The authorities have gazetted a regulation that among other provisions makes it mandatory for freight forwarders and other logistics companies to acquire carrier liability insurance.
The regulation on Transport Business Organisations was published in the Official Gazette on 6 July 2018, reports Insurance Gazette.
This Regulation covers all transport business organisers operating road, rail, sea or air transport or combined transport.
A transport business organiser is an entity engaged in the organisation of shipping business; shipping, customs, storage etc. In the field of freight forwarding, in accordance with the relevant legislation, the activities include transportation, storage, packaging, labelling, packaging, order management, customs, insurance, distribution and so on.
According to the new regulation, those who fail to acquire carrier liability insurance will be fined.