Cargo and luggage insurance
Cargo transportation is often risk-bearing and fraught with pecuniary loss. It is not infrequent that the cargo items perish, get missing or plundered. They also may get damaged due to traffic accident or natural disaster.
The Insurer provides a scope of coverage in case of cargo destroying, damaging or loss during intermediate warehousing, transshipment, distribution etc, except for storage in destination point, due to:
- fire; burst, lightning stroke;
- natural disasters: whirlwind, hurricane, strom; landslide, torrent; flood, freshet, hail, downpour; snowfall, ground depression, groundwater inundation, earthquake;
- affect by leakage from water conduits, sewage and heating systems, fire-control units, including their accidental operation;
- third party illegal actions (heist, burglary, robbery, rowdyism, racketeering, arson).
The scope of coverage may be provided during embarkation (loading) on the transportation device that is to ship the cargo, and after disembarking it at the consignee’s warehouse or other final depot at the destination point.
The insurance policy may provide covering:
- All risks liability
- Damage (partial loss) liability
- No damage liability except for cases of total loss or dissipation
Insurance rate depends on policy terms, cargo type, packing, route, transportation type and volume etc., and makes 0,15% to 2,0% of the amount insured.
Franchise size amounts 0.5 to 5% of the amount insured for every shipment, in every accident insured.
The policy duration covers the transportation time or a fixed term (year, six months, quarter).