Academy of Economic Studies from Bucharest

Faculty of Business Administration in Foreign

Languages

Cargo Insurance

Zelca Paul
SpiracheRares

2014

Table of contents

I.
II.
III.
IV.
V.

Introduction....3
Short description4
Analysis of the contract..5
Conclusion10
References.11

I.

Introduction

Transport insurance is designed to protect you against financial loss of cargo while it is
being transported,whether by road,rail,sea or air.
When it comes to transporting goods,there are many things that can go wrong
unexpectedly. If you are transporting by road there the things most people think of such
as a truck overturning or your cargo being stolen while the truck is left unattended.
When transporting goods by rail, sea or air, however, the odds are greater that you will
lose your entire shipment. For all these reasons a good transport insurance policy is
vital.

II. Short description

Groupama Insurances is one of the market leaders in Romania. The company is part of
one of the most powerful international group of insurance and financial services in
Europe with over 13 million customers and 35,000 employees worldwide. Groupama
supports the dynamic growth of its international operations by investing in distribution
and by strengthening its expertise .
The company has a unique and integrated sales network comprising about 200 agents
and outlets, located throughout the country . Business strategy that our company
promotes in Romania was designed in line with the company's core values , defining the
relationship with customers, partners and employees :
Proximity : both human and geographical, it determines our ability to provide
customers with specific and tailored responses to their concerns .
Responsibility: the Group is committed to satisfy all our customers' needs , our
performance guarantee .
Solidarity: economic and social at the same time it is one of the key historical, of the
Group. It engages our attention that we offer collective interest .
Promoter of long-term partnerships ,Groupama Insurance provides life insurance
products , property, liability , auto and farm , both individuals and corporate clients. From
this perspective , the company develops innovative products offer complex and flexible
at the same time , targeted customer and market needs - Providing housing with extra
coatings, crop assurance , assurance Casco and RCA Providing small and medium
business.

III. Analysis of the contract

About the contract,we noticed some terms that are concludent to our study:

-The insurer, is the person or company that underwrites an insurance risk; the party in
an insurance contract undertaking to pay compensation;in our case, Groupama.
Insured: The person or body referred to specifically in the insurance contract, the holder
of the property interest of the Employer, which transports the vehicles owned by, rented
or site management;
Beneficiary : The person to whom compensation is paid if not indemnified by the
Insured;
Insurance contracts: bilateral legal act by the Insured, who is obliged to pay a premium
to the Insurer, and the latter undertakes to produce a particular risk, pay compensation
or sum insured Employer, hereinafter allowance, within the limits and deadlines agreed.
Insurance contracts are part: insurance policy, general insurance, insurance application
and any statement of the insurer, technical specifications etc..;
Contractor: The person insurer concludes the insurance contract, if different from
Insured and undertakes to pay the premium insurance;
Grossly negligent fault : that form wherein the offender provides the result of his conduct
detrimental , although it was able toprovide ;
Damage ( damage ): Material damage goods produced by a wrongful act , in the form of
loss, destruction or damage to property transported by the Insured , or resulting from
delay in delivery due to an insured event under this contract insurance ;
Compensation : amount payable by the insurer if the insured event
Event : Production insured risk, which leads to the occurrence of damage ;
Franchise : fixed amount or percentage that remains the exclusive responsibility of the
Insured ;
Below , we can find de principales terms of an insurance contract:
1 . INSURANCE CONTRACT
1.1 . Insurance contract includes insurance, insurance application , general insurance
conditions , special conditions , special clauses , where are specifically mentioned in the
policy , Attachments , acts Declarative / Additional and other written agreement signed
by the parties, all part and parcel of the contract.
1.2 . The insurance contract is concluded based on the insurance application completed
by the Insured , which together with all other statements made in writing this makes part
of the insurance contract.

1.3 . Under the insurance contract covered by the insurance policy and these general
conditions , the insurer undertakes to produce insured event to compensate injured third
parties who are entitled to cash compensation ( owner , beneficiary , consignee of the
goods , etc. ) which provided the premium which is paid and the vehicle set is stated
expressly in the contract of insurance.
1.4. Assurance shall be deemed terminated by payment of the insurance premium that
first rate and the issuance of the insurance contract and / or certificate of insurance.The
insurance is valid exclusively for vehicles and limits set out in the contract.
2 . OBJECT OF THE CONTRACT
2.1 . Groupama Insurances S. A. provides under these circumstances, and in return the
insurance contract insurance premium collection in amount and time limits established
carrier's liability as carrier for goods transported by road , for road vehicles specifically
listed on the policy insurance.
2.2 . Carrier is the natural or legal domicile, seat or residence in Romania , which carry
freight transport vehicles registered in Romania , owned by , leased or taken on site
management , roads , under contracts of carriage.
2.3. The insurance is valid only for carriers that are not themselves owners of goods
carried and are listed on the policy under the heading " Insured " and only for goods
throughout the journey are provided in vehicles ( even if crossings occur during transport
lines Ro-Ro Ferry or combined sea , rail, air , without unloading the goods from the
vehicle) .
3 . INSURED RISKS
3.1. Carrier's liability is covered by insurance as provided in the head . IV , art. 17 and
23 of the "Convention on the Contract for the International Carriage of Goods by Road "
(CMR ) , signed at Geneva on 19 May 1956 and amended by the Protocol on 05 July
1978 as follows :
a . The carrier is liable for the total or partial loss of goods or damage to their goods from
goods receipt to transport and of their teaching and to overcome deadline .
b. The carrier is exempted from this liability if the loss of goods , damage or exceeding
their deadline was caused by a breach of person entitled to dispose of the goods , its
order not resulting from a fault of the carrier, by inherent vice of the goods or
circumstances that carrier could not avoid and the consequences of which could not
prevent .

