Shipping Insurance & Protection

Scope of Coverage

We use Institute Cargo Clauses (A), the highest industry standard for transit insurance.

• Door-to-door protection — coverage starts at the interior place of loading in Japan and continues until the vehicle reaches your designated interior address.
• Drive Away Clause — your vehicle remains insured for physical damage while being driven under its own power, or in tow, during the delivery process.
• General Average — you are protected against shared maritime losses (General Average) if a vessel emergency requires cargo sacrifice for the safety of the ship.

Storage Limits & Conditions

While the vehicle is being prepared for export in Japan, it is covered for up to 90 days in intermediate storage (the Before Loading Clause). Liability limits per accident during this period:

• Indoor storage: coverage up to ¥40,000,000.
• Open storage (parking lots): coverage up to ¥20,000,000.

Key Exclusions & Deductibles

To keep insurance costs manageable for all clients, the policy focuses on major transit risks rather than minor cosmetic wear.

• Deductible (excess): for claims involving breakage, bending, or denting, the owner is responsible for 3% of the vehicle's insured value or ¥100,000, whichever is higher.
• Excluded damage types: scratching, rust, oxidation, and discoloration are not covered.
• Inventory losses: unexplained missing items or inventory shortages are not covered.
• Vehicle only: the policy covers the vehicle. It does not cover third-party liability, personal injury, or damage to other property.

Special Exclusions: Natural Disasters & Regional Risks

While this is an "All Risks" policy, certain extraordinary events and specific locations are excluded during the storage and transit phases:

• Seismic events in Japan: during the storage period in Japan (the "before loading" phase), the insurance does not cover loss or damage caused directly or indirectly by earthquakes, volcanic eruptions, or tidal waves (tsunamis), including fires resulting from these events. Wind and flood damage from typhoons during this period is covered, within policy limits.
• Regional flood exclusions: flood damage is excluded where the cargo is located in the Netherlands or Thailand.
• War risks: covered subject to the Institute War Clauses, and generally terminate once the goods are discharged from the vessel.
• Terrorism: damage caused by acts of terrorism or any person acting from political, ideological, or religious motives is excluded during the storage and distribution period.

Critical Time Limits

Insurance coverage is time-sensitive, and in our experience most declined claims fail on procedure rather than substance. Build these steps into your receiving process:

• Inspect before the driver leaves: check the vehicle and all container seals on arrival. Any visible damage must be noted on the Bill of Lading or delivery receipt at that moment, and photographed immediately with clear, dated photos.
• 3-day rule for hidden damage: damage that was not visible at delivery must be notified to the carrier in writing within 3 days of taking delivery.
• 60-day sea transit limit: under standard ICC(A) terms, cover expires 60 days after the vehicle is unloaded from the vessel at the port — whether or not it has reached your address.

How to Make a Claim

1. The consignee makes the claim. The party named as consignee on the shipping documents should be the one claiming.
2. Notify the last party that handled the goods — the delivery driver, freight agent, or shipping line that handed you the damaged vehicle. Record this in writing on the delivery documents.
3. Email Smile JV to tell us you intend to make a claim. Please do this in writing so there is a record.
4. Contact the claims agent nearest you and tell them you intend to make a claim. You can find your nearest agent at ms-ins.com/cargo.

Information you will need

• When you (the consignee) found out about the damage.
• When any other parties were notified — including when Smile JV was notified, and when any delivery or freight company was notified.
• A copy of the insurance policy document.
• The invoice from Smile JV.
• The Bill of Lading.
• Photos of the damage.
• A description of the damage.
• An estimate of the amount (or value) of the damage — if this exceeds ¥500,000, the insurance company requires a survey.
• The claims notice, supplied by the destination claims agent.
• Any other relevant information, such as the notice of damage written on the delivery documents.

Keep in mind

• An excess applies of ¥100,000 or 3% of the insured amount, whichever is higher.
• There are strict time limits to make a claim — please act quickly and contact us as soon as you discover any damage.

What a Policy Looks Like

Every insured vehicle is covered under a Mitsui Sumitomo marine cargo policy like the sample below (identifying details redacted). The conditions on the face of the policy state the ICC(A) cover, the excess, the 90-day Before Loading Clause and the Drive Away Clause described above.

Click the image to open the full-size version in a new tab, where you can zoom in and read the policy conditions.

Every insured shipment receives the complete policy documents, including the full wording of the Before Loading Clause, Drive Away Clause and all applicable Institute Clauses — you will need these originals in the event of a claim. The official wording of each clause is also published by Mitsui Sumitomo at ms-ins.com/cargo and available from us on request.