Taking the amount and value of cargo transported by our company, insurance is a major issue for your company. Depending on the various transport types and activities performed by our company, insurance can be classified into the following three groups that cover all activities of our company:
1. Liability insurance covering damages caused by operation of vehicles
This insurance is required by legislation and all company vehicles are covered by this insurance. For contracted vehicles utilized by our company, we ask our contractual partners regularly to provide us with a proof of closing this insurance for their vehicles as well as document that appropriate insurance rate was actually paid, as nonpayment could render such insurance void. This way, we eliminate possibility that any vehicles utilized by our company are not covered by this insurance.
2. Cargo insurance for the international road transport
This insurance is based on the Convention on the Contract for the International Carriage of Goods by Road (CMR). All vehicles are insured at least to 150% of the goods value, i.e. well above the limit specified in the above mentioned Convention. In all instances, where our insurance does not correspond to the value of the shipment, or if required by other specifications (e.g. documentary letter of credit), we obtain additional insurance coverage in cooperation with AIG insurance company. The control mechanism for this type of insurance with respect to our partners is identical as the system described in section 1 above.
3. Insurance coverage for the maritime
container transport and intermodal transport. It is common that the shipping line, trucker, and railways have their own insurance coverage, however, such coverage may not suffice in all cases. If shipper requires so, or if specified for the appropriate delivery condition according to Incoterms 2000, or if required otherwise, for example, in the letter of credit, we obtain insurance coverage for such shipments in cooperation with AIG insurance company. Based on customer's requirement, such insurance covers either a complete transport or some of its sections only (e.g. only sea transport or road transport). We have been using the services of AIG insurance company due to the high professionalism of their employees, its global presence, and absolutely trouble-free settlement of insurance claims. Owing to a long-term cooperation with this insurance company and rebates provided to our company, we purchase insurance coverage on behalf of our clients, which brings considerable financial savings to many companies not using insurance services so often that would otherwise have to purchase insurance for regular rates.