Cargo Insurance

CARGO INSURANCE 2019
1.INTRODUCATION
What is clear to many cargo insurance (a type of property insurance), but why is it necessary? The purpose
of this article briefly and simply explains the need for this operation.
It is worth noting that the insurance of goods in the European Union is mandatory. We have it voluntarily.
Under the cargo insurance refers to the following operations: cargo insurance, insurance of dangerous goods,
international cargo insurance, and property insurance of cargo. This is almost a complete list of what can be
understood by the service of cargo insurance.
Most often, insurance protects against unexpected circumstances. Cargo can be protected, or trust company,
which had never been failures, but an unexpected and unpleasant turn of events, is always possible. Cargo
can be damaged or even worse lost completely. Insurance guarantees at least compensation loss of cargo.
To insure your cargo not far to seek, insurance carried by most shipping companies.
The main thing to pay attention to the design contract for cargo insurance, it is not a mere formality, always
checks to see whether the documents issued for transportation.Insurance can be arranged depending on the
nature of the traffic. Company discharged or simple policy for each shipment or general policy. General
policy is valid for all types of transport declared by the insured.
In determining the amount of payment for a particular transport necessarily consider the following:
- Long-term relationship with the insurer;
- Statements of operations;
- Classification of the goods;
- Choose the insurance coverage;
- Conditions of carriage;
- Statistics of the insured losses.
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Insured - a wise decision to resolve unexpected problems. And they believe, often occur in our country
transportation. Undue risk always leads to losses. Take care of your property, with the support of
professionals and proven companies.
Cargo Insurance provides coverage against all risks of physical loss or damage to freight during the
shipment from any external cause during shipping, whether by land, sea or air.
Also, known as Freight Insurance, it covers transits carried out in the water, air, road, rail, registered post
parcel, and courier.Cargo insurance is important in international trade.
Different types of cargo insurance policies available for transporting goods by land, sea, or air.
Businesses need cargo insurance to reduce the risk of importing and exporting. Cargo insurance is covered
under risk policy or floating policies.
The cargo may be of any description, for example, wares, merchandise, property, goods and so on.
Duration of the risk of attaching from the time the goods leave the warehouse or another place of storage at
the placement of the policy for the commencement of transit.
Freight is to be payable for the carriage of cargoes or if the vessel, is chartered, the money to be paid for the
use of the vessel. The carriage is unable to earn freight if the goods or properties (cargoes) are not safely
transported.
Pre-paid freight payable in advance is at the risks of the cargo owner who includes it in the value of the
goods insured under a cargo policy.But freight payable only, on the delivery of the goods at the destination,
is at the risk of the ship-owner who has the insurable interest in it and therefore can insure it.
The disbursement warranty of the ITC (Hulls) allows the shipowner to effect in ‘Conjugation with 12
months insurance on the ship’s hulls and machinery etc.
Time insurance on freight and charters freight and anticipated freight. When the ship is lost, it also results in
loss of her profit earring capacity and the termination of freight contracts already entered into.A certain
amount of freight is insured by a shipowner for 12 months under the Institute Time Clauses (freight).
Additional policies are insured on a voyage basis. The freight at risk on any voyage exceeds the amount of
insured for time. The Institute Voyage Clauses (freight) is then used.Time charter hire is payable to the
shipowner for the use of his ship for the carriage of goods for a specific period.
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If any events occur, such as the breakdown of machinery damage to the vessel, etc. which prevents’ the
operation of the vessel for more than 24 consecutive hours, of the payment hire, shall cease until the ship
becomes operational.This freight is at the risk of the ship-owner.
1.2Importance of Cargo Insurance :-
The risk then continues during the ordinary course of transit to terminate on delivery.
Cargo insurance has coverage of loss or damage caused by war, civil war, revolution, rebellion, insurrection
or civil strife or any hostile act, capture, seizure, arrest, restraint detainment, general average and salvage
charges, strikes, riots, etc.
Trade coverage covers the insurance needs of the various type of cargoes of general nature.
Several commodities and foodstuffs provide for particular hazards. Institute of London Underwriters (ILU)
have adopted uniform trade practices.
Which are followed by other insurers for insurance of cocoa, coffee, cotton, fats oil knots, hides, skins,
leather, metal, oilseeds, sugar, tea and so is assured under a standard policy.
There is separate insurance of coal, Jute, Rubber, tanker, bulk oil, frozen products.
1.3 Advantages of Cargo Insurance – Why You Need Cargo Insurance :-
Cargo Insurance or Freight Insurance benefits local and international trade.

90% of international cargo transportation is carried out by the sea. Again the overwhelming amount of sea
transportation is handled via containers utilizing state of art container vessels.If you own an import-export
business then you must know how important cargo insurance is for you to deliver the products in its proper
condition.
In export-import business every time, you need to invest a big chunk of money to ship the product but it is
quite often seen that business owner ignores the importance of cargo insurance due to which sometimes they
have to suffer from the loss.
Following aspects are covered under the benefits of this insurance:-
 Damages due to inappropriate packing.
 Infestation.
 Cargo abandonment.
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 Customs rejection.
 Employee’s dishonesty.
 Damages due to Collision.
 Damages due to Heavy weather, Sinking, Derailment.
 Non-delivery.
 Theft.
 Fire.
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2.RESEARCH METHODOLOGY
2.1 INTRODUCTION OF CARGO INSURANCE:
cargo insurance covers the loss or damage of ships, cargo, terminals, and any transport or cargo by
which property is transferred, acquired, or held between the points of origin and final destination.
2.2 OBJECTIVES OF THE RESEARCH:
 Know the meaning of cago insurance.
 Know the Companies offering cargo insurance.
 Know how to settle the claim under cargo Insurance.
 Know the inland transit / overseas transit.
 Know what is covered under Cargo insurance.
 Know what is not covered under cargo insurance.
2.3 METHODOLOGY:
2.3.1 Applied Research: Research undertaken to find a solution for a particular problem faced by a
cargo insurance companies.
2.3.2 Case Studies: Within the set-up of the research project from which this research will result, it is
also considered important to provide good case studies of typical cargo insurance cases. In addition, a
clear look at various case studies can provide important indications of the instruments used in the
performance of utmost good faith in practice.
2.4 RESEARCH DESIGN:
In view of the objects of the study listed above an exploratory research design has been adopted.
Exploratory research is one which is largely interprets and already available information and it lays
particular emphasis on analysis and interpretation of the existing and available information.
2.4.1 Exploratory Research Design:
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The primary object of the exploratory research design is to provide insight into an understanding of
the problem.
So far, I have studied more than seven books, including the The Law Relating to Cargo Insurance;
The Law of Cargo Insurance in India, Maritime Law, Cargo Insurance Its Principles and Practice (Classic
Reprint), Cargo Insurance: Law and Practice (Lloyd's Shipping Law Library) etc., and a couple of classic
law reports and journal articles.
Additionally, I have already surveyed more than ten websites. Several of these sites have a large
number of links to other sites with information about the ‘Cargo Insurance’, so I plan to look at many of
these other sites. The majority of the sites that I evaluated had the text of complete articles, law reports and
precedents about cargo insurance. Obviously, since the study of cargo insurance is a part of the research
project, the survey of complete articles, law reports and textbooks is necessary as well.
2.5 DATA COLLECTION SOURCE:
Information is collected through both primary and secondary sources.
2.5.1 Primary Data:
It refers to first hand information which is collected to solve a specific problem. In some cases the
researchers may realize the need for collecting the first hand information. As in the case of everyday life, if
we want to have first hand information or any happening or event, we either ask someone who knows about
it or we observe it ourselves, we do the both. Thus, the primary data is collected through questionnaire. The
type of questionnaire is structured.
2.5.2 Secondary Data:
Any data, which have been gathered earlier for some other purpose, are secondary data in the hands
of researcher. Those data collected first hand, either by the researcher or by someone else, especially for the
purpose of the study is known as primary data. The data collected for this project has been taken from the
both primary and secondary source.
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 Sources of primary data are:-
 Questionnaire
 Sources of secondary data are:-
 Internet
 Magazines
 Newspapers
 Books
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VI) SAMPLE SIZE:
Keeping in the view objective of the study the sample size of 30 respondents is consider good.
1) Importers – 10 Respondents
2) Exporters – 10 Respondents
3) Others - 10 Respondents
VII) SAMPLE DESIGN:
Sampling design is a plan designed to select the appropriate sample in order to collect the right data so as to
achieve the research objective. A sample is a part of the universe that can be used as respondents to a survey
or for the purpose of experimentation, in order to collect relevant information to solve a particular problem.
VIII) HYPOTHESIS:
The formulation of hypothesis is an important step in the formulation of research problem. The hypothesis is
a tentative proposition formulation to determine its validity. The hypothesis may prove to be correct or
incorrect. In any event, it is leads to an empirical test. Whatever the outcome, the hypothesis is a question
put in such a way that an answer of some kind can be forthcoming. In the given problem hypothesis is
“There is high degree of risk in cargo transportation, therefore cargo insurance plays important role
to cover the risk.”
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3. TYPES OF COVERAGE
3.1 TYPES OF COVERAGE

The following are covered for when subscribing for cargo insurance:-
3.2 ALL RISK COVERAGE:-

