Goods in transit (Cargo)
Cargo insurances are standardized in compliance with the original London cargo clauses, the so called ‘Institute cargo clauses’. They have been internationally adopted and apply all over the world. All insurance companies in Bulgaria use them either in their original or in translation. The three types of clauses- ‘A’, ‘B’ and ‘C’ are different according to the type of coverage. The first clause provides full coverage, Clause ‘B’- limited coverage and Clause ‘C’- minimal coverage.
- Clause ”A” covers all possible risks of loss or damage to the cargo insured, during transportation except for war, political unrest, strikes, revolts, insolvency of the insured, bankruptcy, rate differences for the goods at the exchange market, purposeful activity or inactivity on the part of the insured, as well as the damages caused by insufficient or unsuitable packaging or unfitness of the means of transport. In the group of risks covered there belong fire, explosion, traffic accident, natural disasters, larceny while the latter is excluded in our country in case of stealing the whole vehicle.
- Clause ”B” covers fire, natural disasters, earthquakes, cargo wetting, water entering the hold or the container, partial or complete loss of a packet from the cargo, but according to insurance agents this one is rarely bought.
- Clause ”C” is a specialized one and covers only fire, explosion, traffic accident and complete loss. It applies to loose and liquid goods.
Depending on whether the cargo goods transportation is through the territory of Bulgaria or outside it most insurance companies offer two types of insurance policies with different provisions on them.
The rate for cargo insurance depends on the type of goods, their packaging (cardboard box, in bales, a sack, in loose form), on the type of transport (cargo car, plane, ship and others), on the destination (the country from and to which it is transported) and coverage according to the clauses listed.