Goods In Transit

This cover is typically arranged by goods owners to protect their property against loss or damage whilst in transit either in the UK or whilst being transported or shipped abroad.

Whilst it is not uncommon for such goods to be insured by the owner, it is more typical for them to be insured by the carrier or haulier who will normally transport such goods under Conditions of Carriage setting out their reponsibilities for the goods whilst in their custody and control until final delivery.

Examples of the most common Conditions of Carriage with specific reference to Insurance liabilities now follow;

• RHA (Road Haulage Association) Conditions - the most common form of conditions which should only be used by members of the Road Haulage Association. Liability is restricted to an amount of £1,300 per ton but this can be varied upon request.

• BIFA (British International Freight Association) Conditions -  Such Conditions are for the exclusive use of members of the British International Freight Association and Liability is restricted to an amount of twice the SDR (Special Drawing Rate) per kilo. The SDR rate is variable but can be found in the Financial Times and other Financial Publications. As of June 2014, the UK rate was approximately £1.10 per SDR.

• CMR ( Convention on the Contract for the International Carriage of Goods by Road) Conditions - used for contracts involving any goods being transported to/from the Continent. Liability is restriced to an amount equivalent to 8.33  times the Special Drawing Rate (SDR).