Commercial insurance · Singapore

Goods in Transit Insurance

Covers loss or damage to goods while being transported by road, rail or inland waterway within Singapore or across borders. Distinct from marine cargo (which covers international sea/air shipments).

Get goods in transit quotes

When GIT is needed

Three operator profiles need GIT cover:

  • Cargo owners — distributors, retailers, e-commerce operators, manufacturers shipping own products. Need own-account GIT for own fleet or contract-carrier movements. Without it, carrier liability under the Hague-Visby Rules and Warsaw/Montreal Convention caps cargo recovery at amounts far below cargo value.
  • Transport carriers — hauliers, couriers, freight forwarders. Need carrier's liability cover to discharge contractual liability to cargo owners under the Carriage of Goods by Road Act and standard trading conditions (e.g., SLA conditions).
  • Freight forwarders — both as agent (with E&O exposure) and as carrier (with cargo exposure). Need forwarder's combined cover.

GIT vs marine cargo

Two distinct cover types matching different transport modes:

  • Marine cargo — international shipments (sea, air, multimodal) under Institute Cargo Clauses A/B/C. Covers from origin warehouse to destination warehouse with intermediate trans-shipment.
  • Goods in transit — domestic and cross-border ground transport, own-account or contract-carrier movements. Wider trigger (road/rail/inland waterway) but typically Singapore-and-cross-border focused.

Many Singapore businesses operate both — marine cargo for imports and exports, GIT for the Singapore inland legs and domestic distribution. The two pair without overlap if the contracts of carriage are correctly drafted.

Sum insured construction

Two key limits in a GIT policy:

  • Maximum single conveyance limit — largest value the insurer will pay for one truck, container or shipment. Set this to cover the largest plausible single load.
  • Annual estimate of cargo value moved — basis for premium calculation. Adjusted at year-end against declared actuals.

For own-account movements: maximum single conveyance limit = largest single delivery to a customer; annual estimate = total annual cargo turnover.

For carriers: maximum single conveyance limit = highest value entrusted in one truck; annual estimate = total annual freight tonnage value.

Cover scope

Standard GIT policy covers loss or damage to insured cargo while:

  • In transit by road, rail or inland waterway within the territorial scope.
  • During loading and unloading.
  • During intermediate transhipment.
  • In temporary storage during the course of transit.

Standard exclusions: wear and tear, gradual deterioration, inherent vice (perishables under improper conditions), packaging failure, criminal acts of the insured, war, strikes (extensions available), nuclear risks.

Carrier vs cargo-owner cover

Two distinct structures:

Cargo-owner GIT

First-party cover — the cargo owner is the insured, owns the cargo, recovers for loss/damage regardless of fault. Cleanest construction for businesses moving their own stock.

Carrier's liability

Third-party cover — the carrier is the insured, indemnified against liability to cargo owners under standard trading conditions. Capped at carrier's contractual liability (per the trading conditions, often per-tonne or per-cubic-metre caps).

For carriers, the practical effect is that cargo owners often demand higher cover than the carrier's standard limit — "Goods in care, custody or control" rider provides higher cover for specific accounts.

Frequently asked questions

What's the difference between goods in transit and marine cargo?

Marine cargo covers international shipments (sea, air, multimodal) under Institute Cargo Clauses A/B/C. Goods in transit (GIT) covers domestic and cross-border road/rail/inland-waterway transport — own-vehicle, hire-vehicle and contract-carrier movements. Many businesses need both: marine cargo for imports/exports, GIT for the inland legs and domestic distribution.

Is GIT cover compulsory in Singapore?

Not under statute. But contracts of carriage and customer terms commonly require carriers and freight forwarders to maintain GIT cover for goods entrusted to them. Cargo owners moving high-value stock between outlets (retailers, distributors, jewellery, electronics) commonly buy GIT for own-account movements.

What policy bases are available?

Three common Singapore constructions: (1) single-trip GIT for one-off high-value movements; (2) annual GIT for own fleet with declared cargo categories; (3) carrier's liability cover for transport providers to discharge contractual liability to cargo owners. Each suits different operator profiles — own-account vs carrier vs forwarder.

How is sum insured set?

For per-trip cover: invoice value of the cargo plus freight. For annual cover: declared maximum single conveyance limit (the largest value moving in one truck or container) plus annual turnover. The maximum single conveyance limit is the binding constraint — set it generously enough to cover the largest plausible single load.

Does GIT cover loading and unloading?

Standard wordings typically cover the goods from initial loading at origin to final unloading at destination, including intermediate transhipment. Some narrower wordings exclude loading/unloading or limit it to specific equipment. Confirm at policy inception that the cover is "warehouse to warehouse" rather than "wheels rolling only".