USE OF EXTERNAL TRANSPORTERS/FREIGHT CARRIERS
In view of increase in transit claims by use of external Transport Contractors, it has become evident that your transit goods cover has deficiencies, due to many Transporters do not arrange their own ‘’CARRIER’S LIABILITY/ BAILEES LIABILITY’’ COVER. This has become evident as they are unable to provide any or adequate cover whilst your goods are in their possession. Conditions of Carriage ‘’ Owners Risk’ has been challenged as they are charging for a service for which they do not wish to accept responsibility for well being of the goods entrusted to their care. Also honesty of their staff is suspect.
This is posing challenges in claim in claim settlement. Instances have taken place where pilferage ,disappearance of goods &/or lorries &/or drivers and even transporters have taken place All transit covers including Marine & Goods in Transit have a recovery condition which is applied by Insurance companies when a claim is reported &/or settled. Insurance companies expect that you use well established and reputable contractors.
It is therefore strongly recommended that you demand a valid ’CARRIER’S LIABILITY’’ policy to be presented to you upto and including the value of your consignment.
Definition of Carrier’s Liability: This cover legal Liability for accidental physical loss of or damage to the property in the custody of /or control of the Carrier/Transporter whilst in any transit including road. Transporter has to take cover for goods with no ownership.
The Owner must feel comfortable knowing that their asset/goods are protected.
If you transport your goods in your vehicle then Goods in Transit policy provides a reasonable protection but excludes fraud or theft committed by your staff. Please install or upgrade to control system of goods movement, staff selection and prudent management will ensure that there will be faster settlement in event of loss.