Govt offering insurance exemption
Date: 10 July 2007
The government is offering freight forwarders an insurance exemption relating to the loss and damage of goods.
According to the British International Freight Association (BIFA), the exemption applies to those firms holding an 'open cover' policy "in respect of loss or damage to goods which it transports or stores (or for which it arranges the transportation or storage) and makes available to customers' rights under that policy such that the customer is able to claim directly against the insurer".
This does not apply where the customer is not an individual.
The exemption is due to come into effect on July 20th. Members who are currently authorised by the FSA will continue to be liable for FSA fees unless they cancel their authorisation.
This must be done using a cancellation form at the FSA website. It must be done within six weeks of when the new exemption comes into force. The reason for cancellation should be given as "Freight Forwarder - no longer subject to regulation following SI 2007/1821".
The FSA is not contacting firms individually about this, but is issuing general guidance.
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