UNIVERSITY OF MUMBAI

A STUDY ON ROLE OF INSURANCE IN LOGISTICS

A Project Submitted to University of Mumbai for partial

completion of the degree of

Bachelor of Commerce (Banking and Insurance)

under the Faculty of Commerce

By

DEVANSH MINAT

I.18.53

Under the Guidance of

MRS.

BHUMIKA MORE

SIES (NERUL) COLLEGE OF ARTS, SCIENCE AND COMMERCE PLOT

NO. 1-C, SECTOR-5, NERUL, NAVI MUMBAI

2020-2021
 UNIVERSITY OF MUMBAI

A STUDY ON ROLE OF INSURANCE IN LOGISTICS

A Project Submitted to University of Mumbai for partial

completion of the degree of

Bachelor of Commerce (Banking and Insurance)

under the Faculty of Commerce

By

DEVANSH MINAT

I.18.53

Under the Guidance of

MRS.

BHUMIKA MORE

SIES (NERUL) COLLEGE OF ARTS, SCIENCE AND COMMERCE PLOT

NO. 1-C, SECTOR-5, NERUL, NAVI MUMBAI

2020-2021
 CERTIFICATE

This is to certify that MAST. DEVANSH MINAT has worked and duly completed his project
work for the degree Bachelor of Commerce in Banking & Insurance under the faculty of
commerce in the subject of Banking and Insurance and his project is entitled “A STUDY ON
ROLE OF INSURANCE IN LOGISTICS” under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that no
part of it has been submitted previously for my degree or diploma of any University.

It is his own work and facts reported by his personal findings and investigations.

Signature of the Guiding Teacher

Seal of the College

Date of Submission: 29th APRIL 2021

Name and Signature of External Examiner

 DECLARATION BY LEARNER

I, the undersigned Mast. DEVANSH MINAT here by, declare that the work embodied “A
STUDY ON ROLE OF INSURANCE IN LOGISTICS” ,Forms my own contribution to the
research work carried out under the guidance of MRS. BHUMIKA MORE is a result of my own
research work and has not been previously submitted to any other Degree or Diploma to this or
any other University.

Wherever the reference has been made previous works of others, it has been clearly indicated as
such and included in the Bibliography.

I, hereby further declare that all information of this study has been obtained and presented in
accordance with academic rules and ethical conduct.

Name and signature of the learner

DEVANSH MINAT

Certified by:
MRS. BHUMIKA MORE
Signature of the guiding teacher.
 ACKNOWLEGDEMENT

To list who have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.

I take this opportunity to thank the UNIVERSITY OF MUMBAI for giving me chance to do
this project.

I would like to thank my Principal DR. MILIND VAIDYA for providing the necessary facilities
required for completion of this project.

I take this opportunity to thank our coordinator MRS. LATA L for her moral support and
guidance.

I would also like to express my sincere gratitude towards my Project guide MRS. BHUMIKA MORE

whose guidance and care made the project successful.

I would like to thank my College Library for having provided various reference books and
magazines related to my project topic.

Lastly, I would like to thank each and every person who directly or indirectly helped me through
the completion of my project especially My Parents and Peers who supported me throughout my
project.
 INDEX

CHAPTER
TITILE OF THE CHAPTER PAGE.NO
NO
1 INTRODUCTION

2 RESEARCH METHOLOGY

3 LITERATURE REVIEW

4 DATA ANALYSIS

5 CONCLUSION
 CHAPTER 1

Background and Research Purposes

With the increase of the global competition and the rapid progress of the IT technology, the logistics
industry has become one of the most influential subjects of the 21st century. The scope and role of logistics
have changed dramatically over recent years. In the past, logistics has played a supportive role to primary
functions such as marketing and manufacturing. Now the scope of logistics has expanded beyond its
traditional coverage of transportation and warehousing activities to include purchasing, distribution,
inventory management, packaging, manufacturing, and even customer service. More importantly, logistics
has dramatically evolved from a supportive role characterized as passive and cost absorbing, to a primary
role and critical factor in competitive advantage. Companies experiencing growing pressure to reduce costs
and provide better service can improve their logistics by outsourcing to logistics firms, an option that can
improve both efficiency and effectiveness. The Outsourcing Institute highlighted that companies gain a 9%
costs saving and a 15% increase in capacity and quality, on average, through outsourcing .
Frankly speaking, subject to the constraints and restraints from many kinds of conditions, the stage of the
development of the logistics industry in India is still relatively low now. Indian government and the
enterprises have paid much more attention than ever before to the theory of logistics after this industry being
introduced into India. India’s accession to the World Trade Organization (WTO) since December 11, 2001
sets India’s logistics industry to grow even faster, bringing tremendous opportunities, as well as intense
competitive challenges from global players. Facing with the increasing intensity of competition after India's
WTO accession, logistics companies which offer basic and simplex logistics service now should review their
business policies and how they propose to give value-added services to their customers so that they can
survive in the global logistics market.

In general, this study seeks to answer the following questions:

a) To what extent do logistics companies have the capability to provide

different types of logistics services?
b) How do logistics companies perceive their service performance?
c) Logistics service providers selection factors perceived by logistics companies themselves.
According to the answers to these questions, this study tries to give some helpful
suggestions for the development of Indian logistics companies.

Objective Of The Study

The objectives of the Project are:
 To know about Logistics Industries
 To have a understanding of how logistics industries work.
 To know whether the customers are satisfied with the existing range of service pattern.
 To understand the logistics management.
 To study the role of insurance in logistics management.
 To study various documents maintained while transportation of goods.
 To study manpower used and material handling in loading and unloading.
 To study various costs involved in logistics and steps to reduce those costs.
 To study the importance of warehousing in logistics.
 To know about the impact of Covid-19

Insurance policies are used to hedge against the risk of financial losses, both big and small, that may result
from damage to the insured or her property, or from liability for damage or injury caused to a third party.

INTRODUCTION TO INSURANCE
Insurance is a means of protection from financial loss. It is a form of risk management, primarily used
to hedge  against the risk of a contingent or uncertain loss.
Insurance is a legal agreement between two parties i.e. the insurance company (insurer) and the individual
(insured). In this, the insurance company promises to make good the losses of the insured on happening of
the insured contingency.
The contingency is the event which causes a loss. It can be the death of the policyholder or
damage/destruction of the property. It's called a contingency because there's an uncertainty regarding
happening of the event. The insured pays a premium in return for the promise made by the insurer.  
MECHANISM OF INSURANCE
The insurer and the insured get a legal contract for the insurance, which is called the insurance policy. The
insurance policy has details about the conditions and circumstances under which the insurance company will
pay out the insurance amount to either the insured person or the nominees.
Insurance is a way of protecting yourself and your family from a financial loss. Generally, the premium for
a big insurance cover is much lesser in terms of money paid. The insurance company takes this risk of
providing a high cover for a small premium because very few insured people actually end up claiming the
insurance. This is why you get insurance for a big amount at a low price. Any individual or company can
seek insurance from an insurance company, but the decision to provide insurance is at the discretion of the
insurance company. The insurance company will evaluate the claim application to make a decision.
Generally, insurance companies refuse to provide insurance to high-risk applicants.  

Importance of insurance companies

Importance of the activities of insurance companies carries out the activities in the financial markets,
reflected in the following:
1)Insurance provides financial stability and reduce uncertainty through indemnity all those who have
suffered loss. In this way it reduces the effect of mass bankruptcies that could have catastrophic
consequences on production, employment, state tax revenues, and the state of an economy in general.
2)Voluntary pension insurance as one of the most important types of insurance in terms of investments of
these funds on financial markets provides security for future pensioners that their retirement based on their
payments be paid out monthly is stable until the end of their lives.
3) Growing of small amounts of money collected in the form of premiums, insurance companies are able to
finance large investment projects and thus positively affect the economic growth of the country.
4) Insurance provides effective risk management and transforming evaluating risk. when investing,
insurance companies thoroughly investigate the creditworthiness of the borrower, which allows other
investors in the market to obtain information about the characteristics of other firms in the environment
when making investment decisions.
5) Conducting international trade between partners who are not sufficiently familiar with is often
conditioned by the existence of certain types of insurance. Thus ensuring encourages the development of
international trade.
6) Granting discounts in premiums, and preventive measures to protect against fire, injury at work, etc.,
insurance companies affect the prevention and reduction of losses of the insured or of society as a whole.

