Regulations specifically require that all parties arrange “adequate insurance” for the transport of dangerous goods, according to Eikos’s Francine Hattingh . “This has raised questions as to exactly what constitutes adequate insurance,” she added. “One of the recent amendments to the South African National Standards governing operational requirements for road vehicles clarifies that the operator needs the insurance to be based on the hazard and risk of the goods or substances transported. Also, it must cover civil liability (to third parties and authorities), recovery and rehabilitation costs.” Pollution liabilities cover may be considered an essential extension to the transport operator’s marine insurance policy. “But pollution insurance cover only covers ‘sudden and accidental’ risks, not long-term leakage. And radioactive risks and nuclear risks and damage by chemical, biochemical, electromagnetic and biological weapons are standard policy exclusions,” explains Hattingh. “But the exclusion only applies insofar as any loss relates to the radioactivity itself.” In other words, it applies to any subsequent exposure of the radioactive material itself and the resulting claims for clean-up or third party liability of any sort. Normally these types of cargo are insured by the consignor or consignee where required in specialised insurance markets. Hattingh warns that certain cargo can be problematic, if it’s under sanction by the UN, US and EU. “Your liability insurer will exclude cover for these claims, since payment by the insurer would be illegal under the sanctions,” says Hattingh. All of this raises an important point: Consignors, transporters and consignees must make it a priority to read their policy wording carefully in order to note not only what is covered, but (perhaps more importantly), what isn’t covered. INSERT & CAPTION Understand what is covered – and more importantly what isn't. – Francine Hattingh
