Cargo Insurance (A)
This information document only specifies the main aspects of the insurance, such as what is included and what is not. It is not an exhaustive list or a personal overview of the insurance that customers choose. The information document has no legal significance and is intended solely to inform customers about the main aspects of the insurance. The insurance summary and detailed information on the applicable contract terms are available on the insurance policy, which can be accessed on Vörður’s My Pages. The terms and conditions of the insurance contain comprehensive information about the insurance coverage and are a part of the agreement between the parties together with the insurance certificate.
What kind of insurance is Cargo Insurance (A)?
Cargo Insurance (A) is the most comprehensive transport coverage offered by Vörður and compensates for financial loss to goods in transit. The insurance also covers losses the owner of the goods may incur in cases of general average at sea and salvage expenses.
What Is Covered?
Any kind of loss or damage to the insured items.
General average disbursement and rescue costs.
Liability that falls on the insured due to Both to Blame Collision Clause in the transportation agreement.
What Is Not Covered?
Loss, damage, or costs that can be traced to intent or gross negligence of the insured.
Normal leakage, normal shrinkage in weight or volume, normal wear and tear, or corrosion of the insured cargo.
Loss, damage, or costs due to unnecessary or insufficient packaging, or of inadequate care for the insured cargo.
Loss, damage, or costs due to internal damage or nature of the insured cargo.
Loss, damage, or costs due to delay, bankruptcy, or financial default.
Loss, damage, or costs incurred when:
A: Vessel or transportation craft is unseaworthy, a vessel, transportation craft, transportation equipment, container, or carrier is unfit for safe transportation of the insured cargo.
B: The insured themselves, or people employed by them, knew of this fact.
Loss, damage, or costs incurred by war, civil war, revolution, or hostile actions carried out by parties of war.
Loss, damage, or costs incurred by military occupation, forcible actions, detention, delay, or immobilisation, and the resulting consequences, or attempts thereto, or due to a deserted naval mine, torpedo, bomb, or other deserted weapons of war.
Loss, damages or costs caused by people on strikes or in lockout, or participants in work-related riots or uproar, or which are caused by strikes, lockouts, work-related riots, uproar, or civil unrest.
Loss, damage, or costs caused by terrorists or participants in political actions.
Are There Any Restrictions or Precautionary Rules?
The insured must comply with Vörður’s precautionary rules.
Where Is The Insurance Valid?
The insurance only applies to the insured goods while in transit.
What Are The Insured's Obligations?
When there is a risk of a compensable loss, or after a loss has occurred, the insured is obliged to take measures to prevent or minimize the damage and ensure that all rights against the carrier and any other parties are preserved and exercised. The company will cover all reasonable costs associated with this, in addition to paying insurance compensation for the loss.
If the insured changes the destination after the insurance has commenced, they must notify Vörður immediately. Vörður will then keep the insurance in force with the agreed adjustments to terms and premium.
The insured must provide all necessary information, whether at renewal or when making changes to the insurance.
When And How Is The Insurance Paid for?
The premium must be paid before the insurance takes effect. Payment can be made by credit card or bank transfer.
When Does Insurance Coverage Begin and How Does It End?
Insurance coverage begins as soon as the transport starts, i.e., when the insured goods are removed from a house or other storage facility at the place of dispatch, and ends at the earliest of the following:
a) Upon arrival of the insured goods at the recipient’s premises or other final storage location at the destination specified in the certificate.
b) Upon arrival at another house or storage at the destination or en route thereto, chosen by the insured either for storage not part of the normal course of transit or for sale or distribution.
c) Sixty days after the insured goods were unloaded from the ship at the final port of discharge.
How is the insurance terminated?
The insurance can be terminated at any time during the insurance period.