What are the possible events that could give rise to a loss under a Goods-In-Transit (GIT) insurance policy, does a GIT policy cover every conceivable loss or damage to goods, what could be possibly claimed from a GIT policy and what do one need to file for a claim?

In the last discussion on GIT insurance, we explored the covers available and the factors insurance companies take into consideration in determining whether or not to grant the cover. (Read here)

Let us take it further by answering the above questions.  

Possible events that could lead to a loss in a GiT policy:

1. Theft – where the conveying vehicle was intercepted by criminal elements and the goods carted away.
2. Accident
   • Overturning of the conveying vehicle
   • Collision leading to damages to the cargo
   • Fire `damage to the truck which subsequently affected the goods in it.
3. Damage to the goods while being loaded into or removed from the truck (loading and offloading). This cover is not standard with in a restricted GIT policy. But it can be added.
4. Damage due to weather elements e.g., rain
5. Loss or damage to cargo due to fall off (dropping off) from the conveying vehicle
6. Loss or damage to cargo due to kidnap of the conveying truck.

What is covered under goods in transit?

1. Loss or damage to the goods being conveyed
2. Cost of transloading (transferring goods from one vehicle to another) due to an accident. It is important to note here that the reason for incurring this cost must be because the conveying truck was involved in an accident, and not because it broke down on the road.
3. Cost of protecting the goods at the site of an accident or temporary storage (subject to a limited number of days)
4. cost of debris removal following an accident

Some losses or damages specifically not covered in a GIT policy.

1. Consequential loss or loss of profit due to loss or damage to goods
2. Loss due to inherent vices for example; reduction in volume of liquid content due to evaporation,
3. Collusion by employee, where it was established that the insured’s employee was criminally involved in swindling the insured. This becomes a case of fidelity guarantee.
4. Loss due to death or injury to livestock.
5. Unexplainable disappearance

Documents needed in a GIT claim;

1. Claim form – This is standard and to be provided by your insurance company
2. Adequate pictures of the incident or damaged goods.
3. Police investigation report – the only possible exception is damage to goods during loading and offloading. Police investigation report is a must in a GIT claim.
4. Waybill – This is a compulsory document in a GIT transaction. It details the nature of the cargo, place of departure, destination, expected time of arrival, quantity of the goods, and details of the conveying vehicle.
5. Statement of claim – especially narration of the incident by the conveying truck driver
6. Delivery note – document issued by the receiver of the goods stating the date and time cargo was received and the quantity received.
7. Debit note or demand notice – document issued by the owner/receiver of the cargo requesting either a refund or a replacement due to shortage or damage to the cargo.
8. Contract of Engagement – where a hired vehicle was used
9. Details of the conveying truck and the truck driver

To be Continued…

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