c . The carrier can not rely on being relieved of liability or fault on the vehicle used for
transporting it , no fault the person who rented the vehicle or its servants .
4 . EXCLUSIONS
4.1. In addition to the exclusions listed above ( chapter 3 , art. 3.1 / extracted from the
CMR Convention art . 17 , paragraph 4) :
a) Excludes insurance and can not be compensated for :
1. damage to vehicles transported as cargo , new or second-hand;
2 . handling, loading , stowage or unloading of the goods by the servants of the Insured
3 . theft of goods from road vehicles produced by burglary or robbery acts ;
4 . damage during container transport containers ;
5 . damage caused by military operations in time of war or measures caused by war, civil
strikes , lock outs , civil unrest , hostile actions of malicious persons or groups of
persons acting in connection with political organizations and the like;
5 . Territoriality
5.1. The insurance is valid when instead of receiving the goods and the place
designated for delivery are :
Romania;
or
the place of receipt of foreign goods and the place designated for delivery , as they are
specified in the contract , are situated in two different countries , of which at least one of
them is a signatory to the Convention CMR but only for the vehicles specified in the
contract limits .
6. TERMINATION OF CONTRACT AND PAYMENT OF FIRST
6.1. Ensuring be concluded for a period of a year or at least 6 months. Every month
started is considered month.
6.2. The amount of insurance premium rate is set according to the length limit of liability
and insurance. The insurance premium is paid in advance fully and in lei or foreign
currency . If the sum insured is determined in foreign currency, insurance premium is
determined in the same currency , it being able to pay or the fixed currency or in lei at
the NBR reference the date of payment. At the request of the Insured , if insurance

agreements a year, it can be paid in installments subanuale , number, amount and

maturity date settling at the conclusion of the contract, at the rate of premiums in force.
6.3. Insurance shall be terminated by the insurer issuing the policy , taking the risk that
the insured event from the date fixed policy , but in any event before 24.00 has been
charged insurance premium or the first installment thereof . Insurer 's liability ceases at
24.00 the last day of the period for which the contract of insurance.
7. CONTRACT TERMINATION OF INSURANCE
7.1 . Insurance contract is terminated in the following circumstances:
7.1.1. By coming forward ;
7.1.2 . If the insured sum to 0 ;
8 . LIMITATION OF LIABILITY
8.1. Liability assumed by the insured is limited to the amount set period provided by this
contract. During the contract of ensure this limit may be increased , upon payment of an
additional premium accordingly.
8.2. Costs of expertise as those made by the insured in the lawsuit if he was forced to
dezdunare (including where criminal proceedings set in motion not judged , and
remains civil action in criminal court ) made with the prior consent of the Insurer , shall
be covered in the limit liability shown on the policy.
9 . Franchising
9.1. Deductible is the portion of the damage , set a fixed amount or percentage , which
is borne by the Insured . Quantum is set at insurance contract .
10 . Obligations of the insured
10.1. Insured is obliged to take appropriate circumstances and in accordance with the
CMR Convention for the proper performance of each transport , storage and
Guard assets in custody throughout the transport , in accordance with legal provisions in
order to prevent the occurrence of insured events, that limit damage in case of
production of insured events .
11 . OBLIGATIONS OF INSURER
11.1. The insurer is obliged to ascertain and assess the damage through its
representatives , including experts if they agree, the two sides together
the insured or beneficiary / recipient damaged goods .

11.2. The insurer is also required to establish and pay appropriate compensation , based
on the complete documentation on the causes and circumstances the risk that the
product provided .
12.FINDINGS AND ASSESS THE DAMAGE;PAYMENT OF COMPENSATION
12.1 . Finding and assessing damage is done by the insurer , directly or through
authorized with the Insured or his assignees .
12.2. Determination and payment of compensation is made by the insurer based on the
complete documentation on the causes and circumstances of the event insured.
13 . OTHER REGULATIONS
13.1. The parties may jointly bring changes to the insurance contract at any time during
the validity of the amendments that entered into effect from the date to be agreed in
writing by the parties.
13.2. In the event of termination or cancellation of the insurance contract, its provisions
apply to all cases of damage occurring before such termination / cancellation, up to their
final liquidation .

IV. Conclusion
Transport insurance varies greatly so make sure you work with a specialized agent so
that the policy you purchase includes the coverage that you need. Some policies are
very basic and list covered causes such as natural disasters, collision accidents and
bridge collapse whereas other policies are more comprehensive and cover damages

due to loading/unloading and loss due to theft, negligence and even acts of war or
terrorism.
There are several things you need to be aware of in order to get the coverage bestsuited to your needs.
Each type of goods being transported can have its own special considerations
during transport.
Many transport insurance companies provide special coverage for things like valuable
records, registered and express mail, and goods requiring armored car transport.
If your business imports or exports its products, youre investing in your company every
time you ship cargo, so make sure you protect your investment.

V. References
Groupama Insurance Company insurance broker Carmen Matei
Groupama CMR policy (march 2014)
The Chartered Insurance Institute, IF1 Insurance, legal and regulatory Study text 20132014
Gollier C. (2003). To Insure or Not to Insure?: An Insurance Puzzle. The Geneva Papers
on Risk and Insurance Theory.