Marine Insurance

Background

Japan Forwarding Agency has been shipping vehicles since 1987 with over 10,000 vehicles shipped every year. During this period, Japan Forwarding Agency has never lost a single vehicle at sea, until the following incidents:

  • The Hual Europe, a freighter carrying almost 4,000 vehicles worth close to $80 million, ran aground in Tokyo Bay and then caught fire on November 26, 2002.
  • Not long after, in December 14 of the same year, the Tricolor, a Norwegian car carrier sank in the English Channel after colliding with a container ship. Its cargo of BMWs, Saabs, and Volvos had an estimated damage of close to $70 million.
  • On May 23, 2004, the car carrier MV Hyundai No 105 sank outside Singapore after colliding with an oil tanker. The MV Hyundai No 105 was carrying 4,190 South Korean and Japanese cars worth over $81 million.

Because of these maritime disasters, Japan Forwarding Agency has lost over 450 vehicles amounting to $1.5 million. This is the reason Japan Forwarding Agency has decided that it is in everyone's best interest to insure all vehicles leaving Japan.

For the benefit of everybody, insurance will now be included in the price of the vehicles sold. Japan Forwarding Agency has negotiated an excellent insurance rate. This means you will not notice any increase in your fee structure or the purchase price of the vehicles.

Nature of Insurance:

The marine cargo insurance we have in place is a broad policy designed to cover major damage to vehicles while in transit to the customer including the sinking of a vessel carrying the vehicles.

Note that:

  • In some cases third party may be responsible for the damage, and that includes the ship operator or the stevedore. In these cases, Japan Forwarding Agency will work with the customer to recover losses from those parties.
  • The insurance applies until the unit is delivered to the storage location in the destination port. The responsibility of the vehicle after that point lies with the customer and the person to whom the vehicle has been delivered.
  • The policy has a USD franchise value, which means that the claims have to be over $500 USD for the insurance to apply.

What to do in the event of a claim:

Contact our customer service center IMMEDIATELY. We will advise you on the steps to take from that point.

In all cases:

  • DO NOT remove your vehicle from the port. It is difficult to establish liability for damage if the vehicle has been removed from the port.
  • Documentary proof is required to show the condition of the vehicle when it was loaded onto the vessel from the origin and when it is discharged from the vessel at destination.
  • Note that stereos and CD players will not usually be covered by the insurance as they fall under the USD franchise value. We may be able to assist you to recover these losses from the parties involved if we can provide them with the evidence that they were indeed responsible.