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Define Bailee for hire
Is the one who has the temporary custody of personal property of others for the purpose other than sale and who is compensated as a condition of such property.
Identify three reasons why a Bailee may have temporary custody of the personal property of another.
For repair or performance of work
For safe keeping or storage
For delivery to others
Identify three examples of businesses which may be Bailee’s for hire
Laundries in restaurants or hotels
Small engine repair shops in resturants or hotels
Tailors in restaurants or hotels
Briefly explain the level of the ordinary care to be exercised by a Bailee
There is a legal duty upon a Bailee for hire to take the same care of the goods of others as would be taken by a prudent & diligent owner of such goods.
Briefly explain how the level of ordinary care to be exercised by a Bailee.
The level of the ordinary care depends upon the class of the property.There is a greater level of care needed for the customer jewellery.
Might require that the Bailee-:
Install intrusion detection device on the premises.
Purchase a policy of insurance to protect the property from the exposure most likely to cause a loss to it.
Ensure that the property is in the safe place or other receptacle when the premises are closed.
Identify two ways a Bailee may be responsible for the goods of others
When the ordinary care breached due to negligence.
Bailee may assume addditional liability for the customers property under contract.
Identify three ways Bailee can ensure their legal and contractual responsibility for damages to customer goods
Purchase a separate policy insuring the legal liability of the Bailee for loss
Purchase a separate specialized Bailee’s customer policy.
Include the value of the customer property in the amount of stock insurance provided by their commercial property insurance policy.
Define contract carriers
A contract carrier is the one that carries for pay, goods of certain customers as contrasted to the common carrier which carries the goods of public in general.
The liability of the contract carrier is defined in his contract with the owner of the property.
Define Released bill of lading
This bill of lading releases the carrier form any liabilities for the goods is used-:
When the value of the goods are less than that provided on the standard bill of lading
When the value of the goods exceeded that provided by the standard tariff.
Define Private carriers
They are the ones who hauls their own goods, or goods entrusted to them as Bailee’s or lessees, and include shipper who own or lease their vehicles and carry their own goods.
Private carriers are responsible for the amount of the loss of goods carried by them.
Define Standard ( ordinary ) bill of lading
This bill of lading reflect the amount for which the carrier will be held liable under a tariff. This value is established at a certain amount per kilogram/pound or parcel.
Identify the four ways that the owners of the goods may insure them
Transportation floater ( broad form )-: ( it can be used to insure the transportation exposure of owner of goods)
Transportation floater rider- limited from
Motor cargo riders
Trip transit policy
Identify five excluded losses for which a common carrier would not be liable to the owner of the goods
Act of god or natural phenomena not reasonably foreseeable
Act of public enemies
Act of public authorities
Neglect or default of the shipper
Bad goods transported
Identify three types of property insured on a transportation floater- Broad Form
Owned by the insured ( Goods purchased by business owners from manufactures, wholesalers are covered by the policy)
For which the insured is responsible ( Property belonging to the clients )
Sold but not delivered
Identify any three types of property excluded in the broad form.
Jewellery
Painting
Furs, livestocks
Identify the vehicles for which coverages is provided for under the broad form.
Railroads, freight forwarders & railway express.
Public or private truckman.
Vehicles owned hired leased or operated by the insured.
Regularly scheduled or operated airlines.
Identify three perils excluding under the broad form.
Gradual deterioration, inherent vice.
Damage resulting from the inadequate packing, wrapping or shipping or rough handling.
Loss of damage resulting from delay, loss of market, moths, rodents or vermin.
Identify how much the insured is entitled to recover for the lost property.
Actual Invoice cost
The amount of any prepaid freight costs not earned.
Other cost and charges accrued since shipment
Explain when a business might purchase a Trip Transit policy
This form is used to insure the transit exposure of a single shipment of property. ( business might purchase it when they buy a piece of shipment )
Identify three factors which will influence the cost of coverages for a trip transit policy
Distance
Method of transportation
Nature of the property
Identify when coverages is effective and ends under Truckman’s Liability Riders?
Coverages are provided for the time the goods have been loaded to the the time when it reached it destination
Identify four reasons why an owner of goods should not depend upon a carriers insurance
May not insure adequate amount of insurance
May not be broad enough in peril insured against
May have been invalidated as a result of a breach of a policy condition
May have been lapsed or cancelled
Identify five advantages for owners of goods to carry their own insurance
Reduce cost of insurance.
Prompt recovery of loss are directly available from the insurer.
Perils insured against are often broader than those insured by the carriers.
Reporting provision feature provides for automatic coverages for all of insureds shipment.
Policy will respond to provide payment of any loss in excess of the liability of the carrier, whether limited by bill of lading contract or otherwise.
