Cargo transportation insurance is an insurance whereby the insurer undertakes, in return for the premium received from the insured, to pay the loss incurred during the transportation of goods from one point to another as a result of the occurrence of the risks covered by the insurance, if the goods are lost or damaged or if the insured incurs costs in relation to these risks.
Transportation insurance is issued in two forms: simple and contractual insurance policies. Other classifications of cargo transportation insurance are as follows:
Based on the method of transportation: According to this method, cargo transportation insurance is divided into land, air, sea and combined methods, while in maritime transportation insurance, transportation on small vessels and transportation on classified ships are other divisions of this type of insurance, each of which has its own rates and conditions.
Based on geographical area: Accordingly, this cargo transportation insurance is divided into domestic, import, export and transit.
Based on insurance coverage: Cargo transportation insurance (import, export and transit) is divided into A, B, C and Total Loss coverages, and domestic insurance is divided into limited risk coverage (accident and fire) and additional risk coverage.
Domestic cargo transportation insurance (general)
Sometimes, issuing simple transportation insurance policies (domestic, foreign and transit cargo insurance policies) is not cost-effective due to the high number of repetitions; in these cases, general insurance policies, which are a contract between the insurer and the insured, are used. General cargo transportation insurance is a general contract concluded between the insurer and the insured, in which the main conditions of the insurance and the general outlines of the rights and obligations of the parties are determined, and all cargo carriers within the country need this insurance policy.
Imported Goods Transportation Insurance (General)
Imported goods transportation insurance is insurance that originates in a foreign country and is destined for Iran. Imported goods transportation insurance contracts (general) are useful when the number of transportations is high during a year. In this case, the insured pays an amount as an advance payment under the contract he has with the insurer. This amount is usually obtained based on the maximum amount of transportation. The insurance premium is calculated based on the insurance certificates issued and all importers of goods need this insurance policy.
Export Goods Transportation Insurance Contract (General)
Goods that are sent abroad by exporters for sale in the global market are covered by insurance under the name of export insurance and all exporters of goods need this insurance policy.
Transit Cargo Insurance (General)
General cargo insurance is a general contract concluded between the insurer and the insured, in which the main conditions of the insurance and the general outlines of the rights and obligations of the parties are determined. However, the specifications of the cargo and the method of its transportation are known to the insurer when the insured begins to transport the goods. Transit cargo insurance contracts (general) are insurance contracts that are used to insure goods that are moving from a foreign country to another foreign country. All natural or legal persons who transport goods from one country to another (other than Iran) need this insurance policy.
Domestic cargo insurance (simple)
Simple domestic transportation insurance policies are used to insure goods that are transported within the country. Unlike foreign insurance policies (import, export and transit), the coverage of this type of insurance is limited and all domestic carriers of goods need this insurance policy.
Imported cargo transportation insurance (simple)
Imported cargo transportation insurance is insurance that originates in a foreign country and is destined for Iran. Imported, exported and transit cargo transportation insurance is differentiated based on their origin and destination, and all importers of goods need this insurance policy.
Exported cargo transportation insurance (simple)
Exported cargo transportation insurance is insurance that originates in Iran and is destined for a foreign country. Imported, exported and transit cargo transportation insurance is differentiated based on their origin and destination, and all exporters of goods need this insurance policy.
Transit Cargo Insurance (Simple)
Simple transit cargo insurance policies are insurance policies used to insure goods that move from a foreign country to another foreign country. This insurance policy is required by natural or legal persons who transport goods from one country to another (other than Iran).
Transit cargo insurance contracts can be divided into the following 2 categories:
o Transit: The goods must necessarily cross the Iranian border.
o Non-transit: The goods do not cross the Iranian border
Source: Iran Insurance Website
