Cargo and Transportation Insurance in Iran

Transporting goods involves risks such as fire, collision, overturning, theft, water damage, improper handling, and the partial or total loss of a shipment. Cargo insurance in Iran helps cargo owners manage the financial consequences of insured events occurring while their goods are being transported.

This insurance can be arranged for domestic shipments within Iran and for imported, exported, or transit cargo. The appropriate policy and coverage depend on the type and value of the goods, transportation route, packaging, method of transport, and potential risks involved.

Through Bima24, Iranian cargo owners, manufacturers, importers, exporters, and traders can submit an initial request. An insurance specialist will then review the shipment and explain the available coverage, documents, policy conditions, and issuance process.

What Is Cargo Insurance?

Cargo insurance is a contract between the policyholder and an insurance company. Under this contract, the insurer reviews and compensates covered physical loss or damage to the insured goods, subject to the terms, limits, exclusions, and deductible stated in the policy.

A cargo insurance policy normally records important shipment information, including:

• Description and quantity of goods
• Insured value
• Type and quality of packaging
• Origin and destination
• Transportation route
• Method and means of transportation
• Selected coverage or cargo clause
• Policy period
• Deductible
• Additional conditions or endorsements

The deductible is the portion of an eligible loss that remains payable by the policyholder. Its amount may vary according to the cargo, selected coverage, route, and insurance company’s conditions.

Cargo Insurance vs. Carrier Liability Insurance

Cargo insurance and carrier liability insurance are not the same.

Cargo insurance protects the financial interest of the cargo owner against the risks included in the policy. Its insured value and coverage are based on the declared shipment and agreed policy conditions.

Carrier liability insurance covers the legal liability of the carrier or transportation company for damage to the goods. Compensation may depend on whether the carrier is legally responsible and may be subject to separate limitations.

A transportation company having liability insurance does not necessarily mean that every type of damage or the full value of the shipment will be compensated. Cargo owners should review their own cargo insurance requirements separately.

Types of Cargo Insurance in Iran

Cargo insurance can be divided into four main categories based on the geographical scope of transportation.

Domestic Cargo Insurance

Domestic cargo insurance applies when both the origin and destination are located within Iran. Examples include transporting raw materials from a port to a factory, delivering manufactured products between provinces, or moving industrial equipment to a project site.

Coverage may include primary transportation risks and, subject to the insurer’s approval, additional risks. Every selected risk must be stated in the policy or an attached endorsement.

Import Cargo Insurance

Import cargo insurance is intended for goods transported from another country into Iran. The shipment may be carried by sea, road, air, rail, or a combination of these methods.

The selected cargo clause, country of origin, transportation route, vehicle or vessel details, intermediate stops, cargo value, packaging, and final destination can affect the policy conditions and premium.

Export Cargo Insurance

Export cargo insurance applies to goods transported from Iran to another country. It can be used for products, raw materials, machinery, agricultural goods, and other commercial shipments.

In international transactions, responsibility for arranging insurance may depend on the sales agreement and the selected Incoterms rule. The seller and buyer should establish which party is responsible for insurance and at what point the transportation risk transfers.

Transit Cargo Insurance

Transit cargo insurance applies when the primary origin and destination are outside Iran, while the shipment passes through Iran as part of its transportation route.

The countries along the route, border crossings, storage periods, changes in the means of transportation, and loading or unloading operations should be declared before policy issuance.

Cargo Insurance by Method of Transportation

Cargo and transportation insurance may be arranged for different methods of transport:

• Road transportation: Trucks, trailers, vans, and other authorised road vehicles
• Marine transportation: Ships and other approved vessels
• Air transportation: Cargo aircraft or the cargo compartment of commercial flights
• Rail transportation: Freight trains
• Multimodal transportation: A combination of road, marine, air, or rail transport

The transfer of goods from one means of transportation to another is generally known as transshipment. If a shipment involves transshipment, temporary storage, or multiple carriers, these details should be disclosed during the application process.

What Is the Difference Between Clauses A, B, and C?

International cargo policies commonly use Institute Cargo Clauses A, B, or C to determine the scope of coverage. These clauses are recognised levels of cargo insurance coverage, but they are not interchangeable.

