Workshop on cargo insurance

In the wake of the recent fire at the Colombo port which cost importers millions of rupees in damage to cargo, the Shippers' Academy Colombo (SAC) organised an industry awareness workshop recently at the Sri Lanka Foundation, to refresh knowledge on the basics of cargo insurance.

CEO of SAC, Rohan Masakorala said that cargo owners must use correct trading terms and enter into proper sales contacts before shipping goods.

He said many shippers use the wrong terminology when using international commercial terms and suffer unwarranted costs later.

The keynote speaker, GM, Non Life, Asian Alliance Insurance and immediate past president of the Insurance Institute of Sri Lanka, Udeni Kiridena said, "Marine cargo insurance plays a small but important role in international trade and is one of the key factors in promoting trade between countries and protecting consignments against fortuitous losses."

"Marine cargo insurance protects your cargo on a warehouse-to-warehouse basis as per Institute Cargo Clauses which is internationally accepted. However, it is important to specify the supplier's warehouse and the buyer's warehouse for full coverage," he said.

"It is of utmost importance that all concerned, including the assured, consignee and their agents carefully go through the Marine Cargo Insurance Policy issued to them. If it does not confirm to their requirements and or contains any errors or omissions, it must be brought to the notice of the underwriter in writing immediately, before the commencement of the risk."

Kumar Muttiah from AIA Insurance, Tanuj Edward from Asian Alliance Insurance and Vice Chairman of the Sri Lanka Shippers' Council, Sean Van Dort and Masakorala from the Academy took part in the panel discussion and the question and answer session.