Discount Shipping Insurance Cargo Policy
Freight coverage provided by Discount Shipping Insurance Agency (DSI) covers freight from all risks of physical loss or damage from an external cause (subject to policy exclusions) while in transit. Shipments must originate from the United States of America and/or Canada. Destinations include all countries, excluding those that the United States has a current embargo, Mexico, Russia, and the Commonwealth of Independent States (CIS). PLEASE SEE ATTACHED ‘COUNTRIES LIST’ FOR COVERED
The following is a list of exclusions that are not covered unless endorsed.
Accounts, bills, tickets, currency, deeds, evidence of debt, money, notes, coins, stamps, securities, bullion, gold, silver & other precious metals, furs, neon items, COD payments, hazardous material (per UPS Hazardous Materials List), plasma televisions or monitors, LCD televisions or monitors, perishable cargo or similar property. Collectible coins are not excluded
Shipments sent to Angola, Armenia, Azerbaijan, Bangladesh, Belarus, Bulgaria, Burma, Burundi, Congo, Cuba, Ethiopia, Georgia, Indonesia, Kazakhstan, Kyrgyzstan, Mexico, Moldova, Nigeria, Russian Federation, Rwanda, Seychelles, Slovenia, Sudan, Syria, Tajikistan, Turkmenistan, Ukraine, Uzbekistan, and Yemen.
Loss, damage, shortage, or non-arrival of any parcel and its contents when it is addressed, wrapped or packed insufficiently, incorrectly, or contrary to the Shipping Carriers’ packaging requirements or to the DSI packaging requirements.
Loss, damage, shortage, or non-arrival of any parcel and its contents when it bears a descriptive label or packaging which describes, or alludes to, the nature of the contents. Shipments packaged in original manufacturer provided packaging are not excluded. Loss, damage, or shortage caused by or resulting from:
Hostile or warlike action in time of peace or war, including action hindering combating or defending against an actual, impending or expected attack, by:
Any government or sovereign power (de jure facto), or by any authority maintaining or using military, naval or air forces
Military, naval or air forces
An agent of any such government power, authority or forces
Any weapon of war employing atomic fission or radioactive force whether in time of peace or war.
Rebellion, revolution, insurrection, civil war, usurped power or action taken by governmental authority in hindering, combating or defending against such an occurrence, seizure or destruction under quarantine or Customs regulations, confiscation by order of any government or public authority or risks of contraband or illegal transportation of trade.
Notwithstanding anything to the contrary in this policy, it is hereby understood and agreed that this policy shall not cover any loss, damage or expense due to or arising out of, whether directly or indirectly, nuclear reaction, radiation or radioactive contamination, regardless of the proximate cause of the loss, damage or expense. However, subject to all provisions of this policy, physical loss or damage to the shipment is covered if fire is the proximate cause of the physical loss or damage and the shipment is located within the United States, or a territory of the United States or Puerto Rico, and if the fire was due to or arose out of one or more of the above excluded risks, provided that the nuclear reaction, radiation, or radioactive contamination was not caused, whether directly or indirectly, by any of the risks excluded in this policy. Nothing in shall be construed to cover any loss, damage, liability or expense caused by nuclear reaction, radiation or radioactive contamination arising directly or indirectly from the fire mentioned above. Loss, damage, shortage arising out of loss of market, delay, loss of use, clean up costs, decay, inherent vise, or other deterioration, any remote or consequential loss, whether or not arising out of a peril insured against.
Mechanical and Electrical Derangement – Loss of or damage due to mechanical,
electrical, or electronic derangement unless there is evidence of external damage to the insured item or its packaging.
Data files and installed computer programs are not covered for erasure, corruption, or loss.
AIMU Extended Radioactive Contamination Exclusion clause.
AIMU Chemical, Biological, Bio-Chemical, Electromagnetic, and Cyber Weapons Exclusion clause.
Household Goods and Personal Effects:
Mechanical and Electrical Derangement –Loss of or damage due to mechanical, electrical,
or electronic derangement unless there is evidence of external damage to the insured item or its packaging.
Loss or damage due to moths, vermin, wear and tear, and gradual deterioration. Loss or damage due to climatic or atmospheric conditions or extremes of temperatures. Consumer Packed – Breakage, scratching, denting, chipping, staining, and tearing of
consumer packed goods.
Motorcycles & Automobiles:
Insured against all risk of physical loss or damage from any external cause ONLY IF there is a pre shipment survey of condition noting any damages. If there is no survey performed, coverage shall exclude scratching, denting, bruising, and cost of repainting. Loss of or damage due to mechanical, electrical, or electronic derangement unless there is evidence of external impact to the vehicle.
Loss or damage to radios, cassette players, CD players, MP3 players, or like audio equipment.
Loss or damage to equipment that did not come with the vehicle from the manufacturer. Frost damage and sun damage.
Excludes coverage if the vehicle is being driven under its own power, except in the port area while loading/unloading from overseas conveyance.
Loss, damage, or expense due to rust, oxidation, corrosion, and discoloration.
Loss, damage, or expense due to twisting, bending, or distortion unless caused by a covered peril.
Loss or damage due to decay, spoiling or deterioration.
Loss or damage due to inherent vice or pre shipment condition.
All freight that is covered by this policy MUST abide by the rules and regulation set forth by the Shipping Carrier.
All shipped goods must abide by the Shipping Carriers' packaging rules and regulations. In the absence of the Shipping Carriers' packaging rules and regulations, all shipped goods must abide by the DSI packaging requirements.
