Transport insurance - types

In the case of long-distance freight transport, especially in international transport, the possibility of damaging the load is relatively high. Anticipating the possible risks and damages that the cargo may suffer during its transportation, for the participants in the transport process they are looking for a way to protect their interests… Insurance is the safest way to protect.
The process of insurance and the conclusion of the insurance contract is always associated with the presence of an insured interest. "Insured interest" is the property interest that the insurer has in relation to the insured object. It is present when the insured is directly materially interested in the fate of the subject of insurance.
The "Cargo during transport" insurance (cargo insurance) protects the cargo against risks arising during transportation. The covered risks are determined depending on the specifics of the cargo, the packaging, the type of transport, the starting and ending destinations. "Cargo during transport" insurance can be concluded by any natural or legal person; producer and trader of goods, which trades in goods and transports goods. The "Cargo during transport" insurance covers only those risks and costs, which are described in detail in the insurance contract, such as road accidents, natural disasters, fire, theft, robbery, etc.
"Cargo during transport" insurance can provide insurance coverage against risks covered in accordance with the requirements of the current London Institute Cargo Clauses or - Institute Cargo Clauses (A) - (Full coverage); Institute Cargo Clauses (B) - (Limited coverage); Institute Cargo Clauses (C) - (Minimum coverage), or other specialized or applicable to the international insurance market specialized "Cargo" clauses corresponding to the type of cargo or mode of transportation. Each type of insurance has the opportunity, for an additional fee, to obtain additional coverage in case of many other damages.
The liability of the insurer begins with the loading of the goods, the respective - pre-specified vehicle and ends with the unloading of the goods at the agreed address. The scope of the insurance is also valid in case of delays, the need to overload another transport unit and other exceptions, independent of the insured party, in order to reduce losses or risk. The route along which the insured cargo is to be transported shall be indicated and may be changed upon notification to the insurance company. The term of validity of the transport insurances is determined according to the period of transportation of the goods on the respective route.
All types of cargo that are transported by land, sea or air and all related interests can be insured.
The uncovered risks in the transport insurance contracts are: intentional actions of the insurer; negligence of the insurer; inappropriate packaging of goods; hidden defects related to the specificity of the cargo; risks arising from the transport of contraband goods. The term of validity of the transport insurances is determined according to the period of transportation of the goods on the respective route.
The necessary information for concluding cargo insurance is: type of cargo and packaging, weight, cargo address, unloading address, type of vehicle, invoice value according to the original or proforma invoice of the insured object, as well as the risks against which the goods are protected.
In the case of Carrier's Liability Insurance (CMR insurance), the carrier is liable for any damage, loss or destruction of the goods it carries with its own or rented vehicles. The insurance covers damage and lack of cargo in domestic and international transport, most often by road. For domestic road transport the Road Transport Act, ch. V, Section IV, and for international - the Convention on International Carriage by Road (CMR Convention), ch. IV.
The amounts of the insurances in case of damages or lack of cargo are determined: for the domestic automobile transportations - according to art. 71 of the Road Transport Act, and for the international ones - according to Art. 23, para. 3 of the CMR Convention. See more here >>>

The Forwarder's Liability Insurance covers any financial losses and damages caused by the forwarder's fault during the transportation, as well as for unfulfilled obligations undertaken by him under the forwarding contract. It is a voluntary property insurance covering both physical and indirect damages and losses. The risks covered by this insurance include: losses from incorrect forwarding of goods; losses due to incorrect delivery of goods; losses due to non-fulfillment of the forwarder's obligations specified in the forwarding contract. These risks are covered by the insurance only when the liability of the freight forwarder complies with national law or applicable international convention and the freight forwarders operate in accordance with the "GENERAL FORWARDING CONDITIONS" and "GENERAL WAREHOUSE CONDITIONS" of the National Association of Bulgarian Freight Forwarders. In the case of "Forwarder's liability insurance" the forwarder may act as: commission agent - on behalf and at the expense of the client and / or owner; sales representative - on his own behalf, but at the expense of the client and / or owner; operator - on its own behalf and at its own expense.

Grand Logistiks

*Excuse us if there is an inaccuracy in the translation - a common translator is used