Freight and Transit Insurance:

The freight element based on actual freight rates of truck associations or railway freight as per the case should be applied. But the weight of the goods to be procured (which generally is the underlying consideration in freight rates of transporters) is commonly not available till the time of estimate.

For estimation reasons, an average rate of 1.5% to 2.0% of the value of the goods could be used, if realistic rates are not available.