From L-R: Chief Babajide Olatunde-Agbeja, Chairman Boff & Co. Insurance Brokers Ltd; Mr. Shadrach Adegoke of AIICO Insurance Plc; Mr. Ikechi Uko the conference organizer; Mr. Segun Omosehin, the commissioner for insurance; Ms. Omowale Olatunde-Agbeja, Acting MD. Boff & Co. Insurance Brokers Ltd; Mr. Abedeen Musa, ED, NSIA Insurance Co. Ltd. and Mr. Jimalex Orjiako, ED, Consolidated Hallmark Insurance Co. Ltd.
At the 4th Aviacargo Conference held at the Lagos Marriott Hotel, Orjiako Jimalex, the Executive Director of Operations at Consolidated Hallmark Insurance Ltd, highlighted the indispensable role of insurance in aviation cargo export.
He elaborated on how aviation cargo insurance serves as a critical safeguard for goods transported by air, offering robust protection against various risks such as damage, loss, or destruction.
This insurance is vital for exporters and importers alike, as it not only provides financial protection but also ensures compliance with international trade regulations, which are often stringent and demanding.
READ: Africa: Aviation Minister reiterates Government’s commitment to the growth air cargo sector in Nigeria at Chinet Aviacargo Conference
Aviation cargo insurance covers a comprehensive range of potential risks, including accidental damage, theft, natural disasters like volcanic eruptions or severe weather conditions, and aircraft accidents.
Additionally, it offers protection against more severe threats, such as terrorism, sabotage, war, and civil unrest, which can pose significant challenges in global trade. While air freight carriers typically provide a basic level of insurance, known as carrier liability, many businesses opt for additional protection through specialized insurance policies tailored to their specific needs. The premiums for these policies vary, influenced by factors such as the value and nature of the goods being transported, the routes they take, and the desired level of coverage.
READ: Africa: Mc Dan Group CEO, Dr. Daniel McKorley Addresses Challenges in West Africa’s Cargo and Logistics Industry at 4th Aviacargo Conference in Lagos
Beyond its role in safeguarding goods, aviation cargo insurance is a crucial component of risk management in the aviation sector. It ensures that in the event of unforeseen circumstances, such as accidents or natural disasters, exporters are financially protected, thereby reducing the potential impact of losses on their businesses. This financial safety net allows exporters to engage in international trade with greater confidence, knowing that they are shielded from significant financial setbacks.
Moreover, comprehensive insurance coverage enhances the credibility of Nigerian exporters in the global market, making them more attractive to international buyers who prioritize reliability and risk mitigation. By providing a clear framework for resolving claims, insurance can also reduce disputes between exporters and buyers, fostering smoother and more trustworthy trade relationships.
In addition to supporting individual businesses, aviation cargo insurance plays a broader role in facilitating trade and supporting Nigeria’s economic growth and development. By mitigating risks and ensuring that exporters meet international standards and best practices in cargo transportation, insurance helps to strengthen the country’s position in the global market. This, in turn, contributes to the overall stability and growth of Nigeria’s economy, making aviation cargo insurance not just a business necessity but a strategic tool for national development.
