Cargo insurance is insurance of goods during transportation, regardless of the transport mode. Costs are incurred when cargo is lost or damaged during transportation. Cargo insurance offers different coverage.
Institute cargo clauses
Cargo insurance is unified under the original London terms, the so-called “Institute Cargo Clauses”. They are internationally accepted and are the same throughout the world. The three types of clauses “A”, “B” and “C” vary depending on the type of cover. The first clause offers full coverage, Clause “B” – limited coverage, and Clause “C” – minimally covered.
Clause “A” 1.1.82 covers all possible risks of loss or damage to the insured cargo during transportation, excluding war risks, political unrest, strikes, riots, bankruptcy of the insured, bankruptcy, exchange rate fluctuations, deliberate action or omission of the Insured, as well as damage caused by inadequate or inappropriate packaging or inappropriateness of the vehicle. The risks covered include fire, explosion, traffic accident, natural disaster, theft, and this risk is excluded in the theft of the entire vehicle.
Clause “B” 1.1.82 covers fire, natural disasters, earthquakes, wetting of the cargo, entering wet or river water in the hold or container, partial or complete loss of a package of commodity, but insurers are very rarely bought.
Clause “C” 1.1.82 is specialized and covers only fire, explosion, road traffic accident and total loss. It assures goods in bulk or bulk.
It is necessary to provide an invoice for the value of the cargo, a bill of lading and a completed proposal or application.
When an insured event occurs
When there is an insurance event, you need to provide an original of the policy, cargo damage or cargo missing report issued by carrier, report by survey, a letter of protest to the carrier, a packing list and a specification of the cargo, if any.