Yes. Here's why, and how cargo insurance works in South Africa.
Why You Need Cargo Insurance
The carrier is NOT responsible for the full value of your goods. Under international maritime law (Hague-Visby Rules), a shipping line's liability is limited to approximately US$500 per package or 2 SDR per kg — whichever is higher.
Example: You ship a container of electronics worth R500,000. The container falls into the ocean. The shipping line's maximum liability is approximately R30,000-R50,000. Without insurance, you lose over R450,000.
Types of Cargo Insurance
Marine Insurance Coverage Levels
| Coverage | What's Covered | What's Not Covered |
|---|---|---|
| ICC(A) — All Risks | All risks of physical loss or damage | War, strikes, inherent vice, delay |
| ICC(B) — Named Perils | Fire, explosion, collision, sinking, jettison, earthquake | Theft, pilferage, non-delivery |
| ICC(C) — Basic | Fire, explosion, collision, sinking | Most damage, theft, weather |
Recommendation: Always opt for ICC(A) All Risks. The cost difference is minimal, but coverage is substantially better.
What Cargo Insurance Costs
| Cargo Type | Typical Rate | Example (R500,000 cargo) |
|---|---|---|
| General cargo | 0.3-0.5% | R1,500-R2,500 |
| Fragile/high-value | 0.5-1.0% | R2,500-R5,000 |
| Dangerous goods | 1.0-2.0% | R5,000-R10,000 |
| Vehicles | 0.5-1.5% | R2,500-R7,500 |
| Perishables | 0.8-1.5% | R4,000-R7,500 |
Insurance is calculated on the CIF value + 10% (to cover profit and additional costs).
Common Reasons for Claims
- Container damage — Rough handling during port operations
- Water damage — Container leaks, condensation (container rain)
- Theft/pilferage — Cargo stolen in transit or at port
- Total loss — Vessel sinking, fire, or container overboard
- Temperature damage — Reefer malfunction (perishables, pharmaceuticals)
- Breakage — Insufficient packaging, rough seas
How to Make a Claim
- Note damage immediately — On the delivery note and truck manifest
- Photograph everything — Before unpacking, during unpacking
- Report within 3 days — Notify V & S Freight and the insurer
- Preserve evidence — Don't dispose of damaged goods or packaging
- Submit claim documents — Survey report, invoice, bill of lading, photos
V & S Freight Insurance Service
We arrange cargo insurance for all shipments — by sea, air, and road. Policies are arranged per shipment or as annual open cover for regular importers.
Get insured → | Call: 076 982 0036