This will cover merchandise for most types of perils that it may encounter. This coverage is intended for
approved” or “general” merchandise—that which is new, export packed and not unusually susceptible to
losses breakage, theft, pilferage, scratching and the like. All Risk coverage will insure against “…physical
loss or damage from any external cause…” but specifically excludes the following:
 Improper packing
 Abandonment of cargo
 Rejection by Customs, FDA or other Government agency1
 Failure to pay or collect accounts
 Inherent vice (spoilage, infestation, failure of product to perform intended functions)
 Loss caused by delay2
 Loss of use and/or market3
 Nuclear
 Losses exceeding cargo policy limit
 Losses at port city more than fifteen days after discharge4
 Losses inland more than thirty days after discharge5
 Losses in South America after sixty days6
 Oceangoing barge movements (unless specifically endorsed)
 Goods subject to an On-Deck bill of lading
 Loss caused by temperature of pressure (air freight only)
Failure to notify air carrier of preliminary loss in timely fashion:

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 Damage even days

 Hidden damage fourteen days
 Non-delivery 120 days
3.3 F.P.A. (FREE OF PARTICULAR AVERAGE):-
In insurance terms, this means “free from partial loss,” meaning that the insurance company is free from
partial loss. F.P.A. is frequently referred to as Total Loss only because in order to recover anything under an
F.P.A. policy, the customer usually must suffer a total loss of the goods. F.P.A. will cover perils of the sea,
such as stranding, sinking burning, or collision of the vessel. It will also cover land perils that are generally
out of man’s control. F.P.A. coverage is usually written for used merchandise, waste such as scrap metal or
waste paper and merchandise stowed on deck or as bulk cargo.
3.4 W.A. (WITH AVERAGE):-

With Average coverage is basically F.P.A. that is extended to provide for protection from damage caused by
exceptionally heavy weather. Both F.P.A. and W.A. can usually be extended to include theft, pilferage and
non-delivery of an entire shipping package.
3.5 WAR RISK:-

“Marine” insurance (this also includes air insurance) always carries a companion policy covering war risks
such as hostile actions and leftover mines. This insurance carries additional premium that is usually two to
three cents per $100 of insured value. However, war rates for countries such as Iran and Lebanon are
noticeably higher, for obvious reason.
3.6 DUTY INSURANCE

Duty and I. R. Tax do not accrue for goods that are totally lost in transit, but partially damaged goods are
frequently dutiable at full value. Depending on the duty rate, insuring the anticipated duty amount may be
prudent. Both require companion war coverage that is usually about half the regular war coverage.
 WHAT IS GENERAL AVERAGE?

General Average means, literally, general loss. It can be involuntary, such as a collision involving another
ship. When a General Average loss occurs, each party involved participates in the loss. General Average
originated in the days of Marco Polo’s spice trains. Marco Polo put together large groups of individuals with
camels who would foray into China and other countries, trading for spices and other goods. If, during their
trip, they were attacked and one trader lost his camel or his goods, the others in the train would chip in and
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replace his losses. This noble thought survives in current transportation law so that when a vessel runs
aground, incurring substantial damage to the vessel, all of the firms having cargo on board the vessel help to
pay for the repairs. General Average liability is the first reason for purchasing cargo insurance. All types of
insurance cover General Average. There are many stories of customers that have steadfastly refused to
purchase cargo insurance, only to be involved in a General Average condition that cost up to 25% of the
value of their goods. Everyone should have cargo insurance, even if they think their cargo is not worth
covering. The liability for General Average makes it essential.
 CARGO INSURANCE EXCLUSIONS:-

Most Cargo Insurance Policies do not reimburse for losses caused by improper packing or when customs
officials reject the delivered goods.
Other claims that are excluded from most Cargo Insurance Policies include:
Abandoned cargo
Other party failing to pay
Spoilage or other damages due to the product’s nature
Losses caused by shipping delays
Employee dishonesty
Damages at port cities more than 15 days after cargo were unloaded.
For example, improperly packed rice can expand and spoil while in-transit. This would not be covered under
standard Cargo Insurance Contracts.
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4. TYPES OF CARGO INSURANCE
4.1) MARINE CARGO INSURANCE

4.2) TRUCK CARGO INSURANCE
4.3) AIR CARGO INSURANCE
4.4) RAILWAY CARGO INSURANCE
 HOW TO VALUE CARGO FOR INSURANCE?

Normally, the insured value is calculated by taking the FOB (free on board) value, adding the ocean or air
freight, and adding 10% of that total. Thus, a shipment valued at $10,000 with $2,000 ocean freight would
have an insured value of $13,200. We can frequently arrange higher buffer amounts upon request
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TYPES OF CARGO INSURANCES
4.1) MARINE CARGO INSURANCE:-

Marine Cargo Insurance covers the loss or damage of ships, cargo, terminals, and any transport or cargo
by which property is transferred, acquired, or held between the points of origin and final destination.
4.1.1 ORIGIN:-
Maritime insurance was the earliest well-developed kind of insurance, with origins in the Greek and Roman
maritime loan. Separate marine insurance contracts were developed in Genoa and other Italian cities in the
fourteenth century and spread to northern Europe. Premiums varied with intuitive estimates of the variable
risk from seasons and pirates.
The modern origins of marine insurance law in English law were in the law merchant, with the establishment
in England in 1601 of a specialized chamber of assurance separate from the other Courts. Lord Mansfield,
Lord Chief Justice in the mid-eighteenth century, began the merging of law merchant and common law
principles. The establishment of Lloyd's of London, competitor insurance companies, a developing
infrastructure of specialists (such as shipbrokers, admiralty lawyers, bankers, surveyors, loss adjusters,
general average adjusters), and the growth of the British Empire gave English law a prominence in this area
which it largely maintains and forms the basis of almost all modern practice. The growth of the London
insurance market led to the standardization of policies and judicial precedent further developed marine
insurance law. In 1906 the Marine Insurance Act was passed which codified the previous common law; it is
both an extremely thorough and concise piece of work. Although the title of the Act refers to marine
insurance, the general principles have been applied to all non-life insurance.
In the 19th century, Lloyd's and the Institute of London Underwriters (a grouping of London company
insurers) developed between them standardized clauses for the use of marine insurance, and these have been
maintained since. These are known as the Institute Clauses because the Institute covered the cost of their
publication.
Within the overall guidance of the Marine Insurance Act and the Institute Clauses parties retain a
considerable freedom to contract between themselves.
Marine insurance is the oldest type of insurance. Out of it grew non-marine insurance and reinsurance. It
traditionally formed the majority of business underwritten at Lloyd's. Nowadays, Marine insurance is often
grouped with Aviation and Transit (cargo) risks, and in this form is known by the acronym 'MAT'.
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4.1.2 PRACTICE:-
The Marine Insurance Act includes, as a schedule, a standard policy (known as the "SG form"), which
parties were at liberty to use if they wished. Because each term in the policy had been tested through at least
two centuries of judicial precedent, the policy was extremely thorough. However, it was also expressed in
rather archaic terms. In 1991, the London market produced a new standard policy wording known as the
MAR 91 form and using the Institute Clauses. The MAR form is simply a general statement of insurance;
the Institute Clauses are used to set out the detail of the insurance cover. In practice, the policy document
usually consists of the MAR form used as a cover, with the Clauses stapled to the inside. Typically each
clause will be stamped, with the stamp overlapping both onto the inside cover and to other clauses; this
practice is used to avoid the substitution or removal of clauses.
Because marine insurance is typically underwritten on a subscription basis, the MAR form begins: We, the
Underwriters, agree to bind ourselves each for his own part and not one for another. In legal terms, liability
under the policy is several and not joint, i.e., the underwriters are all liable together, but only for their share
or proportion of the risk. If one underwriter should default, the remainders are not liable to pick his share of
the claim.
Typically, marine insurance is split between the vessels and the cargo. Insurance of the vessels is generally
known as "Hull and Machinery" (H&M). A more restricted form of cover is "Total Loss Only" (TLO),
generally used as a reinsurance, which only covers the total loss of the vessel and not any partial loss.
Cover may be on either a "voyage" or "time" basis. The "voyage" basis covers transit between the ports set
out in the policy; the "time" basis covers a period of time, typically one year, and is more common.
4.1.3 PROTECTION AND INDEMNITY:-

A marine policy typically covered only three-quarter of the insured's liabilities towards third parties. The
typical liabilities arise in respect of collision with another ship, known as "running down" (collision with a
fixed object is a "harbor"), and wreck removal (a wreck may serve to block a harbor, for example).
In the 19th century, ship owners banded together in mutual underwriting clubs known as Protection and
Indemnity Clubs (P&I), to insure the remaining one-quarter liability amongst themselves. These Clubs are
still in existence today and have become the model for other specialized and noncommercial marine and
non-marine mutual, for example in relation to oil pollution and nuclear risks.
Clubs work on the basis of agreeing to accept a ship owner as a member and levying an initial "call"
(premium). With the fund accumulated, reinsurance will be purchased; however, if the loss experience is
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unfavorable one or more "supplementary calls" may be made. Clubs also typically try to build up reserves,
but this puts them at odds with their mutual status.
Because liability regimes vary throughout the world, insurers are usually careful to limit or exclude
American Jones Act liability.
4.1.4 ACTUAL TOTAL LOSS AND CONSERVATIVE LOSS:-