Types of insurance

Any individual or company can seek insurance from an insurance company, but the decision to provide
insurance is at the discretion of the insurance company. The insurance company will evaluate the claim
application to make a decision. Generally, insurance companies refuse to provide insurance to high-risk
applicants.

LIFE INSURANCE

Life insurance is a contract that offers financial compensation in case of death or disability. Some life
insurance policies even offer financial compensation after retirement or a certain period of time. Life
insurance, thus, helps you secure your family’s financial security even in your absence. You either make a
lump-sum payment while purchasing a life insurance policy or make periodic payments to the insurer. These
are known as premiums. In exchange, your insurer promises to pay an assured sum to your family in the
event of death, disability or at a set time.

Life insurance can help you support your family even after retirement. Depending on what it covers, Life
insurance can be classified into various types:

- It is the most basic type of insurance.

- It covers you for a specific period.
Term Insurance - Your family gets a lump-sum amount in the case of your death.
- If, however, you survive the term, no money will be paid to you or
your family.

- It covers you for a lifetime.

- Your family receives a certain sum of money after your death.
Whole `Life Insurance
- They will also be entitled to a bonus that often accrues on such
amount.

- Like a term policy, it is also valid for a certain period.

- A lump-sum amount will be paid to your family in the event of your
Endowment Policy death.
- Unlike a term plan, you get the maturity proceeds after the term
period.

- A certain percentage of the sum assured will be paid to you

periodically throughout the term as survival benefit.
- After the expiry of the term, you get the balance amount as maturity
Money-back Policy
proceeds.
- Your family gets the entire sum assured in case of death during the
policy period. This is regardless of the survival benefit payments made.

Unit-linked Insurance - Such products double up as investment tools.

Plans (ULIPs) - A part of your premium goes towards your insurance cover.
 - The remaining amount is invested in Debt and Equity.
- A lump-sum amount will be paid to your family in the event of your
death.

- This ensures your child’s financial security.

- In the event of your death, your child gets a lump-sum amount.
Child Plan - The insurer pays the premium amounts after your death.
- Your child will continue to get a certain sum of money at specific
intervals.

- This helps build your retirement fund.

Pension Plans - You can get a regular pension amount after retirement.
- In the case of your death, your family can claim the sum assured.

Tax Benefits

 Life insurance not only ensures the well-being of your family, it also brings tax benefits.

 The amount you pay as premium can be deducted from your total taxable income.

 However, this is subject to a maximum of Rs 1.5 lakh, under Section 80C of the Income Tax Act.

General Insurance?

A general insurance is a contract that offers financial compensation on any loss other than death. It insures
everything apart from life. A general insurance compensates you for financial loss due to liabilities related to
your house, car, bike, health, travel, etc. The insurance company promises to pay you a sum assured to cover
damages to your vehicle, medical treatments to cure health problems, losses due to theft or fire, or even
financial problems during travel.

Simply put, a general insurance offers financial protection for all your assets against loss, damage, theft, and
other liabilities. It is different from life insurance.
ALL Types of General Insurance

You can get almost anything, and everything insured. But there are five key types available:

1. Health Insurance

2. Motor Insurance

3. Travel Insurance

4. Home Insurance

5. Fire Insurance

Health Insurance

This type of general insurance covers the cost of medical care. It pays for or reimburses the amount you pay
towards the treatment of any injury or illness.

It usually covers:

1. Hospitalisation

2. The treatment of critical illnesses

3. Medical bills prior to or post hospitalisation

4. Day care procedures like Cataract operations

You can also opt for add-on benefits like:

 Maternity cover: Your health insurance covers you for the costs related to childbirth. This includes
pre-delivery check-ups, hospitalisation during delivery, and post-natal care.
  Pre-existing diseases cover: Your health insurance takes care of the treatment of diseases you may
have before buying the health insurance policy.

 Accident cover: Your health insurance can pay for the medical treatment of injuries caused due to
accidents and mishaps.

Your health insurance can also help you save tax. Your premium payment can reduce your taxable income.

For Tax deduction on the premium amount Total

Rs. 25,000 (Rs. 30,000 if you are a senior Rs. 25,000 (or Rs.
Self
citizen) 30,000)

Parents, who are senior Rs. 55,000 (or Rs.

Rs. 30,000
citizens 60,000)

Senior citizen = Individual aged 60 or over

Motor Insurance

Motor insurance is for your car or bike what health insurance is for your health.

It is a general insurance cover that offers financial protection to your vehicles from loss due to accidents,
damage, theft, fire or natural calamities

You can also get motor insurance for your commercial vehicles.

In India, you cannot drive or ride without motor insurance.

Let’s look at the two key types:

1. Car Insurance
It’s precious—your car. You paid lakhs of rupees to buy that beauty. Even a single scratch can be painful,
forget about bigger damages.

Car insurance can reduce this pain for a few thousand rupees.

How it works:

What the insurer will pay for depends on the type of car insurance plan you purchase

2. Two-wheeler Insurance

This is your bike’s guardian angel. It’s similar to Car insurance.

You cannot ride a bike or scooter in India without insurance.

How it works:

As with car insurance, what the insurer will pay depends on the type of insurance and what it covers.

Types of Motor Insurance:

Third Party Insurance Comprehensive Car Insurance

Compensates for the damages caused Covers all kinds of damages and liabilities caused to you
 Third Party Insurance Comprehensive Car Insurance

to another individual, their vehicle or or a third party. It includes damages caused by accidents,
a third-party property. sabotage, theft, fire, natural calamities, etc.

You can increase your insurance protection with these Add-on covers for your car and bike insurance:

Travel insurance

A travel insurance compensates you or pays for any financial liabilities arising out of medical and non-
medical emergencies during your travel abroad or within the country.

There are two types of Travel Insurance.

Single Trip Policy Annual Multi Trip

It covers you during a trip that lasts under 180 It covers you for several trips you take within a
days. year.

What all does travel insurance usually cover?

 Loss of baggage

 Emergency medical expenses

 Loss of passport

 Hijacking

 Delayed flights

 Accidental death
Home Insurance

Home insurance is a cover that pays or compensates you for damage to your home due to natural calamities,
man-made disasters or other threats.

It covers liabilities due to fire, burglary, theft, flood, earthquakes, and sabotage. It not only offers financial
protection to your home, but also takes care of the valuables inside the property.

Some of the common types of home insurance are:

This covers your home against fire outbreaks and special perils.
The dangers covered are:
- Natural calamities like lightening, flood, storm, earthquake, etc.
Standard fire and special
- Damage caused due to overflowing or bursting of water tanks,
perils policy
pipes, etc.
- Damage caused due to man-made activities such as riots, strikes,
etc.

This protects the structure of your home from any kinds of risks and
damages.
Home structure insurance
The cover is also extended to the permanent fixtures within the house
such as kitchen and bathroom fittings.

The damage caused to another person or their property inside the

Public liability coverage
insured home can also be compensated.

This covers the content inside the insured home.

Content Insurance What’s commonly covered: Television, refrigerator, portable
equipment, etc.

Fire Insurance
Fire insurance pays or compensates for the damages caused to your property or goods due to fire.

It covers the replacement, reconstruction or repair expenses of the insured property as well as the
surrounding structures.

It also covers the damages caused to a third-party property due to fire.

In addition to these, it takes care of the expenses of those whose livelihood has been affected due to fire.

Types of fire insurance

Some of the common types are:

The insurer firsts value the property and then undertakes to pay
Valued policy
compensation up to that value in the case of loss or damage.

Floating policy It covers the damages to properties lying at different places.

Comprehensive This is known as an all-in-one policy.

policy It has a wide coverage and includes damages due to fire, theft, burglary, etc.

Insurance provides us safety, security, coverage, protection and confidence.

