Cargo

Cargo insurance

All types of cargo transported by railway, road, air, marine, river, or other type of transportation, including pipelines or other communications owned by the Insured (Assured) based on ownership right or other grounds are subject to insurance.

Insurance contract shall be concluded based on the following Liability risks:

All Risks

1. Partial Risk
2. Without Liability for damage, excluding crashes

In the first case the cargo owners are indemnified the losses against damage or total loss of the cargo or its part arising by any reasons, except those that are specifically agreed in the contract.

At “Partial Risk” insurance the Insurer indemnifies the losses against damage or total loss of the cargo only in cases of different accidental situations caused by thunderstorm, storm, natural disasters, crashes or collisions of motor vehicles, accidents, mysterious disappearance of motor vehicle with cargo.

In case of “Without Liability for damage, excluding crashes” losses for cargo damage shall not be paid, but indemnification shall be made only in case of total loss of cargo or its part. For example, if during marine journey a tanker gets the breach and oil flows out, the claim will be paid, but if there is a fair amount of water within the fuel tank than no payment is made.

In all three cases, besides loss compensation, the Insurer indemnifies the owners expenses on salvage cargo insured.

As a rule, insurance covers applies for the whole time of cargo transportation commencing from the moment of cargo acceptance from the warehouse in the point of departure and continues during all transportation (including reloading, transshipment and interim custody in reloading and transshipment points), and finishing from the moment of cargo delivery to the warehouse of the recipient or other ending warehouse at the point of destination shown in the contract.

Contract may be concluded as for the one-time shipment as for the insurance of all cargo shipments during long-term period.

Sum insured shall be stipulated in compliance with the actual cargo price.

Besides its cots, the sum insured may include the expenses for shipment (fright) and cargo custody. This is plus 10% to the cargo value.

Rates for cargo insurance depend on transportation, volume of Insurer liability, type of the transport, list of cargo, extension and rout risk; reloading, transshipment and interim custody.