Shipment of goods usually involves different means of transportation and transshipment is common. However, insurers sometimes may not be well informed of the transshipment's details. Let's examine the case below:

Scenario:
Sender Mr. A shipped goods from Hong Kong to Italy by air (CIF). Mr. A was informed that the goods would first be sent to the UK and then to Italy by air transit again. Unfortunately, the flight was delayed in the UK. To make up for the lost time, the carrier therefore changed the transportation means to land transit without informing Mr. A. However, the goods were damaged during the journey to Italy by truck. Since the transportation means was changed, would the loss be covered by the insurance policy against the perils of ICC (Air)?

Answer:
If Mr. A insured with MSIG, MSIG will honour the claim under the condition that Mr. A is able to prove that he was not notified by the carrier of the change in transportation means under our investigation.

Tips:

• Disclose details if any transshipment is involved when booking the flight
• Employ a good forwarder/carrier who will give prompt notice to shipper in case of any incidental changes
• Inform insurer immediately after receiving notice from carrier to ensure that your goods are still covered by the policy

By providing more information on the transshipment details, the chances of experiencing delays in delivery or loss of goods can be minimised.

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