These two terms are used to differentiate the degree of proof where a vessel or cargo has been lost. An actual
total loss occurs where the damages or cost of repair clearly equal or exceed the value of the property. A
constructive total loss is a situation where the cost of repairs plus the cost of salvage equal or exceed the
value.
The use of these terms is contingent on there being property remaining to assess damages, which is not
always possible in losses to ships at sea or in total theft situations. In this respect, marine insurance differs
from non-marine insurance, where the insured is required to prove his loss. Traditionally, in law, marine
insurance was seen as an insurance of "the adventure", with insurers having a stake and an interest in the
vessel and/or the cargo rather than simply an interest in the financial consequences of the subject-matter's
survival.
4.1.5 AVERAGE:-
The term "Average" has one meaning:
Average in Marine Insurance Terms is "an equitable apportionment among all the interested parties of such
an expense or loss."
General Average stands apart for Marine Insurance. In order for General Average to be properly declared, 1)
there must be an event which is beyond the ship owner’s control, which imperils the entire adventure; 2)
there must be a voluntary sacrifice, 3) there must be something saved.
The voluntary sacrifice might be the jettison of certain cargo, the use of tugs, or salvors, or damage to the
ship, be it, voluntary grounding, knowingly working the engines that will result in damages.
"General Average" requires all parties concerned in the maritime venture (Hull/Cargo/Freight/Bunkers) to
contribute to make good the voluntary sacrifice. They share the expense in proportion to the 'value at risk" in
the adventure.
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"Particular Average" is the term applied to partial loss be it hull or cargo. Co-insurance – is the situation
where an insured has under-insured, i.e., insured an item for less than it is worth, average will apply to
reduce the amount payable.
An average adjuster is a marine claims specialist responsible for adjusting and providing the general average
statement
To insure the fairness of the adjustment a General Average adjuster is appointed by the ship owner and paid
by the insurer.
4.1.6 EXCESS, DEDUCTIBLE, RETENTION, CO-INSURANCE AND FRANCHISE:-

An excess is the amount payable by the insured and is usually expressed as the first amount falling due, up to
a ceiling, in the event of a loss. An excess may or may not be applied. It may be expressed in either
monetary or percentage terms. An excess is typically used to discourage moral hazard and to remove small
claims, which are disproportionately expensive to handle. In marine the term "excess" signifies the
"deductible" or "retention".
A co-insurance, which is typically governs non-proportional treaty reinsurance, is an excess expressed as a
proportion of a claim in percentage terms and applied to the entirety of a claim.
Coinsurance is a penalty imposed on the insured by the insurance carrier for under
reporting/declaring/insuring the value of tangible property or business income. The penalty is based on a
percentage stated within the policy and the amount under reported. As an example:
A vessel actually valued at $1,000,000 has an 80% coinsurance clause but is insured for only $750,000.
Since its insured value is less than 80% of its actual value, when it suffers a loss, the insurance payout will
be subject to the underreporting penalty. The insured will receive 750000/1000000th (75%) of the claim
made less the deductible.
4.1.7 TOONERS AND CHINAMEN:-

These are both obsolete forms of early reinsurance. Both are technically unlawful, as not having insurable
interest, and so were unenforceable in law. Policies were typically marked P.P.I. (Policy is Proof of Interest).
Their use continued into the 1970s before they were banned by Lloyd's, the main market, by which time,
they had become nothing more than crude bets.
A "tonner" was simply a "policy" setting out the global gross tonnage loss for a year. If that loss was reached
or exceeded, the policy paid out. A "china-man" applied the same principle but in reverse: thus, if the limit
was not reached, the policy paid out.
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4.1.8 SPECIALIST POLICIES:-

Various specialist policies exist, including:-
New building risks: This covers the risk of damage to the hull while it is under construction.
Yacht Insurance: Insurance of pleasure craft is generally known as "yacht insurance" and includes liability
coverage. Smaller vessels such as yachts and fishing vessels are typically underwritten on a "binding
authority" or "lineslip" basis.
War risks: General Hull insurance does not cover the risks of a vessel sailing into a war zone. A typical
example is the risk to a tanker sailing in the Persian Gulf during the Gulf War. The war risks areas are
established by the London-based Joint War Committee, which has recently moved to include the Malacca
Straits as a war risks area due to piracy. If an attack is classified as a "riot" then it would be covered by war-
risk insurers.
Increased Value (IV): Increased Value cover protects the ship Owner against any difference between the
insured value of the vessel and the market value of the vessel.
Overdue insurance: This is a form of insurance now largely obsolete due to advances in communications. It
was an early form of reinsurance and was bought by an insurer when a ship was late at arriving at her
destination port and there was a risk that she might have been lost (but, equally, might simply have been
delayed). The overdue insurance of the Titanic was famously underwritten on the doorstep of Lloyd's.
Cargo insurance: Cargo insurance is underwritten on the Institute Cargo Clauses, with coverage on an A,
B, or C basis, A having the widest cover and C the most restricted. Valuable cargo is known as specie.
Institute Clauses also exist for the insurance of specific types of cargo, such as frozen food, frozen meat, and
particular commodities such as bulk oil, coal, and jute. Often these insurance conditions are developed for a
specific group as is the case with the Institute Federation of Oils, Seeds and Fats Associations (FOFSA)
Trades Clauses which have been agreed with the Federation of Oils, Seeds and Fats Associations and
Institute Commodity Trades Clauses which are used for the insurance of shipments of cocoa, coffee, cotton,
fats and oils, hides and skins, metals, oil seeds, refined sugar, and tea and have been agreed with the
Federation of Commodity Associations.
4.1.9 WARRANTIES AND CONDITIONS:-

A peculiarity of marine insurance and insurance law generally, is the use of the terms condition and
warranty. In English law, a condition typically describes a part of the contract that is fundamental to the
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performance of that contract, and, if breached, the non-breaching party is entitled not only to claim damages
but to terminate the contract on the basis that it has been repudiated by the party in breach. By contrast, a
warranty is not fundamental to the performance of the contract and breach of a warranty, while giving rise to
a claim for damages, does not entitle the non-breaching party to terminate the contract. The meaning of these
terms is reversed in insurance law. Indeed, a warranty if not strictly complied with will automatically
discharge the insurer from further liability under the contract of insurance. The assured has no defense to his
breach, unless he can prove that the insurer, by his conduct has waived his right to invoke the breach,
possibility provided in section 34(3) of the Marine Insurance Act 1906 (MIA). Furthermore in the absence of
express warranties the MIA will imply them, notably a warranty to provide a seaworthy vessel at the
commencement of the voyage in a voyage policy (section 39(1)) and a warranty of legality of the insured
voyage (section 41).
4.1.10 SALVAGE AND PRIZES:-

The term "salvage" refers to the practice of rendering aid to a vessel in distress. Apart from the consideration
that the sea is traditionally "a place of safety", with sailors honor-bound to render assistance as required, it is
obviously in underwriters' interests to encourage assistance to vessels in danger of being wrecked. A policy
will usually include a "sue and labour" clause which will cover the reasonable costs incurred by a ship-
owner in his avoiding a greater loss.
At sea, a ship in distress will typically agree to "Lloyd's Open Form" with any potential salvor. The Lloyd's
Open Form is the standard contract, although other forms exist. The Lloyd's Open Form is headed "No
cure — no pay"; the intention being that if the attempted salvage is unsuccessful, no award will be made.
However, this principle has been weakened in recent years, and awards are now permitted in cases where,
although the ship might have sunk, pollution has been avoided or mitigated. In other circumstances the
"salvor" may invoke the SCOPIC terms (most recent and commonly used rendition is SCOPIC 2000) in
contrast to the LOF (Lloyd's Open Form) these terms mean that the salvor will be paid even if the salvage
attempt is unsuccessful. The amount the salvor receives is limited to cover the costs of the salvage attempt
and 15% above it. One of the main negative factors in invoking SCOPIC (on the salvors behalf) is if the
salvage attempt is successful the amount at which the salvor can claim under article 13 of LOF is discounted.
The Lloyd's Open Form, once agreed, allows salvage attempts to begin immediately. The extent of any
award is determined later; although the standard wording refers to the Chairman of Lloyd's arbitrating any
award, in practice the role of arbitrator is passed to specialist admiralty QCs.
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A ship captured in war is referred to as a prize, and the captors entitled to prize money. Again, this risk is
covered by standard policies.
4.1.11 MARINE INSURANCE ACT, 1906:-

The most important sections of this Act include:
4: a policy without insurable interest is void.
17: imposes a duty on the insured of utmost good faith.
18: the proposer of the insurer has a duty to disclose all material facts relevant to the acceptance and rating
of the risk. Failure to do so is known as non-disclosure or concealment (there are minor differences in the
two terms) and renders the insurance voidable by the insurer.
33(3): If [a warranty] be not [exactly] complied with, then, subject to any express provision in the policy, the
insurer is discharged from liability as from the date of the breach of warranty, but without prejudice to any
liability incurred by him before that date.
34(2): where a warranty has been broken, it is no defense to the insured that the breach has been remedied,
and the warranty complied with, prior to the loss.
34(3): a breach of warranty may be waived (ignored) by the insurer.
39(1): implied warranty that the vessel must be seaworthy at the start of her voyage and for the purpose of it
(voyage policy only).
39(5): no warranty that a vessel shall be seaworthy during the policy period (time policy). However if the
assured knowingly allows an unseaworthy vessel to set sail the insurer is not liable for losses caused by
unseasworthiness.
50: a policy may be assigned. Typically, a ship owner might assign the benefit of a policy to the ship-
mortgagor.
60-63: deals with the issues of a constructive total loss. The insured can, by notice, claim for a constructive
total loss with the insurer becoming entitled to the ship or cargo if it should later turn up. (By contrast an
actual total loss describes the physical destruction of a vessel or cargo.)
79: deals with subrogation, i.e., the rights of the insurer to stand in the shoes of an indemnified insured and
recover salvage for his own benefit.
Schedule 1 of the Act contains a list of definitions; schedule 2 contains the model policy wording.
20
4.1.12 TYPES OF MARINE INSURANCE POLICIES:-

