Why is Cargo and Marine Insurance important?
Cargo insurance is mandatory for any business that requires movement and transfer of cargo either by road, air or sea.
Insuring your cargo is not a formality and an unwanted expense since in case of any damage to the cargo, one only gets the settlement from the carrier for such loss under the limited liability. The shipper or the consignee in this case is not fully compensated.
Since there is always a risk of an accident, shipwreck, plane crash, civil war, strikes, fraud, theft, or any other type of loss. it is important to cover your liabilities by way of Cargo and Marine Insurance.
Carriers Limited Liability:
With the laws defining the carrier's liability and limiting them against the cargo owners, it is not easy to hold the carrier responsible, to recover the total value towards the loss.
Insurance and INCO Terms:
International Chamber of Commerce (ICC) publishes Incoterms, which are wildly used in the industry (please refer to the Tools on this website).
There are 11 different terms and each Incoterm refers to a type of agreement for the purchase and shipping of goods internationally. Each Incoterm has duty and responsibility attached to it.
Strikes, unrest, wars attract higher premium value for the Cargo and Marine Insurance.
It is therefore important to understand the importance of the Cargo and Marine insurance to protect against loss of or damage to cargo while being transported either by air/road or by sea.
Please contact us for Cargo and Marine Insurance, using the Enquiry page.