Dubai to Pakistan Cargo insurance

Dubai to Pakistan Cargo

This section provides detailed information on Cargo insurance for various types of transport.

  • Road freight transport
  • Rail transport operators
  • The shipping company
  • The carrier

In the international movement of goods, Dubai to Pakistan Cargo insurance is an important aspect of the transport of goods. Goods are exposed to common and unusual risks. Common risks involve handling, storing, loading or transporting cargo, while rare risks may include riots, strikes, terrorism, etc.

You should consider taking out an insurance contract for your products,  which is usually offered by national importing banks. Insurance documentation is important when it comes to clearing customs for your traded goods. The following section provides more details on the different types of insurance documents depending on the type of transport you use to transact.

Cargo insurance is an agreement whereby insured goods are insured (protected) against damage caused by a peril covered by the policy. An insurance invoice is required for customs clearance only when the relevant information is not included in the commercial invoice.

Difference Between freight insurance and carrier’s liability insurance

There is a difference between freight insurance and carrier’s liability insurance. For transport insurance, covered risks, fixed indemnity and contract indemnity (protection) are up to the exporting company or company.

In contrast, carrier liability insurance is governed by different regulations. Depending on the means of transport, compensation is limited by the weight and value of the goods. It is only granted if the carrier is unable to avoid liability.

The typical extent of the carrier’s liability is set out in the following international conventions.

Road freight transport

International road freight transport is governed by the Convention on the International Carriage of Goods by Road.

Pursuant to this contract, Road Towing Winch shall not be liable for any loss or damage to the goods provided it proves that they are from

  • Defects of the goods themselves
  • Force majeure  (unforeseen circumstances)
  • Defect of shipper or consignee
  • There is no Dubai Union regulation on compensation for road freight transport.

Rail transport operators

Rail carriers are not liable for loss or damage to goods if they can prove that they arose from

  • Defects of the goods themselves
  • Force majeure
  • Defect of shipper or consignee

There is currently no Dubai Union regulation on compensation. Compensation (compensation) is normally limited to a maximum amount per gross kilogram lost or damaged. However, in most cases, companies are unlikely to receive anything close to the value of their merchandise.

The shipping company

which is more commonly known as the “Hague Rules” or the “Brussels Convention”, defines the responsibilities of maritime carriers when transporting international goods.

The shipping company shall not be liable for loss or damage of goods if proven to have arisen from

  • Defects and loss of weight of the goods during transport
  • Seafaring error by the crew
  • Fire
  • Unseaworthy ship
  • Force majeure
  • Strikes or counter-strikes
  • Loader error
  • Hidden defects on board, which went unnoticed during a rigorous inspection
  • Attempting to save lives or goods at sea

Currently, there is no harmonization at Dubai Union level regarding compensation, which is normally limited to a certain amount per kilogram of lost or damaged goods. This system causes the same problems as rail accidents; the exporter is likely to lose much of the value of the goods.

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