The major types of marine insurance policies are
1. Time policy:-
Hull insurance is often sold in time policies, which cover risks during a stated period of time. An insured
vessel is not bound to a particular route and all voyages within the stated policy period are covered. If a
voyage is not complete at the policy's expiration date, many time policies contain a "continuation clause"
extending coverage until the boat reaches its destination.
2. Voyage policy:-
Voyage policies protect a certain ship traveling a certain route regardless of length of time. In these cases the
insurance would not be effective until the voyage begins and would terminate when the voyage ends.
3. Mixed policy:-
This policy is the combination of time and voyage policy. It, therefore, covers the risks for both particular
voyage and for a stated period of time.
4. Floating policy:-
Floating policy is taken for a relatively large sum by the regular suppliers of goods. It covers several
shipments which are declared afterwards along with other particulars. This policy is most situated to
exporter in order to avoid trouble of taking out a separate policy for every shipment.
5. Valued policy:-
Under its terms the agreed value of the subject matter of insurance is mentioned in the policy itself. In case
of cargo this value means the cost of goods plus freight and shipping charges plus 10% to 15% margin for
anticipated profit. The said value may be more than the actual value of goods.
6. Unvalued policy (Open Policy):-

Where the value of the subject matter of insurance is not declared but left to be ascertained and proved later
it is called unvalued policy.
7. Builder's risk policy:-
This policy is issued for more than one year. This covers the risk of damage to vessels from the time its
construction commences until its trail is completed.
21
8. Blanket policy:-
Under the condition of the blanket policy the maximum limit of the required amount of protection is
estimated which is purchased in lump sum. The amount of premium is usually paid in advance. This policy
describes the nature of goods insured, specific route, ports and places of the voyages and covers all the risk
accordingly.
9. Port risk policy:-

This policy covers all the risk of a vessel while it is standing at a port for particular period of time.
10. Wager policy:-

Where the assured has no insurable interest in the subject matter of insurance that is known as wager policy.
As this policy has no legal effect so it cannot be taken to a court of law. If underwrite refuses to accept the
claim the policy holder cannot take any legal action against him. It is, therefore, also called as gambling
policy.
11. Special hazards policy:-

This policy covers special risks incident to piracy and war. It provides protection to insured under agreement
against seizure, capture, detention and other war risks.
12. Composite policy:-

This type of policy is purchased from more than one under writers. If there is no any motive of fraud then
insured will be indemnified by each under writer separately in case of loss.
13. Block policy:-

This policy is particularly purchased to gold diggers. It covers all the risks of damage to gold from the time
of its recovery to its distinction. These types of policy have been introduced in Africa and are very popular
in the mine fields of gold.
14. Hull insurance:-
22
Hull insurance covers physical damage to an insured vessel as well as salvage costs and limited property
damage liability. It is similar to collision coverage for an automobile. Builder's risk policies protect these
same vessels during construction until they are ready for operation.
4.1.13 EXCLUSIONS OF MARINE CARGO INSURANCE:-

Loss or damage due to Delay
Loss or damage due to Insufficiency of packing
Loss or damage due to insolvency, financial default of ship owners, etc.
4.1.14 COMPANIES IN INDIA OFFERING MARINE CARGO INSURANCE:-

GSI LOGISTICS PVT. LTD, NEW DELHI
MARS SHIPPING AGENCY, MUMBAI
URANUS CLEARING AND FORWARDING SERVICES, CHENNAI
TRV FREIGHT SOLUTION PVT. LTD, NEW DELHI
FLOMIC FREIGHT SERVICES PVT. LTD
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 A MARINE CARGO INSURANCE APPLICATION FORM
24
4.2) AIR CARGO INSURANCE:-

A type of insurance policy that protects a buyer or seller of goods being transported through the air. Air
cargo insurance is designed to protect the insured against items damaged, destroyed or lost. Cargo insurance
is offered through insurance companies, some freight forwarders and trade service intermediaries. The
amount of coverage and deductible required with this insurance varies, with each insurance provider.
4.2.1 PAST AND PRESENT OF AIR CARGO INSURANCE:-

The man has long dreamed of learning to fly. This dream was realized humanity in the last century with the
establishment of the Wright Brothers first powered airplane. But it soon turned out that the possibility of air
transport are not limited to transport people from one airport to another. Therefore, from the second decade
of XX century began to develop actively cargo flights. And by the end of 1920, all formed at that time began
to offer airline cargo delivery by air.
The air transports of the time are not known for carrying capacity. However, over time all aircraft reached
great heights. If initially it was possible to carry on a plane not more than a thousand pounds of cargo, by the
end of the third decade of the XX century, appeared in the air transport, air cargo has made possible to a
million pounds of weight. And one of the first companies to include in the active development of air cargo
was Boeing. This company belongs to the glory of creating the first mail plane in the U.S., known as the
Model 40.
Before the Second World War, a commercial airline could not fully express themselves in the development
of transportation because of the limitations. But in 1941, some of them managed to get permission for this
activity. As a result, by American Airlines in 1942 have been mastered transcontinental cargo flights. And
one of the first aircraft used by the company was a Douglas DC-3. This model is due to its flight and lifting
qualities aroused great interest of the U.S. Army. By the end of the war were fired more than ten thousand of
these aircraft. It is on the Douglas DC-3 that makes the first trucking company Lufthansa from Europe to
America in 1957.
Regular intercontinental air freight began with the appearance of Douglas DC-6. The model is designed for
the transportation of cargo, entered service in 1949. It's a plane with excellent for the time characteristics,
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having increased capacity to withstand heavy payload, with a spacious interior - extremely popular air
transport equally well used for the transport of persons, and for the delivery of goods.
The next stage in the development of trucking is the creation of a giant cargo and passenger Boeing 747. For
the release of such powerful in size aircraft had to build a new plant in the United States, where they began
to be produced from the 70's. The demand for huge Boeing began to decline only with the beginning of the
new millennium. During this time, a lot of modifications as Boeing 747 passenger and cargo destinations. At
the moment, for passenger airlines, this model is no longer sold, but airfreight famous «Jumbo Jet» still
performs with surprising regularity.
Current level of development of transportation by air creates more competition among the many companies
offering trucking. And choosing among them is suitable for specific purposes can be difficult without the
help of professionals. The company "Borger" is ready to take on the full range of services to ensure the safe
delivery of any goods by air, on certification of goods and customs clearance to the construction of the
optimal route, the choice of airline and freight forwarding to the destination.
4.2.2 COVERAGE:-
Warehouse-to-warehouse coverage for physical loss or damage to goods caused by an external event.
Coverage for litigation and labor expenses incurred to prevent or mitigate a loss.
Coverage for landing, warehousing and forwarding charges incurred as the result of an insured peril. It can
be extended to include inland transit and warehouse risks as well as coverage for war, strikes, riots and civil
commotion, terrorism, theft, hijacking, shortage and non-delivery.
4.2.3 BRIEF OVERVIEW:-

Air cargo services are characterized by tighter control over its cargo due to short transportation time. Short
transportation time and tight control reduce the cargo exposure to theft, pilferage and damage. Freight,
26
packaging and labor costs can be saved dramatically with air freight services due to faster delivery and better
security.
4.2.4 ADVANTAGES OF AIR CARGO INSURANCE:-

The first and the undeniable advantage air cargo are certainly operative. Because at the moment there is no
faster shipping method than by air transport. And speed is a major factor in many situations, so often the
high cost of the rapid movement of goods does not bother the owners of cargo.Quick transportation of
perishable goods - the main condition for the preservation of their quality. This category includes not only
products that are easily stored, and for a long time, say, in a deep freeze.
Speed of delivery is of particular importance in air cargo related to health care. These drugs with a limited
shelf life, and organs for transplantation, and donor blood.This also is attributed transported plants and
animals, as well as the press, that sounds pretty unexpected, but logical.
Another advantage of air cargo is the ability to deliver to hard for all other transport areas. This is especially
true for regions, the way in which to train and freight wagons block the mountains or rivers. Even in cases
where the message cut off from the mainland area may land or water, often bring back the goods "on the
chaise," using the roads and railways, and trucks and ferries or barges, repeatedly overloading the product.
This method of delivery as a result is not only time consuming but also very expensive, so air travel in this
situation is more suitable.
And, of course, to the advantages of air cargo should include the safety of this mode of transportation.
Sending goods by air do not worry about their safety, regardless of the distance, which he has to overcome.
When air travel is lost nothing, does not deteriorate, and always delivered on time. And to provide even
more reliable delivery of cargo by air, which not only help you make the best route to choose a suitable
carrier and competently prepare all necessary documents, but will provide professional support to the
shipping destination.
4.2.5 DISADVANTAGES OF AIR CARGO INSURANCE:-

High cost of freight air. When the delivery is not as per the mentioned time, it becomes in appropriate along
with the value and importance of goods.
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In cases where it is not too high, air transport is simply not profitable. Therefore, for leisurely delivery cheap
goods is another preferred type of transport, for example, by water, in the case of delivery of cargo from one
continent to another, or trains, when the destination is on the same continent. In the latter case is not as
popular, and delivery trucks.
Another negative point may be difficulties with delivery of small loads by air. When it comes to small-sized
goods, air cargo relevant is only when supplying them in large quantities. Otherwise, the cost of shipping
will be higher than the cost of transported goods. But this deficiency can usually be overcome by choosing to
air transportation of cargo delivery as urgent transport of small parties small items required infrequently.
4.2.6 FEATURES AND CUSTOMS OF AIR CARGO INSURANCE:-

