What Is Multi Modal Transport Insurance?
The Multimodal Transportation of Goods Act of 1993 establishes legal responsibility for cargo loss or damage. As a result of the foregoing, the MTO (licenced operator) is liable for any loss or damage to the goods entrusted to them for transportation.
MTO Liabilities Insurance is designed to protect transportation operators and freight forwarders from legal liability that may arise as a result of their operations. MTO’s legal liabilities are covered by the policy. All marine liabilities of Freight Forwarders, MTOs, Haulers, In Transit Warehousing, Ship Agents, Clearing and Forwarding Agents, Custom House Agents, and Packing & Consolidating Agents are covered by the MTO Liability Insurance.
Why Choose a MTO Insurance Policy?
The International Freight Forwarding market, over the past few years, has changed considerably with the emergence of Multi-modal Transporters (MTO). In addition, a growing number of transportation providers, such as freight forwarders, shipping agencies, packaging and consolidating agents, clearing and forwarding agents, are now offering a variety of services to trading organisations, many of which operate on a global scale.
Many of these businesses have also changed to MTO status and obtained the necessary licence under the MTO Act. In order to obtain a licence from the Director-General of Shipping, the MTO operator must have its services insured.
Benefits of MTO Insurance
MTO insurance policy comes with several benefits. have a look at them.
Total Protection
A multimodal transport insurance policy protects you against losses caused by cargo damage or delays in delivery. It also covers losses resulting from errors and omissions, fines and duties, and third-party legal liability.
Fast Settlements
An MTO insurance policy’s claim settlement process is quick and easy. IRDA is in charge of regulating turnaround times. Industry specialists handle the claim procedure and documentation to ensure that claims are processed quickly and efficiently.
Third Party Liability
The policy also covers property loss or damage, as well as bodily death, injury, or illness that is legally recoverable as a result of the insured’s operations.
Wide Jurisdiction
According to exposure, both the “Territory” and “Jurisdiction” might be in India or anyplace else in the world.
MTO Insurance Checklist
ID Proof
When submitting your personal details like name, address, age, etc., you'll need to provide a copy of your ID proof, which can be your Aadhaar Card, Driver’s License, Passport, Voter ID, or any other government-issued photo ID.
Details of Your Car
Next, gather the details of your car including make, model, variant name, registration number, engine capacity, fuel type, RTO location, etc. Keep these details readily accessible.
Types of Car Insurance Plans
There are three types of car insurance policies based on coverage: third-party car insurance, standalone own-damage car insurance, and comprehensive car insurance. While third-party insurance is mandatory as per the Indian Motor Tariff, comprehensive insurance offers maximum coverage.
Driving Without Insurance is Punishable
Every car owner must have at least third-party insurance as per the Indian Motor Tariff to remain legally compliant on Indian roads. Failure to have valid insurance can result in a fine of Rs. 2,000 and/or imprisonment of up to 3 months.
Premium Calculation
Premium calculation depends on factors like car's cubic capacity (for third-party insurance) and various factors for other types. Use an online premium calculator to make an informed decision.
Insured Declared Value
The Insured Declared Value (IDV) is your car's current market price, payable in case of total loss or theft. Opt for an optimal IDV to balance premium cost and claim amount.
Car Insurance Add-ons
Additional coverages, known as add-ons, can be opted by paying extra premium. Common add-ons include zero depreciation cover, engine cover, tyre cover, no-claim-bonus, loss of luggage, etc.
Network of Garages
Insurance companies have partnerships with network garages for cashless claims. Utilize these facilities for easy claim processing.