Carrier Legal Liability

A carrier legal liability insurance policy in India pays for all the expenses for which the insured shall be legally responsible for compensation for loss or damage to goods in transit or during loading or unloading. Carrier legal liability insurance policy covers for certain conditions such as:

• Damage to the vehicle due to explosion or accident or fire
• Loss due to accident or fire on account of negligence of the insured
• Loss or damage caused due to act or negligence of the insured or his workmen

The carrier legal liability insurance policy begins with loading of the cargo on the vehicle to:

• Unloading of the cargo at the destination point
• Till 7 days after the cargo has first arrived at the destination point Whichever of the above two comes first.

Carrier legal liability insurance is a highly personalized product and can be bought based on your requirements.

Below is a list of coverages under a carrier legal insurance policy

• Loss or damage to the cargo caused by fire, explosion or accident of the carrier
• Financial loss resulting due to loss of freight occurring due to damage to the cargo
• Legal costs incurred in the litigation against the claimants
• Cost of average adjusters
• Loss and breakage due to improper handling
• Carrier’s liability of cargo
• Cargo salvage, transshipment and emergency storage costs
• Flood or water damage
• Damage by other cargo

Note: This is an indicative list. Details of the scope and coverages of the carrier legal liability insurance will be mentioned in your policy copy.

Below are the points to be noted regarding while buying an online carrier liability insurance or a carrier legal liability insurance in general:

• The proposal form forms the basis of the contact between the insured and the insurer
• Premiums form the basis for consideration for indemnity
• The insurance premium has to be paid upfront before the commencement of the cover
• Any deductible, as mentioned in the policy, has be borne by the insured
• The indemnity under carrier legal insurance policy cannot go beyond the sum mentioned for each event against the AOA (Any one Accident) in the policy document
• The coverage under a carrier legal liability insurance cannot exceed the total sum assured as mentioned against the AOY (Any One Year) in the policy documents

Typical exclusions are:

• Data transfer to HR vendors, particularly for payroll
• Data stored on external servers not controlled by you and copyright infringement
• Contractual liabilities
• Inherent defects
• Wear/tear and deterioration
• Spontaneous combustion
• Decay of perishable goods
• Confiscation by public authority
• Illegal activity or consequential losses arising from loss of damage to goods

Only select general insurers offer a carrier legal liability insurance product. Insurers that offer this product include: IFFCO Tokio, Raheja QBE, New India Assurance, Oriental Insurance, etc.

Below are the documents required to claim for a legal liability insurance:

• Provide the completed claim form
• Legal notices if applicable
• Monetary claim lodged on carrier
• Damage certificate
• Copy of invoice
• Copy of contract between consignor/consignee and transported
• Estimate of legal fees
• Letter of subrogation.

Note: Liability should not be admitted without informing the insurer.

Below is the procedure to claim under a carrier legal liability insurance policy:

• The insured has to inform the insurance company, as soon as possible, about the damage caused to the cargo due to any of the unforeseen circumstances
• Along with a duly filed and signed claim form, the insured has to apply for a claim under the carrier legal insurance policy
• When asked for, at their own expense, furnish all information, explanations, vouchers, proof of ownership and of loss and evidences to substantiate the claim