Transport insurance covers risks related to the movement of vehicles transporting goods.
Risks not covered in transport insurance contracts
- Deliberate actions of the insurer
- Negligence of the insurer
- Inappropriate packing of goods
- Hidden defects related to the specificity of the goods
- Risks arising from the carriage of contraband goods
Term of validity of transport insurances
The term of validity of transport insurance is determined according to the period of transportation of the goods along the respective route. It also includes periods of loading and unloading, reloading of the goods or their transfer from one mode of transport to another. The term may include deviations occurring for reasons beyond the carrier’s control, or due to the necessity of saving a human life.
Types of transport insurances
- Cargo in transit
- Liability of the carrier
- Liability of the forwarder
Insurance of goods during transport (cargo insurance)
The purpose of this insurance is to protect the owners of the transported goods from possible risks during transportation. The insurance can be applied to all goods transported by any kind of transport.
The coverages of the insurance are the following:
- basic – in accordance with the internationally applied Institute Cargo Clauses; this coverage may relate to all risks, to explicitly stated risks, or to be minimal insurance coverage
- additional – for theft, for non-delivery, for cases of strikes or war, for damages due to damage to cooling installations, and for fragile goods – for breakages due to their nature; other additional coverages may be added, according to the nature of the transported goods and other circumstances
Liability Insurance of the Carrier
Under this insurance the carrier undertakes responsibility for possible damages, losses, or destruction of goods carried with its own or leased transport means. The insurance covers damages and shortages of goods in both domestic and international transports, most often performed by road transport. For domestic road transports, the Law on Road Transport applies, Chapter V, Section IV, and for international transports – the Convention on the Contract for the International Carriage of Goods by Road (CMR Convention), Chapter IV.
The amounts of insurance for damages or shortages of goods are determined: for domestic road transports – in accordance with Article 71 of the Law on Road Transport, and for international – in accordance with Article 23, para. 3 of the CMR Convention.
Liability insurance of the forwarder
With this insurance, potential financial losses and damages caused by the fault of the forwarder in carrying out the transportation, as well as for obligations not fulfilled by him that are undertaken under the forwarding contract, are covered. It covers both physical and indirect damages and losses.
Risks covered by this insurance include:
- losses from erroneous forwarding of the goods
- losses due to incorrect handover of the goods
- losses due to non-fulfillment of the forwarder’s duties as specified in the forwarding contract.
These risks are covered by the insurance only when the forwarder’s liability corresponds to national legislation or to the applicable international convention.
Risks not covered include:
- intentional actions of the forwarder’s employees or agents
- damages and losses for the forwarder in the performance of the contract
- the increased liability in forwarding valuable items, antiques, works of art, tobacco products, alcohol.