Publications
Circulars: SHIP AGENTS - 93-4-2 To Freight Forwarder/Warehouse Keeper Members and their brokers
TO FREIGHT FORWARDER/WAREHOUSEKEEPER MEMBERS AND THEIR BROKERS
Ref:- 93/4/2
April 1993
Dear Sirs
Although International Transport Intermediaries Club, as its name suggests, primarily insures the professional liabilities of intermediaries (or agents), approximately 100 Members of the Club are also insured for activities performed as principals such as freight forwarding, NVOC, warehousekeeping and other related services. The cover provided by ITIC is designed primarily to cater for the risks to which an intermediary is normally exposed, and in particular for the risk of claims arising from his own negligent acts. When a Member contracts as a principal for the handling, storage or transport of goods, he may become liable under the terms of that contract for claims for the negligence of others and for a number of other risks over which he has little control. These risks are normally covered by cargo liability insurance.
ITIC will continue to reinsure those larger companies who are exposed to risks associated with the carriage, handling and storage of cargo as principals with the Through Transport Club on its terms. This letter therefore applies only to those whose risk is insured and retained by ITIC on its terms.
Both TIM and CISBACLUB offered cover for cargo liabilities to Members but on different terms. As this is the first renewal since the merger of TIM and CISBACLUB on 1st September 1992, the Standard Conditions on which cargo liability cover is offered by ITIC have now been updated and standardised. We attach for your information the revised Standard Conditions on which cover under Rule 3(4) will be offered with effect from 1st June 1993.
We are also taking this opportunity to bring ourselves up-to-date on our Members' business, commodities handled, trading areas, etc., and attach a Supplementary Proposal Form, for completion and return to us. It is of course vital that we have full details of our Members' business, so that we can accurately assess the risk and provide appropriate advice. We are particularly concerned to establish how Members contract with their customers, so that we can ensure that they take the necessary precautions in order to avoid exposure to risks which are neither customary nor acceptable.
We also wish to advise those Members insured for freight forwarding/NVOC risks that debt collection cover under Rule 6 will no longer be offered for these activities. However, cover under Rule 6 will continue to be offered for ship agency and ship broking activities.
Yours faithfully
ITIM Co Ltd
Managers