BAKU, Azerbaijan, April 24. Charterer’s
liability and legal expenses insurance requires more active
implementation in the Caspian and Central Asian regions, the
Director of the Geneva office for Orbis Risk Partners SA, Mike
Shaw, said, Trend
reports.
He made the statement at the 2nd Forum on Logistics and Oil
Trade in the Caspian and Central Asian Regions in Baku.
"Charterer’s liability and legal expenses insurance is not yet
widespread in this region, and I believe this needs to change. You
often hear: ‘Nothing has gone wrong yet.’ This is the key argument
I encounter in the companies I’ve worked with, both within
organizations and among clients. People say, ‘We want to insure the
cargo, but we’re not worried about charterer’s liability
insurance,’ or ‘We don’t insure rail transport because nothing ever
happens,’ he noted.
He noted that it is necessary to consider one’s risks and
discuss them with insurers or brokers.
Shaw noted that marine cargo insurance typically covers storage
and multimodal transport. This is so-called “marine cargo
insurance,” which covers the entire journey of the cargo, from the
moment a financial interest arises, including loading onto a train,
storage, loading onto a ship, unloading, and onward transport.
"If there is an insurable interest, the entire route can be
covered by a single insurance policy. At the same time, incidents
on the railway do occur and can be serious, both for the cargo
itself and in terms of liability, pollution, or damage. In such
cases, compensation is usually sought from participants in the
supply chain, even if they do not consider themselves liable," he
said.
According to him, the key issue in this regard remains the
availability of insurance coverage: are the risks insured, or are
they effectively assumed by the company without full awareness of
the possible consequences?.
