Cargo Damage Claim Vs Cargo Liability Claim

When is a claim cargo damage and when is it cargo liability?


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This is what you get from the sheet:

Definition:

Cargo Damage Claims:

Claims made for physical damage or loss of goods during transport, filed by the cargo owner or their insurer against their own insurance policy.

Cargo Liability Claims:

Claims against a carrier for damages or loss of cargo due to their failure in duty or breach of contract, filed by the cargo owner or their insurer.

Practical Example

Cargo Damage Claims

Electronics damaged by water during transit from Japan to the UK. Owner files a claim with their insurance to recover the value of damaged goods.

Cargo Liability Claims

Pharmaceuticals stolen due to an unattended truck overnight. Owner files a claim against the trucking company’s liability insurance for the loss.

Basis of Claim

Cargo Damage Claims

Based on the terms of the insurance policy which outlines covered perils and conditions.

Cargo Liability Claims

Based on proving the carrier’s negligence or breach of carriage contract.

And much more!

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