Registered Mail and Express Mail Insurance
Definition
Registered Mail and Express Mail Insurance provides coverage against damage or destruction of property with high monetary value during transit. This type of insurance is commonly used by stock brokerage houses, banks, and other institutions that frequently transfer securities and significant amounts of money. The coverage usually operates on an ALL-RISK basis, which means it covers all perils except those specifically excluded, such as war, nuclear disaster, and illegal trade items.
Examples
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Stock Brokerage House Shipment: A brokerage firm sending stock certificates to another location insures the shipment to protect against potential loss or damage.
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Bank Money Transfer: A bank transferring large sums of money to another branch or bank insures the shipment to cover any possible financial loss arising from accidents or theft during transit.
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Precious Items: A jeweler sending an expensive piece of jewelry via registered mail incorporates insurance to cover potential risks.
Frequently Asked Questions (FAQs)
What does “ALL-RISK” insurance mean?
“ALL-RISK” insurance means the policy covers all types of perils or risks except for those specifically excluded in the policy, such as war, nuclear disaster, and illegal trade items.
Who typically uses Registered Mail or Express Mail Insurance?
Financial institutions, stock brokerage firms, jewelers, and other businesses that handle items of high monetary value or sensitive documents often use this type of insurance.
Are there any items that cannot be insured under this policy?
Yes, items excluded from the ALL-RISK coverage typically include those involved in war, nuclear disaster, or illegal trade activities.
What steps should I take if my insured shipment is damaged or lost?
You should immediately report the loss or damage to the carrier and the insurance provider, providing all necessary documentation to start the claims process.
How is the premium for Registered Mail and Express Mail Insurance determined?
The premium is generally based on the value of the items being shipped, the mode of transportation, and the route taken.
Related Terms
- All-Risk Insurance: A type of insurance that covers a broad range of risks, except those explicitly excluded.
- Marine Insurance: Coverage that protects against losses or damages of goods during maritime shipping.
- Inland Marine Insurance: Coverage that insures against the loss of or damage to goods transported over land.
- Transit Insurance: A policy that covers goods being transported from one place to another.
- Cargo Insurance: A type of marine insurance for protection against risks involved in transporting goods by water, land, and air.
Online References
Suggested Books for Further Studies
- “Principles of Risk Management and Insurance” by George E. Rejda and Michael McNamara: This book provides comprehensive coverage on various types of insurance principles, including transit and mail insurance.
- “The Handbook of International Trade and Finance” by Anders Grath: An essential guide for businesses involved in international trade that covers various aspects of financial risk management including insurance.
- “Marine Insurance Legislation” by Robert Merkin: Detailed legal perspectives on marine and related insurance types.
Fundamentals of Registered Mail and Express Mail Insurance
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