The temporary storage of the goods during the logistic process is known as intermediate storage in marine insurance. It is generally helpful if there is any delay in the transportation or when cargo is to be shipped consolidated or unconsolidated. The coverage of intermediate storage in the marine insurance policy can vary depending on the needs of the logistic chains, and it can range from a few days to months. Some factors that affect intermediate storage include the location of the storage facility, type of goods, and mode of transportation.
Intermediate storage in marine insurance plays an important role in protecting the goods and shipments in a logistic chain. This helps the exporters and importers to enable a smooth transfer of goods via different transportation modes. It ensures that the goods are transported safely without any damage and also enables the consolidation and deconsolidation of goods, reducing the cost of transport. While being shipped, there's a high risk of damage, theft, and misplacement of the goods, and here, the intermediate storage in marine insurance policy plays a vital role.
Port Congestion: The port may be congested while cargo is shipped. Here, the intermediate storage provides temporary protection to the goods until they get room to be shifted to the next transport mode.
Transportation Mode: The goods are usually shifted and switched between various modes of transport while they complete their journey. During the transitions, the goods are often transferred to rail yards, terminals, ports, etc.
Clearance of Customs: Sometimes, the delivery of the goods is delayed due to customs inspections. The intermediate storage in marine insurance helps temporarily hold the storage while the formalities are completed, ensuring a smooth flow.
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The marine insurance policy covers several factors to protect your goods and cargo. You can cover the damages of intermediate storage in marine insurance. The inclusions in intermediate storage in marine insurance include
Inland Transit: The intermediate storage in marine insurance protects the goods while they are transported from the port to a transitional/temporary storage facility.
Warehousing: It covers goods kept in the storage facility or warehouse.
Loading and Unloading: When the goods are damaged while loading and unloading, the intermediate storage in marine insurance protects them at various stages of the transportation process.
Customs Duty: While the goods go through customs clearance, the intermediate storage in marine insurance covers these charges.
Packing Coverage: This covers the damage to the goods that happened during the packing and repacking of the cargo.
Transhipment: When the goods are transported from one mode of transportation to another, the marine insurance policy protects the transhipment of goods.
While there are several benefits of intermediate storage in marine insurance, it also comes with certain exclusions, such as
War and Strikes: Any losses caused due to civil war or strikes are exempt from coverage.
Nuclear Risks: Any damages caused by nuclear risks or events will not be covered in the marine insurance policy.
Insufficient Packing: If any losses occur due to insufficient or inadequate packing of the goods, they will not be covered by the insurance policy.
Illegal Goods: Damage to cargo comprising illegal/prohibited goods is not covered.
One may find the features of the marine insurance policy a bit complex. However, to protect your goods from any loss or damage and to have financial coverage one must avail of the intermediate storage benefits in a marine insurance policy. One can avoid the risks of transportation, packaging, and misplacement of the goods in transit. Remember that some policies offer coverage for 30, 60, or 90 days; others may provide coverage for a longer tenure, like 6 months or 1 year. Carefully go through the terms and conditions of your policy to clarify the exclusions, inclusions, and limitations to avoid nasty surprises when you need to make a claim.