CARRIERS LEGAL LIABILITY

This policy is issued to a transport operator who either is a

 Owner of the vehicle
 Hirer
 Temporary charterer.
Scope of Policy
I. The policy protects the insured against
a) his legal liability for accidental physical loss or damage to cargo
carried
b) caused by Fire or Accident to the insured carrying vehicle
c) due to the negligence of the insured or criminal act/s of his
employees
II. A claim under this policy will trigger only if the vehicle insured is damaged
simultaneously and a claim admitted for payment under its relevant Motor
vehicle policy.

III. The cover will commence from the time the cargo is loaded on to the vehicle
and continues till discharge at the place named in the contract document or
on expiry of 7 days after arrival of the vehicle at the destination whichever
is earlier.

IV. Cover under the policy can be extended to include loss or damage caused by
A. Damage by Fire , Burglary ,Riot, strike, Malicious damage
affecting goods at warehouse or transshipment yard.
B. Flood
C. Shortage due to pilferage or theft of cargo whilst in the
custody
D. Breakage , Leakage , Damage by other cargo ,improper handling

V Apart from the liability to cargo the policy(on wider terms) will also pay the
following costs :
 Loss of freight on account of damaged/lost cargo
 Defence cost incurred with insurance co’s consent
 Cargo retrieval, emergency storage ,transshipment

Warranty

The vehicle/s should be maintained in a road worthy condition for

transporting the cargo
Where the owner of cargo waives his right of recovery against the carrier,
such transits are not covered under the policy.

1
Sum Insured

The policy will have limits:

per accident/event-
per policy period-

The limit per event is to be chosen by the insured. Normally the insurers allow one
Full Reinstatement of sum insured at additional premium ,upon exhausting of the
limit on payment of claim .Further reinstatements are at the option of the
insurance company.
It is therefore essential to fix the sum insured at adequate levels at the inception
itself.

Rating
The premium will depend on the following:

 Licensed carrying capacity of the vehicle

 Type of vehicle- open, closed, tanker, special carrier etc
 Age of the vehicle

EXCLUSIONS

The policy does not cover loss or damage on account of :

Liability to property belonging to insured ,his employees ,agent

Liability due to inherent vice nature of the cargo carried ,wear and tear
Depreciation, delay ,loss of market, consequential loss
War, war like operations , strike ,riot(can be covered on payment of
additional premium)
Deductible excess.
Contractual liability

CLAIMS

The following documents are required to be submitted to the insurance company

 Proof of accident to carrying vehicle

 Proof of admission/settlement of claim for the vehicle
 Copy of police documents – FIR, mahazar etc
 Copy of the LR’s/Consignment Notes pertaining to the cargo carried
 Surveyors report assessing damage to the cargo
 Surrender of salvage.