Multimodal transport insurances

An insurance approach assumes that a loss can be suffered by the insured party or by another party (in case of a loss for which the insured is liable). In such liability insurances a distinction is made between the parties who have a contractual relationship and those who have not (extra-contractual liability). A definition of insurance is: ‘The pooling of fortuitous losses by transfer of such risks to insurers, who agree to indemnify insured for such losses, to provide other pecuniary benefits on their occurrence or to render services connected with risk in exchange for a premium. Pooling is the sharing of total losses among a group and is thus the spreading of losses incurred by a few over an entire group’ (Rejda and McNamara, 2014). Hence, insurance is the transfer of risk; the sharing of a loss; a contract between two parties (the insured and the insurance company). It should be noted that the insurance broker is an important player but not a contracting party. An insurance is thus a written contract between two parties providing a promise of reimbursement in the case of loss due to a covered trigger; and purchased by people or companies so concerned about hazards that they have made pre-payments, or premiums, to an insurance company for such protection.