Cargo Insurance
Cargo Insurance

Cargo Insurance

The purpose of Goods in Transit Insurance is to indemnify the damage caused to goods being transported and the accompanying expenses incurred by the policy holder.  With Seesam you can also insure against liability arising from both the forwarding agent and road carrier's contracts.

Terms and conditions Information Applications

Cargo

Subject of the insurance is cargo carried on conveyance from departure point to the destination.  Contract of insurance is usually on all risks basis including loading, reloading and interim storage as well as unloading of the cargo.

Basis of valuation is the value of the goods transported (invoice value at the place of departure), which may be supplemented with following:

  • cost of carriage (freight)
  • nonrefundable taxes e.g custom or excise tax
  • exhibition costs e.g rent of the exhibition premises
  • transport related undirect costs and profit usually up to 10% of the invoice value plus freight

Several additional covers may be included:

  • Salvage and utilization costs (standard cover)
  • General Average contribution (standard cover)
  • War and Strike (including terrorists) risks (additional cover)
  • Pre- and post carriage storage (additional cover)
  • Exhibition risks (additional cover)
  • Removals (additional cover)
  • Delay (additional cover)
  • Contingent insurable interest i.e Buyers/Sellers interest durng the whole route despite of delivery terms (additional cover)

Cargo may be insured as a single transport or as annual cover for example all exports / imports of the insured during the year.

Note to the customer

Things to consider while handing over the cargo to the carrier 

  • Cargo must be packed and prepared for safe carriage considering regular risks and circumstances during the course of transit such as mode of transport, possible reloadings and interim storages during the carriage, place of destination etc.
  • Both international and domestic law and practice presumes that loading operations including fastening is the responsibility of the consignor. In order to minimize risks such operations must be regulated in the contract of carriage where sender of the goods does not actually have control over the specific operation, fastening of the cargo for example.
  • Cargo waybills and packing list should contain information about the number of the units (e.g number of cases, pallets etc) and both neto and gross weight of the cargo.
  • Contract of carriage must have relevant information about safe carriage including excact address and contacts of the Consignee, required transport regime (e.g temperature, humidity) as well as indication of other relavant notes such as „fragile“ „protect from moisture“ etc.

Things to consider when accepting the cargo from carrier 

  • It is relevant and essential to check the quantity and quality of the cargo when acceptng it from the carrier. In case of any visible damages or shortage, immediate notes to the cargo waybill must be made plus separate document indicating the extend of the damages / shortage should be formed if possible. Such document must also be signed by carrier and if possible, photos should be added. In case no reservations about the damages / shortages then it is presumed that cargo was handed over without any notices and later claim against the carrier may be problematic.
  •  If cargo loss / damage is not discovered at the moment of acceptance of cargo (no visible damages on package), then carrier must be informed during the time limits set out in the contract of carriage, usually seven days, but in case of sea transports, 3 days after arrival of the goods.
  • In case of cargo damage / loss, all reasonable measures has to be taken to minimize the loss.
  • Insurer or appointed loss adjuster must be informed as far as reasonable possible and instructions to be followed.
  • Notice about the loss to the carrier is not the claim yet. Official claim to be presented after calculation of the loss amount together with supporting documents. Usually the time limit is one year to present the final claim.
  • Notice of the loss and latter claim must be presented to the carrier dspite the excistence of insurance policy.

Provisions and references

REFERENCES:

CMR convention – International Freight Contracts Convention
https://www.riigiteataja.ee/akt/13037042

ELEA Conditions – Freight Forwarder Regulatory Code
https://www.elea.ee/elea-uldtingimused/

Law of Obligations Act – Insurance contarct (from § 422), Transport contract (from § 774), Forwarding agreement (from § 854).
https://www.riigiteataja.ee/akt/961235

Transport Information Service – information on cargo characteristics, packaging, damage prevetion measures etc.
http://www.tis-gdv.de/tis_e/inhalt.html

Incoterms – describes the transfer of risks and liabilities from the seller to the buyer
http://www.eas.ee/images/doc/ettevotjale/eksport/incoterms2010.pdf

Loading and Confirmation of Freight on Road Vehicles – 
https://www.riigiteataja.ee/akt/201504

Reglements for loading and undloading bulk carriers, etc. – Regulation of the Minister of Economic Affairs and Communications
https://www.riigiteataja.ee/akt/943563

Lloyds Agents – search for ceryified loss assessment agents
http://agency.lloyds.com/map

Information about dangerous areas of the world - https://watchlists.ihsmarkit.com/watchlists-viewer