Question

Your client recently purchased an ocean marine cargo insurance policy from your firm on a shipment of automobile parts. After the cargo is unloaded at Bordeaux, France, it will be transported by truck to the consignee in Paris. Your client has also asked you to provide coverage for the transportation of the respecting the duration of coverage and indicate whether an additional policy is needed for the land journey.

A) Yes
B) No

Answer 1

The ocean marine cargo insurance typically covers sea transit up to the unloading at the destination port but does not extend to inland transit. An additional inland transit insurance policy would be required to cover the truck transportation from Bordeaux to Paris.

Step-by-step explanation:

The subject of this question pertains to ocean marine cargo insurance and the extent of its coverage regarding the inland transit of goods.

In this scenario, the client has purchased an ocean marine cargo insurance policy for a shipment of automobile parts, which is initially transported by sea and unloaded at Bordeaux, France.

The client is seeking to know if this coverage extends to the subsequent truck transportation from Bordeaux to Paris, or if an additional policy is required for the land journey.

Typically, ocean marine cargo insurance policies cover the transport of goods over sea, usually until the point of unloading at the destination port.

However, most policies do not cover inland transportation risks once the goods are unloaded.

In this case, an additional policy commonly referred to as an inland transit insurance or a 'goods in transit' policy, would be necessary to cover the risks associated with the land journey to Paris.

It is essential for the client to ensure the cargo is covered throughout the entire transit, thus safeguarding against potential losses or damages during the overland leg of the shipment.