ROLE OF INSURANCE

Provide safety and security:

Insurance provide financial support and reduce uncertainties in business and human life. It provides safety
and security against particular event. There is always a fear of sudden loss. Insurance provides a cover
against any sudden loss. For example, in case of life insurance financial assistance is provided to the family
of the insured on his death. Insurance provides the investment opportunities also. In case of other insurance
security is provided against the loss due to fire, marine, accidents etc.

Generates financial resources:

Insurance generate funds by collecting premium. These funds are invested in government securities and
stock. These funds are gainfully employed in industrial development of a country for generating more funds
and utilised for the economic development of the country. Insurance helps in providing Employment
opportunities leading to capital formation.
Employment generation:
Insurance company provides employment opportunities. The number of individual agents has increased. As
on 31st March, 2015, there were 503 Corporate Agents working for Life insurance industry. Life Insurance
Industry recorded a premium income of Rs 3,28,101 crore during 2014- 15 including renewal premium as
well as new premium. The number of new individual policies issued in 2014-15 stood at 2.59 Crore.
Brokers, corporate agents, training establishments provide extra employment opportunities.
Promotes economic growth:

Insurance generates significant impact on the economy by mobilizing domestic savings. Insurance sector
provides capital into productive investments. Insurance enables to mitigate loss, financial stability and
promotes trade and commerce activities those results into economic growth and development. Thus,
insurance plays a crucial role in sustainable growth of an economy.

Spread of financial services in rural an socially less privileged:

IRDA Regulations provide certain minimum business to be done in rural areas, in the socially weaker
sections. Life Insurance offices are spread over nearly 1400 centres. Presence of representative in every
tehsil deeper penetration in rural areas.

Spreading of risk:

Insurance facilitates spreading of risk from the insured to the insurer. The basic principle of insurance is to
spread risk among a large number of people. A large number of persons get insurance policies and pay
premium to the insurer. Whenever a loss occurs, it is compensated out of funds of the insurer

Source of collecting funds:

Large funds are collected by the way of premium. These funds are utilised in the industrial development of a
country, which accelerates the economic growth. Employment opportunities are increased by such big
investments. Thus, insurance has become an important source of capital formation.

INTRODUCTION TO LOGISTICS
Logistics is used more broadly to refer to the process of coordinating and moving resources – people,
materials, inventory, and equipment – from one location to storage at the desired destination. The term
logistics originated in the military, referring to the movement of equipment and supplies to troops in the
field.
Logistics is the process of planning and executing the efficient transportation and storage of goods from the
point of origin to the point of consumption. The goal of logistics is to meet customer requirements in a
timely, cost-effective manner.
Originally, logistics played the vital role of moving military personnel, equipment and goods. While logistics
is as important as ever in the military, the term today is more commonly used in the context of moving
commercial goods within the supply chain.
Many companies specialize in logistics, providing the service to manufacturers, retailers and other industries
with a large need to transport goods. Some own the full gamut of infrastructure, from jet planes to trucks,
warehouses and software, while others specialize in one or two parts. FedEx, UPS and DHL are well-known
logistics providers.
Typically, large retailers or manufacturers own major parts of their logistics network. Most companies,
however, outsource the function to third-party logistics providers
What does World Trade Organisation mean to logistics
World Trade Organisation is the only global international organisation dealing with the rules of trade
between nations. It was established in 1994 and has its headquarters in Geneva. Its aim is to promote lower
trade barriers and liberalise world trade. The WTO has 153 members (as of April 2009). The WTO monitors
the trade policy of the member states by unanimous agreement and offers to act as an arbitrator if disputes
occur.

Functions of logistics
Transportation and warehousing are the two major functions of logistics.
Transportation management focuses on planning, optimizing and executing the use of vehicles to move
goods between warehouses, retail locations and customers. The transportation is multimodal and can include
ocean, air, rail and roads.
Not surprisingly, transportation management is a complex process that involves planning and optimizing
routes and shipment loads, order management, freight auditing and payment. It can also extend to yard
management, a process which oversees the movement of vehicles through the yards outside manufacturing
plants, warehouses and distribution facilities. Carrier management is an important aspect since the price,
availability and capacity of transportation carriers can vary widely.
Logistics companies typically use transportation management system (TMS) software to help meet the
demands of transport-related logistics. There are also some applications, such as yard management systems.
Warehousing, or warehouse management, includes such functions as inventory management and order
fulfilment. It also involves managing warehouse infrastructure and processes -- for example, in a fulfilment,
where orders for goods are received, processed and fulfilled (shipped to the customer). Most companies
use warehouse management system (WMS) software to manage the flow and storage of goods and track
inventory. Most vendors of enterprise resource planning (ERP) software offer TMS and WMS modules, as
well as more specialized components for inventory management and other logistics functions.
Customs management, or global trade management, is often considered part of logistics since the paperwork
to show compliance with government regulations must often be processed where goods cross national
boarders or enter shipping ports.
Artificial intelligence (AI) and driverless vehicle technology will play important parts in how logistics
operates in the future. Some logistics providers already use AI to better track packages and predict transport-
related problems in the supply chain.
Meanwhile, autonomous vehicles, such as driverless forklifts, delivery trucks and drones, are likely to
become more commonplace in warehouses, in warehouse yards and on highways.

Importance of logistics
While on-time delivery of intact packages has always been important throughout the supply chain, it has
become even more mission-critical in recent years as omnichannel commerce, with its same-day home or
retail delivery of customized products ordered from smartphones, becomes more common.
Suppliers, manufacturers, distributors and retailers have had to improve their logistics processes to meet the
demand for quicker, more convenient delivery of a wider variety of goods. They also have had to better
integrate their processes and systems to improve supply chain visibility.
Although many small businesses focus on the design and production of their products and services to best
meet customer needs, if those products cannot reach customers, the business will fail. That’s the major role
that logistics plays.
But logistics also impacts other aspects of the business, too.
The more efficiently raw materials can be purchased, transported, and stored until used, the more profitable
the business can be. Coordinating resources to allow for timely delivery and use of materials can make or
break a company.
And on the customer side, if products cannot be produced and shipped in a timely manner, customer
satisfaction can decline, also negatively impacting a company’s profitability and long-term viability.

Logistics vs. Supply Chain Management

Logistics and supply chain management are terms that are often used interchangeably, but they actually refer
to two aspects of the process.
Logistics refers to what happens within one company, including the purchase and delivery of raw materials,
packaging, shipment, and transportation of goods to distributors, for example. While supply chain
management refers to a larger network of outside organizations that work together to deliver products to
customers, including vendors, transportation providers, call centres, warehouse providers, and others.
Logistics Components.
The management of logistics can involve some or all of the following business functions, including:
 Inbound transportation 
 Outbound transportation
  Fleet management
 Warehousing
 Materials handling
 Order fulfilment
 Inventory management
 Demand planning

Marine insurance
Insurance coverage for movement of cargo from place to place against transit risks.
Peculiarities of Marine Insurance
 Governed by a special Act called “Marine Insurance Act 1963”
 Cargo policies are freely assignable
 Insurable interest is a must at the time of loss – people
makes all the difference
 “Inco Terms” is only an indication “who can insure”
 Utmost Good Faith is a statutory obligation on the insured as per the Act

Indemnity – Under marine insurance

• In the manner and to the extent agreed

• Normally CIF plus 10% which is intended to include the general overheads and perhaps a margin of profit

• Provides a commercial or modified form of indemnity

• Value agreed in case of total loss and a percentage depreciation in case of partial loss

Cargo Insurance
For business owners, it is essential to protect cargo goods from various possible disasters. A marine cargo
insurance policy is one of the best insurance covers that will help you safeguard your valuable cargo
anywhere in the world. A cargo insurance policy will protect your cargo from any loss or damage caused
during transit via road, sea, rail or air.
Meaning OF Cargo Insurance
Cargo Insurance policies are designed to provide indemnity cover for goods/cargo carried through different
modes of transport and transit. Cargo Insurance provides coverage against all risks of physical loss or
damage to freight during the shipment from any external cause during shipping, whether by land, sea or air.
Also, known as Freight Insurance, it covers transits carried out in the water, air, road, rail, registered post
parcel, and courier.
A lot of money goes in packaging and transporting shipments. And any loss or damage would mean a huge
loss. To cover up such losses, it is important to have cargo insurance in place.
Freight insurance can also be taken for goods during shipment. It helps in mitigating the risks related to the
shipping process and helps you ship your goods in a more secured manner.
You can buy freight insurance directly from the shipper or an insurance provider.
Features of Marine Insurance

