CARGO Insurance
Key characteristics
- Transport insurance
- Insurance on duration
- Land, air, sea or mixed transport
CARGO insurance covers the risks of a transport operation, the beneficiary being the owner of the goods. Basically, the owner’s goods are insured during transport. The Cargo policy can be concluded either for a single transport, in which case the risk coverage is delimited in time and space, or for a certain period of time, usually 12 months, a situation in which the risks of all transports performed in this interval are covered, according contractual conditions.
Cargo insurance is valid for all types of internal or external transport – land, air, sea or combined.
Depending on the risks covered, insurance companies offer three policy options. An additional premium is paid to cover the risk of theft and, as a rule, insurance companies provide a mandatory deductible for this risk.
The price of the Cargo policy is established by the insurance company, based on the information about the transported goods and the transport conditions.
Risks covered by the CARGO insurance policy
- fire or explosion;
- the sinking, sinking or overturning of the boat or ship;
- overturning or derailing the means of land transport;
- collision or contact of the ship, boat or means of transport with an external object other than water;
- unloading the goods in a port of refuge;
- earthquake, volcanic eruption or lightning;
- sacrifice in general damage (common);
- taking the goods in waves;
- the entry of sea, river or lake water in the means of transport, container or storage place.
Condition “A” is the most comprehensive and covers all risks of damage or loss of property except for the exclusions expressly mentioned in the policy.
Condition “B” also covers the following risks compared to condition “C”:
- earthquake, volcanic eruption and lightning
- taking the goods in waves
- entry of sea water, lake or river in the boat, means of transport or storage place
- total damage to any package that has fallen overboard or escaped while loading or unloading the boat or means of transport
Condition “C” covers the following risks (except for the exclusions expressly mentioned in the policy):
- fire or explosion
- failure, overturning or sinking of the ship / boat
- overturning or derailing the means of land transport
- collision or contact of the ship or means of transport with any external object other than water
- unloading the goods in a port of refuge
- sacrifice in general damage
It is insured for the risks that appear during the transport of the goods in the civil circuit, if at least one of the localities of dispatch, respectively destination, is on the Romanian territory. The insurance can be concluded in one of the “A”, “B” or “C” variants, according to the conditions of the Institute of London Underwriters.
Risks covered by the CARGO insurance policy
- fire or explosion;
- the sinking, sinking or overturning of the boat or ship;
- overturning or derailing the means of land transport;
- collision or contact of the ship, boat or means of transport with an external object other than water;
- unloading the goods in a port of refuge;
- earthquake, volcanic eruption or lightning;
- sacrifice in general damage (common);
- taking the goods in waves;
- the entry of sea, river or lake water in the means of transport, container or storage place.
Condition “A” is the most comprehensive and covers all risks of damage or loss of property except for the exclusions expressly mentioned in the policy.
Condition “B” also covers the following risks compared to condition “C”:
- earthquake, volcanic eruption and lightning
- taking the goods in waves
- entry of sea water, lake or river in the boat, means of transport or storage place
- total damage to any package that has fallen overboard or escaped while loading or unloading the boat or means of transport
Condition “C” covers the following risks (except for the exclusions expressly mentioned in the policy):
- fire or explosion
- failure, overturning or sinking of the ship / boat
- overturning or derailing the means of land transport
- collision or contact of the ship or means of transport with any external object other than water
- unloading the goods in a port of refuge
- sacrifice in general damage
It is insured for the risks that appear during the transport of the goods in the civil circuit, if at least one of the localities of dispatch, respectively destination, is on the Romanian territory. The insurance can be concluded in one of the “A”, “B” or “C” variants, according to the conditions of the Institute of London Underwriters.
Risks excluded
- damages caused by the intentional inappropriate behavior of the insured;
- ordinary leakage, usual loss of weight or volume, or normal wear and tear of the insured goods;
- improper packaging, loading, stacking and improper tying or mooring of goods on the means of transport (including in a container), if these operations are performed by the insured or if he is aware of them;
- own defect or nature of the insured goods;
- delivery delay;
- insolvency or non-fulfillment of financial obligations by the owners, administrators, charterers or operators of the ship;
- the use of nuclear weapons or radioactive contamination;
- the unusability of the ship or boat or the unsuitability of the means of transport, if this was known to the insured;
- war, civil unrest, strikes, acts of terrorism, etc.
- mines, torpedoes, bombs or other abandoned weapons of war;
The cargo policy can be concluded as an individual policy, ie for a single transport, the risk coverage being delimited in time and space according to the contract, or it can be concluded as a subscription, for a certain period of time, usually 12 months, covering the risks of all transports. performed during the insurance period according to the contractual conditions.
The premium may be higher in the case of transports that involve more means of transport because the goods may suffer damage during unloading and reloading.
In the case of transport by water, the premium may be reduced if the goods will be stored in the hold of the ship and may be higher if it is stored on deck.
The coverage of the risk of theft usually ends at the request of the insured and an additional premium is paid. Most insurance companies consider franchising mandatory to cover the risk of theft.
