In this article we would like to introduce you to the benefits resulting out of arranging cargo insurance in truck, railroad and air freight.

Do you know what is the difference in the insurance settlement when the cargo is insured and a situation when the cargo insurance wasn’t arranged? In a case of an appearance of a claim, the rate of the insurance settlement without additional cargo insurance is based on the limit of the specific freight type. These limits are among other things stated in  Terms and condiotions of SCHENKER spol. s r.o. (VOP), you will find them in this table as well:

Applicable liability provisions Limit of the rate of compensation
Air Freight
Montreal convention
22 SDR for a kilogram
17 SDR for a kilogram
CMR – international freight
8,33 SDR for a kilogram
Domestic freight (§9a zák.č.111/1994 Sb.)
8,33 SDR for a kilogram

What are the 3 key advantages of cargo insurance?

  1. In a case of a claim the insurance company quickly solves the claim and pays out for the damage compensation.
  2. This insurance doesn’t consider the limits according to the conditions of B/L. In a case of partial of complete loss of cargo, the insurance pays out the complete cost of goods up to 110 % of value including the freight costs.
  3. Zero deductibles.

What is the scope of the insurance – new goods?

– theft
– wreckage, destruction of the ship
– contribution to a General Average
– accident of a land transport vehicle transporting the cargo
– derailment
– fire, explosion
– earthquake, volcanic eruption, lightning strike
– unloading of cargo in an emergency port
–throwing over, or washing over of insured goods from the deck of the ship
– ingress of water from the sea, lake or a river into the vessel, shipping container or the place of storage
– The full loss of a package lost overboard, fallen out while being loaded into the vessel or while being unloaded out of the vessel or a boat

Even though additional cargo insurance is so called „all risks“ insurance, there exist a few exceptions, e.g. unfit packaging of cargo, weather conditions(e.g. condensation of water), fix day delivery, war risks etc. You can ask more information in the General insurance conditions for additional insurance of transported cargo here and here.

In what variations is it possible to insure the cargo?

You can choose from four options:

  1. Insurance of cargo to 100 % (full value of goods)
  2. Insurance of cargo to 110 % (full value of goods + 10% of expected missed profit)
  3. Insurance of cargo to 100 % + insurance of the original carrier
  4. Insurance of cargo to 110 % + insurance of the original carrier

What is the price of cargo insurance?

The amount of insurance premium depends on the type of cargo and its risk level, type of freight and destination – the indicative rate is 3‰ of the value of the goods. For more information about additional cargo insurance please contact our costumer centre or business guarantor.

Cargo insurance – all modes of transport except for ocean transport-2023.pdf

Are you interested in cargo insurance for Ocean freight? You can find all information in this article.