How many years is the warranty for cargo insurance for plate exports through an agent?
Resolved
Our company has a batch of plates to export recently and has found an agent to handle cargo insurance matters. However, we are not very clear about the typical warranty period for cargo insurance for plate exports through an agent and are worried about potential issues later with no coverage. We would like to ask if there is a standard range for the warranty duration of cargo insurance for plate exports through an agent under normal circumstances? It would be even better if you could provide some factors that influence the warranty duration. Thank you all in advance!
Trade Expert Insights Answers
Generally speaking, there is no fixed and unified warranty period for cargo insurance for plate exports through an agent. Different agent service contracts may have varying provisions. Common cargo insurance primarily provides coverage for damage to goods caused by ship's hold-related factors during transportation.
For regular ocean freight export agent cargo insurance, the coverage period in most cases is from the time the goods are loaded onto the ship until they are unloaded at the destination port. During this period, if the plates are damaged due to reasons related to the ship's hold, such as unsuitable hold conditions or ship accidents, the agent will be responsible for compensation as agreed.
However, some agents may extend the cargo insurance period to a certain storage period at the destination port's terminal after the goods are unloaded, for example, 1-3 days, to ensure the safety of the goods during a short storage period after unloading. The specific warranty period depends crucially on the contract terms you sign with the agent, and it is essential to read it carefully before signing.
Usually, cargo insurance covers the transportation phase and is not calculated by year. It is from the time of loading to the time of unloading, so there is no concept of a warranty of several years. As long as the plates are damaged due to ship's hold issues during transportation, the agent will be responsible.
Generally, the contract will stipulate that cargo insurance ends upon completion of unloading. However, in special circumstances such as port congestion, the agent may appropriately extend the coverage period, but it will not be too long, only a few days.
Most agents' cargo insurance only covers the period of ocean shipping. If issues are found after the goods are unloaded, it is difficult to find the agent, unless the contract explicitly states coverage after unloading.
I understand that some agents' cargo insurance extends to short-term storage in warehouses at the destination port, possibly for about a week. It still depends on how the contract is signed.
Normal cargo insurance covers the entire transportation process. If the plates have problems on the ship due to ship's hold issues, the agent will handle it. As for several years, that's really not the case; it's based on the transportation cycle.
The warranty period mainly depends on the contract. Some agents, to attract customers, will appropriately extend the cargo insurance period, such as providing a few extra days of coverage after unloading, but it will not be too long.
Generally, cargo insurance responsibility ends upon unloading. If problems are discovered later, unless it can be proven that the issues were caused by the ship's hold before unloading, the agent is unlikely to be responsible.
Cargo insurance primarily focuses on the transportation segment. If the transportation time is short, the coverage period will naturally be shorter, which has nothing to do with several years. The key is the coverage during the transportation period.
It depends on the agent's regulations. Some agents strictly adhere to the transportation time for cargo insurance, while others are more flexible and may provide coverage for a period after unloading, but the duration is not determined by year.