Clause A provides the broadest coverage of the three. Clause C is the most limited, while Clause B offers an intermediate level of protection.

Cargo clause	General coverage level	Typical application
Clause A	Broad coverage, subject to exclusions	Sensitive, fragile, or high-value goods
Clause B	Coverage for specified risks	Shipments requiring intermediate protection
Clause C	Basic coverage for major transport events	Goods requiring limited essential coverage

Institute Cargo Clauses A

Clause A is often described as “all risks” coverage. However, this does not mean that every event is automatically insured.

It generally covers accidental physical loss of or damage to the insured goods unless the cause is specifically excluded by the policy. Exclusions, deductibles, packaging requirements, and other policy conditions still apply.

Clause A may be considered for valuable, fragile, sensitive, or damage-prone cargo, subject to the insurer’s risk assessment.

Institute Cargo Clauses B

Clause B covers specified risks. Depending on the applicable wording, these may include:

• Fire or explosion
• Overturning or derailment of a land vehicle
• Collision of the carrying vehicle or vessel
• Earthquake, volcanic eruption, or lightning
• Entry of sea, lake, or river water into the vessel, container, or storage area
• Loss of packages during certain loading or unloading operations

Only the risks included in the applicable clause and policy wording are covered.

Institute Cargo Clauses C

Clause C offers basic protection against a more limited group of major transportation risks. Depending on the policy wording, these may include:

• Fire or explosion
• Collision
• Overturning or derailment of a land vehicle
• Sinking, grounding, or stranding of a vessel
• Emergency unloading
• Jettison of cargo under covered circumstances

Choosing a cargo clause only because it has a lower premium may leave important risks uninsured. The nature of the goods, likelihood of breakage, theft, moisture damage, mishandling, and loading or unloading damage should also be considered.

Domestic Cargo Insurance Coverage

Domestic cargo insurance in Iran generally focuses on risks associated with transporting goods between locations within the country.

Primary coverage may include fire and accidents involving the means of transportation, such as collision or overturning. Depending on the cargo and the insurer’s approval, additional coverage may be considered for risks such as:

• Total theft of the shipment together with the carrying vehicle
• Loading and unloading risks
• Cargo falling from the vehicle
• Impact of external objects
• Flood, earthquake, or other natural events
• Risks associated with the specific nature of the cargo

Coverage is only valid when the relevant risk is clearly included in the insurance policy or an endorsement. Verbal explanations should not replace the written policy terms.

What Does Cargo Insurance Not Cover?

Exclusions depend on the selected policy and cargo clause. Common exclusions may include:

• Deliberate loss or damage caused by the policyholder
• Insufficient or unsuitable packaging
• Inherent defects or the natural characteristics of the goods
• Ordinary leakage, loss of weight or volume, and normal wear
• Financial loss caused only by delay
• Unauthorised transportation or undeclared changes
• Loss occurring outside the insured route or policy period
• War, strikes, riots, or civil disturbances unless separately covered
• Nuclear or radioactive risks
• Unseaworthiness or unsuitability known to the insured
• Insolvency or financial default in circumstances excluded by the policy

Some excluded risks may be considered through additional coverage, while others may remain entirely uninsurable. The final position is determined by the policy wording, endorsements, and insurer approval.

Who Needs Cargo Insurance?

Cargo insurance may be suitable for:

• Manufacturers and factories
• Importers and exporters
• Traders and commercial companies
• Wholesalers and distributors
• Owners of industrial machinery and equipment
• Suppliers of raw materials
• Businesses transporting goods between branches
• Sellers of expensive or fragile goods
• Individuals transporting valuable cargo

Businesses with frequent shipments may also ask whether an open-cover or declaration-based arrangement is available. Under such an arrangement, general terms may be established for multiple shipments, while individual shipments are declared according to the agreed procedure.

Availability and declaration requirements must be confirmed by the insurer.

How Much Does Cargo Insurance Cost?

Cargo insurance does not have one fixed price for all shipments. The premium is calculated after evaluating the shipment and its risks.