International transport of goods is most often carried out by air, because it is the most rapid and secures way
to deliver the goods. So you can carry not only lightweight and small things, but also very significant in
weight and size. Air Cargo can quickly move oversized cargo in small batches over long distances. Provided
competent package and secure international air transportation cost with almost no loss of quality, regardless
of the characteristics of the goods.
In case of non-flying conditions or other unforeseen circumstances, there is air cargo insurance, which
reduces the risks associated with this mode of transportation to a minimum. But the peculiarity of
international air travel is that a great deal is also customs. Customs procedures remain virtually unchanged
from the time of its formation. Moreover, they are similar enough for freight and passenger traffic.
The main function of the customs authorities in both cases is the control of goods transported on
international flights. That's what the customs officers at airports check. In international air travel for
passengers checking the luggage at a special place on the airport. In the departure lounge customs,
inspection is carried out before the registration desk. After customs clearance passengers are recorded in
counters, they have to present a passport and issue the luggage of transportation. Next, there is a special
check conducted for the presence of prohibited items for carriage.
To prevent unauthorized cargo, Customs cooperate with services by air monitoring. Indeed, apart from the
official flight, there are also private flights. And international air travel has a feature that consists of the fact
28
that the foreign aircraft in the territory of any State may be inspected only in case of emergency. Therefore,
the interaction of the air and ground services helps to take control of the airfield, checking all aircraft for
possible hiding place of facts.
There are certain rules governing international air freight. These rules are determined by the allowable size
and weight, packaging, labeling and matching contents of consignment. Flight transported goods must
comply with safety standards and do not pose a threat to other crew's baggage and cargo ship. There are
clear instructions for the transport of perishable goods. Unfortunately, the rules are not always respected, and
a violation of the tracking is also included in the task control services.
4.2.7 VARIOUS GOODS CARRIED IN AIR CARGO:-
Special Handling:-
Fragile item transport applies for those articles that because of their characteristics, form, or packaging may
break or be damaged upon being transported by COPA AIRLINES COLOMBIA. This type of cargo must be
properly packed with materials that protect, particularly with a cushioning material that keeps goods
protected.
Some of these articles include: computers, dishes/plates, cellular telephones, LCD and plasma TVs,
ceramics, and crystal. All of these items must be in perfect condition and provided packaging that protects
them during transport.
Perishable Goods:-
Goods that when not kept under certain conditions are affected in a way that compromises their essential
qualities.
Perishable goods include products such as: fruits, flowers, vegetables, meats, eggs, medicines and
transplants, organs, fish, etc. This type of cargo is usually evaluated to make sure that there is no leakage and
that internal packing is sufficient for absorption if any spillage does occur during transport.
Personal Belongings:-
Personal belongings must include a packing list in order to be received as cargo. If they are not accompanied
by a packing list, they must be stamped with a shipping label that relieves Copa Airlines Colombia of any
responsibility in losses during shipment. This includes luggage (excess luggage), and household items
29
(moves). Passengers generally find out about this cargo service when they have excess baggage and prefer
the service for its value.
Human Remains:-
Human remains include:
1. Cadavers: the human body.
2. Incinerated remains: ashes of a human body.
Cadavers:
Must be embalmed and packed in this order: a zinc or iron metal box (hermetic), absorbent material, a
wooden box (casket), cardboard, and finally a wooden crate with handles.
Incinerated Remains:-
Must be contained in a funerary urn, stored in external packaging, and contained with sufficient and proper
cushioning material.
Note:-
Human remains from individuals that have passed away as a result of an infectious disease must be cremated
in order to be transported in any way.
Valuable Goods:-
Valuable goods are any that include gold, platinum, bank notes, securities, stock shares, cash, etc. For the
transport of said goods, commercial agreements and procedures must be agreed upon before transport.
Live Animals:-
Live animals may be accepted as air cargo provided they comply with the following requisites:
They are domesticated or otherwise non-harmful animals.
They are kept in cages or packaging that is suitable and safe.
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Documentation:-
Dogs must be accompanied by vaccination documents.
Dangerous Goods
Are articles or substances that may pose risks to human health, safety, security, property, or the environment.
Types of Dangerous Goods:-

 Explosives such as firecrackers, fireworks, ammunition, bullets, sparklers, etc.
 Gases such as extinguishers, camping fuel, aerosols, sprays, inhalers, lighters, oxygen bottles,
compressed gases, etc.
 Flammable liquids such as adhesives, glues, acetone, paints, resins, oil products, varnishes, perfume
products, etc.
 Flammable solids such as candles, metallic dusts (zinc, magnesium), lithium, sodium, activated
carbon, etc.
 Oxidants and organic peroxides such as fertilizers, ammonium nitrate, chlorine, oxygen generators,
etc.
 Infectious and toxic substances such as pesticides, herbicides, disinfectants, contaminated blood,
infected samples, etc.
 Radioactive materials such as smoke detectors, plutonium, uranium, and any other materials that give
off ionizing radiation.
Corrosive substances such as acids, bases, mercury, ammonia, household cleaners, batteries, etc.
Miscellaneous dangerous goods such as magnetized materials, chemistry sets, dry ice, motorcycles, vehicles,
rescue materials, etc.
4.2.8 VARIOUS COMPANIES PROVIDING AIR CARGO SERVICES:-
Road Runner Logistic Services Pvt. Ltd, New Delhi
Linear Freight Logistics India Private Limited, Mumbai
BWI Logistics Private Limited (Import Agent), New Delhi
Vrl Cargo Packers and Movers, Ahmedabad
Phoenix International, Rajkot
4.2.9 WORLD'S LARGEST AIR CARGO CARRIERS:-

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1. TOTAL SCHEDULED AIR CARGO TONNES-KMS FLOWN

2. FedEx Express - 14.579 million
3. Korean Air - 8.264 million
4. Lufthansa Cargo - 8.040 million
5. United Parcel Service - 7.353 million
6. Singapore Airlines Cargo - 7.143 million
7. Cathay Pacific - 5.876 million
8. China Airlines - 5.642 million
9. Eva Airways - 5.477 million
10. Air France - 5.388 million
11. Japan Airlines - 4.924 million
TOTAL INTERNATIONAL SCHEDULED CARGO TONNES-KMS FLOWN

1. Korean Air - 8.164 million
2. Lufthansa Cargo - 8.028 million
3. Singapore Airlines Cargo - 7.143 million
4. Cathay Pacific - 5.876 million
5. China Airlines - 5.642 million
6. FedEx Express - 5.595 million
7. Eva Airways - 5.477 million
8. Air France - 5.384 million
9. British Airways - 4.771 million
10. Cargolux - 4.670 million
TOTAL DOMESTIC SCHEDULED CARGO TONNES-KMS FLOWN

FedEx Express - 8.984 million
United Parcel Service - 4.260 million
Northwest Airlines - 0.949 million
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China Southern Airlines - 0.860 million

American Airlines - 0.576 million
Delta Air Lines - 0.557 million
Air China - 0.531 million
United Airlines - 0.525 million
Cargojet Airways - 0.517 million
China Eastern Airlines - 0.458 million
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 AN AIR CARGO INSURANCE APPLICATION FORM
34
4.3) RAILWAY CARGO POLICY:-

Rail freight transport is the use of railroads to transport cargo as opposed to human passengers. A freight
train or goods train is a group of freight cars or goods wagons hauled by one or more locomotives on a
railway, transporting cargo all or part of the way between the shipper and intended destination as part of the
logistics chain. Trains may haul bulk material, intermodal containers, general freight or specialized freight in
purpose-designed cars. Rail freight practices and economics vary by country and region.
When considered in terms of ton-miles or tonne-kilometers hauled per unit of energy consumed, rail
transport can be more efficient than other means of transportation. Maximum economies are typically
realized with bulk commodities (e.g., coal), especially when hauled over long distances. However, rail
freight is often subject to transshipment costs, which may exceed that of operating the train itself, a factor
that practices such as containerization aim to minimize. Bulk shipments are less affected by transshipment
costs, with distances as short as 30 kilometers (18.6 mi) sufficient to make rail transport economically
viable. However, shipment by rail is not as flexible as by highway, which has resulted in much freight being
hauled by truck, even over long distances.
Traditionally, large shippers build factories and warehouses near rail lines and have a section of track on
their property called a siding where goods are loaded on to or unloaded from rail cars. Other shippers have
their goods hauled (drayed) by wagon or truck to or from a goods station (freight station in US). Smaller
locomotives transfer the rail cars from the sidings and goods stations to a classification yard, where each car
is coupled to one of several long distance trains being assembled there, depending on that car's destination.
When long enough, or based on a schedule, each long distance train is then dispatched to another
classification yard. At the next classification yard, cars are resorted. Those that are destined for stations
served by that yard are assigned to local trains for delivery. Others are reassembled into trains heading to
classification yards closer to their final destination. A single car might be reclassified or switched in several
yards before reaching its final destination, a process that made rail freight slow and increased costs. Many
freight rail operators are trying to reduce these costs by reducing or eliminating switching in classification
yards through techniques such as unit trains and containerization. In many countries, railroads are built to
haul one commodity, such as coal or ore, from an inland point to a port.
A major disadvantage of rail freight is its lack of flexibility. In part for this reason, rail has lost much of the
freight business to road transport. Many governments are now trying to encourage more freight onto trains,
because of the environmental benefits that it would bring; rail transport is very energy efficient.
35
In Europe (particularly Britain) many manufacturing towns developed before the railway. Many factories did
not have direct rail access. This meant that freight had to be shipped through a goods station, sent by train
and unloaded at another goods station for onward delivery to another factory. When lorries (trucks) replaced
horses it was often economic and faster to make one movement by road. In the United States, particularly in
the West and Mid-West towns developed with railway and factories often had direct rail connection. Despite
the closure of many minor lines carload shipping from one company to another by rail remains common.
Many rail systems have turned to computerized scheduling for trains which has helped add more train traffic
to the rails. Many businesses ship their products by rail if they are shipping long distance because it can be
cheaper to ship in large quantities by rail than by truck; however barge shipping remains a viable competitor
where water transport is available. Economies of scale are achieved because less labor and energy is required
to haul the same amount of cargo.
In some countries rolling highway trains are used; trucks can drive straight onto the train and drive off again
when the end destination is reached. A system like this is used on the Channel Tunnel between the United
Kingdom and France. In other countries, the tractor unit of each truck is not carried on the train, only the
trailer. Piggy back trains are common in the United States, where they are also known as trailer on flat car or
TOFC trains, but they have lost market share to containers (COFC), with longer, 53-foot containers
frequently used for domestic shipments. There are also roadrailer vehicles, which have two sets of wheels,
for use in a train, or as the trailer of a road vehicle.
There are also many other types of wagon, such as "low loader" wagons for transporting road vehicles; there
are refrigerator vans for transporting food, simple types of open-topped wagons for transporting minerals
and bulk material such as coal, and tankers for transporting liquids and gases. Most coal and aggregates are
moved in hopper wagons that can be filled and discharged rapidly, to enable efficient handling of the
materials.
Freight trains are sometimes illegally boarded by individuals who do not wish, or do not have the money, to
travel by ordinary means, a practice referred to as "hopping." Most hoppers sneak into train yards and stow
away in boxcars. Bolder hoppers will catch a train "on the fly," that is, as it is moving, leading to occasional
fatalities, some of which go unrecorded. The act of leaving a town or area by hopping a freight train is
sometimes referred to as "catching-out", as in catching a train out of town.
4.3.1 REGIONAL DIFFERENCES:-

