Cargo Insurance in Bangladesh: How to Protect Your Shipments

As Bangladesh’s role in global trade continues to grow—especially in the RMG (Ready-Made Garment), agro-processing, and pharmaceutical sectors—so do the risks associated with moving cargo across domestic and international supply chains. Whether you’re importing electronics from China, exporting textiles to Europe, or shipping via inland waterways, one thing remains critical: cargo insurance.

Cargo insurance is more than just an added expense; it’s a smart investment that protects your shipments from loss, damage, theft, or unforeseen disasters. In this guide, we explain how cargo insurance works in Bangladesh, why it’s essential, and how to get the best coverage for your logistics operations.

🔗 Need logistics support or a verified agent? Explore Bangladesh-Agent.com Logistics Services

Why Cargo Insurance Matters in Bangladesh

Bangladesh is a rapidly developing country with expanding trade routes, but it still faces infrastructural and bureaucratic challenges:

• Unpredictable weather (cyclones, floods)

• Port congestion and container delays

• Theft and pilferage at key points like Chittagong Port

• Inconsistent handling in intermodal transit

• Fragile road and bridge infrastructure

Whether you’re shipping goods via air, sea, or inland waterways, cargo is at risk. Cargo insurance ensures you’re not left financially vulnerable when things go wrong.

What Is Cargo Insurance?

Cargo insurance provides financial protection for goods in transit. It covers loss or damage resulting from:

• Accidents (collision, capsizing, derailment)

• Theft or pilferage

• Natural disasters (flood, storm, fire)

• Improper handling or breakage

• Delays causing spoilage (for perishable items)

Depending on your contract (Incoterms), either the buyer or seller may be responsible for insuring goods. In Bangladesh-based transactions, exporters often insure goods up to the FOB (Free on Board) point, while importers cover them post-loading.

🔗 Want to learn more about Incoterms and logistics? Read: Incoterms and Their Importance in Bangladesh Trade

Types of Cargo Insurance Available in Bangladesh

1. Marine Cargo Insurance

This is the most common policy used for both sea and inland waterway transport. It includes:

• Open Cover Policy – for regular shippers with multiple consignments

• Specific Policy – for a single shipment

2. Inland Transit Insurance

Ideal for trucking or railway movement across Bangladesh. Important for inland container depots (ICDs) like Kamalapur or Pangaon.

3. Air Cargo Insurance

Used for fast-moving, high-value shipments like electronics, pharmaceuticals, or textile samples via Hazrat Shahjalal International Airport.

4. Warehouse-to-Warehouse Coverage

Provides end-to-end protection from origin warehouse to destination warehouse, which is essential when using multiple modes of transport.

Key Cargo Insurance Providers in Bangladesh

Here are some leading local and international players offering cargo insurance in Bangladesh:

• Sadharan Bima Corporation (SBC) – State-owned, covers marine and inland cargo

• Green Delta Insurance – One of the largest private insurers

• Pragati Insurance Ltd. – Offers commercial and custom cargo plans

• Pioneer Insurance Company Ltd. – Trusted by exporters in textile and jute sectors

• United Insurance Company Ltd. – Flexible SME and retail cargo insurance

🔗 Browse more insurance providers via Insurance Development & Regulatory Authority of Bangladesh (IDRA)

What to Look for in a Good Cargo Insurance Policy

When choosing a cargo insurance provider or working with a trade agent, evaluate the following:

• Scope of Coverage: Are natural disasters, theft, handling damage covered?

• Geographic Coverage: Does it include both domestic and international legs?

• Claim Settlement History: How fast and reliably do they pay?

• Premium Costs: Typically 0.1% to 0.5% of cargo value

• Exclusions: Common exclusions include improper packing or negligence

• Documentation Requirements: Bill of lading, packing list, invoice, survey report

🔗 Want help securing the best policy for your cargo? Contact Bangladesh-Agent.com for Insurance Coordination

Real Risks: What Can Go Wrong Without Insurance?

Imagine a Dhaka-based clothing exporter shipping 3,000 jackets to Rotterdam. On the way:

• The container is delayed at Chittagong Port due to customs backlog.

• It gets rerouted via Colombo due to congestion.

• A storm at sea damages 30% of the shipment.

Without insurance, the exporter absorbs the total loss and late delivery penalties. With insurance, a claim can be processed, and the business can continue smoothly.

How to File a Cargo Insurance Claim in Bangladesh

If your cargo is lost or damaged, here’s how to file a claim:

1. Notify the insurance company immediately

2. Preserve the damaged goods and packaging

3. Obtain a survey report (from a licensed surveyor)

4. Submit documents:

   • Insurance certificate

   • Invoice and packing list

   • Bill of lading or airway bill

   • Damage or shortage certificate

Claims can take 7–30 days depending on complexity. Using a local agent or freight forwarder helps speed up paperwork.

Tips for Reducing Cargo Risk (Even Before Insurance)

• Use GPS-tracked shipments and IoT-based cargo monitoring

• Hire experienced logistics agents in Bangladesh

• Choose reputable freight forwarders

• Avoid shipping during monsoon peak season (June–September)

• Ensure proper packing and labeling, especially for fragile items

🔗 Read: Smart Logistics & AI in Bangladesh’s Export Chains

Final Thoughts

In an unpredictable global trade environment, cargo insurance is a must-have—not a luxury. As Bangladesh grows its reputation as an export powerhouse, businesses must be equally smart in risk management as they are in production efficiency.

By choosing the right cargo insurance policy, partnering with knowledgeable agents, and staying informed, you protect not just your shipments—but your entire business model.

Useful Links

• Bangladesh Customs

• Insurance Development and Regulatory Authority (IDRA)

• Bangladesh-Agent.com – Cargo & Logistics Support