Cargo

This insurance ensures that the value of goods are protected against potential losses which may occur during air, sea or land transportation.

Basic information about insurance

WHO IS IT INTENDED FOR?

CARGO is voluntary insurance product, and it is intended for companies engaged in import, export and re-export, as well as companies engaged in trade and distribution on the territory of the Republic of Bulgaria.

WHAT DOES IT COVER?

The insurance covers loss and/or damage occurring as a result of an insured event, during transport by land, sea, air, river, rail or combined transport, of all types of cargo.

The liability of the insurer can be extended, on transport costs (freight), insurance premiums paid, expected profit, duty, etc.

Coverage for cargo under “CARGO” insurance is in accordance with the terms of the International Institute Cargo Clauses (Institute Cargo Clauses)

Institute Cargo Clause “A” — 1.1.09.
Institute Cargo Clause “B” — 1.1.09.
Institute Cargo Clause “C” — 1.1.09.

Against an additional paid insurance premium, coverage can provide (according to the terms of the specific insurance company) protection against additional risks:

War risks — under the terms of Institutional Military Clauses (Cargo) - 1.1.09
Strikes, riots and civil unrest — under the terms of Institutional Strike Clauses (Cargo) - 1.1.09
Damage occurring during loading and unloading operations
Breakage by the nature of the load for brittle loads
Failure due to damage to the refrigeration system for goods transported by refrigerated vehicles
Other specific risks.

WHAT DOES IT NOT COVER?

Excluded from coverage under the three main Cargo Clauses are losses, damages or expenses caused by or as a result of certain risks, part of which are:

deliberate actions or gross negligence of the insured, the sender or the recipient, non-compliance by the above persons with the established rules during transportation, forwarding and storage, as well as improper arrangement of the cargo in the vehicle;
insufficient or inadequate packaging or preparation of the insured cargo to withstand ordinary transit cases where such packing or preparation is carried out by the insured and his employees;
inherent defect or nature of the load, such as: drying, shrinkage, self-deterioration, natural loss in weight (fra), discoloration, staining, soiling, contamination, odor absorption and other details, except where such loss or damage occurred as a result of a risk covered by the insurance contract;
mold, fermentation, hidden defect, worms, larvae, rodents, insects, except in cases where such loss or damage is due to a risk covered by the insurance contract;
delay in transport and subsequent difference in price, respectively exchange rate difference, in case of payment of transactions in a currency other than the national currency;
losses on interest, business conditions, additional inflows, quarantine costs, including when they are due to delay in transportation;
difference in weight due to different readings of the measuring instruments, or
means, for example, scale difference;
when using land transport, theft of cargo as a consequence of the whole vehicle is not covered;
partial absence of the contents with intact and intact packaging or intact original seals of the consignor;
fraud by a person, regardless of whether there is a proven connection with the parties to the transaction, smuggling or prohibited trade;
the insolvency or financial bankruptcy of the shipowners, managers or charterers or operators of the ship who, at the time of loading the goods or in the ordinary course of business, were aware that this might interfere with normal transport.

PERIOD OF COVER

The insurance can be taken out for a period of one year, or for a separate course. In the case of individual insurance, the term of coverage is until unloading the cargo at the final destination, in the case of Subscription policies - one year.

The insurer's liability for any goods begins from the moment of its loading onto the vehicle, continues along the normal course of transportation, including delay, unloading, loading, overloading or transhipment of the cargo, if they are beyond the control of the insured.

WHERE IS MY INSURANCE COVER VALID?

Usually the insurance period is from the moment of loading the cargo to the moment of its arrival at the final point of unloading.

INSURANCE AMOUNT

INSURANCE PREMIUM

The cost of insurance is determined by the insurer's tariff, depending on the type of cargo transported, packaging, direction, type of vehicle and risks covered.

INSURANCE CONTRACT

The form of the insurance contract is the insurance policy, accompanied by a proposal-questionnaire, all annexes to it, general conditions, applications and clauses, as well as bills for the paid insurance premium.

The insurance contract is concluded based on a proposal-questionnaire filled out by the applicant for insurance according to the model of the insurer.

The insurance contract can be concluded in one of the following ways:

single policy — issued for one cargo, for a specific trip, time and insurance amount;
subscription policy — the insurance coverage under the subscription insurance extends to all or certain types of cargo and is concluded for a certain period. In the case of subscription insurance, the insurer issues a general insurance policy, and for each shipment for which it is informed

‍

INSURANCE AMOUNT

An important point in the conclusion of cargo insurance is the determination of the insurance value and the insured amount. The transported goods can be insured up to the market price they have at the destination.

The insurance value is the actual value of the cargo at the place and time of loading. Most often, in practice, the insured value of the cargo is equated to its actual value at the place of loading, increased by 10%, to cover the insured's remaining material interest related to the cargo, namely: freight, insurance costs and expected profit.

INSURANCE INDEMNITY

The insurance indemnity is equal to the actual amount of damage, damage or loss for each number or weight unit of insured cargo caused by a covered insured event. To receive compensation, the insured must have an insurable interest in the insured cargo at the time of the loss. From the insurance compensation, the insurer deducts all amounts that the insured and/or his employees received from third parties from the sale of the damaged items.

OBLIGATIONS OF THE INSURED

To provide accurate, true and comprehensive information when taking out the insurance;
To notify the insurer of any change in the declared circumstances;
To pay the insurance premium under the contract within the agreed terms;
To notify the insurer in a timely manner in the event of an event;
To provide the necessary documents when making a claim;
To take the necessary measures to prevent events that may lead to the occurrence of an insured event covered by the insurance contract.