Foreign trade transportation cargo insurance

There are many ways to transport foreign trade goods by sea, land, air and postal delivery. The types of foreign trade transportation cargo insurance are divided into four categories according to the types of transportation vehicles that are insured: marine transportation cargo insurance / land transportation cargo insurance / air transportation cargo insurance / postal package insurance.

If two or more means of transportation are used during the whole transportation of a batch of goods, the main means of transportation in the whole transportation process is often used to determine the type of insurance to purchase.


1. Marine cargo insurance, according to national insurance practices, can be divided into two types: main and additional.
(1) Main risks
A. Free from particular average, referred to as f.p.a.
B. With particular average, referred to as w.p.a.
C. All risks
The above three types of risks all have basic risks for cargo transportation, and the insured can choose one of them to insure. In addition, the insurer can request an extension of the insurance period.
(2) Additional risks
1. Theft, pilferage and nondelivery, t.p.n.d. for short
2. Fresh water rain damage (f.w.r.d. for short)
3. Risk of shortage
4. Risk of inter mixture & contamination
5. Risk of leakage
6. Risk of clash & breakage
7. Risk of odour
8. Damage caused by heating & sweating
9. Hook damage
10. Loss for damage by breakage of packing
11. Risks of rust


2. Land transportation cargo insurance
Land transportation cargo insurance is a type of cargo transportation insurance, divided into (1) the coverage of land transportation insurance and (2) the coverage of land transportation all risks.
(1) The scope of liability for land transportation insurance means that the insured goods are subjected to natural disasters such as storms, thunder and lightning, earthquakes, floods, etc. during transportation, or are collided, overturned or derailed due to land transportation vehicles (mainly trains and automobiles).
(2) The scope of liability for all risks of land transportation, in addition to the above-mentioned land transportation insurance, the insurance company also compensates for all or part of the loss of the insured goods due to theft, leakage, collision damage, rust, etc. caused by external causes during transportation responsibility.
(3) Exclusion of liability for land transportation cargo insurance
1. Losses caused by the insured’s deliberate actions or negligence.
2. Losses caused by the consignor's responsibility or the natural consumption of the insured goods.
3. Losses caused by wars, workers' strikes or transportation delays.


3. Air transportation cargo insurance
The insurance company underwrites the goods transported by air, and the insurance liability is stipulated by the aircraft as the main body. Air transport cargo insurance is also divided into two types: air transport insurance and air transport all risks.

In addition to the two types of air transportation mentioned above, the insurance company is also liable for all the losses incurred during the transportation of the goods, including theft, shortage, etc., due to external reasons.

However, in the case of air transport cargo insurance, the exclusion liability is the same as the exclusion liability for ocean transport cargo insurance described in the previous section.


4.Postal package insurance
Covers the loss caused by an insured accident in the course of the postal delivery of goods delivered by postal parcel.

The goods are sent to the destination in the form of parcels by sea, land or air transportation, or air transportation, or by two or more means of transportation. No matter what kind of transportation means, any insurance that takes the form of parcel to the destination of the trade is considered to be parcel insurance.