Significance of Insurance Policy in Transportation Sector

Transportation is one of the most important sectors in any economy in the world. As you know, transport is central in the distribution of goods and services from one place to another. There are three types of transport:

A, Land

B, Air

C, Water

I just want to get you informed on why insurance is the key in this sector. Transport by car, motor or long vehicle is very important so as to reach the end user. Transporting your goods to end user required some expenses. For instance, transporting your product from Texas to Dallas requires time and money. But how will you recoup your expense in case of any unexpected event. Of course, you know, we will not rule out accident in this regard. No matter how careful you are, it can happen at any time. Therefore, the only wise counsel is to insure your vehicle and products so that you may not loose everything in case of such eventuality. The same thing applies to others, like Air and Water.

I want to tell a typical example of what happened to a friend of mine. This guy is a big shot when it comes to business. In fact he has been in the business for the past 30 years. He imports goods from China and Europe. On 23^rd of June 2012, he imported goods from China. The goods were checked and approved by the relevant authorities of China. As soon as the plane took off, the pilot was asked by tower controller to fly back due to some technical fault noticed by the pilot. You know, is not always easy for an aero-plane to take off and return immediately.  So, as the pilot was trying to turn back, the plane crashed close to the Airport. Everything in that plane was lost, no life and goods was saved. Now you understand what I mean, when I said insurance is the key to business success and survival.