DOMESTIC CARRIER LIABILITY INSURANCE

Domestic Carrier Liability Insurance covers the liabilities of transport companies operating within Turkey for damages caused to the goods they transport due to their own faults, up to a limit specified in the policy.

It is important to note that this insurance does not replace goods-in-transit insurance. The insured party in these policies is the carrier, and the policy becomes effective if the carrier is at fault for the damage.

Pricing for Domestic Carrier Liability Insurance:

To price this insurance, the following information is required:

  • Carrier company's name and trade name
  • Number of owned and leased vehicles
  • Type of goods primarily transported
  • Estimated number of transports per week or month
  • Maximum value transported in a single trip
  • Main regions of operation
  • Previous insurance coverage of this type, if any
  • Current comprehensive insurance provider
  • Types and numbers of vehicles, including tarpaulin and refrigerated trucks

There are three types of pricing for domestic carrier liability insurance:

  1. Annual License Plate-Based Pricing:

    • The insured provides the license plates of all owned and leased vehicles at the time of policy issuance.
    • An annual premium is calculated for each vehicle.
    • This covers all trips made by each vehicle within the policy term under the specified coverage and conditions.
    • This method is advantageous for carriers with a high volume of trips, reducing administrative effort and errors.
    • New vehicles added to the fleet or removed are included in the policy through endorsements, with premiums adjusted based on the number of days covered.

  2. Pre-Trip Notification-Based Pricing:

    • The carrier must notify the insurer before each trip, providing details of the transported goods, trip location, insured value, license plate number, loading, and departure dates.
    • This method is prone to errors and omissions, as the insurer will not cover any trips not reported before they begin.

  3. Annual Total Cargo Value-Based Block Premium Pricing:

    • The carrier provides an estimated total value of shipments for the policy period.
    • A premium is calculated based on this estimate, with a significant portion collected as a minimum and deposit premium, payable in installments.
    • All shipments within the agreed coverage limit, conditions, and duration are insured without the need for trip-by-trip notifications.
    • At the end of the policy period, the actual shipment value is adjusted against the minimum and deposit premium, with any excess collected as an additional premium.