‘Underwriters need to be on their toes for Africa-bound cargo’

IN THE insurance industry
underwriters need to be eagle-eyed
when it comes to cargoes being
transported by road to African
destinations,” according to Susan
Bester, marketing manager for freight
insurance specialists, Prestmarine.
Sorting out claims in Africa is much
more complicated than with other
countries.
“Underwriters have to deal
with very limited information,”
Bester added, “and the necessary
documentation required by them is
also not easy to obtain.”
Possible problems start to arise as
soon as the Africa-bound cargoes get
onto the roads.
“Severe losses occur due to
accidents during the road journey,”
Bester said.
The cargo-laden vehicles are also a
prime target for theft.
“And often documents relating
to the movement of these cargoes
mysteriously disappear as well.
This causes huge difficulties for
underwriters, who rely on these
documents to consider liability in
terms of the policy.”
Even before cargoes leave the ships
underwriters need to be on their toes.
Bester noted that problems often
arise when imported cargoes are
being collected from the harbour for
transport to their final destinations in
Africa.
“Being the ‘tail-end’ of an import,”
she said, “loss or damages might
already have occurred during the
ocean voyage – and clients need to
have these goods inspected before
they are transported further inland.
“Breakbulk cargoes such as pipes,
cement, and fertilizer transported on
open vehicles are very susceptible
to damages during loading and
unloading procedures, tearing of bags
and shortages,” she said. “Clients
should be aware that although these
usually form part of huge contracts
– and several loads are delivered over
a period of time – damages and/or
shortages must be documented at
‘Underwriters need to be on
their toes for Africa-bound cargo’
the time of delivery, and underwriters
placed on notice immediately.”
Her advice to clients?
“Manage the risk by ensuring that
goods are packed properly and only
use reputable transporters.