Cargo insurance
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Euro-Asia Logistics offers the insurance services to the companies dealing with the cargo, forwarding and managing of transportation, and different means of transportation. Within the transportation insurance we offer the following cargo insurance products:
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 Source : www.svitzer.com |
Why cargo insurance needed?
Importers and exporters are exposed to countless financial risks when they do not insure their international shipments. Sometimes recovering losses from carriers is difficult and time consuming. The best way to protect your financial interest is with All Risks insurance coverage. All Risks insurance relieves of financial exposure from physical loss or damage to goods while in transit, since carriers have limited liability. Insure you goods and avoid the uncertainty of loss recovery from carriers.
Vessel Owner´s Limited Liability
The Hague Rules and COGSA (Carriage of Goods by Sea Act) was developed to protect vessel owners against legal liability to shippers for circumstances out of owners´ control. COGSA limits vessel owner´s liabilities to USD 500 per shipping unit. It also relieves all their liability to shippers in 17 situations known as the Hague/COGSA Defenses. This means shippers have no legal recourse against vessel owners when their goods are lost or damaged by these 17 causes.
Air Carriers´ Limited Liability
The Warsaw Convention was developed to protect air carriers against liabilities to shippers. Air carriers´ liabilities are limited to USD 9.07 per pound for international shipments and USD 0.50 per pound for domestic shipments. To recover the actual value of their lost or damaged goods, shippers decide many times to declare value with air carriers. Even when the value is declared with the airline, there are provisions which can still make recovering losses from air carriers difficult and time consuming.
All Risks Insurance vs. Declared Value
All Risks insurance protects the shipper against physical loss or damage to their cargo from external causes, subject to policy terms and conditions. It is not necessary to prove the carrier´s liability.
Declaring value to a carrier is not the same as providing insurance protection for merchandise in transit. If there is a claim against a carrier, the shipper has to prove the merchandise was damaged and prove the carrier caused the damage. This makes recovering losses very difficult.
If merchandise is damaged in transit and the carrier did not cause the damage, the shipper would not be able to recover the loss. All Risks insurance provides protection without having to prove carrier liability.
Under an open cargo policy, goods can be insured all-risk, Free of Particular Average (FPA) or With Average (WA).
The broadest form of coverage is All-Risk. An All-Risk policy insures approved general merchandise in the event of physical loss or damage from any external cause. This includes new, packaged goods without unusual susceptibility to loss from breakage, pilferage, or the nature of the goods themselves. All-Risk policies do not cover all losses possible in the course of an international shipment.
FPA is limited coverage that usually applies to used merchandise, waste materials and goods shipped subject to an on-deck bill of lading. It covers partial and total losses due to FPA perils. FPA perils include the sinking, stranding, burning or collision of the vessels or catastrophic perils on shore such as earthquake, derailment, collapse of dock, fire, etc.
With average coverage extends FPA coverage to include the peril of heavy weather. Frequently, FPA and WA can be extended to include theft, pilferage and non-delivery.
ClaimsThe most common problem with marine cargo insurance claims is that few claimants know what to do in the event of a claim. This lack of knowledge is what often creates havoc in documenting and processing claims. We help our customers to go through all claim procedure and recover as much and as fast as possible. |
 Source : www.fairplay.co.uk |
2B SURE!
For further questions and quotation, please contact:
Ph. +372 6069 130
Fax +372 6069 131
info@euroasia.ee