Why You Need Shipping Insurance: Cargo Protection Guide
Carrier liability under CMR is capped at approximately 10 EUR per kg, often far below your cargo's actual value. Shipping insurance covers the full value of your goods for a premium of just 0.5-1.0% of cargo value.
Why Shipping Insurance Matters
International shipments face risks: accidents, theft, fire, water damage, and handling errors. While carriers have legal liability, it is capped far below most cargo values. CMR Convention limits road carrier liability to 8.33 SDR per kg (approximately 10 EUR/kg).
Example: A washing machine worth 5,000 EUR weighing 50 kg. CMR maximum: 500 EUR. Your loss without insurance: 4,500 EUR.
Coverage Options
| Coverage | Risks Covered | Premium |
|---|---|---|
| Basic | Fire, accident, sinking | 0.2-0.3% |
| Broad | Basic + theft, weather | 0.5-0.8% |
| All Risk (ICC-A) | All risks except exclusions | 0.8-1.5% |
Cost Example
10,000 EUR household goods, broad coverage: 10,000 x 0.6% = 60 EUR premium for 10,000 EUR protection. Excellent value for peace of mind.
When to Insure
- Always: Valuable items (electronics, appliances, antiques)
- Recommended: Fragile items (glass, porcelain)
- Consider: Sentimental value items
If Damage Occurs
- Inspect cargo at delivery
- Document damage with photos and written report
- Notify insurer within 3 business days
- Submit supporting documents
- Await assessment and settlement (1-3 months)
Frequently Asked Questions
Is insurance mandatory?
Not legally (except CIF/CIP Incoterms). But carrier liability is too limited for valuable cargo.
Can Kolay Parsiyel arrange insurance?
Yes, insurance options are offered during the quotation stage.
Does insurance cover everything?
All Risk (ICC-A) covers everything except specific exclusions (war, nuclear, natural wear). Lower coverages exclude theft and breakage.
Premium refundable?
If shipment is cancelled before start, yes. No refund for no-claim shipments.
References
- CMR Convention
- Institute Cargo Clauses
- Lloyd's of London
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