freight insurance issues

Kersh

Hi all,

Hopefully some may be able to shed some light on a situation, or come across this in business before.

A freight company we use about 20 times a year (Uk to IRL) dropped our pallet, damaging 3 items, one worth just over €1000. They admitted dropping it, and the report said items may be damaged.

So I contacted them, sent photos, filled in the insurance claim form etc.

The damaged goods weighed 26kg.

They returned to us about 8 weeks later with a settlement of €21.00, based on their insurance being by the ton, and as it weighed 26kg, it was settled at €21.

Surely this is just plain wrong? Obviously I didnt settle, and asked for it to be taken further.

Anyone got any experience of this before?

Stephen.

flower tattoo

I used to work for a haulage firm
Standard haulage insurance is €1.81 per kilo under IRHA conditions.
The customer can request extra insurance on high value but low weight items like yours and pay for that or claim on their own insurance

RUDOLF289

Kersh wrote: »

Hi all,

Hopefully some may be able to shed some light on a situation, or come across this in business before.

A freight company we use about 20 times a year (Uk to IRL) dropped our pallet, damaging 3 items, one worth just over €1000. They admitted dropping it, and the report said items may be damaged.

So I contacted them, sent photos, filled in the insurance claim form etc.

The damaged goods weighed 26kg.

They returned to us about 8 weeks later with a settlement of €21.00, based on their insurance being by the ton, and as it weighed 26kg, it was settled at €21.

Surely this is just plain wrong? Obviously I didnt settle, and asked for it to be taken further.

Anyone got any experience of this before?

Stephen.

Hello Stephen,

I have come across this many times in my business as a freight forwarder. The client often does not study the standard trading conditions that the forwarder or the carrier relies on and usually refers to at the quotation stage or submits a copy with a credit application. The client's expectation is that any damage or loss that happens whilst the goods are in transit is made good by the carrier.

All carriers operate on standard trading conditions. These standard trading conditions limit and in most cases exclude liability. Even where liability is admitted or can be proved (as in your case) that liability is limited and in very few, if any, cases will cover the loss incurred.

It is up to the owner of the goods (in this case likely to be you) to arrange all risks transport insurance. Or, if the supplier arranges the transportation, to agree that they cover the insurance.

Single trip insurance can be arranged for as little as € 2.50 per € 1000 of the total value declared. Usually there is a minimum charge per shipment. Alternatively you can contact your broker to arrange an open marine/transport insurance policy. I reckon that € 500 annual premium would get you around €300.000 cover

If per chance you also use sea freight it is even more important that you cover marine/cargo insurance. Apart from the usual risks of a container getting stolen, or involved in an accident to or from the port, there is also the risk of General Average (https://en.wikipedia.org/wiki/General_average). If a ship is involved in an accident (however caused), and the ships captain has to take action to save the ship and it's cargo, the shipowner can declare General Average. In that case all parties involved in the voyage (ship owner, cargo interests etc) will be called on to cover the costs incurred. Your cargo may be in perfect condition, however, if general average is declared you will only get delivery of your cargo if you post a bond or cash. If you have marine insurance, the underwriters will issue the required guarantees. If you don't have marine insurance you could end up with a stark choice of either paying a substantial amount of money or to abandon the cargo.

Probably not the answer you were hoping for ........

Rudolf 289