The tragedy of an accident without cargo insurance from actual experience.

Hello, it’s IINO.
I would like to broadcast IINO san’s Logistics Radio today.

Today’s theme is what happens if you cause an accident without cargo insurance.

Daily Logistics Radio by IINO san in 21st Sep. 2021

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Why I share my mistakes

This is based on my actual experience of having an accident without cargo insurance.

It may not be a good idea to share in such a public place that I caused a lot of inconvenience to my customers at that time.

However, I hope that by sharing my mistakes, there will be fewer people who will make similar ones.

Domestic Transportation of Used Machinery

It is when a domestic transport of used machinery in Thailand a few years ago. We arranged a trailer from a port in Thailand to an industrial park.

This used machinery was expensive, costing several million USD. However, since the transportation distance was short, we arranged the transportation without taking out cargo insurance.

There are mistakes in human works

And in the morning of the delivery day, I received a call that they have had an accident. The trailer had overturned because the cargo was too heavy to go around a downhill curve.

Of course, no one was trying to cause an accident. However, as long as humans are involved, there will always be cases where mistakes are made.

The customer had cargo insurance, so it was able to receive compensation for the amount of the machine.

Sued by the insurance company

One day, a few months after the accident, we received a letter from a law firm. Upon checking the contents, we found out that the insurance company that compensated the customer for the cargo accident was going to sue us.

If you cause an accident without cargo insurance, the customer’s insurance company will sue you.

What we can do at this time is:

1. File a lawsuit
2. Pay the settlement amount

If we were to take the case to court, it would take a lot of time to arrange the necessary documents and go to the court. Since it was our responsibility in the first place, we chose to pay the settlement.

Small profit, big loss

The original profit of this trucking project was about THB 1,000 (about USD 32)/truck. That turned out to be a loss of tens of thousands USD because the accident occurred without cargo insurance.

What I learned from this mistake is that we should always take out cargo insurance for items such as machinery that are high value and difficult to transport, even if it is a short distance.

I strongly believe that cargo insurance is always necessary, even if the order is lost because of high selling price due to taking out cargo insurance.


Some people may think it is obvious, but sometimes the thinking of “got used to the job” or “only just a little bit” can lead to big problems.

I hope that my experience of failure that I shared with you this time will serve as a reminder to those of you who are accustomed to your normal work.