UIIC AO 2016 - Essay - Transit Insurance in E-Commerce

Hello and welcome to exampundit. Here is the second Essay of the 3rd Part of UIIC AO 2016 Descriptive Contest. The winner of this topic is Ghost.

Goods and materials are one of the most valuable assets in a business and therefore it is important to protect them against loss, damage or theft when they are in transit. Loss or theft of goods during transit and damage caused by accidents during transit are common inclusions. One of the most important objectives of the Courier Companies is to ensure that the goods reach the customers on time while maintaining a reasonable cost too. Based on a recent research by CRISIL, 28% of all products are returned from online purchases as they were delivered in a damaged condition.

Thus it is necessary to insure the goods while they are in transit. If the product is involved in a car accident or stolen, it causes delays. The insurance can provide reimbursement to the business if the owner loses money due to a shipping error. Content coverage is also needed if the company produces its own product in its warehouse. It is most likely that if goods or materials are stored in a van overnight, goods will need to be kept in a locked garage or compound with secure walls and locked gates. This could be a determining factor in whether the insurance company will cover the cost of any damage or theft. If an employee is injured while doing the job, insurance coverage helps with medical expenses.

By giving coverage to that employee leads to lessen company expenses. If the business works with intangible property like software, data etc. the owner of the business could be sued for the rights. Then insurance helps cover the company’s legal defense.

In a nutshell, when security questions arrive in e-commerce, those problems can only be resolved with the help of nothing but insurance.

Get the Best Mock Test for SBI PO 2016 : CLICK HERE



Team ExamPundit