Russian freight forwarders get comprehensive insurance cover

Alexander Petrenko

Freight forwarders and transporters in Russian can now enjoy a comprehensive freight liability cover as officially confirmed by the applicable transport laws after five years of pressure.

According to information, sadly, local insurers have not responded by changing the terms of their very restricted policies that continue to deny valid claims in many circumstances. TT Club’s Network Partners in Russia is strongly urging forwarders, and road hauliers, in particular, to increase their demands on insurers for better, all-inclusive insurance cover.

In his lecture at the TransRussia event recently, Alexander Petrenko of Panditrans drew attention to the shortcomings of the policies that are still on offer in the market despite the regulatory change. “Operators are still opting to buy cheaper forms of protection,” he stated, going on to provide a range of examples of such policy restrictions. “We see cover that has just a few named risks, such as traffic accidents, fire and theft. Often, additional conditions are imposed, with special requirements put on sub-contracting, parking places and driver practices that are difficult to comply with. Typical of most contracts with poor cover are low claims limits and pro-rata reimbursement clauses for when the cargo value is higher than the limit per incident.”

Having in the past cited the lack of freedom in the regulations to purchase more comprehensive cover, forwarders and carriers are now failing to demand better value for their insurance premiums. “Now is the time to change these attitudes and for demands to be made of insurers to improve their service,” urged Petrenko. “Extensive risk mitigation tools are now possible through which the insured can avoid policy restrictions as well as safeguard against other risks such as errors and omissions and legal defence costs. Higher insured limits on the value of goods in transit are also possible avoiding excessive deductibles. Forwarders and road hauliers in Russia must now demand such protection from their insurers.”

Panditrans also took the opportunity to address many stakeholders in the freight transport sector at the TransRussia conference to present some of TT Club’s loss prevention initiatives to assist those involved in temperature-controlled cargo movements, as well as the risk management of tank container operations.

Kirill Berezov of Panditrans led this part of the conference agenda. “With the movement of perishables increasing in Russia, by both container and road trailer, it is timely to remind those in the sector of the wisdom of maintaining the safety of cargoes through professional risk management,” explained Berezov. “Panditrans and TT Club have much experience in these measures, ranging from pre-preparation of the transport equipment, packing and route planning; through to awareness of, and measures to mitigate the risks involved; and ultimately the appropriate insurance cover 

Similarly, when considering the risks involved in the movement of tank containers and their often hazardous cargoes, careful consideration of safety and security issues are critical. “The main danger lies not in the loss of the tank with the cargo itself or in damage from road accidents, but in a complex chain of errors that, as a result, can lead to catastrophic consequences given the hazardous nature of many commodities involved. Severe liabilities for the transport operator can ensue,” warned Berezov.

The main risks, with the highest potential cost of damages, are environmental and injury to, or even the death of, third parties. The correct choice of specialized tank equipment, as well as thorough preparation, including cleaning to avoid contamination is basic to avoidance of calamity. 

Be the first to comment

Leave a Reply

Your email address will not be published.