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Carriers Legal Liability Insurance
Carrier legal liability insurance policy is a prominent insurance policy that is unambiguously designed to cover an insured and assure against the individual’s legal liability. The policyholder will be liable for insurance in case of physical and actual damage to goods or loss of merchandise or damage caused by an accident and or fire to the vehicle registered under the number that has already been included in the policy.
In India, the carrier legal liability insurance policy pays for all the expenses for which the insured shall turn to be accountable for the compensation for physical destruction or loss of damage to goods or merchandise as well as during loading and unloading. This insurance policy depends on certain conditions such as:
- The accident or fire has arisen due to someone’s negligence of the insured.
- Due to criminal acts or negligence of the insured’s servants, such loss or damage has been caused.
- The vehicle is damaged due to an explosion or accident or fire.
Features of Carrier Liability Insurance
Here’s the list of features of carrier legal liability insurance.
1. Carrier Liability Limits
It wouldn’t be wrong to say that the carrier liability comes with specific limits, meaning your cargo is protected only up to a certain deal of money. So, it clearly means that the carrier is liable up to the particular amount.
if you suffer losses that go beyond the figure, then the carrier is not liable to pay the difference. Also, to cover the additional cost of your goods, shipping insurance is one of the best ways to consider in case of damage or loss.
The importance of a carrier liability claim comes into play when you have to make a loss claim. But now the question arises- what determines the limits of carrier liability?
When shipping within a specific region, each carrier orders what is the limit of their liability. By asking the carrier directly or looking at the terms, this information can be obtained within their shipping contract. However, there are certain chances that some carriers will modify this limit as per the shipping situations including where a shipment is being shipped.
2. Beginning Conditions
Before your goods have even been shipped, Carrier liability is something you can put in. But it will only initiate under a specific set of conditions.
To put it simply, a carrier legal liability insurance policy starts as soon as the goods are loaded onto the vehicle. it is important to note that both the carrier and you should have agreed on the terms of the contract and they are embracing the liability of the goods.
Having said that under the shipping contract, the specific terms of the carrier’s liability will be included. Even before a shipment takes place, the contract is signed and agreed upon by all parties.
3. When Does the Policy Terminate?
There’s no denying the fact that carrier legal liability insurance has to end at some point and the best part is that it is quite simple and straightforward. as soon as the shipment is delivered to its final destination, the responsibility that the carrier has over your goods will end.
And you must keep in mind that there will be no one to take responsibility for the fault if anything happens to your goods. In case the goods are found damaged, a claim needs to file. the respective shipping terms of the shipments will analyse if the shipper or receiver will be accountable for filing the claim. also, there are many forms of FOB shipping terms that determine who own goods at particular points of the shipping process.
4. When can the Policy be Cancelled?
This Policy shall be cancelled and premium paid shall be deprived of in the event of misrepresentation, misdescription or non-disclosure of any material facts by you or your representatives
The Policy shall stand cancelled with immediate effect if
- The laws relating to the transportation of goods are changed in any way.
- Any modification in material that occurs in the information provided by you in the proposal form.
- Any change happens in the ownership or your management or the area of operation.
5. How the Coverage is Determined?
Always remember that the coverage is analysed by the carrier and varies from the type of commodity or freight class being shipped. in a broader term, the carrier liability covers up to a specific dollar amount per pound of freight.
Benefits of Carriers Liability Insurance
Here’s the list of the benefits of carrier legal liability insurance;
- Comprehensive Coverage: One of the biggest benefits of carrier liability insurance is that it offers comprehensive coverage that is created to compensate for loss or damage to the carrier. some of the possible events include thefts, natural disasters or accidents.
- Broad Range of Commodities: When it comes to your business, every carrier is important. This insurance policy is available for a wide gamut of commodities, including a range of reefer products. No matter what business you are in, this insurance policy encompasses of range of goods that let you operate your business without any hassle.
- Container Damage Liability Coverage: This insurance policy covers container damage, ensuring you are also being covered in the event of them getting damaged while in your custody.
- Enhanced Flexibility: Whether you wish to purchase your insurance per shipment’ or agree to have insurance included with every shipment upfront, this insurance policy has got you covered.
- Legal Coverage: With legal insurance, you can rest easy knowing that when you experience a legal event, you’re covered.
What is Covered Under The Policy?
Carrier liability insurance covers unexpected expenses and financial liabilities that are incurred in the transportation of goods and other items. This insurance policy also covers loading and unloading of goods along with the damage at the time of storage.
Here is the list of things covered under the policy.
- Damage caused by mishandling of cargo after loading and before unloading. If you can prove the delay was happened due to the act, then you are likely to get covered under every circumstance.
- Cost of recovering the undamaged cargo.
- Any damage caused to the cargo resulting from the transport vehicle catching fire, meeting with an accident, or exploding.
- Legal expenses incurred under litigation.
- The cost incurred for emergency storage of the good in transit.
