Cargo Insurance: Understand the Importance and Its Modalities

The cargo insurance consists of a policy, which can be hired by the cargo owner, the carrier or standalone driver. Its main objective is to guarantee more safety to your business, covering all possible risks in locomotion of goods, such as:

  • Damage to cargo caused by accidents with the carrier vehicle;
  • Robbery and theft;
  • Losses arising from the transport operation.

With it, the cargo is protected and you can carry cargo more safely. But it is worth mentioning that this optional benefit has different modalities. So it is important to research hard on insurance coverage before you actually hire it, right?

To make the quotation and know how much it costs, it is necessary to contact specialized brokerage firms. There are several companies that work as cargo insurers in the country.

Understand the Importance and Its Modalities

How is the value of cargo insurance calculated?

Well, the amount charged to carry cargo insurance takes into account the following points:

  • The modal that will be used (for example, road, air, waterway etc.);
  • The type of goods loaded;
  • The average and maximum value per shipment;
  • The type of coverage;
  • The itinerary;
  • In case of maritime transport, you must also choose between the two modes of freight defined in Incoterms: FOB and CIF.

What modalities are there?

They are basically two models of insurance. one destined to the national transport and another to the international one. Let us now know the differences?

National transport

With it, you can choose whether you want to purchase the service on a one-to-one basis, i.e. per trip. For this, it is necessary to communicate each of the journeys by annotation.

International transport

In this case, foreign trade rules are applied. This modality is ideal for multimodal or intermodal contracting, which will guarantee the protection for any mode of used international transport (ขนส่ง ต่าง ประเทศ, which is the term in Thai).

About Author: