Buy an insurance policy for your shipment

    Freight transportation is generally safe and secure, but as with unforeseen events, problems can sometimes arise during freight transportation, whether your goods are transported by land, air or sea. Professional carriers or freight forwarders assume no full responsibility for any damage or loss and carriers and freight forwarders have limited liability. If the unexpected happens, you could be faced with a confusing mess of terms and conditions. This is why it is important to understand the general principles, what are the most common risks associated with the carriage of goods and when to arrange cargo insurance. We are well aware of the economic losses and mental pressure caused by the loss or damage of goods to the enterprise but do not know how to buy insurance. Viputrans can provide you with services and help you buy insurance. When the goods are damaged or lost, VIputrans can assist you in completing the claim to reduce your burden and protect your supply chain.

    In addition to the risks associated with the operations associated with transport-handling-loading-unloading-storage, goods transported in trade are subject to a number of specific risks (loss, theft, breakage, moisture, etc.). Insurance freight involves goods transported by sea, land, air and river. These goods can be of different properties.

Cargo insurance

If your goods are of high value or are fragile items, it is recommended that you purchase insurance.

There are separate insurance policies for goods transported according to the mode of transport: air, sea, rail and truck.

1. Our insurance services cover almost all transportation types around the world, and there are almost no restrictions on the nature of the goods.

2. We also provide end-to-end insurance with high value limits for refrigerated cargo, dry container cargo and engineering logistics cargo.

3. Applicable to port-to-port, warehouse-to-warehouse transportation, or loss or damage occurring anywhere along the way.

4. Applicable to spot shipments and bulk contracts. Cargo insurance rates and coverage can be tailored to your needs.

Cargo insurance gives you the confidence that if something goes wrong during shipping, you will be compensated based on the commercial invoice value. If there is no commercial invoice, the amount will be determined based on market value. Shipping costs will also be reimbursed. The level of insurance premiums depends on several factors, including:

lThe value and nature of the goods

lDestination

lChosen mode of transportation

What can be insured?

Cargo insurance protects you on an all risks basis. Generally speaking, insurance covers all risks that are not expressly excluded. Coverage includes:

lLoss or damage to goods while loading into or out of a vehicle, or during transfer between different vehicles

lFires, lightning, explosions and other natural disasters

lImpact or fall of a flying object or its parts, including its cargo

What cannot be insured?

As with all insurance policies, certain risks and conditions are not covered. for example:

lImproper and inadequate packaging or improper storage due to intent or gross negligence on the part of the Insured

lNormal fluctuations in humidity or temperature

Risks and Measures

Common risks associated with shipping goods are damage, loss or theft.

Damage: This includes goods that have been scratched, dented or exposed to moisture during transport.

It is the shipper's responsibility to ensure that the goods are properly packaged. If the goods are damaged or improperly packaged when they are received by the carrier, the carrier will record this fact on the shipping document. In the case of air or sea shipments, the carrier is directly responsible if the consignee receives the internal goods with obvious damage. In the case of road transport, it is sufficient to indicate this on the transport documents. In all cases, notification must be given promptly in writing. If damage to the cargo is not immediately visible, the carrier must be notified of liability within three working days for air or sea shipments, and seven working days for land shipments. Even if the goods are damaged, the goods will usually be delivered to the consignee unless further transportation is pointless or impossible.

Loss or theft of items: This includes the loss or apparent theft of some or all of the goods. In this case, it is important to prove that the loss or theft occurred while the goods were in transit. In principle, the loss is noted on the shipping documents and the contents and quantity of the goods are listed. The carrier signs the shipping documents upon receipt of the shipment. If the consignee discovers the loss when receiving the goods and notes it on the shipping document, it will be used as evidence that the loss occurred during transportation.

The theft must be proven, for example with the help of CCTV footage. Any case of theft must always be reported to the police and the responsibility for doing so lies with the party who was in possession of the goods at the time of theft. If there is no actual evidence of theft, the incident is considered lost cargo.

If only part of the goods is lost or stolen, the affected party will receive compensation on a pro rata basis. If cargo transported by air or sea is lost or stolen, the carrier is directly responsible. For road transport, a description of the transport agreement is sufficient.

Freight delays and delayed deliveries sometimes result in economic losses, known as "consequential losses" or "special losses." Carriers and freight forwarders almost never assume liability for such losses. If a mistake or oversight can be proven, they will be required to reimburse at most the shipping costs paid. It is usually not possible to insure consequential losses. This is because it is difficult to quantify the exact extent of such losses and estimate the associated level of risk.

General Average (sea freight only): This doesn’t happen very often, but it’s important to keep in mind. General average refers to common damage to the ship and its cargo. If a ship is in danger, sacrifices may need to be made to protect the ship itself, its crew, and its cargo. All costs associated with the salvage operation, including the value of any sacrificed cargo, are shared pro rata between the shipowner and the cargo owner. In practice, this means that the shipper of the ocean freight bears part of the cost. However, it is possible to insure against such risks.

Report

In the event of partial loss or damage

lIn all cases, please report problems upon delivery

lObvious damage: take photos as evidence of damage

lNon-obvious damage: Proof of damage provided by a certified third-party agency

lAny documents or copies of documents in which reports have been made must be retained

Documents during litigation

lCommercial invoice

lPackaging list

lTransportation ticket (waybill, delivery note, LTA, etc.)

lReports you made

lExpert or bailiff’s report (if applicable)

lInsurance certificate

Carrier Responsibilities

The carrier will compensate the shipper according to the upper limit specified in the transportation agreement. The consequences can be severe. The amount of compensation may be significantly lower than the actual value of the damaged goods.

Carrier exemption cases

As a general rule, liability on the part of the carrier is presumed whenever the goods are delivered in a different state from the state in which they were loaded (damage, loss, etc.). No compensation will be paid to the shipper if the carrier proves that it has made all necessary arrangements during transportation and does not assume its responsibility. This exemption is also valid for situations falling within the scope of force majeure. or the carrier’s circumstances are “unpredictable, irresistible, and unrelated to the business.”

If you have any question about insurance please feel free to consult Viputrans  Lora Yang E-mail: sales02@viputrans.com

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