Cargo shipping insurance
Cargo shipping insurance is providing protection against loss of or damage to your goods while they are being transported. The policy is meant to protect you if there is any loss or damage to your cargo. Cargo insurance would cover the goods while they are being transported over sea, air and land (includes parcel post and carryings by courier service).Although the term “marine cargo insurance” is sometimes used, it actually includes cover for the land transit commencing from the moment the goods leave the storage until they arrive at the final facility.
Insurance Coverage:
All Risk – Covers against damage from physical, external cause including partial damage, theft and catastrophe.Total loss – This policy covers entire shipment against total loss.
Insurance cost and coverage:
The standard insurance practice is to cover the invoice cost + freights + percentage of the anticipated profit (10% to 20%).The cargo policy can be issued on a “pay-as-you-go” basis. The shipments can be reported monthly to the company and billed at the end of each month.
Single voyage policy and open cover.
Single Shipment is is the most popular form of shipping insurance cover.It offers coverage from the time the cargo leaves the origin, while it is in transit and until it reaches the destination.
One time Policy, as its name implies, offers coverage for a particular transit for which it is purchased.
Open Cover:
An Open Cover is an agreement between the insured and the insurance company to insure all the shipments which fall within the terms and conditions agreed by both parties.These terms and conditions are agreed in advance and include details of voyages, maximum value of cargoes carried in any one shipment, nature of cargo and packaging and rates applicable. The insured would then have to declare his shipments to the insurer on an individual or monthly basis.
The shipment is automatically covered as long as the details of the shipment comes within the terms and conditions of the open cover agreement.
