Cargo insurance
Cargo insurance together with TransVIP
Cargo insurance is an integral part of cargo carriage. No matter how reliable the modern transport and methods of protection of transported cargoes are, no any carrier in the world is secured against force-majeure situations.
What is cargo insurance during transportation?
It is commonly-accepted that cargo insurance is among those types of property insurance where the major purpose is protection of interests of the cargo owner in those cases when they suffer a damage caused by different insured events which occurred during cargo carriage.
Extent of insurance
Insurance protection of cargo extends over damages, loss of cargo occurred during carriage of cargo by sea, air, road transport.
Sometimes you can find such a term as a “marine insurance”. In spite of the reference to maritime traffic, this term refers to any type of insurance during the transit of goods from the shipper to the consignee.
What insurance events are covered by insurance protection?
Insurance covers all risks which are stipulated by the contract of cargo insurance. Namely:
- physical damage;
- partial damage;
- damage occurred within the frame of “perils of carriage”;
- loss of cargo;
- theft.
The exhaustive list of insurance events may be extended depending on the precedents.
Conditions of cargo insurance and transport insurance of cargoes
It should be noted that the inevitability of damages can be characterized by the features of the cargo itself and not only be connected with any external event. A bright example of such features can be liquid vaporization, sugar or grain drying, other losses. In this case the loss results from the natural physic-chemical processes regardless the activity or inactivity of the carrier. As you understand, the carrier is not responsible for such kind of losses. However, this does not justify the failure of the carrier to comply with the rules of carriage which secure safety of cargo!