According to the current Russian legislation, the term “cargo insurance” means one of the types of property insurance that “covers” damage or loss of cargo resulting from accidents and dangers of transportation, theft, robbery, military and strike risks, etc., depending of insurance coverage.
Losses caused by damage or loss of cargo, expenses for rescue or repair of damaged cargo, and examination costs are subject to compensation. Insurance is not a prerequisite for transportation, however, the procedure for insurance of goods during transportation carries a lot of nuances that are recommended to be known to minimize the risks of various kinds of misunderstandings. Full and competent insurance will be able to cover all losses incurred in the event of an insured event. When considering international operations, one may encounter high risks, namely, the time of transportation of entrusted cargo has to be crossed at least at the state border. In such a situation, property may be damaged as a result of misunderstanding between the parties, various disputes, litigation and time restrictions.