Cardinal Plus: Marine Insurance
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It is important that your claim is lodged immediately upon delivery of your consignment and that any reservations regarding the condition of your cargo have been written on the delivery note.
It may be useful for you to view our incoterms guide which outlines at which point the risk of insurance passes from the seller to the buyer as it may be necessary for you to inform your supplier or purchaser that the goods have been received in a damaged condition.
If insurance cover has been contracted by you to Cardinal Plus
If you have not contracted insurance cover to Cardinal Plus
In the event that insurance has not been contracted to Cardinal Plus, it will be necessary for you to make your own arrangements for a surveyor to inspect the cargo and notify your insurance provider if applicable. We can help you with this process. Please speak with your account manager if you are unsure about how best to manage and process your claim.
I am an importer and I have not purchased an insurance premium. Surely my supplier has?
This is a typical question and assumption but unfortunately the answer is often that the supplier has not provided insurance. There are some simple rules, out-lined in our incoterms info guide, which explains at which point the risk transfers from seller to buyer. For example, if you are importing on CFR terms, the likelihood is that the risk transferred from the seller at the point that the goods were loaded to the vessel at origin. If you, as the buyer, have not purchased an insurance premium, the goods are probably uninsured.
The goods have already been shipped and I have forgotten to purchase an insurance policy. Can this be done retrospectively?
The policies issued by Cardinal Plus specifically require us to issue the same in advance of the cargo being collected and loaded for shipment. Therefore, we will be unable to provide insurance after your goods have been loaded for shipment.
Do you provide additional packaging/protection to the cargo before shipment?
Unless we are instructed to provide these additional services, it is likely that your cargo will be loaded for shipment in the same condition as received by us. It is important that you adequately pack and label the cargo to ensure its safe delivery at destination.
The goods have arrived damaged and we need you to send a surveyor to assess the damage
In the event that Cardinal Plus has provided insurance, we will be able to instruct a surveyor to visit you and provide a full inspection report of the damages. However, if we have not provided insurance, you will need to instruct your own surveyor to carry out this process; the cost for which will form part of your claim. Please remember that unless the cargo is insured, the value of any compensation payment will be limited and unlikely to cover the value of your claim.
How do I lodge a claim?
A full explanation regarding this process can be found on the lodge a claim section within this page.
The goods were received sometime ago and I need to know whether I can still lodge a claim?
All claims must be made immediately upon delivery of the cargo. Indeed, it is essential that upon receipt of the shipment, any reservations regarding the condition of the cargo are written on the delivery note. Claims must generally be made within 14 days of the delivery being received but please refer to the shipping documentation issued and this can vary from country to country.
If the ship sinks will I be compensated?
It all depends on whether the goods have been insured. If you have contracted insurance to Cardinal Plus or a third party, the likelihood is that your claim will be settled in full by the employed insurance underwriter. However, if insurance has not been obtained it is probable that no compensation will be provided. Insurance is an essential component of international trade.
Before obtaining insurance cover, it is important that you read the below to establish whether we can insure your cargo and what the cost of cover will be.
This is broken-down into three categories:
Approved General Merchandise
Suitable and sufficiently packed and/or protected for transit
The cost for this cover is just 0.55% of goods value, Minimum charge £ 55.00 or Euro 40.00.
The following goods are not regarded as "Approved General Merchandise":- Antiques, Bagged Goods, Bonds, Deeds, Documents, Manuscripts, Plans, Securities, Stamps and Treasury Notes, Bullion, Cash, Jewellery, Precious Metals and Stones, Cement, Cigarettes, Cigars and Tobacco, Fragile Articles, Furs, Household Goods and Personal Effects, Livestock, Mobile Telephones, Motor Vehicles, Perfumery, Perishable Foodstuffs, Plasma Screens, Scrap Metals, Television Sets, Unprotected Goods, Video Recorders, Second-hand Goods, Wines, Spirits and other bottled goods, White Goods, i.e., Cookers, Refrigerators and Washing Machines, Microwaves and Dishwashers.
High Theft Risk Goods
Suitable and sufficiently packed and/or protected for transit
The cost for this cover is just 0.80% of goods value, Minimum charge £ 55.00 or Euro 40.00.
The following goods are excluded items:- precious metals, diamonds and other stones, bullion, money, credit cards, debit cards, atm cards, cash-replacement cards, store and gift vouchers and cards, traveller checks, securities, bonds, deeds, back notes, treasury notes, stamps and similar cash substitutes, weapons and explosives of all kinds, live animals and plants, lap-top computers, personal computers, computer chips, memory modules, expansion cards, software licences and the like, mobile telephones, pre-paid mobile phone vouchers, sim cards, accessories and the like.
Household and Personal Effects
Both professional and owner packed
The cost for this cover is just 3.00% of goods value, Minimum charge £ 55.00 or Euro 40.00.
Terms and Conditions of Insurance for Household Goods and/or Personal Effects
In respect of owner packed items and baggage any cover excludes breakage, scratching, denting, chipping, staining and tearing unless caused by fire or by the vessel or conveyance being stranded, sunk, burnt, in collision or overturned.
Pairs and Sets clause In the event of loss of or damage to any article forming part of a pair of set the Policy or Underwriters shall not be liable for more than the value of the particular part or parts which may be lost or damaged without reference to any special value which such part or parts may have as forming a pair of set but in any event not exceeding a proportionate part of the sum insured in respect of the pair or set.
Average Clause The insurance is subject to the condition of average, that is to say, if the property covered by this insurance shall at the time of loss be greater value (in the country of destination) than the sum insured hereby; the Assured shall only be entitled to recover hereunder such proportion of the said loss as the sum insured by the policy certificate bears to the total value (in the country of destination) of the said property.
Antique Clause In the event of damage to antique items and/or works of art insured liability is restricted to the reasonable cost of repairs and no claim is recoverable in respect of depreciation. In no case shall liability for such repairs exceed the sum insured in respect of the damaged article.
Replacement Clause - Second-Hand Machinery In the event of a claim for loss or damage to any part of the insured interest in consequence of a peril covered by the contract, the amount recoverable shall not exceed such proportion of the cost of replacement of the parts lost or damaged as the insured value of new machinery, plus additional charges for forwarding and refitting the new part or parts if incurred. Provided always that no case shall the liability of Underwriters exceed the insured value of the complete machine.
Wear and Tear Clause Excluding wear and tear, gradual deterioration, moths, insects, vermin, rust and mildew.
Consequential Loss Clause Excluding consequential loss of any kind or description.
Climatic Conditions Clause Excluding damage caused by climatic or atmospheric conditions or extremes of temperatures.
Mechanical and Electrical Derangement Excluding Mechanical, electrical or electronic derangement unless caused by external, physical damage to the items covered.
Depreciation Clause Excluding depreciation resultant upon repairs.
The information in this article was current at 02 Dec 2011
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