CONTENTS - Central Public Works Department

SECTION 39
(4) In the case of both FOR station of dispatch and FOR destination contracts, where the suppliers
accept the DGS&D’s standard transit insurance clause, the consignee will merely file the claims
with the carrier and report the fact to the suppliers. Thereafter it will be the responsibility of the
suppliers to pursue the claims with the carrier and settle the matter.
(5) The inland transit insurance, whenever required by the indentors/consignees, should invariably
be arranged with a nationalized Insurance Corporation/Company of India in preference to the
Railway.
(6) In case of loss or damage to stores in transit where the stores have been insured by the supplier
against such risks, he will take up the matter with the insurer and recover the loss from them. The
indentor will be responsible for payment of stores actually received by the consignee.
(7) Where the suppliers arrange transit insurance, they should notify the consignee in writing when
forwarding the dispatch documents, such as Inspection Notes, Railway Receipt etc., about the
limit within which the claims for shortage/damages in transit should be filed, to enable the consignee
to do so within such period. It is the responsibility of the indentor/consignee to prefer the claims
within the specified period wherever suppliers notify them that transit insurance cover will be valid
only upto a particular period failing which their claims are likely to be ignored.
39.3 Insurance of imported stores in transit
The responsibility for arranging insurance of imported stores is that of the indentors who are expected
to take out individual policy with a Nationalized Insurance Corporation of India. Details of the policy should
be indicated by the indentors in their indents/contracts.
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