How to cover the risk of Cargo loss or damage

Risk of loss or damage of goods in exports and imports

Business carries risk. Am I right? A business man removes hindrances in export and import wisely. One of the major hindrances in export import business is Risk of loss of goods or Risk of damage of goods.

How to remove hindrance of risk of loss of goods and loss of damage of goods exported?

The risk of loss of goods and loss of damage of export goods in international trade can be covered with insurance. You need to cover all your import/export cargo by insurance.

Who insure export import goods – Buyer or Seller?

Buyer or Seller covers insurance against goods exported based on the delivery terms agreed between buyer and seller. If Ex works shipment, the insurance on exported goods is covered by the buyer/importer. Insurance on export goods under FOB, CFR terms are also covered by importer / buyer.

Under a shipment of CIF, CIP,DAP,DDP,DDU etc, insurance is paid by Seller of export goods. I have written detailed articles about I Inco terms in this website. You may go through the same to have more information.

Once you got intimation about cargo loss or cargo damage, immediately you have to intimate the insurance company about the same. Insurance company appoints a surveyor to survey the goods with the required documents. You can get claim from general insurance companies who are involved in undertaking coverage for exporters.

You can also move your claim through the carrier as per Multi model transport documentation Act.

I hope, I could enlighten you about the importance of insurance under export import of international trade against loss or damage of goods exported. Do you have more information to add up to this subject - How to cover the risk of Cargo loss or damage in export import trade?

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