An insurance policy designed to provide coverage for the bailee exposure of cargo carriers that would result from damage to property of others that has been entrusted to the carrier for transport.
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The policy pays all sums for which the insured shall become legally liable as compensation for physical loss or destruction of or damage to goods or merchandise while in the insured’s custody, while in transit, including during loading or unloading and while temporarily housed on or off vehicles in the ordinary course of transit.
Advantages
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Comprehensive Coverage: One of the biggest benefits of carrier liability insurance is that it offers comprehensive coverage that is created to compensate for loss or damage to the carrier. some of the possible events include thefts, natural disasters or accidents.
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Broad Range of Commodities: When it comes to your business, every carrier is important. This insurance policy is available for a wide gamut of commodities, including a range of reefer products. No matter what business you are in, this insurance policy encompasses of range of goods that let you operate your business without any hassle.
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Container Damage Liability Coverage: This insurance policy covers container damage, ensuring you are also being covered in the event of them getting damaged while in your custody.
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Enhanced Flexibility: Whether you wish to purchase your insurance per shipment’ or agree to have insurance included with every shipment upfront, this insurance policy has got you covered.
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Legal Coverage: With legal insurance, you can rest easy knowing that when you experience a legal event, you’re covered.
Coverages
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Damage caused by mishandling of cargo after loading and before unloading. If you can prove the delay was happened due to the act, then you are likely to get covered under every circumstance.
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Cost of recovering the undamaged cargo.
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Any damage caused to the cargo resulting from the transport vehicle catching fire, meeting with an accident, or exploding.
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Legal expenses incurred under litigation.
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The cost incurred for emergency storage of the good in transit.
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Any legal liability arising to the transporter due to the delivery of damaged goods.
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The transfer cost from one way to another for shipment
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The cost incurred as the professional fee of the adjusters.
Main Exclusions
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This insurance policy will not cover any damage or loss that takes place beyond the tenure of insurance.
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if any strikes or any kind of strikes or acts of terrorismm
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Liability under any other contract not under Carriers Act 1865.
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Depreciation, loss of market, delay, or any act of repossession by the public authority.
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Rejection from the government agency, government, or other competent authority to grant necessary or license or permit.
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Liability in respect to the damage to property belonging to the insured or his employees or in his control.
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Deterioration, inherent vice or defect, wear and tear, or decay of perishable goods is excluded from carrier legal liability insurance coverage.
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Carrier legal liability insurance policies will not cover any consequential loss arising from the loss or damage to goods.
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Any consequence of war, riots, strikes, or radiations is will not be included under the policy.
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Under carrier legal liability insurance online, goods that may be illegal or illicit or smuggled are not covered.
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Act of God: if your cargo gets damaged due to an act of God such as a natural disaster like an act of war, a hurricane, earthquake, or any other natural calamity, then the carrier insurance policy won’t help you anyway, but there’s an issue with the “Act of God” as well. in general, the carrier liability insurance plan doesn’t cover issues caused by random acts. This includes a multitude of aspects like:
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Heavy rain or hail
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A hurricane
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Huge waves
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Storms
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Acts of the Shipper
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If the shipper accidentally packages the cargo or doesn’t bother to load it in a proper way then the carrier will not be liable.
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It has been observed that a lot of cargo damaged gets caused by inferior packaging or insufficient usage of material.