What Is Freight Insurance?

Liga Asuransi – Dear readers, how are you? This time we continue to discuss about Freight Insurance or Marine Cargo Insurance.

As we all understand that the process of transporting goods through stages that face various risks.

Starting from the goods are loaded and depart from the place of origin such as from warehouses, factories, or any locations where goods are stored.

Then the risk continues at the time of goods are loaded and transported on trucks or land vehicles to ports or other locations.

After the goods are already on board of the vessel, the risk becomes higher because it is at sea or open ocean that at any time there can be several perils of the sea that can damage all goods.

To avoid losses incurred because of accidents during transportation, these items should be insured. The type of insurance that is relevant to this kind of risk is Marine Cargo Insurance.

Transportation insurance is provided specifically for owners of goods both individuals, institutions, and companies, who need protection for the transportation of goods. Whether it is transportation using its own fleet or using the services of transportation companies.

Here is an explanation of the insurance or coverage s that can be provided by the freight insurance policy.

If you are interested in this article, please share it with your colleagues so that they also understand like you.

Institute Cargo Clause A (ICC A),

ICC ‘A” is the widest coverage 

ICC “A” coverage s all losses unless risks that are “Exceptions”, including General Average, Salvage, and Both to Blame Collision Liability Expenses (in the case of ship collisions).

Institute Cargo Clause B (ICC B),

Coverage s the risks of fire, explosion, run aground, sinking, stranded, upside down, collision, demolition, earthquake, mountain eruption, lightning, rescue action, water entry, total loss per packing, rescue costs and salvage, both to blame collision.

Institute Cargo Clause C (ICC C),

Coverage the risks of fire, explosion, run aground, drowning, stranded, upside down, collision with other objects, demolition, rescue costs, and salvage, both to blame collision. Additional coverage options (optional) among others.

Institute Strike Clause

Protects against the risk of strikes, obstruction of work / workers, work interruptions, riots, civil riots, terrorist acts, actions with political motives, rescue costs (General Average) and salvage costs.

Institute War Clause

ICC WAR coverage is against the risk of war, civil war, rebellion, acts of violence from and or against the ruler, arrest, takeover, detention relating to the above-mentioned risks, mines, torpedoes, bombs, or weapons of war left behind the cost of rescue and salvage for losses due to the above-mentioned risks.

What information is needed to obtain a Freight Insurance?

Please note that not all insurance companies can provide insurance coverage of transportation of goods. Only certain insurance companies.

Among insurance companies that can provide insurance coverage of the transportation of goods, but they may have limitations in the amount of value and type of goods transported.

Therefore, it is not easy to get the best marine cargo insurance.

What information is needed to buy marine cargo insurance?

To get a coverage of insurance for the transportation of goods, some basic information is needed as follows:

1. Details of goods to be transported (invoice, bill of lading etc.)
2. Value of goods (Rp, USD, Yen etc.)
3. Voyage from and to 
4. Ship particular – details and status of the ship
5. Name of the owner of the goods
6. Others

The above information is usually completed by filling out an application form.

Things that need to be considered so that the insurance coverage is complete and avoids differences of opinion and rejection of claims from insurance companies.

Coverage price

The sum insured is the value of each property insured based on invoices / invoices and / or market prices.

•       Value of the goods (USD/Rp)
•       Transportation costs
•       Insurance premiums (optional).
•       Estimated Profit (optional – generally 10% of the price of goods).

How to calculate the Insurance Premiums

Transportation Insurance Premium Rates are determined by the area / type of risk desired and the nature of use of insured property.

How to get a Good Marine Cargo Insurance?

Frankly, it is not easy to get a good cargo and freight insurance. The best way is by using the services of an insurance broker as your consultant.

An insurance broker is an insurance expert who is on your side (not on the insurance side) to design the insurance program that best suits your needs.

Negotiating your risk to some of the best insurance companies to get maximum protection. 

Insurance brokers also insist on getting the most efficient premium costs.

The most important job of an insurance broker is to help you to settle a claim if it occurs. The insurance broker will process the settlement of the claim with the insurance company. They understand the process until the payment of claims can be realized.

Insurance brokers understand about the intricacies of insurance, know well about the personal of the insurance company so that the process becomes easier.

Avoid getting insurance coverage by contacting the insurance company directly or contacting an insurance agent so that you get maximum insurance coverage.

One of the insurance broking companies that is experienced and has successfully helped resolve freight insurance claims is L&G Insurance Broker, a leading insurance brokerage company in Indonesia.

For all insurance needs you contact L&G right now!

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L&G HOTLINE 24HOURS: 0811-8507-773 (Call – Whatsapp – SMS)

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E-mail: customer.support@lngrisk.co.id

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