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GIT (Goods In Transit) Insurance
Goods in transit insurance cover property against loss or damage while it is in transit from one place to another or being stored during a journey. Goods in Transit insurance also protects the Transport operator for his responsibility in the event of damaged or lost freight. You can take GIT insurance out for goods being distributed in your own vehicle or by a third-party carrier, both domestically and abroad.
Policies often specify the means of transport to be used. The GIT insurance policy is purchased with a maximum load limit per vehicle. Coverage limits can range from R 10 000 to R 500 000 with bigger load limits on request. Pricing for this type of GIT insurance is mainly dependant on the type of cargo being hauled.
If you are shipping your goods by sea then you would take out marine insurance. This also includes the transit of cargo over land at each end of the voyage.
Extensions available on a GIT Insurance policy:
Some policies have special features and extensions. If you want to keep your insurance premium to a minimum, ask the Insurer about leaving off special features, or try raising the excess. Extensions can include the following:
- Debris Removal and Environmental Cleanup costs – Various Limits
- Prevention of Loss costs – Various Limits
- Tarpaulins, Nets, Ropes, Chains and Corner Plates – Various limits
- Loading and Unloading.
- 5% grace in respect of non-deliberate over-loading.
- Container Over-Height exemption.
- Protection against Driver wilful misconduct, such as involvement in Hijackings or Theft.
- Deterioration of temperature controlled cargo following breakdown or malfunction of refrigerating unit.
- All limits on a "First Loss" basis without the application of Average.
- Shipping Containers are included
Your Goods in Transit or GIT Insurance policy will protect you from:
- Theft (while in transit)
- Loss (while in transit)
- Damage caused by accidents during transit
- Damage caused during transit
- The consequences of any untoward delay (in some cases)
As with other forms of insurance, you and your provider will need to agree on how much the goods are valued at. If the goods are new then this shouldn't be too much of a problem. Remember, this type of insurance does not protect you if you find the goods you have ordered or dispatched are inferior, below standard, or damaged through inappropriate packaging - this is not quality control.
Ensure that the goods being transported are covered by the GIT Insurance policy as there will usually be no cover in respect of the following cargo unless agreed with insurers in writing prior to cover commencing:
Antiques or antiquities of any description, artworks, ammunition, explosives, fireworks, bank and treasury notes, bullion, cash, travellers cheques, cameras, cellular phones and accessories, pre-paid phone cards, computers and memory systems, cobalt, copper in any form, copper cable, non-ferrous metals or stones, gold or silver articles, jewellery, watches, furs, models, moulds, patterns, plans, deeds, designs, documents of any description, securities, specie, stamps, tickets, cigarettes and tobacco products other than raw tobacco.
Also be aware that, like with all insurance, the cost of Goods in Transit insurance depends on the level of risk. If your company has a record of losing goods then you are likely to find the premiums getting more expensive. If you do have such records then consider taking measures to increase the level of your security.
The applicable excesses will depend on the level of cover required. Excesses can be very high so be sure that you understand the full implications. There are also GIT Excess Buy Back products available on the market so speak to one of the Olivier Risk consultants to find out more about buying back the GIT excesses.
You can fill out our GIT Insurance quote request forms and we will get back to you or call us and we'll be happy to advise you on the best GIT insurance policy for your specific needs.
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