Whatever be the reason for shipping goods, a marine cargo policy protects the insured goods against material
damages. Mentioned below are some of the benefits of buying marine insurance in India:

1. Comprehensive Coverage: A marine cargo insurance policy offers comprehensive coverage against all the
potential marine-related perils that the goods are exposed to while they are in transit.
2. Easy Customization: The plans can be easily customized and be adjusted to meet certain needs of the
customers.
3. Flexibility: The plans are flexible enough and have a variety of options to cater to the requirements of the
insured, considering their budget.
4. Claim Survey and Settlement Assistance: This insurance policy frees from stress about the claim as the
policy offers worldwide claims settlement assistance along with a claim survey.
5. Extension of Coverage: Under this policy, one has the liberty to enhance the coverage with add-on
benefits and cover the risk arising due to strikes, riots, etc.

Types of Marine Cargo Insurance Policies

There are different types of marine insurance plans that are designed to cater to the different needs of the
customers. Mentioned below are some of the common types of plans. However, it can vary from one
insurance provider to another. 
Liability Insurance: This type of insurance protects the ship in case of a crash, collision or any attack that
can lead to a huge loss or damage. It compensates the policyholder for any such liabilities that are beyond
his control.
Hull Insurance: This marine insurance policy provides coverage to vessel including the furniture and articles
of the ship against any unanticipated mishaps. It is imperative for the ship owners to buy this policy and not
to overlook it.
Freight Insurance: It is a type of marine insurance policy that compensates the shipping company in case the
freight is lost or damaged.

Let us have a look at various other marine insurance plans available, some of which are:
  Open Marine Insurance Policy: An open policy is issued for a specific time period and covers all the
shipments during that duration
 Time Plan: When a plan is bought for a specific period it is called a time policy. This policy is
generally valid for a year or so.
 Voyage Plan: This plan is can be bought by those who wish to ensure a specific sea voyage. The
moment the journey ends, the plan will be expired.
 Mixed Plan: When a policy provides the advantage of both a voyage plan and a time plan, then such
a plan is referred to as a mixed plan.
 Port Risk Plan: When the ship is stationed at the port, a port risk plan is useful to ensure that it is
protected against the risks involved.
 Valued Plan: Within this plan, the value is determined either of the cargo or the consignment, which
is mentioned in the document of the policy in advance. This helps in a case if cargo or consignment
gets lost determining the insurance value.
 Floating Plan: Under this plan, the amount of claim is specified beforehand. It is to be noted that the
other details cannot be disclosed until the ship starts with the voyage. This plan is best suited who
undertake regular cargo transportation trips.
 Wager Plan: This plan does not have any predefined fixed repayment terms, nevertheless, if the
safety net provider finds any shortfall or harm deserving of cases, at that point reimbursement is
given. If the harms are not worth considering, at that point there will not be any remuneration.

Marine Cargo Insurance: Marine Cargo insurance is a type of insurance policy that covers the loss or
damages caused to marine cargo during the transit. The protection is offered to the cargo owner along with
the cover to the cargo for any loss or damage caused due to delay in the voyage, ship accident or unloading.
Marine insurance also covers third-party liabilities arising from any loss or damage caused to the ship, port,
or other transport forms from the insured cargo. This type of insurance is mainly beneficial for tankers and
other heavy cargo shipments. Simply put marine insurance policy safeguards the ship

Need and Importance of Cargo Insurance

To save your shipments and recover the money invested in such consignments, it is important to have the
goods covered under a cargo insurance policy. It is helpful in the following circumstances:-
1.Import and export shipments.
2.For goods that are moved from one place to another by river transport.
3.For goods being transported by sea, rail, air, road or post.
4.Goods being transported by coastal vessels from one port to another.
5.Cargo moved by country craft or small vessels over inland waters.
What is Covered in Marine Cargo Insurance

The policy provides coverage from the risks arising during transit via sea and other modes of transport. The
insurer compensates for the following:

 Marine insurance coverage is provided from dire situations like fire or explosion, sinking, stranding
during a cargo journey
 Compensation is provided for expenses incurred due to collision, overturning or derailment of land
conveyance
 Compensation is provided for expenses under a circumstance wherein the cargo is discharged from a
port of distress/disturbance.
 Coverage for general average sacrifice salvages charges
 Protection against any natural calamities such as an earthquake or lightning
 It covers expenses such as survey fees, forwarding expenses, costs of reconditioning and charges of
sue
 It also covers situations like jettison and washing overboard
 It also covers the total loss of the package whether overboard or dropped amidst loading or unloading

Benefits of Purchasing Cargo Insurance.

The major benefits of cargo insurance policies are listed below-
 Cargo insurance plans are freely assignable
 The existence of insurance interest needs to be established only at the time of loss
 Most of the marine cargo insurance policies are based on an agreed value
 Marine car insurance policies are usually transit policies and  are not restricted to a precise
period

Limitations of Cargo Insurance

The policy does not cover loss or damage to cargo insured due to-
 Fault in the preparation and packaging of the insured cargo
 Any deliberate attempt or misconduct by the policyholder
 Delay of the shipment
 Ordinary leakage
 Any ordinary loss in volume or weight
 Any kind of inherent flaws
 Financial distress and insolvency of the carriers
  Ordinary wear and tear is not covered under marine cargo insurance.
If you file a claim due to the above-mentioned reasons you will not get compensation under your marine
cargo insurance policy.

2.3. Claims Settlement:

Insurance companies follow their own internal parameters for admitting liability and settling claims. If
Logistic Service Providers understand how insurers look at claims and comply with their requirements in
advance, it would become easier for insurers to settle claims and to settle them faster. A few suggestions
regarding handling and settling insurance claims are discussed below.
1 Inspection of Goods: Logistic Service Providers should conduct a careful examination if there is any
indication of a shortage or of damaged goods. Documents should be signed only with qualifying remarks
based on the ascertained position.
2 Informing the Liability Insurer:
In situations where the Logistic Service Providers suspects or anticipates a claim or comes across any
incident that may lead to a claim, they should keep their insurers informed immediately. When notifying
insurers, they should provide as much relevant information as they can, so that insurers can advise how to
minimize the claim. Insurers usually provide Claims Notification Forms which detail the information and
documents that they usually need for the purpose. In cases where the liability can be fixed on any third party,
they would try to secure recovery.
3 Arranging a Survey and Report:
In cases where surveys are required to prove or disprove a liability, usually above a threshold level, the
Liability Insurer would need a cargo survey to be conducted to determine the extent and cause of the loss or
damage. In such situations insurers arrange surveys by in-house or third party experts, who are usually
licensed for the job.
4 Securing Recovery rights:
Insurers advise that in case a loss or damage is manifested, Logistic Service Providers should take proper
care and sign documents only after making proper endorsements indicating the factual position. In situations
where subcontractors or other third parties are liable for the expected loss or damage, in order to secure
recovery rights against them, Logistic Service Providers should ensure that a proper written document exists.
This should be done without the slightest time delay after noticing the manifestations of the loss or damage.
5 Accepting Liability: Logistic Service Providers may sometimes expect that a claim would be readily
payable under the customers’ cargo insurance and try to facilitate claim settlement by being casual and
careless about the documents generated. In this process, without proper verification of the liability angles,
they may unwittingly end up accepting responsibility for a loss or damage which they would not be
responsible for. Liability Insurers advice that in cases of doubt, especially in the case of high value claims,
the LSP should consult the insurers’ claims adjustment experts83 before accepting liability.

