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Ever feel like cargo insurance is a maze of confusion? You’re not alone. We’ve got some eye-opening insights for you that might just change the way you look at cargo claims. We’ll tackle two common traps that many shippers fall into when it comes to cargo insurance.
The International Union of Marine Insurance (IUMI) reports an increase in the 2021 cargo insurance premium base (from 2020) of 8%. One of the reasons why a lot of small to medium sized exporters opt to ship cargo uninsured.
Scenario #1: I Am Buying Cargo Insurance Every Time
When it comes to marine cargo insurance, the choices can be overwhelming. Want to save on premiums? Consider opting for a higher deductible or cutting unnecessary coverage lines. For instance, if your goods are stored in a secure warehouse, storage coverage with your marine policy might be redundant.
Here’s the kicker – many shippers are unaware that they can pursue cargo claims below the deductible. Yes, you read that right! Despite the high deductibles in marine insurance, you can and should file claims for damages or losses, even if they fall below the deductible amount.
The reality is that cargo owners and freight forwarders often end up absorbing losses for damages, even when it’s not their fault. The good news? You have the power to pursue claims, big or small. So, here’s a friendly piece of advice: check your numbers and see if it makes financial sense to seek compensation. If it does, don’t hesitate – file your cargo claim!
Scenario #2: I Never Buy Cargo Insurance for My Cargo
Are you in the majority of shippers who never bother with cargo insurance, especially for those low-value shipments? Well, guess what – you still have rights that protect your cargo. Let’s break it down.
Even if you’re shipping without insurance, you have certain rights outlined in a contract of carriage between you (the shipper) and the carrier (shipping line). The carrier has a duty of care to transport your goods safely and securely, delivering them in the same condition as when they were loaded onto the vessel.
So, if your cargo gets damaged or lost during transit, you have every right to file a claim against the carrier for compensation. Why? Because the shipping line is responsible for the safe transport of your cargo, insurance or not.
Don’t let the power held by shipping lines intimidate you into accepting being the weak link. Use the advice given above to overcome your weaknesses and claim what’s rightfully yours – the power has always been in your hands, waiting for you to realize and utilize it!
Recoupex is a hub of transport lawyers – experts in cargo claims. We assess your case quickly. We have successfully recovered claims from Maersk, Sealand, Hapag-Lloyd, Mediterranean Shipping Company – MSC, CMA CGM, and other carriers.
