Goods-in-transit insurance is a contract by means of which the insurer assumes any damage and material losses caused to the transport equipment and/or the objects being transported during transport by water, rail, air or sea.
Although goods-in-transit insurance is not obligatory, insuring the goods being transported against any risk that may exist during their transfer from origin to final destination is highly recommended.
Goods-in-transit insurance is a contract that covers goods against the various risks that may affect them during their transfer from one place to another during a certain period, e.g. stays, or in situations related to transport, e.g. loading and unloading.
Indemnity underpins all insurance, including goods-in-transit insurance. The principles of indemnity are based on the following:
- No one can claim compensation in excess of the damage suffered.
- The insurance cannot constitute a cause of profit or benefit for the insured party.
- Compensation from the insurer must not produce a more advantageous situation than if the loss or damage had not occurred.