Tagged: accumulation, Cargo, losses, uninsured

As reported in this week’s Asia Insurance Review, a large fire broke out last Saturday at the Inland Container Depot in South Delhi with estimated losses in the region of USD22 million to USD44 million after approximately 600 containers were damaged by fire, water and the collapse of burnt warehouses.

It is believed that the majority of goods had not been insured.

The Delhi Exporters Association’s president, Mr S P Agarwal is reported to have said: “It is the responsibility of manufacturers to bear the insurance from factory to Concor premises. The goods remain for a few hours there before they are sent for shipment to destination. Generally traders avoid insurance during this transit period. Once the goods are transported, buyers take care of insurance.”

We wrote a previous blog about the hazards of cargo accumulation after a similar fire in India earlier this year and the necessary steps cargo interests must take to protect themselves against substantial losses. The risks in depots are often underestimated, particularly in situations such as these where it is believed that the depot exceeded its maximum container capacity. And whilst many containers might only be stored in depots for a short period of time, a very real exposure to loss exists, especially given that the spread of the fire is often so rapid that it can wipe out entire warehouses within a few hours.

We recommend that all cargo interests, including freight forwarders and those insurers who may cover such cargo consignments, speak to a specialist marine insurance broker who can help design the necessary cover to protect them from the full range of risks they face.

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