Air Transport Cargo Insurance Coverage and Commencement of Liability

Air transport insurance has two basic covers: Air Transportation Risk and Air Transportation All Risks.

Air Transportation Risk covers full or partial loss of the insured goods caused by lightning, fire, explosion, or abandonment due to adverse weather or other perils encountered by the aircraft, or accidents such as collision, bumping, falling, or missing of the aircraft.

Air Transportation All Risks, in addition to the coverage of Air Transportation Risk above, also covers total or partial loss caused by external causes.

If one of the above basic covers is taken out, additional cover can be added through negotiation.

The insurance liability of air transport insurance is "warehouse to warehouse," i.e., it commences from the time the insured goods leave the warehouse or storage premises at the place of departure stated in the policy and continues until the goods arrive at the final warehouse or storage premises of the consignee at the destination stated in the policy.

If the goods are not delivered to the warehouse, the insurance terminates 30 days after the insured goods are unloaded from the aircraft at the final place of discharge; if the goods are not unloaded from the aircraft, the insurance terminates 15 days from midnight of the day the aircraft arrives at the destination. If transshipped at an intermediate port, insurance terminates 15 days from midnight of the day the aircraft arrives at the transshipment point, and continues when the goods are loaded on the onward aircraft.