Cargo insurance is the oldest field in commercial insurances. In this type of insurance the damages caused to the goods by insured risksand risks are compensated throughout the transportation path. Considering the fact that beneficiary individuals in international transactions (buyer, seller, bank and transportation companies) have different nationalities and in each country different rules and regulations applies, for a better coordination in most of the countries of the work, similar conditions are used for provision of cargo insurance.

Different insurance policies for insuring good transportation

A)   Import and export cargo insurance

1-   total loss of the good

2-   condition C

3-   condition B

4-   condition A

B)   domestic cargo insurance

Total loss of the good

in this type of insurance the total loss cause to a good is occurred in one stage and caused by fire or total drowning or missing and the cause loss is to that extent that the cost of repairing it is more than the total value of the good, therefore; the loss will be compensated by this type of insurance.

Cargo insurance with condition C:

In this type of insurance the following threats and risks will be covered:

-     fire or blast

-     sitting down, hitting the bottom of the sea, drowning or capsizing of the ship

-     capsizing or diversion from the railway of a ground vehicle

-     collision of a ship, vessel or any other vehicle with any external object except water

-     unloading at the emergency port

-     sacrificing the good and throwing the public goods into the sea for making the ship light

-     Mass losses and saving costs and shared responsibility of collision

Cargo insurance with condition B:

The range of the risk and risks covered in condition B is more extensive than the range mentioned in condition C, in a way that all the risks and risksrelated to condition C are covered in this insurance and in addition to that the following have been also covered:

-Earthquake

-lightening and volcano

-Entrance of sea water, lake or river into the ship, vessels, good containers, container, or lift van or transporting vehicle.

Total loss of each complete package of good due to falling during loading or uploading from ship or vessel.

In cargo insurance with condition B, in addition to the mentioned risksin condition B, risks of non-delivery, theft,  petit larceny, corrosion, breaking, abrasion, temper discoloration, damage by hook, damage by oil, rust, break, scratch and injury,  bending and damages caused by hood and reduction in the numbers of the good are also accepted with mentioning them in special conditions. Damages resulting from other good based on the type of the good with accounting a percentage or a price as franchise.

Franchise (share of the insured from the caused loss and damage)

With the exception of the non-delivery and losses resulting from the risksmentioned in condition B, equal to 3 percent of the value of each damaged package included in the franchise.

Cargo insurance with condition A:

This type of cargo insurance can be known as the most comprehensive type of cargo and transportation insurance and mostly is used for transportation of sensitive good and vulnerable ones and compensates all the damages and losses which might happen during the transportation from origin to destination without franchise deduction, unless the loss will be one of the exception in this condition.

Exceptions (cases which are not included in the insurance liabilities):

1- Ion-making radiation and pollution of radioactive substances resulting from any type of fuel or nuclear wastes.

2- non-acceptance of entering the goods by insured or preventing the enterrance of the good by the country importing the goods

3- Intentional mistake of the insure which leads to loss or damage of the insured good.

4- Leakage and natural reduction of the good under insurance and similar riskssuch as normal reduction of weight, wear and corrosion.

5- Loss, damage or expenses resulting from improper or insufficient packaging or preparation of the good under insurance.

6- Loss, damage or any expenses resulting from inherent fault or nature of the good under insurance.

7- Loss, damage or expenses resulting from application and use of any war weapon which works with nuclear energy/breakdown or other similar reactions or radioactive force or substance.

8- Damage or expenses resulting from lack of sailing ability of the ship

9- war, strike, riot and terrorism risksare also among the exception of the insurance policy and in case of further and special agreement between the insurer and insured these can be as well covered.

Domestic cargo insurance:

This type of insurance which the conditions of it have been established as per the domestic rules and regulations of the country and insure the cargo that its origin, destination and path is within Iran. In the meantime, with paying extra premium other risks and risks such as total theft of the cargo, risks resulting from loading and uploading, the cargo being thrown from the vehicle and collision of external object with the cargo can also be covered.

In the following table a general list of risks and risks covered under three conditions of A, B and C have been compared.

 The covered risks and risks have been indicated with x.