Tilde Publishing and Distribution ISBN: Import/Export Mapping International Trade for Australian Business Cargo Insurance

Cargo insurance (also known as marine cargo insurance) will cover you for the risks involved in transporting goods by all modes of transport and for every stage of the movement. A cargo policy will indemnify against loss or damage to the goods being shipped as a result of an event insured against in that policy. Responsibility for insurance for a particular transaction can rest with both parties or just one, depending on the agreement.

Cargo Insurance The Incoterm negotiated will define at which points the responsibility of both parties begin and end and who will be liable for losses or damages to the goods The international conventions and regulations that govern carrier liability actually limit their liability to relatively low values There are a number of different types of cargo insurance policies. The two most common ones are: – An individual shipment policy – An annual or open policy

Cargo Insurance The most common type of claim is one that arises from the partial loss of the goods during the voyage covered by the policy. A total loss can be either an actual total loss or a constructive total loss ‘General average sacrifices’, are proportioned among all of the parties involved in the shipment, including the ship owner and the cargo owners.

Cargo Insurance Events or perils insured against are indicated on a policy by the inclusion of specific clauses developed by the Institute of London Underwriters. These are: – Institute Cargo Clauses ‘C’ (minimum coverage) – Institute Cargo Clauses ‘B’ (medium coverage) – Institute Cargo Clauses ‘A’ (maximum coverage) Institute War Clauses and Institute Strike Clauses provide additional coverage