“International Air Cargo Transportation and Insurance
What is Air Cargo Insurance?
Air cargo insurance is an insurance policy that protects the buyer or seller of goods transported by air. It pays for items damaged, destroyed or lost by the insured and, in some cases, may even cover shipping delays.
A close cousin of air cargo insurance is marine cargo insurance, which protects cargo transported by water.
Understanding Air Cargo Insurance
Air transport has become one of the fastest, safest and most economical ways to move goods around the world. Most airlines provide a minimum amount of insurance for all shipments, called carrier liability insurance. However, such coverage is usually minimal. It usually contains many exclusions, including floods, earthquakes and natural disasters, and generally does not provide compensation for high-value and delicate goods.
These restrictions have led many large shipping lines to seek additional insurance to protect themselves against breakage, theft, lost merchandise and, in some cases, consequential losses when cargo does not arrive in time. Some insurance companies offer air cargo insurance directly, as do some freight forwarders and trade service intermediaries.
There are many types of aviation insurance. According to different insureds, they are mainly divided into the following types of insurance:
First, with the air carrier as the insurer, there are aircraft fuselage insurance, loss of use value insurance, statutory liability insurance for passengers and luggage, statutory liability insurance for cargo and parcels, and third-party aircraft liability insurance. In addition, there are additional risks, war and strike risks.
Second, if the airport owner or operator is the insured, there is statutory liability insurance for the airport owner or operator.
Third, if the aircraft manufacturer is the insured, there is product liability insurance. In addition, air passengers and crew members can purchase personal accident insurance.
In general, aviation insurance only refers to air transportation insurance, which is customary to belong to inland transportation insurance.
In the international insurance market, air transportation insurance usually uses marine transportation insurance policies and attaches “”airline clauses””, in addition, there are so-called “”aviation all-risk”” clauses.
That is to say, air transportation insurance has two basic types of air transportation liability insurance and air transportation all risks. Air transport insurance, in principle, applies to the provisions of land and air insurance. However, if marine insurance is used, the clauses of marine insurance are the basis and the clauses of aviation insurance are supplemented.
The contents of air transport insurance generally include the following.
(1) Scope of insurance liability. Including the loss caused by fire, aircraft collision, aircraft crash, and other than those not suitable for aviation insurance, other marine insurance cover the loss caused by all dangers.
(2) Exclusions. Loss or damage caused by delay in delivery, defective goods, climate change, and other responsibilities that are generally excluded from marine insurance, such as losses due to war, except those not suitable for aviation insurance, are excluded from aviation insurance.
(3) Coverage period. The coverage period of the aviation insurance insurer is: from the time when the subject matter insured is delivered to the carrier, to the time of delivery at the destination, and up to 48 hours after the arrival at the destination.
(4) Insurance compensation. After the conclusion of the aviation insurance contract, if an insured accident occurs and the insured property is lost, a notarized application for indemnity should be submitted to the airline immediately. Any application for indemnity submitted by the insurer should be accompanied by a copy of the above application and a reply letter. Check with the insurer. Once it is verified that it is the insurer’s responsibility, it shall pay in accordance with the contract.”
