a move, it is crucial to consider the safety of your belongings. Thus, opt for moving insurance, also called transit/transport insurance. Transit insurance and comprehensive insurance are the primary types of transit insurance. While transit insurance is the most basic, comprehensive insurance provides broader protection. The charges for transit insurance depend on many factors, such as the declared value of the goods and the insurance provider. By understanding the types and charges of transit insurance, you can ensure the safety of your belongings in transit. Remember to compare quotes, read the policy terms carefully, and choose the insurance that best suits your needs and budget to have a stress-free and secure move.
Frequently Asked Questions
Q: What are the things that I should keep in mind while opting for transit insurance?
You should keep in mind the following things:
- Explore the insurance alternatives offered by your movers by asking them for details.
- Clearly communicate that the insurance coverage is restricted to the items packed by them or those packed by you under their direct supervision.
- Ask your movers to explain the procedure they follow to assess the value of items in the event of damage.
- Request the movers to provide you with the rates applicable to transit insurance.
- Carefully examine the terms and conditions outlined in the insurance policy.
- If you desire comprehensive insurance coverage, conduct thorough checks to ensure the moving company is licensed, registered, and reputable.
Q: What are the documents required to file an insurance claim if my goods get damaged in transit?
Some important documents that you may need to furnish are as follows:
- Bill of lading
- Original invoice
- Packing list (inventory)
- Claim bill
Q: What factors affect the transit insurance premium charges?
Some factors that can influence the transit insurance premium charges are as follows:
- The nature and age of items that you want to shift
- The real value of items
- The distance to be travelled in transit
- Claim history, if any
Q: What are the general items that are insured when moving?
The general insurable items on a move are as follows:
- Furniture
- Home appliances
- Electrical equipment
- Kitchen appliances
- Garden equipment
Q: What items cannot be insured during a move?
There are certain items that cannot be insured during a move. Some uninsurable items are as follows:
- Cash, jewellery, and valuables
- Heirlooms, gifts, collectables, and sport memorabilia
- Documents and medications
- Glassware, fine arts, and antiques
- Perishable items
Q: What are the benefits of transit/transport or moving insurance?
Here are some of the benefits of moving or transit insurance:
- Peace of mind: Knowing that your belongings are insured can give you peace of mind during a stressful time like a move.
- Financial protection: If your belongings are damaged or stolen, moving or transit insurance can help you recover the cost of replacing them.
- Convenience: You can easily buy moving insurance online. Your movers may also offer the same. Movers will give you total support in insurance claim.
Disclaimer: The above views are provided for informational purposes only. We extensively researched industry reports and related stories. Moving Solutions does not guarantee the accuracy or completeness of the information. It is strongly advised to purchase transit insurance independently to avoid higher charges. If you obtain insurance from a general insurance company, the responsibility of packers and movers ends. Consider this article a reliable guide for moving insurance.