‘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.