The need for this type of insurance has increased with the advancement of civilization and the development of international trade concepts and mechanisms. Today, the world heavily relies on air, sea, and land transportation for all daily and commercial transactions, making cargo insurance during transport a necessity. It is unimaginable to ship any type of goods without providing the necessary insurance coverage.
The Importance of Insurance in International Trade:
Banks, when issuing any letter of credit for the import or export of goods, usually insist on providing proof of insurance for the goods involved. Without insurance, the value of the goods—if damaged or lost—becomes an unsecured debt, offering no financial guarantee. Therefore, the insurance policy becomes a fundamental component in the world of international trade.
Types of cargo transport insurance:
Land Transport:
The Takaful company covers damage and/or loss of goods transported by land resulting from the following risks:
• Risks of overturning or collision accidents, or the collapse of bridges and underground channels.
• Train and railway accidents.
• Fire risks.
• Theft with coercion and violence.
Marine Transport
The Takaful company covers damage and/or loss of goods transported by sea resulting from the following risks:
• Sea risks such as accidents like sinking, collision, and acts of God such as storms.
• Fire risks.
• Theft with coercion and violence (piracy).
• Jettisoning goods into the sea due to an emergency incident.
• Coverage of marine transport risks from the source warehouses up to unloading at the importer’s warehouses, including:
• Loading and unloading risks.
• Risk of loss of freight charges.
Air Transport:
The Takaful company covers damage and/or loss of goods transported by air resulting from the following risks:
• Aviation risks such as aircraft crashes and/or collisions, and acts of God such as storms.
• Fire risks.
• Theft with coercion and violence.
• Coverage of air transport risks for goods from the time they are received from the exporter’s warehouses until delivery to the importer, including:
• Loading and unloading risks.
• Risk of loss of freight charges.
Insurance value:
Goods are usually insured based on:
The cost of the goods themselves, including shipping costs.
Adding a percentage ranging from 10% to 20% of the insurance value to cover additional expenses.
Factors that determine insurance prices:
Insurance prices are determined based on many factors, including:
Type of goods: The type of product being transported.
Packaging method: How the goods are packed and their level of protection.
Shipping means: Whether by sea, air, land, or railway.
Shipping method: Whether by container or individual shipment.
The trip: The distance and destination to which the goods are transported.
Ship age: If the transport is by sea.
Country of origin: The origin of the goods and type of insurance coverage.
Deductible amount: If there is a certain amount deducted from the loss in case it occurs.
For more information, please contact us at 1800220220 or via mobile at #600.
