Insurance in freight transport: how to guard client’s and carrier’s interests

Insurance in freight transport: how to guard client’s and carrier’s interests

24 August 2021
The field of cargo transportation is fraught with potential risks both for the client and carrier. How to lessen their consequences and protect the interests of both parties? Let’s take a look at the types of transport insurance.

Carrier’s liability insurance (CMR insurance)
CMR insurance is directed to the defence of the carrier’s interests when it is obliged to compensate for the damage caused by a loss of the goods, their harm or delayed delivery. Apart from the commodity value, the reimbursement often includes transportation costs and customs duties. For the client, this type of insurance guarantees the receipt of compensation if the carrier is liable for the fault that happens between the moment of the loading of cargo until its factual unloading. The size of insurance payments amounts to the carrier’s liability limit established in an insurance agreement and the CMR Convention.

If necessary to provide the insurance protection of goods and client’s interests prior to the carriage, one should take care of insurance of cargo itself.

Cargo insurance
The validity of a cargo insurance policy starts from the loading operations and proceeds until the unloading of goods at the consignee’s warehouse.

The pros of cargo insurance for the client are the following:
  • a wide scope of risks, including acts of God, is covered; 
  • the full amount of damage is reimbursed; 
  • insurance payments can be received in 8 days.

A cargo insurance agreement is concluded in favour of the owner of the goods for each carriage separately. Both the client and the carrier can draw up an insurance policy. There are several options of insurance in the worldwide practice depending on the underwriter’s degree of liability for possible risks. The APS insurance specialists assist in the execution of all-risks or named perils policies. As a rule, the policy is issued for the carriage of liquid and high-value goods.

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APS expertise shows that each insured event is unique. An unbelievable incident has occurred with the cargo of our client: a squall rose and overturned a road train with 20 ton of goods on board during the execution of shipping documents. The goods were insured and the outcome for the client appeared to be favourable: the insurance company reimbursed the full cost of damage.

In order to alleviate the effects of unforeseen events, see to the security of your cargo in due time. Here you have the APS specialists who are always ready to estimate possible risks and select an optimal option for insurance protection.

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