Freight insurance is one of the oldest kinds of insurance that is often an obligatory condition for the execution of international contracts.

     The peculiarities of this kind of insurance are the following: firstly, while transporting the freight the owner has no possibility to control the safety of freight, secondly, several carriers can take part in freight delivery using different types of transport and thirdly, while transporting the freight it can cross the territories of several foreign countries.

     Internal and international freight transportation is becoming more and more intensive. Risk level in this sphere is very high and those who are directly engaged in freight transportation do realize it.

     The object of insurance contract is property interests that do not contradict the law and are related to possessing, using and managing the Freight.

     Insurance contract can be concluded based on one of the terms listed below:

1. “With liability for all risks”

2. “With liability for certain risks”

3. “With liability for damage risk only”

4. “With liability for theft (stealing) risk only”

5. “Without liability for damage except for in case of catastrophe”

 

     The contract can also provide for reimbursement of indirect losses:

- expenses on bringing the freight to the condition that preceded the occurrence of insured accident (cleaning, tidying up, dismantling etc.);

 - expenses on paying the fees to average commissioners, surveyors, experts etc.

 

     Insurance contract is concluded for the transportation period.

     Insurance sum is real market price of the freight.

     Insurance tariff is calculated in per cents to insurance sum and depends on the chosen insurance programme, type of freight, distance of transportation and other significant conditions.