- Any legal liability arising to the transporter due to the delivery of damaged goods.
- The transfer cost from one way to another for shipment
- The cost incurred as the professional fee of the adjusters.
Important Things to Know About Carrier Legal Liability Insurance Policy Online
When it comes down to carrier legal liability insurance policies, there is a multitude of facts that you should bear in mind.
- The proposal form is the basis of the contract.
- Premiums form the basis or the consideration for indemnity.
- Before the commencement of cover, carrier legal liability insurance premiums must be paid upfront.
- Any deductible has to be paid by the policyholder from his/her pocket.
When it comes down to covering the damages or losses arising in the course of transportation of goods, Carrier legal liability insurance online policy in India could be incredibly beneficial. The protection under carrier legal liability insurance can’t go beyond the following:
- The sum mentioned per event against AOA (Any One Accident) in the policy document for any damage or fire or accident loss arising because of any event.
- There is no way under which the carrier legal liability insurance coverage can be more than the total Sum Insured as mentioned against AOY (Any One Year) in the policy document concerning damages or losses which could take place during the term of insurance.
Like other online insurance policies in India, Carrier legal liability insurance plans come with a multitude of exclusion where you won’t get any coverage. Here is the list of inclusions that you should know;
- This insurance policy will not cover any damage or loss that takes place beyond the tenure of insurance.
- if any strikes or any kind of strikes or acts of terrorism.
Liability under any other contract not under Carriers Act 1865.
- Depreciation, loss of market, delay, or any act of repossession by the public authority.
- Rejection from the government agency, government, or other competent authority to grant necessary or license or permit.
- Liability in respect to the damage to property belonging to the insured or his employees or in his control.
- Deterioration, inherent vice or defect, wear and tear, or decay of perishable goods is excluded from carrier legal liability insurance coverage.
- Carrier legal liability insurance policies will not cover any consequential loss arising from the loss or damage to goods.
- Any consequence of war, riots, strikes, or radiations is will not be included under the policy.
- Under carrier legal liability insurance online, goods that may be illegal or illicit or smuggled are not covered.
- Act of God: if your cargo gets damaged due to an act of God such as a natural disaster like an act of war, a hurricane, earthquake, or any other natural calamity, then the carrier insurance policy won’t help you anyway.
but there’s an issue with the “Act of God” as well. in general, the carrier liability insurance plan doesn’t cover issues caused by random acts. This includes a multitude of aspects like:
- Heavy rain or hail
- A hurricane
- Huge waves
- Acts of the Shipper
If the shipper accidentally packages the cargo or doesn’t bother to load it in a proper way then the carrier will not be liable.
It has been observed that a lot of cargo damaged gets caused by inferior packaging or insufficient usage of material.
Let’s consider the scenario!
You are transporting fragile items but you don’t include the boxes full of bubble wrap or protective packaging. so, when the goods move during transportation, there are significant chances that the item inside might break. in such a scenario, you will be accountable for the damage.
Unless it’s clearly proven that the loss or damage was not due to fault, a carrier will be liable for the damage to cargo.
Claim Process of Carrier Legal Liability Insurance Policy
There is no arguing with the fact that the claim process varies from one insurance to another. and the process to file a liability claim needs extra documentation because of the legal framework and out of the court settlements. In case of an emergency, a business can easily follow these simple steps that are mentioned by the insurance company.
- Make sure you go through the policy documents for coverage benefits that can be claimed and how the claim needs to be filed.
- Make sure you inform the insurance provider over a call or email or by visiting the nearest branch office.
- However, in case of theft or death, it is recommended to report to the nearest police station or the respective authorities. in addition to the documents and claim form, the report will be required by the insurance company.
- There are some cases under which there’s the need for evidence.
- To examine the location of the incident or the damage caused, the insurer will appoint a supervisor and decide the compensation accordingly.
- The insurer will update you about the claim status or you can even check the status of the claim online.
Frequently Asked Questions
1. Does the policy cover damage of goods and merchandise due to mishandling of the items?
There are some insurers that do provide cover for such incidents. it is, however, important for you to double-check with your insurer regarding the same.
2. How the policy will help my business?
Irrespective of a business’s size, carriers legal liability insurance helps them by reducing financial liability in case of any possible technical error or mismanagement that may damage the goods and merchandise of the client.
3. What are the important points to remember before filing the claim?
Before you file the claim, there are certain points that you need to consider under the carrier liability insurance plan.
- Make sure you inform the insurer within 7 days of the event of loss or damage.
- The insured should immediately file a police complaint in the event of a loss involving theft, robbery or malicious act.
- The insured should not make any written consent with regard to the payment of the liability without the knowledge of the insurer.
4. Who takes up the carrier’s legal liability insurance?
Carrier legal liability insurance policy is generally taken by the owner of the carrier.
5. How can you buy the policy?
Like other expenses, carrier liability insurance also requires a proper examination. also, you need to consider the prices, features, and facilities before you can decide on the insurer and the policy.