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Cargo insurance

Cargo insurance (transport insurance)

Freight insurance or cargo insurance should not be mistaken for the carriers' liability insurance. Cargo insurance, like other insurance of objects and property, is subject to the principle of indemnity, ie, insurance should not result in the insurer's income and profits, and the transferee should benefit from it.

According to clause 1 of article 22 of the insurance law approved in 1316, "the insurance of transportation of damages is calculated by reference to the value of the property at the destination", the maximum insurer's liability is the cost of the goods or the cost of the day at the destination. Insurers are allowed to use different means of transport, and therefore the goods can be shipped in any of the different ways.

Cargo insurance is divided into two categories: internal and external. Internal insurance is governed by domestic laws and central insurance regulations, while external insurance is subject to international rules and regulations.

 

Types of insurance for international freight

Before the development and implementation of insurance policies known as A, B, C Counties by the London Insurance Institute, the following transport insurance premiums were commonly used in the insurance market, which are called old-fashioned insurance companies.

These insurance were FREE FROM PARTICULAR AVERAGE = FPA with the lowest coverage with WA or WITH A PARTICULAR AVERAGE with more insurance coverage and finally ALL RISK with the highest coverage. The insurance has been replaced by C, B, A for a while.

A.R, WA, FPA insurance has been revised since many years ago, and new conditions have been introduced under the terms or CLAUSE C, B, A. In terms of coverage risk, the condition B can be approximated to WA and conditions A are equivalent to A.R.

Frequently-used terminology in cargo insurance

CARGO GOODS: In a general and simple definition, all goods shipped by ship or vehicle.

OPEN POLICY OPEN INSURANCE: A general contract that insures a large number of specified items in accordance with agreed terms. Merchants who trade significant amounts of commodities and materials will use this insurance policy, provided they provide the insurer with any information about each shipment. In the event that the filing of documents and the provision of an insurance policy are necessary, an insurance policy shall be included within the framework of "open insurance". In this case, the insurer informs the insurer periodically (for example, once a month), the amount of cargo shipped, and the insurer mutually sends the premium bill to the client and fixes the previous accounts.

Individual Insurance: In cases where the goods are shipped to a specified amount, an individual insurer will be issued for each consignment.

DECK CARGO deck: Goods that are downloaded on the deck are at greater risk than those loaded on the ship. Therefore, this type of product is usually covered by a full-risk insurance and a premium is paid for it, although other insurance or insurance terms, such as C and B, can also be applied to specific circumstances.

Type of goods TYPE OF CARGO: In addition to the above mentioned conditions, some goods are dangerous on their own and should be carried under special conditions and care. Like cement in a bag or oil in a barrel that is likely to fall and there is a lot for them, which is subject to special conditions in the insurance policy.

Rate or Premium RATE / PREMIUM: The amount or amount of the premium is mainly subject to the terms of the insurance. Premium payment is a condition of commitment by the insurer and should often be paid at the same time as the insurance policy is issued (prepayment). Nevertheless, a different agreement can be reached between the parties.

Important: However, in addition to the above, the premium rate and the amount of premium paid are also affected by the following factors:

VEHICLE MODE (MEANS) OF TRANSPORT: Air freight is reduced by 25% compared with land and sea and rail transport. On the other hand, if shipments are carried out with unclassified vessels or worn vessels. Additional rates for supplies They will be taken.

PACKING: Containers may be included in some types of packaging. For example, the cost of chemical insurance in powder form in a barrel is lower than the same rate in paper or plastic bags. In addition, container shipping is also subject to a 20% discount (from origin to destination). Carriage of goods on board: Except for the shipments of ghosts on the deck of the ship, such as bulky cargo, dangerous goods or containers, other types of supplies, if carried on deck, will be subject to an extra charge.

Insurer: An individual who is covered by an insurance or insurance contract under a contract or insurance policy for a premium received from an insurer, and is also referred to as an UNDERWRITER.

INSURED INSURED OR INSURED: A person insuring his / her premiums against risks that are insurable.

INSURANCE POLICY: A document that constitutes a contract of insurance and warrants that the insurer undertakes to compensate the insurer if it realizes the risk.

SUM INSURED: The amount of insurance is usually declared by the insurer and the insurer accepts it whenever there is no place for suspicion. The amount or capital of an insurance company often covers the cost of transportation and the percentage of compensation for the interests of the seller or beneficiary (10%). According to the law, customs duties can be added to the amounts and insured. This term has also been termed "capital insurance".

GENERAL AVERAGE: It is said that the word AVERAGE has been taken from the word clashing