Do Small Consignments Require Marine Insurance in India? Here’s What You Need to Know

The import and export business in India is thriving, offering immense opportunities for businesses of all sizes. However, running such a business comes with various challenges and risks, including theft, damage and loss.

These risks can significantly impact both profitability and customer trust, particularly for businesses that handle frequent shipments. To protect businesses from various risks, marine insurance online is a valuable resource. It provides financial protection in the event of damage, loss, or other unexpected incidents.

However, often businesses wonder if they need marine or transit insurance for small consignments. In this blog, we will delve into the details of the importance of marine insurance online for small consignments.

Challenges Associated with Small Consignments

Higher Frequency of Handling

One of the challenges with small consignments is the higher frequency of handling. These consignments are generally grouped with other shipments in shared containers or consolidated cargo.

It means that the consignment passes through multiple hands from freight forwarders to loading docks, etc., which increases the chance of mishandling and loss.

Lower Priority in Transit

Another important challenge associated with small consignments is that they get less priority in transit. Companies generally give preference to large-value shipments over smaller ones, which can result in delays, storage issues and other problems, especially during peak seasons.

Greater Exposure to Theft

Small consignments are more prone to theft than large consignments. These consignments are easy to move and carry, whereas large consignments, such as electronic items, etc, are more challenging to handle.

Furthermore, in consolidated shipping environments, these packages may not receive the same level of security as bulk containers.

How Marine Insurance for Small Consignments Helps?

To safeguard small consignments with the myriad of risks, investing in marine insurance online is a suitable choice. The insurance coverage is designed to protect shipments during transit against various types of risks, including damage and loss. Here is how marine insurance for small consignments helps.

Customised Coverage

Many insurance providers offer customised marine insurance online plans to businesses based on the nature of the consignment, mode of transport and their specific needs. This ensures businesses get just the right amount of protection without overpaying for unnecessary coverage.

Business Continuity

Whether a consignment is small or large, any loss or damage can result in disruptions to business operations. Marine insurance helps you recover losses quickly, maintain delivery schedules and keep your business running smoothly.

Business Reputation

Securing marine insurance for even small consignments demonstrates a proactive approach to risk management and customer protection. This helps to enhance the business's reputation among customers.

Things to Consider While Choosing Marine Insurance Online for Small Consignments

Buying marine insurance online for small consignments is a straightforward process. However, businesses should adopt a plan that aligns with their specific needs.

Here are some key factors businesses should consider when purchasing marine insurance for small consignments.

Type of Policy

Knowing what kind of policy your business needs is an essential factor. There are various types of plans available, ranging from single transit policies to open policies and more. Choose the marine insurance plan that fits your business requirements.

Sum Insured

Choose the appropriate sum insured based on the actual value of the goods, including cost, freight and potential profit margin. Underinsurance to reduce premiums can lead to inadequate claim settlements.

Inclusions and Exclusions

When purchasing marine insurance online for small consignments, businesses must also be aware of the inclusions and exclusions that apply to their coverage. Being aware of these details helps avoid surprises during the claim settlement process.

Claim Process

A clear and efficient claims procedure ensures that businesses can recover quickly in the event of cargo loss or damage. It is best to go with a provider that offers easy online claim filing, minimal documentation, responsive support and more.

Secure your Small Consignments with TATA AIG Marine Insurance Plan

No matter how small your consignment may be, it still holds value for your business. Delays, damages, or losses during transit can disrupt operations and lead to unexpected costs. This is why securing your consignment, whether big or small, with marine insurance online is a smart choice.

Being proactive about protection helps you avoid stress and keeps your business running smoothly without interruptions. Reputable insurance providers like TATA AIG offer marine Insurance plans that are designed to give your business that layer of protection.

Whether you are shipping across the country or overseas, the plan covers your goods against a wide range of transit risks. With dependable support and hassle-free claim processes, you can focus on your business goals while TATA AIG takes care of safeguarding what matters.

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