Cargo insurance

Posted on the site 02.07.2019 15:00.

NIC Insurance Company has provided cargo insurance since 1998.

Cargo insurance has been among high-demand insurance services. This is because cargo carriage is exposed to a variety of risks, and the insurance allows to cover losses relating to damage or loss of shipments irrespective of carrier’s fault.

Our company provides both cargo insurance to ad-hoc shipments and general agreement coverage to regular cargo operations carried out throughout a year by various means of transport across Russia and worldwide.

An insurance agreement can be made based on any of the following conditions:

  • Condition А: all risk insurance (full maximum coverage), or
  • Condition В: limited liability (partial average) resulting from:
    • Fire or explosion, lightning, storm, whirlwind, hurricane, volcano eruption, or other Acts of God;
    • Crash or collision of vehicles, their impact with moving, stationary or floating objects, ship damage with ice, vehicle tipping over, railway vehicle derailment, falling down of aerial vehicle, ship grounding, ship scuttling or tipping over, collapse of bridge or warehouse roofing.
    • Washing deck cargo overboard, or resulting from action taken to savage cargo or firefighting
    • Cargo wetting with overboard water, ingress of sea, river or lake water into a vessel, vehicle body, container, lift van or warehousing spot;
    • Disappearance of vehicle with cargo
    • Cargo unloading at disaster port resulting from accident in a ship, total loss of cargo item during loading, packing, or unloading, or using fuel in a vehicle
  • Condition С: total or partial loss of cargo.

Additionally, insurance coverage can include the following:

  • War risks
  • Strike action risks
  • Cargo shortage or damage risk provided external package is integral,
  • Cargo depreciation risk due to deterioration or contamination of package provided external package is integral
  • Third-part illegal act risk,
  • Storage risk,
  • Refrigerating equipment failure risk,

Insured amounts are established on ad-hoc basis for each certain batch of cargo (commodity). Insured amount will be determined using an invoice or other evidence of actual cargo value presented to the Insurer.

Basic insurance rates are within the range of 0.12 and 0.16 depending on the type of vehicle.

The final insurance rate and an agreement will be determined by NIC Insurance Company upon review of data contained in the insurance application.