Our Services
Table of Contents
1. What is international shipping insurance?
International shipping insurance is a service provided by insurance company to protect businesses and individuals from financial losses caused by unforeseen risks during international shipping.
Here are shipping insurance copies.
Below are the main insurance companies for international shipping :
- Lloyd’s of London (United Kingdom)
- People’s Insurance Company of China (PICC, China)
- Allianz Global Corporate & Specialty (AGCS, Germany)
- Zurich Insurance Group (Switzerland)
- China Pacific Insurance (CPIC, China)
When DAKA International Transport Company organize international shipping from China to Australia/from China to USA/from China to UK, we mainly buy shipping insurance for our customers from PICC and CPIC, which are the most two biggest insurance companies.
2. Types of International Shipping Insurance
According to different shipping ways, there are three kinds of shipping insurance:
- Marine Cargo Transportation Insurance : This is for sea shipping
- Air Cargo Transportation Insurance : This is for air shipping
- Land Cargo Transportation Insurance : This is for shipping by train/truck etc
Marine Cargo Transportation Insurance can be divided into FPA (Free from Particular Average), WPA (With Particular Average) and All Risks.
FPA include below :
(1) Total or Constructive Total Loss of the whole consignment hereby insured caused in the course of transit by natural calamities-heavy weather, lightning, tsunami, earthquake and flood.
(2) Total or partial loss of the goods caused by accidental incidents such as stranding, grounding, sinking, collision with another vessel, collision with drift ice or other objects, fire, and explosion of the means of transport.
(3) Partial loss of the insured goods attributable to heavy weather, lightning and/or tsunami, where the conveyance has been grounded, stranded. sunk or burnt, irrespective of whether the event or events took place before or after such accidents.
(4) Partial or total loss consequent on falling of entire package or packages into sea during loading transshipment or discharge.
(5) Reasonable cost incurred by the Insured in salvaging the goods or averting or minimizing a loss recoverable under the Policy provided that such cost shall not exceed the sum Insured of the consignment so saved.
(6) Losses attributable to discharge of the insured goods at a port of distress following a sea peril as well as special charges arising from loading. warehousing and forwarding of the goods at an intermediate port of call or refuge.
FPA exclude below :
(1) Loss or damage caused by the intentional act or fault of the beneficiary.
(2) Loss or damage falling under the liability of the consignor.
(3) Loss or damage arising from the inferior quality or shortage of the insured goods prior to the attachment of this insurance.
(4) Loss or damage arising from normal loss, inherent vice or nature of the insured goods, loss of market and/or delay in transit and any expenses arising therefrom.
WPA include below :
Beyond the above FPA liabilities, this insurance also covers partial loss of the insured goods caused by natural disasters such as severe weather, lightning, tsunami, earthquake and flood.
ALL Risks include below :
In addition to including all the liabilities of FPA and WPA, this insurance also covers total or partial loss of the insured goods caused by external causes during transit.
DAKA International Transport Company Ltd usually buy ALL Risks insurance for our customers.
3. Claims Guidelines
During the term of shipping insurance coverage, in the event of an accident or loss falling within the scope of insurance liability, please follow the procedures below to file a claim:
3.1 Claim Notification
(1) Upon becoming aware of any accident, you shall immediately initiate a claim notification by calling the insurance company.
(2) When submitting the claim notification, please provide the following information:
- a) The insurance type and the shipping insurance policy number;
- b) The time, location, cause, and detailed process of the accident;
- c) The items affected by the loss, the extent of damage, and the estimated amount of loss;
- d) The name and contact details of the person responsible for coordinating the insurance claim.
3.2 Assistance with On-Site Survey
Upon receipt of your claim notification, insurance company will arrange for personnel to conduct an on-site survey in a timely manner. You are requested to provide the following assistance:
- a) Assign personnel with knowledge of the accident to accompany the survey team;
- b) Preserve the integrity of the accident scene and the damaged goods prior to the arrival of the survey personnel;
- c) Promptly take photographs or videos of the accident scene, the damaged goods, and the scope of damage, and compile a detailed inventory of the damaged items;
- d) Furnish the required claim documents and supporting photographs as requested;
- e) Obtain prior written approval from the insurance company before proceeding with the repair or disposal of the damaged goods.
3.3 Submission of Claim Documents
You shall submit the following documents for claim processing:
- a) The original copy of the insurance policy;
- b) The accident notification form and the claim application form (duly completed and signed);
- c) The Bill of Lading (B/L), Waybill, or other valid freight contracts;
- d) The sales contract, commercial invoice, packing list and customs declaration form;
- e) The repair invoices or replacement invoices for the damaged goods (with official seals where applicable);
- f) Certificates and materials verifying the nature, cause, and extent of the insurance accident, including but not limited to: cargo loading/unloading manifests, cargo damage/shortage certificates, official inspection reports, traffic accident confirmation certificates, fire cause identification certificates, marine protests, and marine incident reports;
- g) Where third-party liability is involved, a formal claim letter issued to the liable third party;
- h) Other relevant materials deemed necessary for the claim.
3.4 Payment Instructions
Once the insurance compensation amount is confirmed, Insurance company will effect the payment to beneficiary promptly.
3.5 Assistance with Subrogation
In cases involving third-party liability, you shall not waive your right to claim compensation from the liable third party, and shall provide assistance to insurance company in pursuing subrogation against such third party:
- a) For lost cargo, you shall immediately file a compensation claim with the freight forwarder, terminal management entity, or other entrusted parties;
- b) Where the condition of the cargo is uncertain, you shall not issue or sign a clean receipt (confirming undamaged acceptance of the cargo) unless a written reservation statement is formally submitted;
- c) When taking delivery of containerized cargo, you shall immediately request the relevant authority to inspect the external condition of the containers and the integrity of the seals;
- d) Upon initial determination that a loss has occurred, you shall promptly request the freight forwarder or other liable parties to conduct an inspection of the cargo; if damage to the cargo is identified during the inspection, you shall immediately assert a claim for such damage against the freight forwarder or other liable parties;
- e) After receiving the shipping insurancecompensation, you shall promptly issue a receipt, a subrogation assignment agreement, and other materials required for the subrogation process, and provide necessary assistance to the insurance company in pursuing subrogation.
4. FAQ
Have questions? We have answers
Yes , DAKA International Transport Company can buy International Shipping Insurance for your shipments.
Insurance cost is 0.3% of cargo value and minimum is USD50.
Fragile goods can be insured by insurance companies. However, fragile items themselves carry an inherent risk of natural wear and tear and a deductible usually applies.
The insured amount is usually based on the cargo value, and a 10%-20% markup is generally added to compensate for expected profits and expenses.
International shipping insurance usually adopts the "warehouse-to-warehouse clause", which means that the insurance liability commences when the goods leave the shipper's warehouse and terminates when the goods are delivered to the consignee's warehouse. If the goods do not enter the consignee's warehouse, the shipping insurance liability shall terminate 60 days after the goods are unloaded from the means of transport.