Introduction to Major Ports in India

All ports in India are situated in the 9 coastal states of India namely Kerala, Karnataka, Maharashtra, Goa,
Gujarat, West Bengal, Odisha, Andhra Pradesh, and Tamil Nadu. India’s extended coastline forms one of the
major portions of land that juts out into a water body. Thirteen major ports in the country handle a lot of
volume of container and cargo traffic.
On the west coast, there are the ports of Mumbai, Kandla, Mangalore, JNPT, Mormugao, and Cochin. The
ones on the east coast are the ports at Chennai, Tuticorin, Visakhapatnam, Paradip, Kolkata, and Ennore.
The last one, Ennore is a registered public company with the government owning a 68% stake. In Andaman
and Nicobar Islands, there is Port Blair. Mumbai is the largest natural port in India.
Jawahar Lal Nehru Port Trust (JNPT) won the award of the ‘Best Global Port in India’, the third time in a
row in the Atal Shastra Markenomy Award 2020. Marine transport in India is controlled and administered by
the state and the central governments. While the shipping ministry manages the major ports, the intermediate
and the minor ports are administered by the State government in which the port is located. India’s 95% of
trading by volume is done through maritime transport. India has 12 major ports and 205 notified minor and
intermediate ports. Six new mega ports are to be developed under the Sagarmala Project.
The majority of ports in India are located in the below-given states:
1. Maharashtra -53
2. Gujarat -40
3. Tamil Nadu – 15
4. Karnataka – 10

Important Ports in India

The list of important ports in India is given below:
 Kandla port, Gujarat – The Bustling One
 Nhava Sheva, Maharashtra – The King Port
 Mumbai Port, Maharashtra – Largest Indian Sea Port
 Visakhapatnam Port, Andhra Pradesh – Port With A History
 Marmagao Port, Goa – Witness Serenity
 New Mangalore Port, Karnataka – At The North Of Gurpur
 Chennai Port, Tamil Nadu – Third Oldest In Country
 Cochin Port, Kerala – One Of The Largest
 Haldia Port, Kolkata – Biggest In The State
 Port Blair Port, Andaman And Nicobar Islands – The 13th Best In India
 Tuticorin Port, Tamil Nadu – Built On Artificial Sea
 Paradip, Orissa – Famous In The East
 Ennore Port, Chennai – One Of The Most Easily Accessible
 Vizag Port, Visakhapatnam – Counted Amongst The Oldest

Meaning Warehousing
Warehousing is when you purchase goods from a manufacturer and store them before they are shipped
to another location for fulfilment. You may store these goods in a warehouse, spare room, or other facilities.
This all depends on how much stock you have, and how big your business is. If you’ve a small business your
warehousing option doesn’t need to include transport access.
The Elements of Warehousing
Warehousing can be much more than the storage of goods. It can be a fulfilment center, an assembly line,
and so much more. With this in mind, there are a few elements of warehousing that can help with storage,
transport, and protection of goods. These include:
 Storage Systems to ensure maximum storage of goods and easy access at all times.
 Climate Control for goods that require cooler or warmer environments.
 Inventory Management Software to keep track of inventory coming in and out of your warehouses.
 Sufficient Staff to keep processes moving according to plans.
 Transportation and Moving Equipment to deliver and transport goods to and from the warehouse.
 Ample Security to keep the warehouse safe even at downtimes. 

Types of warehouses in India

1. Public Warehouses
Public warehouses are owned by governmental bodies and made available to private sector companies. 
Public warehouses can be lent for both business and personal use. If you’re an SMB owner and want to store
your goods for a short period of time, a public warehouse can be a great option. 
Although typically not that advanced technologically, they’re generally the most affordable and accessible
option and thus a solid choice for eCommerce startups and SMBs. 
2. Private Warehouses 
A private warehouse is a warehouse which is privately owned by wholesalers, distributors or manufacturers.
Large retail and online marketplaces also have their own privately-owned warehouses. 
Although generally more expensive than public warehouses, private warehouses can still be a great option
for eCommerce SMBs if they need a major, long-term strategic presence in an important region. 
3. Bonded Warehouses 
A bonded warehouse is a type of warehouse that can store imported goods before customs duties are
required to be paid on them. Authorities give companies using them bonds when they rent space with them
to ensure they don’t face monetary loss at the time their products are released. 
Plus, companies storing goods in them don't have to pay any duties until their items are released. You can
also store restricted items in them until their proper paperwork is complete. A bonded warehouse also offers
facilities to store items for extended periods of time.
Such warehouses are perfect for importers as they can keep their items duty-free until they find buyers. They
also have reputations as secure and safe storage spaces for goods, making them ideal for eCommerce
businesses that specialize in cross-border training. 
4. Consolidated Warehouses 
A consolidated warehouse is another type of warehouse that takes small shipments from different suppliers
and groups them together into larger shipments before distributing them to buyers. The catch is that all the
shipments are intended for the same geographical location. 
Overall, though, consolidated warehouses are a very economical way of order fulfillment,  especially for
small businesses and new startups. The capital investment and volume of inventory required to use
consolidated warehouses are fairly small too, making them a great option for eCommerce SMBs just getting
off the ground. 
5. Cooperative Warehouses 
A cooperative warehouse is a warehouse which is owned and run by cooperative organizations like a farmer
or winery co-op. Both co-op members and those outside the co-op can store goods at these facilities, though
co-op members benefit from reduced rates. 
6. Government Warehouses 
These warehouses are directly owned and controlled by the government, such as seaport storage facilities. 
Typically, government warehouses charge fairly affordable rates. However, if a business is unable to pay
their rent within the due time, the government has the authority to recover their rent by disposing of their
goods.
7. Distribution Centers 
A distribution center is a storage space which is usually built with specific requirements in mind. 
The storage is used for temporary needs and items are shifted quickly within the supply chain. A large
inventory is received and distributed to resellers and retailers within a short period of time. 
In the case of some food and perishable items, distribution centers items are often distributed within a day.
Generally, distribution centers are affordable to rent in and can vary greatly depending on what types of
products are being stored in them. 
TYPES OF RISK
The following are the different types of risk in insurance:
1 – Pure Risk
2 – Speculative Risk
3 – Financial Risk
4 – Non-Financial Risk
5 – Particular Risk
6 – Fundamental Risk
7 – Static Risk
8 – Dynamic Risk

Role of logistics
Logistics actually has many roles. The most well-known role of logistics is sales logistics that moves
products from the producer to the consumer. In addition to sales logistics, logistics can also be split into four
other roles depending on the field. These are procurement logistics, production logistics, recovery logistics,
and recycling logistics. 
The roles of logistics feature transportation/delivery, storage, packaging, cargo handling, distribution
processing, and information processing, and many systems have been put in place to deliver products from
the production location or factory to the consumer quickly and on time.
This section describes the typical functions and equipment to help explain what kinds of materials make up
the different types of logistics.

Types of Logistics Centres.

There are three types of logistics centres: transfer centres, distribution centres, and process distribution
centres. You should have a good understanding of these three logistics centres because they are a basic part
of logistics. In addition to the three types of centres, fulfilment centres also exist as centres for the mail order
sales industry. This section describes the features and functions of each of these logistics centres.

