In an Inland Marine policy, an annual transit policy is usually provided based on:

An annual transit policy under an Inland Marine policy is typically provided on a named peril basis. This means that the policy will specifically list and cover only those perils or risks that are explicitly mentioned within the policy. For instance, it may cover risks such as theft, collision, or specific types of damage during transit, while excluding coverage for other potential risks that are not listed.

The named peril basis is beneficial for policyholders as it allows them to have clarity on what is covered. They can assess their risks against the specific perils outlined and understand their coverage limitations. This clarity is crucial when a business relies heavily on the safe transportation of goods, as it helps in planning for risk management and recovery in the event of a loss.

Options like open peril basis, replacement cost basis, and actual cash value basis, though important concepts in insurance, do not align with the standard nature of an annual transit policy. An open peril basis would offer broader coverage by protecting against all risks except those explicitly excluded, while replacement cost and actual cash value are methodologies related to how losses are settled rather than the nature of the coverage scope in terms of named perils.