Goods in Transit Insurance
- 505. Insured risks
If the risk of transporting goods on land or an internal water body is insured, it is presumed that the insurance covers all risks relating to the goods.
- 506. Restriction of liability of insurer
(1) An insurer shall not compensate for damage which:
1) is caused by the policyholder or by the consignor or consignee of the goods;
2) is caused by the nature of the goods or by their defective packaging;
3) is caused by vermin.
(2) If circumstances specified in subsection (1) of this section have increased the damage, the insurer shall only compensate for damage to the extent for which the insurer would have been liable if the circumstances had not occurred.
- 507. Duration of insurance
Insurance commences when a carrier accepts goods for transport and continues for as long as the goods are in the carrier’s care.
- 508. Insurable value of goods
(1) The insurable value of goods is the usual value of the goods at the place of dispatch at the time of commencement of insurance. This is also deemed to be the insurable value at the time of occurrence of the insured event.
(2) If goods are damaged, the actual value of the goods at the place of delivery shall be deducted from the value the goods would have had at the place of delivery had they not been damaged. The proportion of insurable value corresponding to the decrease in the value of the goods shall be deemed to be the extent of the damage.
- 509. Restriction of cancellation of contracts
Upon the insurance of goods in transit, the insurer shall not cancel the insurance contract during transportation of the goods due to the probability of the insured risk increasing regardless of the intent of the policyholder or due to the transfer of the insured goods.