NL-P-Goods in transit

Goods in Transit Insurance Policy

Whereas the insured, has applied to the Ethiopian Insurance Corporation (herein after called the Corporation) by a proposal and declaration which is the basis of this contract and is deemed to be incorporated herein and has paid or agreed to pay the premium as consideration for the insurance herein after contained.

Then subject to the terms, provisions, definitions, exceptions and conditions of the policy, the Corporation agrees to pay the insured the value of the property or at its option repair or replace such property or any part of it described in the schedule whilst such property be lost, destroyed or damaged in the course of transit by any insured event described in the schedule of the policy.

Provided that the liability of the Corporation for all loss or damage arising from any one defined event shall not exceed the limit of indemnity stated in the schedule.


Transit shall be deemed to commence from the time of moving the property described in the schedule at the consignor%u2019s premises (including carrying to any conveyance and loading thereon), continue with transportation to the consignee and terminate when un-loaded at any building or place of storage at the consignee%u2019s premises.

>Cover Provided

a) all risk
b) specified perils i.e to cover interest insured against, theft, fire or damage all directly caused by or resulting from overturning collision derailment of the carrying conveyance or collapse of bridges or embankment.


  1. The Corporation shall not be liable to pay for any excess amount stated in the schedule of the policy.
  2. The Corporation shall not be liable for loss or damage due to
    1. theft from any unattended vehicle.
    2. Inherent vice or defect, vermin, insects, damp, mildness or rust;
    3. The dishonesty of any partner or director or employee of the insured whether acting alone or in collusion with others.
    4. Willful destruction, seizure by order or government; detention, confiscation or requisition by customs or other officials or authorities; and
    5. Breakdown of refrigeration equipment.
  3. The Corporation shall not be liable for wear and tear or gradual deterioration (including the gradual action of light or climatic or atmospheric conditions) or any change brought about by natural causes unless following an accident or misfortune not otherwise excluded.
  4. The Corporation shall not be liable for mechanical or electrical breakdown, failure, breakage or derangement of the insured property unless following an accident or misfortune not otherwise excluded.
  5. The Corporation shall not be liable for loss of or damage to:
    1. cash, bank and currency notes, coins, stamps, bonds, coupons, negotiable, instruments, title deeds, manuscripts or securities of any kind and livestock;
    2. property consigned to or from any place outside the territorial limit of Ethiopia;
    3. goods removed to store for temporary housing during transit; and
    4. property otherwise insured on which would, but for the existence of this insurance, be insured by any other insurance except in respect of any excess beyond the amount which would otherwise have been payable under such other insurance.
  • The Corporation shall not be liable for consequential loss of any kind, delay, loss of market, or depreciation.
  • The policy does not cover any loss destruction of or damage to any property occasioned by or in consequence of war, invasion, act of foreign enemy, hostilities or war-like operations (whether war be declared or not) civil war, mutiny, riots, strikes, civil commotion, military or popular rising, insurrection, rebellion, revolution, military or usurped power martial law or state of siege or any of the events or causes which determine the proclamation maintenance of martial law or state of siege;
  • The policy does not cover any loss of or damage to any property occasioned by through or in consequence:-
  • Acts of terrorism committed by a person or persons acting on behalf of or in connection with any organization.
  • For the purpose of the provision %u201Cterrorism%u201D shall mean the use of violence for political ends and shall include any use of violence for the purpose of putting the public or any section of the public in fear. In any action, suit or other proceeding in which the Corporation alleges that by reason of these provisions any loss or damage is not covered, then the burden of proving that such loss or damage is covered shall be upon the insured.
  • This policy does not cover any loss or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting from or arising from or any loss of use of any legal liability of whatsoever nature directly or indirectly caused by or contributed to or arising from:
    • ionizing radiations of contamination by radio activity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel.
    • The radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component, and
  • The Corporation shall not be liable for damage or destruction of fragile goods during loading and unloading operation unless specifically agreed.


  1. This policy shall be voidable in the event of misrepresentation, mis-description or non-disclosure of any material particular.
  2. The insured shall take all reasonable precautions to prevent the insured property from loss, damage or destruction.
  3. If any part of the renewal premium is based on estimates furnished by the insured, the insured shall keep an accurate record containing all relevant particulars and shall allow the Corporation to inspect such record, and the insured shall, after the expiry of each period of insurance, furnish the Corporation with such particulars and information as the Corporation may require for the purpose of recalculation of the premium for such period.
    The premium shall there upon be adjusted and any difference shall be paid by or refunded to the insured, as the case may be.
  4. If a claim is fraudulent in any respect or if any fraudulent means are used by the insured or by any one acting on his behalf to obtain any benefit under this policy or if any loss, damage or destruction to the insured property is caused by the willful act or with the connivance of the insured, all benefit under this policy shall be forfeited.
  5. If this policy is issued on a declaration basis, the Corporation may cancel this policy by giving to the insured fifteen days notice by registered letter at his last known address and in such event will return to the insured the premium based on the actual transit effected for the period the policy has been in enforce. The policy may also be cancelled at any time by the insured on written notice and provided no claim has arisen during the current period of insurance the insured shall be entitled to a return of premium less at the Corporation%u2019s short rate based on the actual transit effected for the period the policy has been in force.
  6. In the event of any occurrence which might give rise to a claim under this policy, the insured shall:
    1. Notify the Corporation immediately,
    2. carry out and permit to be taken any action which may be reasonably practicable to prevent further loss, destruction or damage; and
    3. deliver to the Corporation at the insured expense:
      1. full information in writing of the property lost, destroyed or damaged and the extent of the loss or damage;
      2. details of any other insurances on any property insured within 30 days after such loss, destruction or damage or such further time as the Corporation may allow;
  • all such proofs and information relating to the claim as may reasonably be required; and
  1. a statutory declaration of the truth of the claim and of any matters connected with it, if demanded by the Corporation.
  1. The insured or his representative should immediately inform the police authorities in case of loss or damage due to theft or any malicious act.
  2. No claim under this policy shall be payable unless the terms of this condition have been complied with.
  3. In the event of breakdown of the carrying conveyance during transit or if for any reason beyond the insured’s control the property is endangered, nothing contained herein shall debar the utilization of any other form of transport to assist completion of the transit and the insurance afforded shall not be affected thereby.
  4. If at the time of any loss, or damage under this policy there is any other insurance covering the same loss, or damage the Corporation shall not be liable to pay or contribute more than its rateable proportion of any loss and damage costs or expenses.
  5. If at the time of any loss or damage, the value of the insured property is greater than the sum insured shall be considered as being his own insurer for the difference and shall bear a rateable share of the loss or damage accordingly.
  6. Any claimant under this policy shall at the request of the corporation take and permit to be taken all necessary steps for enforcing any rights and remedies against any other party to which the Corporation shall be or would become entitled or subrogated in the name of the insured before or after any payment is made by the Corporation.
  7. If any difference arises as to the amount to be paid under this policy (liability being otherwise admitted), such difference shall be referred to the decision of an arbitrator to be appointed in writing by the parties in difference or, if they cannot agree upon a single arbitrator, to the decision of two arbitrator, one shall be appointed in writing by each of the parties, within one calendar month after having been required in writing so to do by either of the parties, or, in case the arbitrators do not agree of an umpire to be appointed in writing by the arbitrators before entering upon the reference. The umpire shall sit with the arbitrators and preside at their meetings. The making of an award shall be a condition precedent to any right of action against the Corporation.


This brochure is prepared to elaborate about “Goods in Transit Insurance Policy”. Provided by the Corporation. Therefore, legally it shall not come to force.