1. Transfer Centres.
The primary role of transfer centers is cross docking (e.g., sorting and transshipping goods). Transfer centers
fundamentally do not perform storage of goods and other functions. Received goods are immediately sorted
and shipped to the next destination. The work performed on cargo at transfer centers is less than that
performed at distribution centers and processing distribution centers, so a feature of transfer centers is that
they can be operated with devices and equipment on a relatively smaller scale. However, receiving means
immediate shipping, so shipping information is required at the same time as receiving and speedy
cooperation between receiving and shipping is indispensable

2. Distribution Centres.
The purpose of a distribution center is to store and manage inventory at a logistics center, sort those goods
by store and region, and deliver those goods to retail stores and end users. This is the standard logistics
center that everyone thinks of. The work at a transfer center is simple: receive and then immediately ship
goods. A distribution center, however, is equipped with the basic functions of a logistics center, such as
shipping work, picking according to the contents of an order, distribution processing such as inspections and
packaging, and shipping so that goods arrive by the specified deadline. Compared to a transfer center,
though, costs tend to increase because equipment is required on a larger scale

3. Processing and distribution centres.

A processing distribution center is a distribution center with enhanced distribution processing. Relatively
simple distribution processing is performed at a distribution center, such as packaging and applying labels,
but the difference is that a processing distribution center can perform advanced distribution processing that
requires specialized devices and equipment, such as processing fresh fish and meat, as well as assembling
and installing parts. In addition to functioning as storage centers, these centers are equipped with an
environment that is as close to a factory as possible. High distribution processing functions can increase
added value, but this also requires dust-proof facilities, temperature-controlled facilities, and production
lines and labor equal to that of a factor
4. Fulfilment centre.
The popularization of sales over the internet has greatly changed the logistics industry, and fulfilment
centres are attracting attention in this age. Fulfilment centres are logistics centres that perform management,
picking, and delivery of goods in the mail-order industry. It can be said that these are logistics centers that
perform the sales work of receiving orders from the end user and promptly shipping goods. The advantage is
that all of the work (e.g., receiving goods, receiving orders from end users, packaging, shipping, inventory
management, customer data management, handling returns, handling complaints, and payment process) is
completed at the logistics centre. Operators that conduct mail-order sales can enjoy benefits such as different
customers and using new types of payment methods by conducting sales using the services of a fulfilment
center.

Distribution Processing and Packaging

Products are naked when they are produced. In recent years, the demand for distribution processing that
performs various types of work during shipping has been increasing to improve the added value of
distribution. If products are transported in their naked state by airplane, ship, or truck, they may be
scratched, broken, and quality may decrease. Packaging is what prevents this. This section describes the
logistics functions of distribution processing and packaging.

Distribution Processing and Packaging

This section describes the concepts of distribution processing and packaging, basic knowledge about the
two, and their differences.
1.Distribution Processing.
Distribution processing refers to all of the processing that is performed at the warehouse or logistics center
when shipping products. For example, grouping products into sets, applying labels, and putting products into
bags, or work such as inspecting for needles, applying tags, putting products on hangers, applying price tags,
and putting products into gift boxes, correspond to distribution processing.
The goal is to increase the added value of the product. There are advantages for both the customer and
logistics operator. The customer is happy if this time-consuming processing is completed at the delivery
stage, and the logistics operator can differentiate themselves and provide added value. In recent years,
demand has been increasing due to costs because it is cheaper to perform distribution processing at a
logistics center.

2.Packaging to Protect Products and Quality.

Products may be damaged and quality may decrease if shipped as is. The purpose of packaging is to protect
the product with cardboard or wooden crates to prevent damage and a decrease in quality. With packaging,
damage can be prevented due to vibrations and falls and decreases in quality can also be prevented due to
mold and rot from humidity. Products can also be differentiated more easily by marking the name of the
contents, volume, production date, and lot number on the cardboard box. Products with a difficult shape to
carry can be easier to stack on a cart and transport if put in a cardboard box. Packaging is also effective for
maintaining quality during storage.

Types of Packaging

Packaging is split into three types depending on the role and purpose: individual packaging, inner packaging,
and outer packaging.
1.Individual Packaging: Individual packaging is packaging for individual products. For example, individual
packaging is what is used to wrap each individual piece of candy. The purpose is to protect the product from
water, humidity, light, and heat.
2.Inner Packaging: Inner packaging is used to group individually packaged products in a bag. This is the bag
that is filled with individually packaged candy. Inner packaging is the unit that is sold at retail stores, and it
is important to design an inner package that expresses the appeal of the product and stimulates the desire to
purchase the product to promote sales.
3.Outer Packaging: Outer packaging is the unit of the largest package, such as a cardboard box or wooden
crate. The main purpose is to protect the product from dirt and breakage.

Transportation, Delivery, and Truck Freight

Logistics is the system that delivers goods quickly and on time from the production location or factory to the
consumer. Key functions in logistics are transportation, delivery, and truck freight. This section describes
these three functions.
Management of Shipping
Shipping and management of that work is an important part of transportation, delivery, and truck freight.
This is because products must be shipped correctly, on time, and as detailed in the order information
supplied from the customer. Let's take a look at the typical flow of work from shipping preparation to
shipping and recording transaction after shipping.

Flow from Creating the Shipping Instruction Form up to Recording the Transaction.

Step 1: Create the Shipping Instruction Form and Necessary Documents

When the delivery time gets close, enter a sales slip based on the order and create a shipping instruction
form. The warehouse manager proceeds to shipping preparation while checking the delivery statement,
receipt, and this shipping instruction form.

Step 2: Shipping Preparation

The warehouse manager performs picking according to the shipping instruction form. After the picked
products are inspected for problems, they are packed along with the delivery statement and loaded on a
truck. Selecting the appropriate packaging materials and type of packing for the shape of the products and
the delivery method is important at this time.

Step 3: Shipping and Delivery

The products are delivered to the customer. When the products are delivered to the customer, give the
delivery statement, copy of the delivery statement, and receipt to the customer. Have the customer confirm
the documents, then stamp or sign the receipt and bring the receipt and copy of the delivery statement back
to the company.

Step 4: Create a Sales Slip

The warehouse manager creates a sales slip based on the receipt and copy of the delivery statement and
passes this to the accounting manager. The sales are finalized in this manner.
Step 5: Record the Transaction
The accounting manager who has received the sales slip and receipt from the warehouse manager records the
transaction as sales. If cash (bank transfer) is received later as sales, it is handled as accounts receivable.

Top 10 Logistics Companies in India

In the last few years, the logistics sector has gained growth. Various new innovations have also been done in
the logistics sector to facilitate transportation. Many new logistics companies entered the market.

Aegis Logistics Ltd

Aegis Logistics Ltd was founded in the year 1956. The company is engaged in providing logistics and
supply chain services to the oil, gas, and chemical industry. The company distributes liquefied petroleum gas
and provides logistics and terminalling services in the oil, gas, and chemicals sectors. The Company also
manufactures and distributes oleochemicals and kerosene oil and provides chemical storage facilities. The
company has storage facilities at Mumbai Haldia Pipavav Kochi Kandla and Mangalore. Its segments
include Liquid Terminal Division and Gas Terminal Division. The Liquid Terminal Division undertakes
storage and terminaling facility of oil and chemical products. Its Gas Terminal Division relates to imports,
storage, and distribution of petroleum products, such as LPG and propane. It markets LPG packed in
cylinders, which are used for domestic, commercial, and industrial applications.

All cargo logistics ltd

All cargo Logistics Ltd was founded in the year 1993 and is headquartered in Mumbai. It is one of the top 10
Logistics companies in India. It is offering multi-modal transportation services. This leading logistics firm is
part of Avvashya Group. It offers a different range of multimodal transport services includes less than
container load, non-vessel-operating common carrier, and full container load. It also offers pan India
container freight stations, third-party logistics, inland container depots, ship owning, warehousing, and
chartering. The company operates across more than 160 countries through more than 300 offices.

Apollo logisolution ltd

Apollo Logi Solutions was founded in the year 2009 and is headquartered in Gurgaon, Haryana. The
company is an Integrated Logistics solutions provider and a 90% subsidiary
of Apollo International Ltd. The company provides end to end integrated logistics services through its strong
global network spread across multiple locations. It offers dry ports, freight forwarding, customs brokerage,
port clearance, customs handling, freight forwarding, bonded warehouses, warehousing, third party logistics,
first mile, and last-mile connectivity. The company has a global network of over 100 countries. It also has a
significant presence in the integrated logistics space with a special focus on the movement of EXIM cargo. It
is one of the top 10 Logistics companies in India.

Container corporation of India

Container Corporation of India was founded in the year 1988 is headquartered in New Delhi. The Company
is engaged in the transportation of containers (rail and road), and handling of containers. The Company is
also engaged in the operation of logistics facilities, including dry ports, container freight stations, and private
freight terminals. Its divisions are EXIM and Domestic. Both EXIM and Domestic divisions of the company
are engaged in handling, transportation, and warehousing activities. Its International services include train
services, road services, air cargo movements, reefer services, and block booking on a round trip basis. Its
domestic services include train services, volume discount scheme, door delivery/pickups, and terminal
handling charges. The company is among the top 10 Logistics companies in India.

