Insurance Offered in Packing and Moving Sector
What is Insurance?
An insurance is a policy provided by insurance companies to the clients, which ensure the stated declaration like health, vehicle, goods, etc. An insurance comes with lots of terms and conditions and hidden clauses. (viz Please read the scheme related document carefully). Our policy agent always assured us that the company always take care of its client in the worst case scenarios. But the reality is foreseen. We have had a lot of experiences, both good and bad, while filing claims. The insurance sector of health, vehicle, securities, bond, LIC, etc. are quite clear in our mind as how they operate and how to file claims. But when we come to the insurance provided to the clients who are relocating-packing and moving to another city, there is a huge ambiguity. Let’s clear our facts today.
• What is packing and moving insurance?
When a client is relocating-packing and moving to a new place, they ask their packers and movers for an insurance to safeguard their goods in case of damage, fire and theft. This is the insurance in case packers and movers.
In the packing and moving sector, there are only a few players like Chola MS, Bharti AXA; which provide insurance to the packers and movers companies.
• What is the insurance coverage in packing and moving sector?
The reality of insurance given by packers and movers to the client is deeply ambiguous. In my personal experience, I have never seen any client to ask their packers and movers thoroughly about insurance claims and its terms and condition. In what is found to be a win-win situation for policy agent and the packers and movers, the client falls in trap always.
The insurance provided by packers and movers covers the damage of goods
1. In case of toppling of Truck
2. If the truck catches fire in transit
Also, there are few things to get noticed. You must have declared the value of goods in a separate sheet before packing and moving. Secondly, the compensation will be provided to only new items, whose bills you will be able to produce. Basically, the insurance which your packers and movers gives to you is a kind of Transit Insurance. (You might have noticed it while ordering a product from Flipkart: Free Transit Insurance).
As per Chola MS insurance declaration, it doesn’t cover goods with value less than Rs.2500/.
You can get a copy of Chola MS Transit Insurance Policy Here .
• Price of insurance policy – Transit Insurance Policy
When a survey agent comes to your place and the client asks for the full coverage insurance. He quickly address that – Yes Sir/Mam, We have full insurance coverage at 3% of total value of your goods.
Actually the reality is something different. The sector is run by uneducated and unexperienced people. They are approached by policy agent, who sells the policy cover of One Lakh for Rs.500. The real value of the policy when purchased by an Insurance company is only Rs.100/ for One Lakh.
The Packers and Movers keeps a margin of Rs.2500 in every policy they give to the client.
• Undervaluing of Goods when Relocating-Packing and Moving
Client often undervalue their goods to save their money. They always declare the value of their goods around One Lakh to save extra money in the insurance.
Actually, they unknowingly do it right. It is because the insurance given by the Packers and Movers is only Transit Insurance.
• How to get Insurance from Packers and Movers?
You must get an insurance from Packers and Movers that covers damage and theft in any case till unloading. So, here comes few things to get noticed.
1. What Agarwal Packers and other established players do for Insurance?
They don’t give insurance from any company. Instead they ask the client to declare the value of goods. Whenever any damage occurs in the process, they compensate it themselves. (From repair to replacement)
Note: This is the type of insurance a client should demand from their Packers and Movers along with the Transit Insurance.
2. What small but trusted Packers and Movers do for Insurance?
Those Packers and Movers who want to remain in this field and also cares for customer satisfaction and brand image will compensate for the damage of your goods. You must cross-check your Packers and Movers before moving.
• What is the best way for getting complete Insurance from Packers and Movers?
I am personally suggesting few methods that will work with any Packers and Movers companies if it is authenticate.
1. Never pay the full amount to your Packers and Movers. In this way you can deduct their payment after negotiation in case of any damage.
2. Don’t let the Truck Guy ran away until you check all your goods which are prone to get damage. In this way you can put an honest claim.
3. Clearly declare the value of Goods during packing by personally assisting the packing workers.
4. Always purchase the Transit Insurance from your Packers and Movers.
5. If you are a frequent mover, maintain a healthy relation with your Packers and Movers Company. In this way they will understand your sentiments and will compensate for the damage of your goods.
Note: The above given suggestions will work in every case except the worst case scenarios:
[The Packers and Movers Company flew away with your goods.]
Don’t be frightened. We will help you. For that we will be uploading a new article soon titled