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CARRIERS’ LEGAL LIABILITY INSURANCE

ABOUT

All Common Carriers have legal liability towards cargo owners for loss, damage or non-delivery of cargo caused by fire or explosion or accident to vehicles while such cargo is being transported in the Vehicle. Legal liability arises due to negligence or criminal acts of the Carrier or his servants. In the event of loss or damage the cargo owner is not required to prove that the loss, damage or non-delivery was due to the negligence of Carrier (or Servant). This provides additional edge to the clients in sustaining claims against Carriers.

Carriers’ Legal Liability Insurance, therefore, is a tool to showcase to his clients that they can look beyond the capacity of the Carrier in remaining secured in case of loss /damage to or non-delivery of their cargo during transportation. The Policy shall be taken in the name of carrier of goods, which automatically covers all his Servants or Representatives. Policy will indemnify financial loss suffered by Carrier, his legal liability for claims in respect of loss / damage to or non-delivery of cargo while in transit

“Claims” means damages, judgments, settlements that are awarded against the Carrier (as per Carriers’ Act 2007). Policy does not cover civil or criminal fines or penalties imposed by law, punitive or exemplary damages.

CARRIERS’ LEGAL LIABILITY INSURANCE

BENEFITS

COVERAGES

  • Arising out of negligence or criminal act of Carrier, his Servants or Representatives, the Carrier would be held liable for loss or damage to the goods while in transport in accordance with the value of goods carried. Examples are: Fire, Explosion or Accident.
  • Policy will indemnify the Carrier in respect of legal liability.

LIMITS OF LIABILITY (SUM INSURED)

  • Two limits are required to be indicated, namely, a) limit for any one event and b) Aggregate limit for the Policy Period.
  • Policyholder can choose the liability limits in accordance with estimated exposure.
  • A list of vehicles required to be insured needs to be provided. All vehicles need to be insured under Comprehensive Motor Policy.

FREIGHT CHARGES

Where freight has been prepaid, Carrier is legally liable to pay back the freight. Such liability is also covered under the Policy.

DEFENSE COSTS

Policy also covers legal costs or expenses incurred by the Carrier while defending any claim made against him.

EXTENSIONS

Upon payment of additional premium, Policy can be extended to cover certain other risks such as Riot & Strike, Breakage due to improper handling, Water Damage or Damage by other Cargo.

TERRITORY AND JURISDICTION

Territory for this Policy is Anywhere in India and Indian Law will be applicable.

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