Cargo Insurance for Import and Export: Secure Transportation with Real Logistics
1. What is Import-Export Cargo Insurance?
Import-export cargo insurance is a commitment between the insurer and the insured to compensate for any losses or damages to goods during transit, caused by agreed-upon risks. The buyer of the insurance pays a premium to ensure this protection.
Key Components in Import-Export Cargo Insurance:
- Insurer (Underwriter, Insurance Company): Typically insurance companies responsible for compensation within the agreed risks.
- Insured or Assured: The buyer of the insurance, typically the importers or exporters who bear the loss in the event of a risk.
- Subject Matter Insured: The goods being transported.
- Risks Insured Against: Specific risks covered by the policy, such as ship accidents, fires, explosions, cargo loss, etc. These are often based on the London Institute of Insurance's (A, B, C) rules.
- Insurance Premium: The amount paid by the insured to gain coverage.
- Insured Value & Insured Amount: The value of the insured goods and the compensation amount in case of loss.
2. Why is Import-Export Cargo Insurance Necessary?
In international shipping, especially by sea, potential risks are a significant concern for businesses:
- Risks During Transport: Shipwrecks, collisions, fires, cargo damage or loss.
- Limited Carrier Liability: According to international conventions, carriers are only responsible in certain situations, and claims for compensation can be complex.
- Peace of Mind: Insurance minimizes financial risk, allowing businesses to focus on operations.
Instances Where Insurance Does Not Cover:
- Natural Wear and Tear: Damage or quality degradation during transport or storage due to the inherent nature of the product.
- Fault of the Insured Party: Intentional damage or misuse of goods leading to damage.
- War Risks: Losses or damage caused by war, armed conflict, terrorism, or related acts.
- Design Flaws: Damage caused by product design or manufacturing defects.
- System Failures: Losses or damage caused by system or machinery failures.
- Other Excluded Risks: Any risks not explicitly covered in the insurance policy.
In international trade contracts, it’s crucial to determine who is responsible for purchasing insurance. For example:
- FOB or CFR: The importer is responsible for purchasing insurance.
- CIF or CIP: The exporter is responsible for purchasing insurance.
3. Types of Insurance Documents
Insurance documents play a crucial role in ensuring the rights of the insured. Common types of documents include:
- Open Policy: Suitable for exporters with frequent transactions. It covers all shipments within a fixed period (usually one year) with pre-agreed conditions. Exporters need only to declare shipment details and pay the insurance premium, after which the insurer issues an Insurance Certificate or confirmation on the declaration form.
- Insurance Certificate: Widely used due to its flexibility and speed. It proves that goods are insured.
- Insurance Policy: Typically for individual transactions or high-value shipments. This is the most comprehensive legal document, detailing the insurance terms and conditions.
Important Notes:
- Cover Note: This is a temporary confirmation issued by brokers and cannot be used to file claims.
- Insurance Certificate and Insurance Policy: While the Insurance Certificate is commonly used, the Insurance Policy holds higher legal value in complex legal situations. However, for routine transactions, the Insurance Certificate is sufficient for claims.
4. Import-Export Cargo Insurance Services at Real Logistics
Real Logistics is proud to be an authorized insurance agent for CHUBB Insurance in Vietnam. With a global reputation and over 130 years of experience in the insurance industry, CHUBB offers comprehensive cargo insurance solutions at competitive rates for most types of goods. Customers can easily choose the insurance coverage that best suits their needs, while benefiting from the support of Real Logistics' expert team to optimize the protection of their goods throughout the transportation process.
We operate in key economic areas, with offices in Ho Chi Minh City, Hanoi, Hai Phong, and Da Nang. As an agent for reputable global insurance groups, we provide cargo insurance solutions for air, sea, and road transport, along with comprehensive packages at optimal costs. Our service ensures you can focus on your business operations, while your goods remain well-protected.
Additionally, Real Logistics is committed to providing expert assistance in loss assessment, claims handling, and prompt compensation to secure your interests in case of incidents.
4. Why Choose Real Logistics Services?
Real Logistics always provides advice on the most suitable insurance conditions based on the characteristics of your goods and transportation methods. Our goal is to ensure maximum safety for your goods at the most effective cost.
✅ Professional, trusted team
✅ Tailored, expert consulting services
✅ Ensure the right type of insurance coverage
✅ Transparent, standardized processes
✅ Competitive pricing for all types of cargo
Other Services Offered by Real Logistics:
- Full customs services
- Sea, air, truck, and container transportation
- Customs consulting and export-import permits
- Transit and hazardous cargo transport
- International express shipping and other related services
Contact us today for a free consultation and experience professional import-export cargo insurance services from Real Logistics!
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Real Logistics Co.,Ltd
👉 Facebook: Real Logistics Co.,Ltd
☎️ Hotline: 028.3636.3888 | 0936.386.352
📩 Email: info@reallogistics.vn | han@reallogistics.vn
🏡 Address: 39 - 41 B4, An Loi Dong, Thu Duc, HCM City
51 Quan Nhan, Nhan Chinh, Thanh Xuan, Ha Noi City
