Everyone involved in international trade is aware that cargo transported by sea, air, road or rail is at the mercy of innumerable hazards during transit. Importers or exporters are exposed to financial ruin if their cargo is lost or damaged in transit.
The most common risks are loss of, or damage to, cargo due to:
- Use of incorrect machinery or unskilled labour
- Long, inappropriate, intermediate storage
- Theft or pilferage
- Fire, water or collapse of stowage
- General Average and Salvage charges
- Financial insolvency of the buyer
- Abandoned cargo
- Consequential loss due to loss of, or damage to, cargo
- War, strikes and civil commotion
If the number of shipments is high these can be streamlined through an Open Cover whereby your shipments can be held covered at pre-determined terms and conditions. Transit Policies can be extended to include the risks whilst the cargo is kept in temporary or permanent storage. If the cargo is for construction or installation purposes the transit policies can be extended to include the cargo whilst being erected.
The main types of covers are
- All Risks as per Institute Cargo Clauses “A” or ICC “AIR” or Land Transit All Risks
- Limited cover due to fires, explosions, vessels being stranded or grounded, sinking, capsizing, overturning, derailment of land conveyance, collisions or contact with an external object, discharge at port of distress, general average, sacrifice, salvage charges and jettison. This cover can be extended to include non-delivery of cargo.
Depending on the risks present, cover can be arranged to suit different needs. Although normally the terms of sale such as F.O.B. or C & F or C.I.F determine who should affect the cover, the ultimate owner should ensure protecting his interest.
Household goods, personal effects and motor vehicles are exposed to accidental loss or damage whilst moving from place to place. Such risks can be covered under a Transit Policy. The policy can be designed to protect the insured property for accidental loss or damage during the entire transit including loss or damage caused by packers during packing at the origin, and unpacking by the appointed representatives of the packing company at the destination.