Railroads are subject to the network effect. The more points they connect to, the greater the value of the
system as a whole. Early railroads were built to bring resources, such as coal, ores and agricultural products
from inland locations to ports for export. In many parts of the world, particularly the southern hemisphere,
that is still the main use of freight railroads. Greater connectivity opens the rail network to other freight uses
36
including non-export traffic. Rail network connectivity is limited by a number of factors, including
geographical barriers, such as oceans and mountains, technical incompatibilities, particularly different track
gauges and railway couplers, and political conflicts. The largest rail networks are located in North America
and Eurasia. Long distance freight trains are generally longer than passenger trains, with greater length
improving efficiency. Maximum length varies widely by system. See longest trains for train lengths in
different countries.
4.3.1.1 North America:-

Canada, Mexico and the United States are connected by an extensive, unified standard gauge rail network.
The one notable exception is the isolated Alaska Railroad, which is connected to the main network by rail
barge.
Rail freight is well standardized in North America, with Janney couplers and compatible air brakes. The
main variations are in loading gauge and maximum car weight. Most trackage is owned by private
companies that also operate freight trains on those tracks. Since the Staggers Rail Act of 1980, the freight
rail industry in the U.S. has been largely deregulated. Freight cars are routinely interchanged between
carriers, as needed, and are identified by company reporting marks and serial numbers. Most have computer
readable automatic equipment identification transponders. With isolated exceptions, freight trains in North
America are hauled by diesel locomotives, even on the electrified Northeast Corridor.
Ongoing freight-oriented development includes upgrading more lines to carry heavier and taller loads,
particularly for double-stack service, and building more efficient intermodal terminals and transload
facilities for bulk cargo. Many railroads interchange in Chicago, and a number of improvements are
underway or proposed to eliminate bottlenecks there.[4] The U.S. Rail Safety Improvement Act of 2008
mandates eventual conversion to Positive Train Control signaling.
The Guatemala railroad is currently inactive, preventing rail shipment south of Mexico. Panama has freight
rail service, recently converted to standard gauge, that parallels the Panama Canal. There has never been a
rail line to South America, but a connection, FERISTSA, from Mexico to Panama, has been proposed in the
past.
4.3.1.2 EURASIA:-
Coal awaiting shipment to an electric generating plant in Germany
Train station in Tatarstan, Russia with container and tank cars
There are four major rail networks on the Eurasian land mass.
37
Most counties in the European Union participate in a standard gauge network. The United Kingdom is linked
to this network via the Channel Tunnel. The Marmaray project will connect Europe with eastern Turkey,
Iran the Middle East via a rail tunnel under the Bosphorus when it opens in late 2013. Spain and Portugal are
mostly broad gauge, though Spain has built some standard gauge lines that connect with the European high
speed passenger network. A variety of electrification and signaling systems are in use, though this is less of
an issue for freight, however overhead electrification prevents double stack service on most lines. Archaic
buffer and chain couplers are generally used for freight, though there are plans to develop an automatic
coupler compatible with the Russian SA3. See Railway coupling conversion.
The countries of the former Soviet Union, along with Finland and Mongolia, participate in a Russian gauge-
compatible network, using SA3 couplers. Major lines are electrified. Russia's Trans-Siberian Railroad
connects Europe with Asia, but does not have the clearances needed to carry double-stack containers.
China has an extensive standard gauge network. Its freight trains use Janney couplers. China has ambitious
plans to extend its high speed rail network to neighboring countries and far westward, with an eventual goal
of two day service to Europe.
India and Pakistan operate extensive broad gauge networks. India also has substantial meter gauge trackage,
but it has a Project Unigauge to convert much to broad gauge. Indo-Pakistani wars and conflicts currently
restrict rail traffic between the two countries to two passenger lines. There are also links to Bangladesh and
Nepal. India operates some double stack service without the use of the special well cars needed elsewhere.
The four major Eurasian networks link to neighboring countries and to each other at several breaks of gauge
points. Containerization has facilitated greater movement between networks, including a Eurasian Land
Bridge.
4.3.1.3 SOUTH AMERICA:-

Brazil has a large rail network, mostly meter gauge, with some broad gauge. It runs some of the heaviest iron
ore trains in the world on its meter gauge network.
Chile and Argentina have Indian gauge networks in the south and meter gauge networks in the north. The
meter cauge networks are connected at one point, but the only rail link between the broad gauge lines is
currently not in service. Most other countries have isolated rail systems, if any.
4.3.1.4 AFRICA:-
The railways of Africa were mostly started by colonial powers to bring inland resources to port. There was
little regard for eventual interconnection. As a result there are a variety of gauge and coupler standards in
use. A Cape gauge network with Janney couplers serves southern Africa. East Africa uses meter gauge.
38
North Africa uses standard gauge, but potential connection the European standard gauge network is blocked
by the Arab-Israeli conflict.
4.3.1.5 AUSTRALIA:-
Rail developed independently in different parts of Australia and, as a result, three major rail gauges are in
use. A standard gauge Trans-Australian Railway spans the continent.
4.3.3 STATISTICS:-
Rail freight by network, billion tonne-km
NETWORK GT-KM COUNTRIES

NORTH AMERICA 2863 U.S., Canada, Mexico
CHINA 2451
RUSSIA 2351 Finland, Mongolia
INDIA 607 Includes Pakistan
EUROPEAN UNION 391 27 Member Countries
BRAZIL 269 Includes Bolivia
SOUTH AFRICA 115 Includes Zimbabwe
AUSTRALIA 64
JAPAN 20
In 2011, North American railroads operated 1,471,736 freight cars and 31,875 locomotives, with 215,985
employees; They originated 39.53 million carloads (averaging 63 tons each) and generated $81.7 billion in
freight revenue. The largest (Class 1) U.S. railroads carried 10.17 million intermodal containers and 1.72
million trailers. Intermodal traffic was 6.2% of tonnage originated and 12.6% of revenue. The largest
commodities were coal, chemicals, farm products, nonmetallic minerals and intermodal. Coal alone was
43.3% of tonnage and 24.7% of revenue. The average haul was 917 miles. Within the U.S. railroads carry
39.9% of freight by ton-mile, followed by trucks (33.4%), oil pipelines (14.3%), barges (12%) and air
(0.3%).
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Railways carried 17.1% of EU freight in terms of tonne-km, compared to road transport (76.4%) and inland
waterways (6.5%).
4.3.4 BULK CARGO:-

Bulk cargo is commodity cargo that is transported unpackaged in large quantities. It refers to material in
either liquid or granular, particulate form, as a mass of relatively small solids, such as petroleum, grain, coal,
or gravel. This cargo is usually dropped or poured, with a spout or shovel bucket, into a bulk carrier ship's
hold, railroad car, or tanker truck/trailer/semi-trailer body. Smaller quantities (still considered "bulk") can be
boxed (or drummed) and palletized. Bulk cargo is classified as liquid or dry.
Bulk cargo constitutes the majority of tonnage carried by most freight railroads. Bulk cargo is commodity
cargo that is transported unpackaged in large quantities. These cargos are usually dropped or poured, with a
spout or shovel bucket, as a liquid or solid, into a railroad car. Liquids, such as petroleum and chemicals, and
compressed gases are carried by rail in tank cars
Hopper cars are freight cars used to transport dry bulk commodities such as coal, ore, grain, track ballast,
and the like. This type of car is distinguished from a gondola car (US) or open wagon (UIC) in that it has
opening doors on the underside or on the sides to discharge its cargo. The development of the hopper car
went along with the development of automated handling of such commodities, with automated loading and
unloading facilities. There are two main types of hopper car: open and covered; Covered hopper cars are
used for cargo that must be protected from the elements (chiefly rain) such as grain, sugar, and fertilizer.
Open cars are used for commodities such as coal, which can get wet and dry out with less harmful effect.
Hopper cars have been used by railways worldwide whenever automated cargo handling has been desired.
Rotary car dumpers simply invert the car to unload it, and have become the preferred unloading technology,
especially in North America; they permit the use of simpler, tougher, and more compact (because sloping
ends are not required) gondola cars instead of hoppers.
4.3.4.1 EXAMPLES OF DRY BULK CARGO:-

