Non-declaration could void insurance claims

Incidents of theft of dangerous cargo in transit through South Africa have become a problem for freight forwarders, according to global risk management group Eikos. Managing director Hugh Reimers, said cases had been reported where clients had lodged claims after fuel, for example, had been stolen from containers in transit, endangering life and limb. “We have had claims where quite large quantities of petrol have been stolen out of containers,” he said. “The thieves are handling petrol and other hazardous substances and they don’t have the necessary fire protection, which could obviously have a catastrophic result,” he said. Reimers said to his knowledge there had been no recent injuries reported. He added that clients opting for marine cargo insurance were diligent about declaring dangerous goods as claims could be refuted on the basis of misinformation. “Insurance is based on the declaration of all material facts and if they did not declare the fact that the cargo they were moving was hazardous then it would be problematic for them to claim if they had a loss,” he said. Reimers said there was a demand for insurance to cover debris removal costs and pollution liability, which could translate into millions of rands. “There are people, generally smaller operators, who take a chance with their cargo but when people are moving product like this they tend to insure it. Some of the less significant carriers don’t buy adequate liability cover and this is potentially a major risk to their business,” he said. However, Reimers said accidents involving dangerous goods were not common locally. “We don’t see a lot of claims for hazardous products but I think it’s an indicator that people responsible for moving these products know they are hazardous and ensure appropriate measures are taken to avoid loss or damage. When there is an accident it’s because it hasn’t been packed or handled properly, generally because cargo hasn’t been declared properly,” he said. INSERT & CAPTION Insurance is based on the declaration of all material facts. – Hugh Reimers