Cargo Insurance

With more than 20 years of experience in marine insurance, AZINCO provides cargo insurance for goods shipped by sea, land and air in most geographical destinations.

The insurance provided by AZINCO for international carriage in terms of scope of cover basically corresponds to widely known Institute of London Underwrites Cargo Clauses (ICC):

«All risks” policy - similar to ICC (A), Cl. 252 1/1/82

“With liability for particular average” - similar to ICC (B), Cl. 253 1/1/82

“Limited risks” – similar to ICC (C), Cl. 254 1/1/82

Main factor of risk assessment is degree of exposure to specific perils of transportation. Certain classes of goods have particular aspects of exposure connected to their natural features.

Important items affecting the risk assessment also are:

Route;

Price of shipped goods;

Quality of conveyance;

Transport operator profile.

Our insurance policy can be tailored to suit the individual needs of our clients. For occasional shipments we provide a single policy, but for coverage of regular trading as a rule we recommend “Open cover” policy, which is convenient for following reasons:

Pre-arranged cover at agreed pricing and insurance conditions

Open policies can be written to suit an exporter’s individual needs.

Cover can be wider than the cover negotiated in any individual contract for the sale of goods.

The exporter can integrate the issuing of insurance certificates within their export documentation processes, with cover that expressly matches the required terms of a letter of credit.

The cost of insurance is usually lower than if separate policies are arranged, and an open policy avoids the need to arrange separate policies for each shipment. Administration costs are minimized.

AZINCO have branches throughout Ukraine as well as a network of agents around the world. No matter where a claim occurs, we are there to assist you and to settle claims swiftly. Claims service involves number of measures aiming to provide the quality product, which  includes: claim settling by dedicated claims handling team and expertise of international network maritime professionals in any world area.

AZINCO enjoys high quality reinsurance protection for its Cargo portfolios which is protected by Treaty placed with high-rated international reinsurers: SCOR (S&P AA-) and PARTNER RE (S&P A+).

Nowadays, shippers trying to secure their cargo interests more often rely to carrier’s liability, awaiting for full reimbursement of losses in case of any accidents or marine adventures. In this case a special emphasis should be made on limitations of carrier’s liability, set by International conventions.

Below mentioned table shows the approximate limits set by main Conventions, implemented in most of international carriage contracts:

Limitation of liability

 

Per package or unit

Per Kilogram

Hague-Visby Rules

USD 902

USD 2.7

Hamburg Rules

USD 1131

USD 3.4

Rotterdam Rules

USD 1185

USD 4.1

As seen from above, carrier’s liability is limited, and in most cases provided limits do not cover the total amount of damages done to goods. Besides, aforesaid conventions set 17 immunities releasing the Carrier from liability for cargo loss or damage, among those are: negligence of the master, crew, officers or pilots; fire; perils, dangers and accidents of the sea; acts or omissions of the shipper or owner of the goods, his agents or representatives. That is why it’s essential to insure the goods while transportation, as cargo insurance provides not only cover for listed perils, but has a lot of options of covering all possible risks of loss or damage.

Thus, the only way to protect from financial losses caused by damage of your goods during transportation is to obtain the cargo insurance cover. Even working with a reliable carrier, the cargo owner still faces the risks of damage or loss of cargo, as carrier’s liability, as mentioned above, is quite limited by Conventions regulating the international carriage of goods and cargoes.