ASSOCIATED MARINE has extended its insurance offering to cover exports out of South Africa destined for sub-Saharan Africa. “We cover transit insurance by road to destinations in Africa,” says Frank Ponnen, CEO of the company, a division of Santam. “It’s crucial for transporters to ensure that they have a carrier’s liability policy to protect themselves as a common carrier,” he says. “They are moving goods on behalf of clients and unless they operate on standard trading conditions they have an obligation to move them with due care and diligence from point A to point B. “It’s the responsibility of the cargo owner and/or his insurer to prove the transporter’s negligence in the handling of cargo. The limitation of legal liability will then come into play.” Ponnen believes there’s a misconception in the market that underwriters are offering a goods in transit policy (a first party policy) to transporters. “One needs to be very clear about the issue of insurable interest,” he said. “The transporter, when offering insurance to the owner of the cargo, is acting as an intermediary. Insurance can only be effected once he has received instructions from the cargo owner. The transporter cannot assume this responsibility. If that’s the case it should be written into the contract.”
