Forwarding, Freight News, Logistics, Road

Shippers urged to demand better Russian cover

[ May 17, 2021   //   ]

After five years of pressure from the Russian freight forwarding and transport community comprehensive freight liability cover is now possible but local insurers have not responded by changing the terms of their very restricted policies, says insurer, TT Club. Valid claims are being denied in many circumstances, it adds. TT Club’s Network Partners in Russia is strongly urging forwarders, and road hauliers do demand better, all-inclusive insurance cover.

In his lecture at the TransRussia event in April, Alexander Petrenko of Panditrans said that cover often has just a few named risks, such as traffic accidents, fire and theft. Often, additional conditions are imposed, with special requirements put on sub-contracting, parking places and driver practices, that are difficult to comply with. There are also typically low claims limits and pro-rata reimbursement clauses for when the cargo value is higher than the limit per incident.”

Petrenko urged: “Now is the time to change these attitudes and for demands to be made of insurers to improve their service. Extensive risk mitigation tools are now possible through which the insured can avoid policy restrictions as well as safeguard against other risk such as errors and omissions and legal defence costs. Higher insured limits on the value of goods in transit are also possible avoiding excessive deductibles. Forwarders and road hauliers in Russia must now demand such protection from their insurers.”