Cargo insurance

Cargo insurance is a type of insurance where goods are insured against damage, destruction and theft throughout the logistics process. Cargo insurance cover shall take effect from the moment the insured goods leave their destination and shall cease to be valid as soon as the goods are delivered and unloaded at the place of destination.

Limits of liability

In thecase of land transport , the liability of the carrier shall be governed by the CMR Convention. The liability of the carrier, otherwise known as the CMR insurance, is limited to SDR 8.33 per gross kilogram.

In the case of air transport, the liability of the carrier shall be governed by the Warsaw Convention. The liability of the carrier, otherwise known as the air waybill insurance, is limited to SDR 17 for each gross kilogram.

In thecase of maritime transport, the liability of the carrier shall be governed by the Hague-Visby rules. The liability of the carrier, otherwise known as the Bill of Lading insurance, is limited to SDR 2 per gross kg, or SDR 666.67 per container.

In the case of rail transport, the liability of the carrier shall be governed by the SMGS /CIM Convention. The liability of the carrier, otherwise known as the SMGS/CIM insurance, is limited to SDR CIM 17 per gross kg and the SMGS does not have a limitation.

Benefits of cargo insurance

Cargo insurance will not only help reduce business risk, but will also provide reliable guarantees that in the event of an insured event and the resulting losses will be compensated.

is insurance compulsory?

This is a voluntary insurance that insures the carriage or receipt of goods by all types of vehicles of your company in Lithuania and beyond. In addition, freight (the cost of transporting goods to the destination), other transport costs and deemed profits may be insured together with the goods carried.

insurance options

Cargo can be insured in several options:

  • Option A – from all risks;
  • Option B – from fire or explosion, overturning, shoal or sinking; accidents in ground-based vehicles; a collision between vessels or a collision or other means of transport with any other object; the forced unloading, intermediate storage or loading point which was not intended for the route and to which the insured risk occurred or arrived; earthquake, volcanic eruption, soil fall, collapse or lightning strike;
  • Option C – from fire or explosion; the overturning, passage on the shoal or sinking of the vessel; accidents in ground-based vehicles; a collision between vessels or a collision or other means of transport with any other object; the point of unloading, intermediate storage or loading of the forced cargo which was not intended for the route and which arrived or arrived at the risk of being insured.

The insurance premium depends on the mode of transport, the amount of insurance, the territory of carriage, the type of cargo. If you need more information or want to take out insurance, please contact us and we will take care of your cargo insurance.

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