Cargo shipping insurance
Insurance covers cargo covers damage or loss, occurred as a result of carriage of goods by ocean, land and air (postal service, courier services).
Although sometimes the term "marine insurance" is used, it represents the insurance protection of goods during transport, taking into account all possible modes of transport from the warehouse of the shipper to the consignee's warehouse.
What is covered by insurance protection?
All the risks - physical damage of the goods, partial damage to cargo damage, occurred as a result of accidents or hazards of transportation, in case of theft.
All losses - specified in the contract.
|Loss caused by or resulted from one of the following perils||All Risks*||FPA|
|Fault or errors in the management of the vessel||Yes||Yes|
|Bursting of boilers||Yes||Yes|
|Latent defects in hull or machinery (if unknown to the insured)||Yes||Yes|
|Oceanwater as a result of heavy weather||Yes||No**|
|Theft of entire shipping package||Yes||No**|
|Non-delivery of entire shipping package||Yes||No***|
|Improper storage by the carrier||Yes||No|
|Hook damage, mud and grease||Yes||No|
* Although above perils are indicated as covered under "All Risk", depending upon commodity, certain exclusions; Always refer to your policy's Approved Commodity list.
** Partial losses are not covered for these perils, but total losses are covered.
*** With underwriter's approval, may be added to FPA or WA for additional premium.
Insured against all risks of physical loss or damage from external causes, however each claim shall be subject to a deductible of three percent (3%) of the total insured value of each automobile separately insured (subject to a minimum deductible of $250).
No coverage shall be granted hereunder while any vehicle is being operated under its own power, except while being driven on or off a carrying conveyance for the purposes of positioning, loading or unloading.
The auto is subject to a pre-shipment survey completed by the shipper or their representative.
Coverage will cease upon discharge from the vessel.
What insurance must be purchased?
Practice shows that the insurance policy must cover the cost of the goods specified in the invoice plus freight costs and a percentage of the expected profit (usually it is 10 - 20 percent).
The sum insured should not exceed per cent of the expected profit and the cost of freight.
Progress report on the transportation of the goods can be received each month. Unlike property insurance policy, the basis of the policy of cargo insurance is an immediate payment of costs (prepay).
What is the difference between single and open policy?
Policy for a single shipment:
Is the most popular form of insurance of goods. One-time (Polis for one time) the insurance policy of the goods subject to a specific shipment. It offers insurance protection from the moment when the goods leave the warehouse until it reaches its destination.
Open policy is not an insurance policy. In fact - it is a contract between the insurer and the insured, which stipulates the amount of each shipment or goods, terms and other conditions agreed upon by two parties.
Terms and conditions stipulated in the contract, covering the details of transportation, the maximum amount of cargo-specific delivery, appearance and packaging of goods, as well as pricing.
When compiling a single or monthly contract, the policy holder must provide the Insurer with proven record of transported goods.
Term insurance protection begins with the completion of loading goods onto the vehicle at the departure point and ends at the beginning of unloading at the destination.
Provision of effective cargo insurance, combined with excellent service in the name of long-term cooperation with customers.