What are the general liability clauses governing shipping claims and the
       different cases in  handling loss of cargo by the shippers/carriers?

 

Export shipments are usually insured against loss, damage, and delay beyond the control of the insured in transit by cargo insurance. For international shipments, the carrier's liability is frequently limited by international agreements and the coverage is substantially dfferent from domestic coverage. Arrangements for cargo insurance may be made by either the buyer or the seller, depending on the terms of sale. Exporters are advised to consult with international insurance carriers or freight forwarders for more information.

 

Damaging weather conditions, rough handling by carriers, and other common hazards to cargo make marine insurance important protection for exporters. If the terms of sale make the firm responsible for insurance, it should either obtain its own policy or insure cargo under a freight forwarder's policy for a fee. If the terms of sale make the foreign buyer responsible, the exporter should not assume (or even take the buyer's word) that adequate insurance has been obtained. If the buyer neglects to obtain coverage or obtains too little, damage to the cargo may cause a major financial loss to the exporter.

 

Shipments by sea/ air/ road are covered by marine cargo insurance.

Although sellers and buyers can agree to different components, coverage is usually placed at 110 percent of the CIF (cost, insurance, freight) or CIP (carriage and insurance paid to) value.

 

Insurance Documents

Insurance documents also constitute evidence of a contract with a third party, namely the insurance company and therefore must be distinguished from the commercial documents.

 

The two main insurance documents are:

·      Insurance certificate or cover note

·       Insurance policy

Insurance certificate:

While lacking the legal status of an insurance policy, insurance certificates serve to acknowledge that insurance cover has been obtained. The insurance certificate is issued to the assured by the insurer in advance of the policy, as the preparation of the policy takes time, particularly if there is more than one underwriter.

Insurance policy:

A marine insurance policy is a document which embodies the contract of insurance. General terms and conditions of the policy are included in small print on the document.

Other required Documents:

·      Invoice copy

·      Packing list

·      Bill of Lading/ Airway Bill/ Bill of Entry etc.
reference:

TRADE
  SECRETS  

The Export Answer Book
for Small and Medium-Sized Exporters
 in the Sultanate of Oman