1. Bauxite
2. Bulk minerals (sand & gravel, copper, limestone, salt, etc.)
3. Cement
4. Chemicals (fertilizer, plastic granules & pellets, resin powder, synthetic fiber, etc.)
5. Coal
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6. Dry edibles (for animals or humans: alfalfa pellets, citrus pellets, livestock feed, flour, peanuts, raw
or refined sugar, seeds, starches, etc.)
7. Grain (wheat, maize, rice, barley, oats, rye, sorghum, soybeans, etc.)
8. Iron (ferrous & non-ferrous ores, ferroalloys, pig iron, scrap metal, pelletized taconite), etc.)
9. Wood chips.
4.3.4.2 EXAMPLES OF LIQUID BULK CARGO:-

Non edible and dangerous liquids:-
 Dangerous chemicals
 Gasoline
 Liquefied natural gas (LNG)
 Petroleum
Liquid edibles and non dangerous liquids:-
 Cooking Oil
 Fruit juices
 Milk
 Vegetable oil
 Zinc Ash
4.3.5 HEAVY DUTY ORE TRAFFIC:-

The heaviest trains in the world carry bulk traffic such as iron ore and coal. Loads can be 130 tonnes per
wagon and tens of thousands of tonnes per train. Daqin Railway transports more than 1 million tonnes of
coal to the east sea shore of China every day and in 2009 is the busiest freight line in the world Such
economies of scale drive down operating costs. Some freight trains can be over 7 km long.
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4.3.6 CONTAINERIZATION:-
Containerization is a system of intermodal freight transport using standard shipping containers (also known
as 'ISO containers' or 'isotainers') that can be loaded with cargo, sealed and placed onto container ships,
railroad cars, and trucks. Containerization has revolutionized cargo shipping. As of 2009 approximately 90%
of non-bulk cargo worldwide is moved by containers stacked on transport ships; 26% of all container
transshipment is carried out in China. As of 2005, some 18 million total containers make over 200 million
trips per year.
Use of the same basic sizes of containers across the globe has lessened the problems caused by incompatible
rail gauge sizes in different countries by making transshipment between different gauge trains easier.
While typically containers travel for many hundreds or even thousands kilometers on the railway, Swiss
experience shows that with properly coordinated logistics, it is possible to operate a viable intermodal (truck
+ rail) cargo transportation system even within a country as small as Switzerland.
4.3.7 DOUBLE STACK CONTAINERIZATION:-

Most flatcars (US) or flat wagons (UIC) cannot carry more than one standard 40-foot (12.2 m) container on
top of another because of limited vertical clearance, even though they usually can carry the weight of two.
Carrying half the possible weight is inefficient. But if the rail line has been built with sufficient vertical
clearance, a double-stack car can accept a container and still leave enough clearance for another container on
top. This usually precludes operation of double-stacked wagons on lines with overhead electric wiring.
China runs double stack trains with overhead wiring, but does not allow two maximum height containers to
be stacked.
In the United States, Southern Pacific Railroad (SP) with Malcom McLean came up with the idea of the first
double-stack intermodal car in 1977. SP then designed the first car with ACF Industries that same year. At
first it was slow to become an industry standard, then in 1984 American President Lines started working
with the SP and that same year, the first all "double stack" train left Los Angeles, California for South
Kearny, New Jersey, under the name of "Stacktrain" rail service. Along the way the train transferred from
the SP to Conrail. It saved shippers money and now accounts for almost 70 percent of intermodal freight
transport shipments in the United States, in part due to the generous vertical clearances used by U.S.
railroads. These lines are diesel operated with no overhead wiring.
Double stacking is also used in Australia between Adelaide, Parkes, Perth and Darwin. These are diesel only
lines with no overhead wiring. Double stacking is used in India for selected freight-only lines.
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4.3.8 SPECIAL CARGO:-

Several types of cargo are not suited for containerization or bulk; these are transported in special cars custom
designed for the cargo.
Automobiles are stacked in open or closed autoracks, the vehicles being driven on or off the carriers.
Steel plates are transported in modified gondolas called coil cars.
Goods that require certain temperatures during transportation can be transported in refrigerator cars (or
reefers - US) or refrigerated vans, but refrigerated containers are becoming more dominant.
Center beam flat cars are used to carry lumber and other building supplies.
Extra heavy and oversized loads are carried in Schnabel cars.
4.3.9 VARIOUS COMPANIES IN INDIA OFFERING RAILWAY CARGO SERVICES:-
 SAL Logistics Pvt. Ltd, New Delhi

 AXIS Freight Solutions Pvt. Ltd, New Delhi
 OMX, Delhi
 A.R. Shipping and Logistics, Hyderabad
 Royal Logistics, Chennai
 Rays Logistics, Pune
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44
 A RAILWAY CARGO INSURANCE APPLICATION FORM
45
4.4) MOTOR TRUCK CARGO INSURANCE:-

Protection required under the Motor Carrier Act of 1935. The policy covers the motor truck carrier if it is
legally liable for the damage, destruction, or other loss of the customer’s property being shipped. This
includes lost packages, broken contents, and stolen articles.
This insurance policy, without question, requires careful thought and evaluation prior to purchasing. In
addition, the customer needs to be constantly evaluating the nature of his/her freight to make sure the
coverage meets the demands.
The Motor Truck Cargo policy can be, and usually is, tailored to meet customer's operations and exposure.
Significant exclusions create many situations where there might be no coverage. A good insurance broker
will ask the customer pertinent questions that properly address this concern. The Motor Tuck Cargo policy
can also contain provisions to insure the cargo when it is in the customer's terminal or warehouse. This
exposure results when the freight cannot be delivered the same day or is consolidated with other shipments.
The coverage exists so long as there is no separate charge made for storage or warehousing.
Similar to Motor Truck Cargo is the insurance policy which protects the customer for the freight his/her
charge storage charges for. The customer needs to utilize a warehouse receipt, similar to a bill of lading, for
the storage which specifies the terms of his/her storage contract.
In truck cargo insurance, Whether the damage is caused by a collision, a fire, a load being accidentally
dumped onto a roadway, or even being run over while waiting to be loaded, the related costs can be
incredibly expensive. It’s not just the cost of fixing or replacing the vehicle, the carrier may face. It may well
be the additional costs of replacing the goods in transit, compensating the customer and supplier or paying
for the clear up and associated costs of pollution and debris removal. Never mind any legal expenses. These
costs can be crippling to any business.
Any goods which are being shipped are subject to a Bill of Lading. The bill is designed to protect the carrier,
rather than the owner of the cargo and it stipulates very clearly the maximum amounts for which the carrier
is responsible. These limits are very low if the goods are shipped by truck - typically the default on a
standard bill of lading limits liability for the carrier to $2/lb. So if a Rolex watch (worth about $20,000) is
lost in transit, the carrier would only have to pay around $5 as compensation – a long way from its true
value, because it is so lightweight. However, as part of their risk management strategies, more and more
companies want truckers to insure their goods while they are in transit as it allows them to transfer the risk to
the cargo carrier. Therefore the focus then falls on the transport company to have the right insurance in
place.
Not all Motor Truck Cargo policies are the same. There are companies that typically use broad all-risk legal
liability coverage which has been specifically designed to cover the risks faced by a trucking company
46
hauling goods. Here are a couple of examples of what that means in practice: companies won’t recommend
policies that exclude liability for a load if the power unit is detached from the trailer and the trailer is left
unattended or where loads are not insured overnight unless inside a secure yard. In a nutshell, Insurance
managers will only propose coverage for clients that will actually cover all the reasonable legal liabilities
that a trucking company would expect to have covered, not just some of their operations. The companies
approach is firmly rooted in the real world – meaning the customer is covered for the risks he is actually
likely to face in the regular course of his business.
By choosing a cost-effective policy from Insurance Companies cargo carriers will be able to rest safe in the
knowledge that their goods will be covered in case something happens to it while it’s in their care. Insurance
Companies can create stand-alone Motor Truck Cargo Insurance policies for cargo carriers business or
include it in a wider cargo and vehicle insurance portfolio. They can provide coverage for almost any type of
cargo – from logging and drilling equipment, livestock, mobile homes to other vehicles being transported
and certain types of dangerous goods. As people would expect, there are certain exclusions in a Motor Truck
Cargo policy, which companies would explain to people in detail to help them get the very best coverage.
4.4.1 WHO NEEDS TRUCK CARGO INSURANCE?

