Cargo insurance DubaiCargo insurance Dubai, cover the full value, not a rate per kilo.
Cargo insurance Dubai covers your goods against loss or damage while they move by air, sea or road. Airlift Logistics, a freight forwarder in Dubai, explains why carrier liability pays only a small amount per kilogram, what Institute Cargo Clauses A, B and C cover, how the insured value is set and how to claim. Cover is issued by a licensed insurer in the UAE, and we arrange it together with your shipment.
What the carrier pays without insurance
Carriers are liable only up to limits set by international conventions, and only when they are at fault. Click a row for details.
| Mode | Rule | Usual limit |
|---|---|---|
| Montreal Convention 1999 | 26 SDR per kilogram | |
| Hague-Visby Rules, where they apply | 666.67 SDR per package or 2 SDR per kilogram, whichever is higher | |
| Road freight | Carrier’s contract terms and local law | Set in the transport contract |
| Any mode | Events outside the carrier’s control | Often nothing |
Institute Cargo Clauses A, B and C
Most cargo policies are written on one of three standard clause sets. A is the widest.
| Clause | Cover | Typical use |
|---|---|---|
| All risks of loss or damage, except listed exclusions | Finished goods, electronics, high-value cargo | |
| Named risks, including fire, sinking, collision and water entering the hold | Sturdy cargo with some water risk | |
| Fewer named risks: major casualties such as fire, sinking and collision | Bulk or low-value cargo | |
| All three | Exclude poor packing, delay, ordinary wear and the nature of the goods | Check the exclusions before you ship |
How cover is set up and used
Arrange cover before the cargo moves. A policy cannot be bought after a loss.
- 01
Usually the CIF value plus 10 percent: goods, freight and insurance, with a margin for extra costs.
- 02
A percentage of the insured value. It depends on the cargo, packing, route and mode.
- 03
CIF and CIP make the seller buy cover for the buyer. Under other Incoterms each side decides.
- 04
Packing matters
Insurers can refuse a claim when packing was not fit for the journey.
- 05
Note damage on the delivery receipt and tell the insurer and carrier in writing straight away.
- 06
Insurance in the UAE is supervised by the Central Bank of the UAE. A forwarder is not an insurer.
Cargo insurance questions, answered
Last updated ·
See all shipping questionsAsk a freight questionCargo insurance is not required by law for most shipments. Your sales contract may still require it. Under CIF and CIP terms the seller must insure the goods for the buyer. Banks financing a shipment under a letter of credit usually ask for an insurance certificate too.
- Required under CIF and CIP.
- Often required by banks.
Only up to the carrier liability limit, and only when at fault. For air freight that is 26 SDR per kilogram under the Montreal Convention. For expensive, light cargo this is far below the invoice value, so cargo insurance is used to cover the difference.
- Limits are based on weight.
- Insurance covers the full value.
The premium is a percentage of the insured value. The insurer sets it for each shipment. It depends on the cargo, packing, route, mode and the clauses chosen. Most policies also have a minimum premium. Send us the invoice value and route for a quote from a licensed insurer.
- A percentage of insured value.
- Minimum premiums apply.
Clauses A cover all risks of loss or damage, except listed exclusions. That includes theft and handling damage. Clauses C cover only named major events, such as fire, sinking or collision. Clauses A cost more and suit finished or high-value goods.
- A: all risks.
- C: major casualties only.
Standard clauses exclude poor packing, delay and ordinary wear. Loss caused by the nature of the goods themselves is also excluded. War and strikes are excluded unless added as extra clauses. Read the exclusions before shipping, and pack to the standard the journey needs.
- Poor packing and delay are excluded.
- War and strikes need extra clauses.