The policy covers the goods of the insured against fire, theft or accidental damage while the goods is being loaded or unloaded from any road vehicle, train or whilst temporarily housed in the ordinary course of transit.
There are two types of cover available namely:
All Risks – This type provides a very wide cover as it includes all the risks being mentioned above. Cover commences immediately the goods are being loaded on to the transit vehicle and lasts until the goods are unloaded at the final destination. The conveyance can be either by road or by rail, and the geographical limit is anywhere in Nigeria.
Restricted Cover – Cover here is restricted in the sense that the risk of theft is only covered following an accident, collision or over-turning of the conveying vehicle. Cover similarly operates anywhere in Nigeria.
Who needs the policy?
It is usually needed by transporters who carry goods under contract or manufacturers who transport their product to outstation or departments and raw materials to the factory. It can also be bought by an individual who want to make single transit of goods from one place to another.
The following points should be noted among others when considering proposals for this class of business.
- The nature of goods ownership and whether owned or kept in custody
- The mode of conveyance by road, rail, Air or inland water ways
- The distance to be covered
- The type of vehicles to be used and whether owned or hired
- The carriage contract or Hire Agreement
- The estimated annual carrying
- The limit any one carrying
- The previous insurance and claims history
APPLICABLE CLAUSES AND WARRANTIES
- Way Bill Clause
- Precautionary clause
- Hired vehicle clause
- Excess Clause
- Declaration Clause
- Unattended vehicle/theft committed by driver clause
- Scope of cover clause
- Tarpaulin clause (applicable to vehicle with open roof)
- Trade mark warranty
- Protection warranty
- Exclusion of delicate goods clause
- Fidelity exclusions
- Inland transit clause
- Other clauses that may be requested for deletion or addition by the broker or clients.
Livestock, explosive goods, goods of dangerous nature, cash, bank notes, the first amount of each and every claim, theft or pilferage in which any employee of the insured is connected as principal or accessory, consequential loss.
The policy always contains excess which is either a specific amount or a percentage of each and every claim.
The underwriters will put the following underwriting factors into considerations when rating for Fire Insurance:
- The nature of the building and material used for its construction
- The mode of construction of the building will have a bearing on the rate.
- The nature of trade carried on must be ascertained before cover is granted.
- The location or situation of risk will also have a great influence on the rate to be charged.
- The standard of housekeeping