Cargo Insurance Guildlines

For international shipping from China, there are many factors to consider whether to buy the insurance for the cargos, such as the product type, is it fragile or dangerous products? The total value of the goods shipped, the shipping origin and destination, the mode of transportation, how to insure the shipment? Below is the insurance coverage available.

INSURANCE OF GOODS

To ensure your shipment for the replacement of the goods shipped in case of total or partial loss or damage, request insurance for the replacement value of the goods=commercial invoice value.

We provide insurance for goods insured value with a $15.00 minimum, insurance rate is 0.3% of goods value.

Sample Insurance Calculation:
Commercial Invoice Value = $10,000
Insurance Cost: $30

If there is damage and the repair occurs at the final destination of the goods (consignee’s facility), the insurance company will take full responsibility.
It is important to insure goods for the proper value. If a shipment is under-insured then the claim will only be paid to the percentage that the shipment was insured.

Sample:

Goods Value: $10,00
Insurance Value: $5,00
Damaged repair cost: $4,00

The insurance was purchased at 50% of the goods value; therefore, 50% of the claim amount will be paid.
Claim Payment: $4,00 x 50% = $2,00 payment

If damage is found and noted on the bill of lading at the time of delivery, then the claim must be submitted in full within 30 days of actual delivery. It is not necessary to refuse a shipment if proper damage is noted. Insurance company should be notified immediately.