Many shippers wrongly believe that the carrier will pay for their losses in transit. This can be a big mistake, carrier liability is limited by law and most carriers are not responsible for losses which are unforeseeable and beyond their control.
Carrier’s limits of liability:
Ocean Carriers:
$500 per package
International Air Carriers: $9.07/lb or $20 per kilo chargeable weight.
What is cargo insurance?
Cargo insurance (also called marine cargo insurance) covers physical damage to, or loss of your goods whilst in transit by land, sea and air and offers considerable opportunities and cost advantages if managed correctly.
The risks of transit and the probability of incurring a loss is greater than you might think. Everyday there is a marine cargo loss and the chances of you becoming involved in a marine loss are increasing every day.
What does Marine Cargo Insurance Cover?
The coverage protects you from loss of cargo, loss of the carrier (General Average) and also loss of duty. Our marine insurance policy is quite comprehensive; it allows us to offer a very broad range of coverage to our customers and includes the following features:
Limits:
$3,000,000 any one vessel, aircraft of connecting conveyance or in any one place at any one time or in any one disaster or accident.
Conditions:
Insured against all risks of physical loss or damage from any external cause. Includes losses due to strikes, riots, civil commotion’s and war. Insurance is warehouse to warehouse (though it must conform to your terms of sale) up to 15 days from arrival at port or 30 days for inland destination.
Deductible:
Most cargos have no deductible.
Exclusions:
Loss due to Improper packing
Abandonment of cargo
Rejection by Customs or other governmental agency
Failure to pay or collected account
Inherent vice (infestation, failure of product to perform intended functions and latent defects)
Loss caused by delay
Loss of use and/or market (seasonal merchandise such as calendars & dated materials)
Nuclear
Losses in excess of cargo policy limits
Losses at port city more than fifteen days after discharge
Losses inland more than thirty days after discharge
Goods subject to on-deck bill of lading. Always ask the steamship company for an underdeck bill of lading
Used merchandise, unless specifically endorsed
Insured Amount:
Insurance is calculated on the invoice value of the shipment, plus freight plus 10%.
What do I do if I have damage or loss?
Reporting Method:
Goods are insured under All Freight’s blanket policy. Customs Broker will submit a monthly report of each import transaction to the surety.
Claims:
Notify All Freight as soon as loss or damage known. Do not unload the cargo or move it unless it is necessary to protect the rest of the cargo.
We will advise you whether we wish to send out a surveyor.
Take photos of the container and damaged cartons. Document the condition of goods upon delivery. If external damage, note it on your
delivery receipt. If hidden damage, make an exception report.
Claims must be submitted within one year to an ocean carrier, 9 months to rail or truck carriers, 4 months to local truck carriers and 7 days
to air carriers for pilferage and damage or 120 days for non-delivery.
For more information and a quotation please contact us.
Tonya@afisea.com
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