Important pricing factors include:

• Type and value of goods
• Fragility, sensitivity, or perishability
• Packaging quality
• Origin, destination, and transportation route
• Domestic or international transportation
• Road, marine, air, rail, or multimodal transport
• Type and age of the means of transportation
• Selected cargo clause
• Additional coverage
• Number of loading and unloading operations
• Transshipment and temporary storage
• Policy period
• Deductible
• Policyholder’s claims history
• Geographical or political risks along the route

Accurate shipment information is necessary before a reliable premium and policy conditions can be provided.

Required Information and Documents

The required documents depend on the cargo, transportation route, domestic or international nature of the shipment, and the issuing insurance company.

The insurer may request documents or information such as:

• Commercial invoice
• Bill of lading or transportation contract
• Packing list
• Description, quantity, and weight of the goods
• Origin and destination
• Details of the carrying vehicle, vessel, aircraft, or train
• Customs or commercial documents for international shipments
• Information about loading, unloading, and transshipment

After the initial request is submitted, a Bima24 specialist will explain the documents required for the specific shipment.

The initial request form only collects:

• Full name
• Phone number
• Description of the shipment or request

How to Request Cargo Insurance from Bima24

The application process includes the following steps:

1. Submit a request: Enter your full name, phone number, and a short description of the shipment.
2. Receive a specialist call: A specialist contacts you to collect the cargo, route, and transportation details.
3. Review the risks: The suitable policy type, cargo clause, deductible, and additional coverage are assessed.
4. Receive the proposed conditions: The premium and issuance requirements are explained based on the available information.
5. Complete policy issuance: After the documents and conditions are approved, the electronic insurance policy is issued and sent to you.

Submitting the online request does not mean that insurance coverage has started. Coverage begins only after the application is approved, the policy is issued, and the applicable policy conditions are fulfilled.

What Should You Do If Cargo Is Damaged?

If the cargo is damaged, lost, partially delivered, or not delivered:

• Notify the insurer or support team as soon as possible.
• Inform the carrier or transportation company in writing.
• Photograph the cargo, packaging, vehicle, and location of the incident.
• Do not dispose of, repair, or move damaged goods unnecessarily before receiving instructions.
• Keep the invoice, bill of lading, delivery receipt, packing list, and correspondence.
• Record visible damage or shortages at the time of delivery.
• Cooperate with the appointed loss assessor or surveyor.
• Take reasonable steps to prevent further damage.

The policy should be checked for applicable notification deadlines and claims procedures. Delayed notification or missing documents may affect the assessment of the claim.

Important Points Before Buying Cargo Insurance

Before approving the policy, check that:

• The cargo description, quantity, weight, and value are correct.
• The origin, destination, and intermediate locations are included.
• Every transportation method and planned transshipment is disclosed.
• Loading, unloading, and temporary storage risks have been reviewed.
• Packaging is appropriate for the goods and transportation method.
• The policyholder and beneficiary are correctly identified.
• The deductible is clear.
• Important exclusions have been reviewed.
• The beginning and end of coverage are understood.
• Transportation will not begin before the coverage is confirmed.
• Any required temperature or storage conditions are declared.
• The insured value reflects the shipment and relevant costs correctly.

If any shipment information changes after issuance, the insurer should be notified before the change affects the transportation risk. An endorsement may be required.

Common Cargo Insurance Mistakes

Common mistakes that may result in inadequate coverage include:

• Selecting the least expensive cargo clause without reviewing the risks
• Declaring a value lower than the actual value of the shipment
• Beginning transportation before policy issuance
• Failing to declare a change of route or vehicle
• Assuming that Clause A has no exclusions
• Using unsuitable or insufficient packaging
• Confusing cargo insurance with carrier liability insurance
• Failing to declare transshipment or temporary storage
• Reporting damage too late
• Accepting visibly damaged cargo without recording the condition
• Relying on verbal explanations instead of the written policy
• Assuming that theft, delay, or loading and unloading are always covered

Request Cargo and Transportation Insurance

If you plan to transport goods within Iran or arrange an import, export, or transit shipment, submit the initial details of your request.

A Bima24 specialist will review the cargo, route, transportation method, and insurance requirements. You will then receive guidance about the appropriate coverage, required documents, premium, and policy issuance process.