1. During a flight from Taiwan to The Netherlands a shipment of 100 laptops with a value of 30.000,00 euro is fully damaged. Weight of this shipment is 300 KG. Liability from the carrier is a fact. The Montreal Convention applies to all air transports. This Convention has a maximum indemnification per kilogram gross weight of 19 SDR. The rate of SDR fluctuates and will be calculated by several factors. At this moment 1 SDR equals € 1,21. The maximum compensation in this case: 300 kg x € 23,00 (19SDR) = € 6.900,00. In this case insurance premium would be € 73,13 + € 25,00 administration costs. Total costs for additional insurance would be € 98,13 and covers the complete gap of € 23.100,00.
2. During sea transport from The Netherlands to the USA, fire on the ship arises and your container including goods is completely lost. The value of the goods is € 50,000.00 and the weight is 3.200 kg. The Hague Visby Rules apply to transport by sea. Fire is an exclusion whereby the carrier cannot be held liable for the loss of the goods and no compensation will follow. Furthermore General Average will be invoked by the sea carrier to retrieve the costs for sharing any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency. These costs will be divided over all cargo owners and must be paid in advance. The height of this amount is difficult to estimate but usually a percentage of 15% on the value of the goods is maintained. In this case insurance premium would be € 94,00 + € 25,00 administration costs. Total costs for additional insurance would be €119,00 and covers the complete gap of € 50.000,00 and the costs for General Average.