TYPES OF CARGO INSURANCE

19/02/20210 CommentsVeconinter Admin
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It is important to remember that cargo insurance in maritime transport is aimed to compensate the insured for the damages goods may suffer

By law, all shipping lines are responsible for providing cargo insurance, however, these are usually limited, therefore it is of utmost importance to have an additional policy that guarantees full coverage of the goods.

Regarding cargo insurance, the insurers are ruled under the clauses stipulated by the Institute Cargo Cluses (ICC), where the coverage is classified in different levels according to its scope, being the A the one with more capacity.

WHAT DO YOU NEED TO KNOW TO INSURE YOUR CARGO? 

The first thing you must do is to purchase a cargo insurance according to your needs and capacities, for this you need to know the types of coverage available so you can make a good decision.

THESE ARE CLASSIFIED AS:

  • ICC "Level A" or all-risk insurance

This coverage is the most comprehensive you can purchase. It covers most of the external factors, damages or physical losses, but it does not cover: damages due to bad distribution, placement or deficient packing, as well as customs rejection or cargo abandonment.

  • ICC "Level B"

It has coverage for fire, shipwreck, general average, but does not cover spills, natural losses, defects or deficiencies in packaging, delays or political/social factors such as strikes.

  • ICC "Level C"

This coverage covers the same risks as level B coverage, such as: fire, shipwreck, collision, but is not responsible for damages caused by the entry of water into the holds.

Once you have selected your coverage, it is important to know how to activate your policy in case of an accident with your cargo.

HOW DO I ACTIVATE MY CARGO INSURANCE?

The first thing you must take into account is that, when a loss occurs, the insurance is not activated automatically. Therefore, the first step to take is to notice it immediately to your insurance company to activate it. Then, you must follow the instructions of your executive, since any action taken outside the term will not be considered.

WHAT IS THE MINIMUM DOCUMENTATION THAT MUST BE PRESENTED?

Generally, the following documentation is required:

- Insurance policy

- Claim letter

- Commercial Invoice

- Copy of transport documents

- Photographs of the damaged cargo.

In the case of perishable goods, it must be included:

- Letter of cold

- Pre-shipment report

- Packing-list valued and signed by customers.

Finally, as a recommendation, it is important to consider that, in order for the insurance to take action, the notification must be made immediately or within the first 3 days after the accident

 

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