GATI LTD.

Gati Ltd was founded in the year 1989 by Mahendra Agarwal. The Indian multinational courier delivery
services company is headquartered in Hyderabad. Gati started their operations from Madras to Madurai but
later expanded to Hyderabad, Bangalore, and Hosur in the same year. At present, Gati has offices in all
major cities of India, with a presence in Singapore, Hong Kong, China, Nepal, and Thailand. The company
is a pioneer in express distribution and supply chain solutions. Apart from this Gati Ltd also offers
warehousing, freight forwarding, trading, and cold chain services. In 2017, Gati launched Gati Fulfillment
Services (GFS) to focus on e-commerce industries and established fulfillment centers in major cities of
India. In 2020, Gati Ltd was awarded CII SCALE Awards for Overall Excellence in Logistics and Supply
Chain. Gati Ltd is one of the top 10 Logistics companies in India.

Mahindra logistics ltd

Mahindra Logistics was founded in the year 2000 and is based in Mumbai. The Company Provides logistics
services to both internal and external customers. It offers inbound and outbound logistics, inter-plant
movement, warehousing, linefeed, and other services. It also offers People Transport Solutions, a line of
business that provides customized services to organizations for the transfer of employees from home to their
place of work and back. Mahindra Logistics is a subsidiary of Mahindra & Mahindra Ltd. It is one of the
top 10 Logistics companies in India. The Company’s Mahindra People Transport Solutions division ensures
on-time pickups and drops with a focus on safety, comfort, and security.

Sical logistics ltd

Sical Logistics Ltd is India’s leading integrated logistics solutions provider with over 5 decades of
experience in providing end-to-end logistics solutions. The company was founded in the year 1955. Sical is
one of the few ‘Made In India’ organizations with a strong network having independent operations
countrywide. The company’s divisions include Port Handling, Road Logistics, Retail Supply Chain
Solutions, Customs House Agency, Ship Agency & Goodwill Travels Division. Sical, today has expanded
and developed in various business segments such as Mining, Port Logistics, Road and Rail Transport,
Container Freight Station, Warehousing, Shipping. In addition to the above Sical also provides offshore
support services to the oil and gas industry.

TCL express ltd

TCI Express Ltd was founded in the year 1996. TCI is a leading integrated supply chain and logistics
solutions provider and a pioneer in the sphere of cargo transportation in India. TCI offers seamless multi-
modal Logistics solutions, transport, storage, warehousing, and support services for transportation. The
Company is engaged in express distribution and offers a single-window door-to-door solution to customers.
It offers express solutions with over 3,000 pick-ups and approximately 13,000 delivery locations with its
containerized fleet of vehicles. The Company provides services to approximately 200 countries across the
globe. It provides business-to-consumer (B2C) and business-to-business (B2B) on multi-model distribution
for optimum on-time delivery with value-added features of cash on delivery (COD), Pick n pack, late-night,
and early morning deliveries. The Company also offers reverse logistics. It is one of the top 10 Logistics
companies in India.

Transport Corporation of India ltd

Transport Corporation of India Ltd was founded in the year 1958 and is headquartered in
Gurugram, Haryana. The company has 1400+ offices all across India. The whole corporation is composed of
eight divisions, namely: TCI Freight, TCI Express, TCI Supply Chain Solution, TCI Global, TCI Seaways,
and TCI Foundation. The company is an integrated supply chain and logistics solution provider. The
Company’s segments include Freight Division, Supply Chain Solutions Division, Seaways Division, Energy
Division, and Global Division. It offers multimodal transportation solutions. TCI Freight is a surface
transport entity. TCI Supply Chain Solutions division offers services to sectors, such as auto, retail, telecom,
electrical, and pharmaceuticals. TCI Seaways division caters to coastal cargo requirements for transporting
container and bulk cargo. TCI Global division provides customs clearance, international inbound and
outbound freight handling (air and sea), third-party logistics, multimodal (air, surface, and sea) services, and
project cargo. It has a fleet of customized vehicles and over 10.5 million square feet of warehousing space.

VRL Logistics ltd

VRL Logistics Ltd was founded in the year 1976 and is headquartered in Hubballi, Karnataka, India. The
company is engaged in goods transportation and passenger transportation. The Company offers logistics
services dealing in domestic transportation of goods. It is also engaged in bus operations, air chartering
service, sale of power, and sale of certified emission reductions (CER) units generated from the operation of
windmills. Its segments include Goods transport, Bus operations, Sale of power, and Air chartering service.
It provides less than truckload services (LTL) for general and priority parcels and caters to a range of
industries, including FMCG, textiles, apparel, furniture, metal and metal products, and automotive parts. It is
one of the top 10 Logistics companies in India.

Case study

Delta Peace

DELTA PEACE completed loading of a cargo of steel billets in Rotterdam on 26 February 2003. She sailed
the same day for discharge in Inchon, Korea. At the end of March the vessel put into Durban for bunkers.
The ship was promptly arrested by the bunker suppliers for non-payment of previous bunkers by the
Shipowners. The Shipowners did not have the financial resources to settle the outstanding debts. The vessel
was sold by judicial auction. The cargo owners arranged for the cargo to be transhipped to destination on a
substitute vessel. Transhipment operations were completed on 13 April and the replacement vessel,
unfortunate, sailed for Inchon. On 28 April the vessel encountered heavy weather. The cargo shifted and
punctured a hole in the side of the vessel. The pumps were unable to cope with the ingress of water and the
vessel sank on 2 May.
the cargo receivers, to whom the insurance policy had been assigned when the goods were on unfortunate,
submitted a claim to the insurers for the costs of the transhipment operation and the total loss of the cargo as
a result of the vessel sinking. The insurance had been arranged under the Cargo Clauses (A).

Key Findings of the Report

1.Despite the legal position ushered in by Carriage by Road Rules, 2011, which appear benevolent towards
the Logistics Industry, in reality, the Service Providers continue to be in a highly vulnerable position.
2. The United Nations Economic and Social Commission for Asia and the Pacific points out that with
logistic services getting integrated with the supply chain, services have become more complex; and setting
up limits of liability and minimum standards for liability insurance has become more difficult.
3.There are instances where LSPs purchase cargo policies in their favour, which do not actually protect
them, as these are designed to protect only the owners' interests and not those of the carrier or other bailees.
4.The Logistics Industry does not realize that its complex business models are often not fully understood by
insurers and hence they do not enjoy the fullest confidence of the Insurance Industry.
5.The freight charged by the logistics provider is not sufficient to meet the risk exposure of transportation
and warehousing losses even though losses are infrequent.
6.Insurers provide marine cargo policies to consignees based on the consignment notes issued by
transporters. Insurers do not inspect the cargo, check the standard of packing, method of packing or insist on
standard risk management practices.
7.Carrier’s Legal Liability policies are not practically effective as insurers do not settle claims till legal steps
are initiated against the carrier. LSPs have no option but to pay to retain business.
8.There is scope for exercising more care in packing, loading and lashing of cargo to prevent accidents
during transport as also in choosing appropriate vehicles. Efforts to create better awareness among the
customers of the Logistic & Warehousing Industry are needed.
9.There is an acute shortage of skilled drivers and Transporters do not have the capacity to identify fake
driving licenses. This increases their commercial costs like vehicle maintenance etc.; as also social costs like
damage to goods, loss of life and damage to road infrastructure.

CHAPTER 2
Research Methodology

STATEMENT OF RESEARCH:

To study role of insurance in logistics services and its impact due to Covid-19.

Objective Of The Study

The objectives of the Project are:
 To know about Logistics Industries
 To have a understanding of how logistics industries work.
 To know whether the customers are satisfied with the existing range of service pattern.
 To understand the logistics management.
 To study the role of insurance in logistics management.
 To study various documents maintained while transportation of goods.
 To study manpower used and material handling in loading and unloading.
 To study various costs involved in logistics and steps to reduce those costs.
 To study the importance of warehousing in logistics.
 To know about the impact of Covid-19.

