subject: Carriage Insurance Is A Policy For Insuring Transport Deals [print this page] Carriage Insurance is a very common term used in the business world. Insurance is a part and parcel of the commercial world. It ensures security to the owners properties or products from theft, physical damages, natural calamities, riots etc. The term carriage insurance forms a phrase that can be defined as freight security to the commodity. In a single word carriage insurance implies shipping insurance. Carriage Insurance as a medium to insure the shipping costs, risks and tasks that are involved during the transaction of the goods.
All over the world, both the commercial and government bodies accept these conditions when fixing a business transaction that involves shipping. Inco terms evolved in order to minimize or avoid the confusions of the commercial rules charted out by different countries. The countries agree over a common set of rules placed by the international standards when signing a deal. Some of the common terms involved are carriage, freight and also cost insurance freight. Though these common rules exist, each country has its own set of rules charted according to the local financial rules and law of the land. These rules clearly define the responsibilities of both the buyers and sellers.
Carriage Insurance varies depending upon the mode of transport and also the taxation norms. But the same rules are applicable for all the three mediums be it air, road or sea. The insurance coverage of the sold product until it reaches the buyers warehouse or station is the responsibility of the seller. This coverage provides security against theft, physical damages, fire or explosion or even riots and natural calamities to sensitive shipments like nuclear objects, spacecrafts etc. The policies differ based on the coverage, mode, client and many other factors and hence the premium of services too.
The Inco terms clearly define the risks, responsibilities and cost in association to the different modes of transportation. It also helps to safeguard the commodities that are being transported. The policies clearly mention a set of rules to which the traders have to agree before a business is signed. To be more accurate it states all about trade ethics and commercial deals. Carriers ensure the safety and security of all the items till they are delivered at the specified destination.
This guarantee ensured by the transport carriers is termed as GSR or guaranteed service refunds. According to the GSR norms the customer has the right to claim a payback from the insurance if the parcel is not delivered on time or in case of any damage to the items. These norms are applicable starting from when the cargo exits with the parcel till it safely reaches the customer. Carriage Insurance involves the buyer and seller as the main business dealers. But actually it is governed by law, contracts, taxes, and licenses until it is used by the customer to his/her or an organizations satisfactory level.
by: philipdanielsen
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