简体中文
Tiếng Việt
The objective of cargo insurance is to put the owner of the goods in the same financial position as if the loss never occurred.
With the myriad of charges applying to the movement of freight, over the last 20 years I have witnessed numerous errors that cost owners of the goods that have been damaged or lost in transit.
The usual practice is to add the ‘invoice cost’ to the ‘freight cost’ and then add in the ‘insurance premium’ plus 10% extra. Cost + Insurance + Freight is our CIF value and the 10% additional is intended to cover the many ‘additional’ costs that are applied by the transport chain. Examples would be landing charges, bank charges, road transport and customs brokers fees to name few. Sometimes the 10% can still be inadequate depending on the additional expenses that it cost you to transport your goods – another simply example would be high duty on certain goods. You can insure for this higher duty to ensure you do not have an uninsured exposure. I often use the term ‘landed cost’ for the total of all of these charges to get the goods to the final destination.
- Cost $250,000
- Freight $12,000
- Insurance $1,500
- Plus 10% = $289,850
Advice from James Sparke and network partner