The data used for the study had primary and secondary character to it. The primary data was
collected through questionnaire method. The secondary data were composed through the reference of books,
websites, and interviews with various executives in different organizations of the sample. The procured data
was analyzed by a simple percentage method and the results are supported with graphs and charts.
 Sample
  Statement and significance (of data recorded)

HYPOTHESIS:-

The hypothesis statements are given as follows:

1.
H0: There is no significant relationship between Age Group and people using logistics services

H1: There is significant relationship between Age Group and people using logistics services

2.
H0: There is no significant relationship between Qualification and impact of covid-19 .

H1: There is significant relationship between Qualification and impact of covid-19.

SCOPE OF STUDY

To know the customer perception in the Logistics service, it contains different type of customer’s
satisfaction level, their expectations and interest. What kind of problems customers facing in
logistics service. To know the customers age, gender, qualification, ratings and their level of
satisfaction this is the need to this study.

LIMITATIONS OF STUDY: -
The present study was undertaken to maximize objective and minimize error. However, there are certain
limitations of the study which are to be taken into considerations for the present work. Some of the people
were not responsive. Possibility of error in data collection because many of respondent might have not given
actual answer to the questions.

Sample size:-

The study covers only the selected various customers. In this study stratified random sampling
technique has been used and 51 customers were selected on random basis.

Tools and Techniques: -

The following tools and techniques are used for the present study:

 Percentages

 Pie charts
SELECTION OF THE PROBLEM: -

The study on logistics insurance has been selected in order to study and examine the progress of logistics
service in India. Another reason is to study whether the general public prefers logistics insurance.

Data collection: -

Primary data:

Primary data is collected with the help of executing the questionnaires. The data was collected to get primary
data from consumer of post office. The questionnaire is used as a best tool for collecting primary data from
post offices.

Secondary data:

The study is based on secondary data which is collected from secondary sources via various books,journals
magazine, newspaper and annual reports and websites of post office and through various search engines the
data is classified into primary and secondary data.

TOOLS AND TECHNIQUES USED: -

Tools used for data analysis are bar graphs, line graphs, pie charts. Hypothesis has been proved using CHI-
SQUARE TEST.
 CHAPTER 3
LITERATURE REVIEW
The relationship between economic growth and financial growth was investigated by several studies in
the literature. According to the idea expressed for the first time in United Nations Trade and
Development Conference in 1964, national insurance and reinsurance market is a characteristic feature
of economic growth. The insurance sector is not an economic unit that only offers insurance against the
risk of people and organizations to face and it also helps to macroeconomic data to bring employment
and foreign exchange. More recently an alternative theory occurred; a development and growth in a
sector may affect other sectors in the economy. That’s why, so many governments invest in bank and
insurance sector and prefer the way to affect other sectors in the economy in a positive way.
 CHAPTER NO.5

Conclusion
The universe every day is witnessing unimaginable growth in majority of the industries. The logistics and
freight industry are one such industry that is rapidly growing. Worldwide logistics industry is distinguished
by fast technological advances and is growing rapidly than most other industries over the past years. With
stiff competition around, the company is likely to reduce the profitability But with proper management of
operations and by proper customer desired services, and also effectively utilizing its alliances it can maintain
and improve the performance. Joint operational ventures for developing the customized services for its
steady growth. The organization has enormous opportunities to grow beyond the expectations.
Thus the risk insurance or the risks in the insurance are the chance that unexpected events will occur, which
could cause the loss to the person or its property. Most of the risks are nowadays insurable by insurance
companies. These companies calculate the probability of the events and their impact and then calculate the
premium accordingly.

SUGGESTIONS
1.The big players of the Logistic Industry can think of creating Protection and Indemnity clubs to take care
of their uninsurable risks and the claims that do not fall under insurance policies.

2.Legal Liability policies need to be redesigned by Insurers after understanding the present day realities of
the Logistics and Warehousing Industry.

3.Every employee of the industry should be taught/ trained to improve the industry's culture and take it to
greater glory in the years to come.

4. Logistics Service Provider may appeal to the Ministry to make it mandatory for all goods, at least those
transported through third party Logistics Service Provider, be insured.

5.Governmental systems for issuing/ renewing motor driving licenses may be made more robust by making
mechanisms like 'Aadhaar' linking compulsory and by providing mobile apps to check the veracity/ validity
of licenses and the drivers' accident record.

BIBLIOGRAPHY

1. A.K. Jain (2004) ‘The Journal of Insurance Institute of India’,

2. A.K. Shukla (2006) ‘The Journal of Insurance Institute of India’
3.Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-12, 2016
ISSN: 2454-1362 http://www.onlinejournal.in
4.www.yourarticlelibrary.com
5.Vipul’s BBI Series ‘An Overview of Insurance Sector’

6. https://byjus.com

7. Shee, H.K., Miah, S.J. and De Vass, T. (2021), "Impact of smart logistics on smart city sustainable
performance: an empirical investigation", The International Journal of Logistics Management, Vol. ahead-
of-print No. ahead-of-print. https://doi.org/10.1108/IJLM-07-2020-0282

8. https://www.oberlo.in/ecommerce-wiki/warehousing
 ANNEXURE

QUESTIONNAIRE ON LOGISTICS INSURANCE

1.Name.

2.Gender
o FEMALE
o MALE
o PREFER NOT TO SAY
3.AGE
o LESS THAN 18
o 19-25
o 26-35
o 36-45
o 46-55
4.Qualification
o 10TH PASS
o 12TH PASS
o GRADUATE
o POST GRADUATE
o OTHER: ___
5.What company do you think is the best in the market for courier services?
o FEDEX
o DTDC
 o IRCTC
o BLUEDART
o OTHER: ____

6. Have you ever used their courier services? If yes, which one(company name)
ANS.____

7.What do you think about the service offered by your company?

o TOTALLY SATISFIED
o SATISFIED
o DISSATISFIED
o TOTALLY DISSATISFIED

8. Are the rates appropriate for the level of service provided?

LOWEST 1. 2. 3. 4. 5. HIGHEST

9. Do you feel safe when you use logistics company for shipments?
LOWEST 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. HIGHEST

10.Do you know the company has their personal online website?
o YES
o NO

11. Have you ever used their website?

o YES
o NO
12. Do you find it easy to use?
o YES
o NO
13. How satisfied are you with the information about (COMPANY) website and web-based
tools?
 o TOTALLY SATISFIED
o SATISFIED
o DISSATISFIED
o TOTALLY DISSATISFIED
14.How often do you use their services?
o MORE THAN ONCE PER MONTH
o ONCE A MONTH
o ONCE EVERY THREE MONTH
o ONCE EVERY SIX MONTH

15.What do you think covid-19 has impacted on logistics industry?

o YES
o NO
16.Which type of shipping do you use most often?
o LETTER
o PARCEL
o EXCESSIVE OR OVERSIZED SHIPMENT
17.How would you rate package tracking system for your consignment?
o EXCELLENT
o GOOD
o FAIR
o POOR
18.Have you ever heard of logistics insurance?
o YES
o NO
o MAYBE
19.Have you ever taken insurance for your courier or did you secure your commodities with
insurance?
o YES
o NO
o MAYBE
20.What type of cargo and freight do you secure?
ANS.
21.Did your cargo, commodities and freight met with an accident?
o YES
o NO
22.Did you find claim and settlement process easy?
o YES
o NO
o MAYBE
23.Do you think insurance gives you a benefit?
o TOTALLY AGREE
o AGREE
o DISAGREE
o TOTALLY DISAGREE
24.What premium amount did you pay?
o RS 50-200
o RS 200-350
o RS 350-500
o RS 500 AND ABOVE
25.Have your complaints been resolved to your complete satisfaction?
o YES
o NO
o MAYBE
26.Do you know insurance plays an important role in logistics industry?
o YES
o NO
o MAYBE
27.Would you consider recommending your shipping / courier service to others?
o YES
o NO
o MAYBE