A growing number of risk managers require truckers to insure their cargo. You can meet that requirement
with Motor Truck Cargo Insurance. It pays when you are responsible for damage to or loss of the cargo due
to fire, collision or even hitting or running over the cargo that you transport on behalf of a client.
4.4.2 VARIOUS COVERAGES UNDER TRUCK CARGO INSURANCE:-
4.4.2.1 Primary Liability:-

Primary Liability Insurance coverage protects carriers from damage or injuries to other people as a result of
a truck accident. This coverage is mandated by state and federal agencies and proof of coverage is required
to be sent to them. Companies provide coverage limits ranging from $35,000 to $1,000,000. Pricing is
dependent on region, driving records, and history of the trucking operation.
4.4.2.2 Physical Damage:-

Physical Damage Insurance is coverage for carrier’s truck and trailer. This coverage is for repair or
replacement for damage resulting from things such as collision, fire, theft, hail, windstorm, earthquake,
47
flood, mischief, or vandalism to your owned vehicles. Truck Insurance pricing is based on the value of the
equipment and usually pays a percentage of that value. This coverage may be required by the lien holder of
the vehicle.
4.4.2.3 Motor Truck Cargo:-

Motor Truck Cargo insurance is needed to protect the carrier in case of lost freight or damaged goods. There
is a maximum load limit per vehicle with this policy. Truck insurance coverage limits can range from
$10,000 to $100,000 with excess policies available upon request. Pricing for this insurance is mainly
dependant on the type of cargo being hauled.
4.4.2.4 Trailer Interchange:-

Trailer Interchange Insurance is coverage for the legal liability of truckers for loss or damage to non-owned
trailers and equipment which are in the insured's possession under a written trailer interchange agreement.
4.4.2.5 Non-Trucking Liability:-

Non-Trucking Liability provides limited liability insurance for owner-operators who are permanently leased
to an ICC regulated carrier. It provides limited liability protection when the owner-operator is not on
dispatch, nor pulling a loaded trailer. For example, this truck insurance coverage would apply when the
owner-operator gets their truck washed or brings their trucks into a shop for repairs. Once the owner-
operator is under dispatch, they are covered under the Primary Liability insurance policy of the company that
they are leased to.
4.4.2.6 ICC Authority:-

Interstate Operating Authority is permission granted by the federal government to transport regulated freight
across state lines. Interstate Operating Authority is now granted by the Office of Motor Carrier Safety
Administration under the auspices of the Federal Highway Authority. Unlike many of the other regulations
governing interstate operations, there is no minimum weight threshold that requires compliance. Any vehicle
48
operating for hire in interstate transportation of regulated freight or passengers must have operating
authority. Our in-house ICC practitioner can handle all of your necessary filings.
4.4.3 PURPOSE OF TRUCK CARGO INSURANCE COVERAGE:-

The purpose of motor truck cargo insurance coverage is to protect truck drivers from liability for transported
cargo that belongs to others. Coverage is available to common carriers who are available for hire by the
general public, and contract carriers, who haul cargo under terms of a contract that is engaged with a specific
entity.
4.4.4 DOCUMENTATION:-
In order to file a claim, the trucker must have a copy of the bill of lading, which is a document that lists all of
the items that make up the cargo as well as its destination and dollar value. With a contract carrier, this
information should be listed in the actual terms of the contract.
4.4.5 COVERAGE PERIOD:-

Coverage begins when the trucker takes possession of the cargo, and ends when delivery is completed. In
some cases, the bill of lading specifies a brief period for which the carrier is still liable for the cargo after
delivery to allow time for the delivery to be picked up, if necessary. This normally does not exceed 72 hours.
4.4.6 DIFFERENCES:-
Coverage can vary depending on the insurance company. Policies may carry high deductibles or co-
payments which could mean that the carrier could pay a significant portion of a claim out of pocket.
Premiums can also vary depending on the commodity that is being hauled. Coverage can be scheduled--
which provides specific coverage for each truck--or composite, which encompass an entire fleet.
4.4.7 LIMITS AND DEDUCTIBLES:-

When people purchase Cargo insurance, they have to select a limit for their coverage. This limit determines
the maximum amount insured's insurance company will pay for damaged or destroyed cargo. People also
49
need to choose a deductible. A deductible is the amount they agree to pay out of pocket when they have a
claim. Choosing a higher deductible is an easy way to lower the price of their insurance, but they have to be
sure to choose a deductible that they can afford to pay out of pocket at any time.
4.4.8 RESTRICTIONS, EXCLUSIONS OR EXCEPTIONS TO TRUCK CARGO

INSURANCE:-
Motor Truck Cargo Insurance can only be obtained for for-hire trucking policies of the below body types:-
 Tractor
 Trailer (most)
 Dump Truck
 Cargo Vans
 Car Haulers
 Flatbeds
 Cement Mixers
 Box Trucks
 Pick-Ups (Dually)
 Motor Truck Cargo Insurance is not available for limos, buses, ice cream trucks, garbage trucks,
hearses, or passenger vans.
In addition to restrictions on the body type, there are also cargo exclusions. Cargo type exclusions include:-
 Shipping containers
 Live animals
 Property not included on a Bill of Lading
 Art
 Jewelry
 Money
 Paper
 Pharmaceuticals
50
 Tobacco, alcohol, or contraband

 Property owned by the insured
 Radioactive or Explosive material
 Greater than 72 hour storage
 Property in custody of another carrier
Other restrictions and exclusions may apply. Motor Truck Cargo Insurance may not be available in every
state.
4.4.9 TOP REASONS FOR PURCHASING TRUCK CARGO INSURANCE:-

4.4.9.1 Protect your financial interest:-
The insurance will automatically cover 100% of the insured invoice value, plus an additional 10%. The
policy protects cargo against "all risk" of physical loss or damage from any external cause no matter what
the percentage of loss, and with no deductible.
4.4.9.2 Enjoy peace of mind:-

Coverage begins as soon as the goods leave the shipper and/or supplier, continuing throughout transit to the
final destination. Insurance remains in force for 30 days after cargo discharge or delivery, whichever occurs
first. Concealed damage must be reported within three days of delivery, excluding Saturdays, Sundays, and
holidays.
4.4.9.3 Take advantage of competitive rates:-
Companies work hard to secure the best cargo insurance rates for their customers. Using the centralized
purchasing department, companies have negotiated competitive rates with a major international insurance
company.
4.4.9.4 Fast claims resolution:-

In the unfortunate event the insured do have a claim, the companies experienced staff works hand in hand
with The Navigators Group to process the insured's claim quickly and without hassle. Claims are usually
settled in 30 days or less.
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4.4.10 VARIOUS COMPANIES PROVIDING TRUCK CARGO INSURANCE:-

 Hi Grow Associates, Raj Nagar
 Sainath Insurance Advisor, Rammurthy Nagar
 Pramod Kumar Insurance Advisor, Laxmi Nagar
 Excellent Investment Advisors, Rajouri Garden
 Cashless Insurance Point, Shastri Nagar
52
 A TRUCK CARGO INSURANCE APPLICATION FORM
53
CONCLUSION:-
Since there are the 4 major types of cargo insurance, people should choose the one which they find more
convenient and also as per the priority of the goods to be transferred or received within a particular time
frame. Also, choosing cargo insurance provides safety and guarantee to the product that has been shipped, in
order to recover for any losses that occur during the shipment stage. And hence, subscribing for cargo
insurance is very convenient as it saves time and energy and is also providing guarantee for the shipment of
the goods.
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CARGO INSURANCE 2019

- Long-term relationship with the insurer;

- Classification of the goods;

- Choose the insurance coverage;

- Statistics of the insured losses.

1.2Importance of Cargo Insurance :-

1.3 Advantages of Cargo Insurance – Why You Need Cargo Insurance :-

Cargo Insurance or Freight Insurance benefits local and international trade.

 Damages due to inappropriate packing.

 Damages due to Collision.

 Damages due to Heavy weather, Sinking, Derailment.

2.1 INTRODUCTION OF CARGO INSURANCE:

2.2 OBJECTIVES OF THE RESEARCH:

 Know the meaning of cago insurance.

 Know the Companies offering cargo insurance.

 Know how to settle the claim under cargo Insurance.

 Know the inland transit / overseas transit.

 Know what is covered under Cargo insurance.

 Know what is not covered under cargo insurance.

cargo insurance companies.

performance of utmost good faith in practice.

2.4 RESEARCH DESIGN:

2.4.1 Exploratory Research Design:

law reports and journal articles.

2.5 DATA COLLECTION SOURCE:

Information is collected through both primary and secondary sources.

2.5.1 Primary Data:

type of questionnaire is structured.

2.5.2 Secondary Data:

both primary and secondary source.

 Sources of primary data are:-

 Sources of secondary data are:-

VI) SAMPLE SIZE:

VII) SAMPLE DESIGN:

to cover the risk.”

3.1 TYPES OF COVERAGE

3.2 ALL RISK COVERAGE:-

 Rejection by Customs, FDA or other Government agency1

 Failure to pay or collect accounts

 Inherent vice (spoilage, infestation, failure of product to perform intended functions)

 Loss caused by delay2

 Loss of use and/or market3

 Losses exceeding cargo policy limit

 Losses at port city more than fifteen days after discharge4

 Losses inland more than thirty days after discharge5

 Losses in South America after sixty days6

 Oceangoing barge movements (unless specifically endorsed)

 Goods subject to an On-Deck bill of lading

 Loss caused by temperature of pressure (air freight only)

Failure to notify air carrier of preliminary loss in timely fashion:

 Damage even days

3.4 W.A. (WITH AVERAGE):-

3.5 WAR RISK:-

3.6 DUTY INSURANCE

 WHAT IS GENERAL AVERAGE?

 CARGO INSURANCE EXCLUSIONS:-

4. TYPES OF CARGO INSURANCE

4.1) MARINE CARGO INSURANCE

 HOW TO VALUE CARGO FOR INSURANCE?