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GOODS IN TRANSIT POLICY (GIT)


GIT policy provides coverage for goods being transported within the borders of the country and is subject to jurisdiction clause. It could be extended to some neighboring countries on a need basis.
This can be provided under two scopes of cover basis: All risks basis and Road risks only cover.

There are two types of this cover:

  1. Single Transit Cover: – This cover is issued to cover a consignments of goods from the point of origin to the desired destination. Once the goods reach the intended destination, the policy ceases and premium charged is duly earned. Insured goods are normally transported in a specified vehicle.
  2. Annual Cover: Also known as Declaration policy, an annual GIT covers an insured who is transporting various specified goods throughout the year. A Consignment Limit sufficient to cover the loss of the highest value consignment is selected and an Estimated Annual Carry determined but is still subject to declaration of actual carry after policy expiry for premium adjustment purposes.

Excluded Goods

Special consideration may be required for the following categories of goods:

  1. Transportation of explosives and all types of arms
  2. High value burglar-attractive goods such as electronics, pharmaceuticals, coffee, tea, etc.
  3. All types of nuclear or atomic items or goods
  4. Petroleum and other oil products except greases and non-flammable petrol oil chemicals
  5. Gold, Diamond and all types of jewelry and precious metal and minerals

All goods being transported to North Eastern Province of Kenya, North Coast beyond Malindi, Eastern Province beyond Isiolo, Rift Valley Province Northward beyond Kapenguria.

Underwriting Considerations

Due to increased incidences of loss and accidents, care should be taken by seeking to understand the following:

  • The occupation of the Proposer.
  • The scope of cover
  • Mode of Conveyance/identity of transporter and type
  • Journey and its length
  • The type of goods to be transported
  • Security of the vehicles
  • Previous claims experience
  • Packaging
  • Professionalism of the transporters

Exclusions

The obvious exclusions in the standard policy apply. The underwriter may want to exclude the following by endorsements:

  • Scratching and Denting
  • Theft from unattended vehicles
  • Breakage of brittle and fragile goods
  • Temporary housed goods
  • Loading and unloading
  • Contamination, pollution or water damage
  • Weather damage, intense weather or rain
  • Hold up or hijack, unless the policy is on an All Risks basis
  • Theft involving employees

Extensions

The following extensions are often requested for and should be given at an additional premium:

  • Riot and Strike
  • b) Hold-up or Hijack unless the cover is on “All Risks” basis.

When rating, the underwriter should take the following hazardous goods into consideration. In other words, we should adopt a stratified approach.

  1. Highly Hazardous Goods
    Beer, electronic goods e.g. TVs, radios, computers, etc. cameras, watches, wines/spirits, chemicals and drugs, tobacco, high value clothes and leather, canned foods and dairy products, machinery, petroleum and petrol products, explosives and firearms, coffee and tea.
  2. Hazardous Goods
    Heavy machinery like tractors, earthmovers, clothes, second-hand clothes and general merchandise.
  3. Less Hazardous Goods
    Raw materials, iron ore, minerals except precious metals, grains and other foodstuffs.

For assistance, contact our Customer Care teams on 0711-030140 and/or 0711-030105, email customercare@directline.co.ke or visit us at our various branches.

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