Parcel Policy

Important Information:

Notwithstanding clause 4, 40 and 41 of the Standard Trading Conditions it is hereby declared and agreed that the risk of loss or damages to cargo may be transferred to Parcelspot at an additional fee and on the terms and conditions herein PROVIDED. Such terms and conditions have been signed and accepted prior to attachment of the risk.

Parcelspot shall not be liable for any loss or damages that fall outside the scope of the terms and conditions contained herein

Territorial Limits:

To and from places anywhere in South Africa

Mode of Transport:

Per road and/or airfreight

Basis Of Indemnity
  • New cargo
  • Selling price as per commercial sales invoice
  • Used / second-hand / other than new cargo
  • Local market value at time of loss

Maximum Limit per carrying conveyance:

R 250,000-00 maximum indemnity any one loss per carrying conveyance

Goods Covered

General goods as declared to and accepted by Parcelspot

Excluded Goods

The following goods are specifically excluded from cover:

  • Livestock, live fish, pets or any animal, jewellery, furs, watches, precious metals and stones, artworks and antiques;
  • Treasury notes, specie, bullion, cash bonds, deeds, stamps and securities;
  • Manuscripts, documents, plans, computer systems records;
  • Non-ferrous metals, copper, brass and scrap, explosives, ammunition, tobacco, cigars, cigarettes, liquor, wines, beer or any other alcoholic beverages and the like;
  • Used household goods and personal effects and dangerous drugs which are the subject of various International Conventions;
  • Temperature controlled foodstuffs, frozen or chilled

Risks covered

The company accepts liability for loss/damage to goods following a peril covered in terms of the following conditions

Conditions of risks covered

Against all physical loss and/or damage to the subject matter insured as per Institute Cargo Clauses (A) and/or Institute Cargo Clauses (Air) (excluding sendings by Post) whichever may be applicable.

Second-hand and/or Returned Interests and/or Reconditioned and/or Refurbished Goods
  • Excluding chipping, denting, scratching, marring of paint
  • Excluding rust, oxidization, discolouration
  • Subject to the Institute Replacement Clause
  • Subject to the Second-Hand Replacement Clause
  • Excluding mechanical, electrical, electronic derangement unless caused by and covered peril in terms of the Institute Cargo Clauses (B).
  • Institute Cargo Clauses (A) Cl382 01/01/2009
  • Institute Cargo Clauses (B) Cl383 01/01/2009
  • Institute Replacement Clause Cl161 01/01/1934
  • Institute Strikes Clauses (Cargo) Cl386 01/01/2009
  • Institute Malicious Damage Clause Cl266 01/08/1982
  • Institute Radioactive Contamination, Chemical, Biological, Biochemical, Electromagnetic Weapons Attack Exclusion Clause Cl370 10/11/2003
  • Institute Cyber Attack Exclusion Clause Cl380 10/11/2003
  • Termination Of Transit Clause (Terrorism) Jc2009/056 01/01/2009
  • Sanction Limitation And Exclusion Clause Jc2010/014 11/08/2010
  • Institute Marine Policy General Provisions Cargo Cl269 01/10/1982
  • Important Clause

Pairs & Sets Clause

Where any item consists of any articles in a pair or a set, liability will not exceed the declared value of any (part)s which may be lost nor more than the proportionate part of the declared value of the pair or a set


Liability is restricted to the reasonable cost of repair and no claim is to attach hereto for depreciation consequent thereon.

Replacement Clause

In the event of loss or damage to any part or parts of a customer’s machine caused by a peril covered by the conditions the sum recoverable shall not exceed the cost of replacement or repairs of such part or parts plus charges for forwarding and refitting, if incurred but not exceeding duty unless the full duty is included in the value declared, in which case,loss, if any, sustained by payment of additional duty shall also be recoverable. Provided always that in no case shall the liability of The Company exceed the declared value of the complete machine

Second-Hand Replacement Clause

In the event of a claim for loss or damage to any part of the Covered Interest in consequence of a peril covered by the Policy, the amount recoverable hereunder shall not exceed such proportion of the cost of replacement of the parts lost or damaged as the covered value bears to the value of the new machine, plus additional charges for forwarding and refitting the new part or parts if incurred.

It is warranted manufacturer made spare parts are available in respect of any such machinery or workshop and testing equipment but if spare parts are not available then the reference to “Cost of Replacement” in the Secondhand Machinery Replacement Clause shall be deemed to mean the last published catalogue price or cost of local manufacture of the parts whichever shall be less.

Excluding mechanical and/or electrical and/or electronic derangement unless caused by the covered peril recoverable in terms of the Institute Cargo Clauses (B).

Excluding the risks of rusting, oxidation and discoloration absolutely.

Excluding the risks of chipping, denting, scratching and marring of paintwork

Major Exclusions

The following are some major exclusions in terms of the Institute Cargo Clauses. This serves only as a guideline and you should refer to Parcelspot for a detailed explanation of all policy exclusions.

Consequential Loss:

Cover in respect of physical loss or damage to the goods only. No consequential losses what -so-ever (e.g. loss of market, wages, project delay, etc.) are recoverable

3rd Party Liability to Property or Life:

Loss or damage to 3rd Party property or life caused by the goods are not covered


Loss, damage or expense proximately caused by or consequential upon delay is not recoverable even if the delay was caused by the covered peril


Cover does not include fines, costs, and expenses in respect of Demurrage howsoever arising (e.g. any loss of hire period incurred by the shipowner)

Inherent Vice or Nature of the goods:

A quality inherent in a goods which produces damage to the goods without the assistance of an outside agency and by its own action e.g. fishmeal which spontaneously combusts

Insolvency or Financial Default:

Loss, damage or expense arising from insolvency or financial default

Insufficient Packing or Stowage:

Goods are always expected to be sufficiently packed to withstand the ordinary perils of the contemplated transit. Losses or damage to goods that have not been adequately packed and/or prepared as to withstand the ordinary perils/handling during the transit and/or cargo inadequately stowed are not recoverable

Political Confiscation:

Loss or damage to goods arising from political confiscation, expropriation, appropriation, requisition, nationalisation or deprivation of cargo by a Government, Public or Local Authority, or any such body of a country insured under our policy is excluded

Radioactive Contamination:

Loss, damage or expense attributable to the radioactive contamination of the goods are not recoverable

Shipping Containers:

Material loss or damage to containers or any liability arising out of their use is not recoverable

Trade Ullage:

Losses attributable to ordinary leakage or loss in weight. Since this trade ullage is inevitable and not a risk, ullage is not covered

Wilful Misconduct of the Client:

Loss, damage or expenses where the Client wilfully and knowingly acts in a manner which results in a loss is not recoverable

War Risks on Land:

This is an exclusion

Claims Procedure

In the event of a claim:

Document the condition of your goods upon delivery. Make clear exceptions on the delivery receipt noting any loss and/or damage to the goods and/or the packing and/or the containers.

  • Take pictures – photographs will be very helpful as evidence.

Minimise the loss – immediately protect the goods from further loss or damage.

  • Separate wet goods from dry goods
  • Repack to prevent further loss or damage
  • Move goods to a secure location


Preserve all packing, damaged goods and seals until advised otherwise by Parcelspot

Notify Parcelspot via e-mail or telephone of any possible claim immediately & no later than 30 days after delivery. Depending on the nature of the claim our claims team will guide you on the documentation required and procedures to follow.

Acceptance Of Terms:

Should the terms and conditions mentioned in this document meet your requirements, please tick the check box. By ticking the box, you are acknowledging and accepting the terms and conditions and the relevant Institute Cargo Clauses