Guatemala: Less Cargo Transport Insurance

Companies prefer to hire private guards or outsource transportation of goods instead of purchasing insurance, sales of which fell by 38% between January and October compared to to the close in 2013.

Wednesday, November 5, 2014

According to the American Federation for Transport (Fecatrans), only 20% of their members have insurance against damage, theft or loss, because it raises costs which must then be transferred to the final price, meaning that the majority only take out insurance for third party damage in order to keep prices at competitive levels.

Hector Fajardo, Fecatrans manager told that "... The decision to protect the goods is up to the owner, while vehicle safety itself is the responsibility of transport owners. If the carrier chooses to include transport insurance the cost of the transport would rise ten times more than the cost of the product. "

Bernardo Pineda, assistant manager of the Insurance company La Ceiba, added "... Over 75% of companies do not have their own transportation, and largely choose to hire security guards on trucks, GPS systems, and escorts."

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