Addiitonal Packaging Requirements
Arch top guitars, mandolins, and instruments with moveable bridges should have the bridges, tailpiece covers and any other parts that could come loose removed, wrapped securely and stowed.
If your guitar has a tailpiece, put padding between it and the body
Cushion the peg head with bubble wrap or newspaper. Top and bottom.
Make sure the body does not move around in the case by adding bubble wrap. Place the case in a larger box and surround with at least 2 inches of bubble wrap or packing peanuts.
Cover all sharp or protruding edges with taped corrugated panels or pads. Jewelry and precious stones with a value of $500.00 or more must be placed in a box that is 6" x 6" x 6" or larger and sent via a shipping method with the signature confirmation service required.
Commodity Category Conditions
Household Goods and Personal Effects
Depreciation – DSI and Underwriters' liability is restricted to the reasonable cost of repair.
Replacement – The sum recoverable from a loss or damage shall not exceed the cost of
replacement or repair of such part(s), plus charges for forwarding and refitting, if applicable. In no case shall the liability of DSI and the Underwriters exceed the insured value of the complete item.
Must be sufficiently packed to withstand voyage, including sufficient refrigeration Deductible
If a deductible exists, it will be deducted from the total claim amount. Deductibles are on a per package basis.
The Insured is responsible for collecting any amounts from the Shipping Carrier that the Shipping Carrier may be liable for.
Claims will be paid net of Shipping Carrier’s per package liability.
DSI shall be liable for the invoice value of property lost, destroyed or damaged plus accrued expenses.
If there is no invoice or sales receipt, or the provided invoice or sales receipt has been issued more than 90 calendar days from the date of shipment, DSI shall be liable for the
actual cash value of the property at destination on date of loss, less any saved charges which would have become payable upon delivery at destination.
If the goods have been sold, DSI shall be liable for the insured’s selling price including any prepaid or advanced freight.
Used goods, merchandise, and machinery insured under this policy shall be valued at the actual cost to The Insured to replace same with an item of like kind and quality, but if not replaced, then at the actual cash value of the item.
If the total value of the parcel is not insured a co-insurance penalty will be incurred. Other Insurance
DSI and the Underwriters are not responsible for any loss, damage, or shortage that is covered by another insurance policy.
If other insurance is present on a shipment, DSI and the Underwriters only provide the excess coverage.
The Insured will provide DSI with a shipment report of the freight to be insured. This report will contain the pertinent information in regards to the item(s) shipped. This includes commodity, insured value, pertinent tracking information, and premium due. The reports must be submitted no later than 24 hours after the shipment has departed the shipment origin. If this report is late or not received by DSI, coverage may not be intact. DSI and the Underwriters have the right to audit the Insured’s books, records, and/or reports at any time to verify the accuracy of the reports. Failure to comply will result in the cancellation of coverage and may jeopardize settlement of outstanding claims. Claims
The Insured must keep all packaging material in its original form. Packaging should not be disposed of before a claim is completed and payment is remitted. Failure to comply can result in the denial of the claim due to insufficient packing.
The Insured will file a notice of non-delivery, damage, or shortage with the Shipping Carrier and with DSI within 48 hours from the date the Insured received the shipment. Once the Insured receives the Shipping Carrier’s payment, if carrier coverage is provided,
the claim must be submitted to DSI within ten (10) days. A complete claim form must be submitted to DSI via mail, fax, website, or email. Failure to complete the claim form and follow all claim instructions could lead to non payment of claim. All damaged property that was not repaired or replaced must be made available (given) to the DSI or the Underwriters if requested.
Once claim has been accepted and approved by the DSI and the Underwriters, prompt payment will be made to the Insured.
DSI relies on the determination of responsibility made by the original Shipping Carrier. Claim Disputes
This policy shall be construed and interpreted in accordance with the laws of the State of California.
The parties agree that any and all claims or disputes arising out of the policy or the performance of the policy shall be brought in Los Angeles County, California. Other Provisions
If DSI does not receive payment from Insured by the date the invoice is due, DSI reserves the right to deny any coverage retained by Insured until such invoice is paid in full
(including any such interest accrued). If Insured does not pay its invoice within 15 days after it is due, DSI reserves the right to cancel its coverage of Insured entirely. If any term or condition of this policy is found to be invalid or unenforceable by any court of competent jurisdiction, the invalidity or unenforceability of any such term or condition shall not affect the validity and enforceability of the remaining terms and conditions of this policy.
This policy constitutes the entire agreement between the parties with respect to the specific rights, duties, and obligations identified herein.
Remittance of policy payment to DSI constitutes acceptance of this agreement. Cancellation
This policy can be cancelled at any time by the Insured or the Underwriters by giving ten (10) days advance written notice.
You will not be able to get a quote for the following EXCLUDED commodities, nor for
certain packing options for specified commodities:
• Bank notes, currency, bullion, specie. • Chemicals.
• Dangerous goods (red label), hazardous materials.
• Flammables and explosives.
• Household goods, personal effects. • Jewelry (other than costume).
• Live animals.
• Nuclear Fuels.
• Precious metals (gold, silver, etc.). • Securities, stocks, bonds, etc.
• Precious and semi-precious stones.
• Tobacco products.
• Used merchandise, not reconditioned. • Valuable papers, manuscripts. • Products shipped in sacks or bags.
• Products shipped by barge as the primary conveyance.