Cargo insurance during transportation - rules and procedures

A forwarding organization applying the general taxation regime has entered into a transport expedition agreement, under which it insures cargo on behalf of the client (cargo owner) and for his benefit. The freight forwarder re-invoices the client for its insurance costs, adding a mark-up for the provision of services. How are cargo insurance services reflected in the forwarder's accounting and tax records? How is VAT assessed on this transaction? What documents must be presented to the client?

In accordance with paragraph 1 of Art. 801 of the Civil Code of the Russian Federation, under a transport expedition agreement, one party (the forwarder) undertakes, for a fee and at the expense of the other party (the client - the shipper or consignee), to perform or organize the performance of services specified in the expedition agreement related to the transportation of goods.

A transport expedition agreement may provide for the forwarder’s obligations to organize the transportation of cargo by transport and along the route chosen by the forwarder or the client, the forwarder’s obligation to conclude on behalf of the client or on his own behalf an agreement (agreements) for the carriage of goods, to ensure the sending and receipt of cargo, as well as other obligations related with transportation. As additional services, the transport expedition contract may provide for the implementation of operations necessary for the delivery of cargo, such as checking the quantity and condition of the cargo, its loading and unloading, payment of duties, fees and other expenses imposed on the client, storage of the cargo, its receipt at the destination , as well as performing other operations and services provided for by the contract. In general, the conditions for fulfilling a transport expedition agreement are determined by agreement of the parties (clause 3 of Article 801 of the Civil Code of the Russian Federation).

Article 930 of the Civil Code of the Russian Federation provides that property can be insured under an insurance contract in favor of a person (the policyholder or beneficiary) who has an interest in preserving this property based on law, another legal act or contract.

Important

According to paragraph 5 of Art. 4 of Federal Law No. 87-FZ of June 30, 2003 “On Freight Forwarding Activities” (hereinafter referred to as Law No. 87-FZ), the forwarder does not have the right to enter into a cargo insurance agreement on behalf of the client, provided that this is not expressly provided for in the transport expedition agreement. However, he can insure the cargo on his own behalf (see, for example, decisions of the Federal Antimonopoly Service of the Volga Region dated December 22, 2011 N F06-10730/11 in case No. A55-24263/2009, dated May 17, 2010 in case N A12-16611/2009, Eleventh Arbitration Court of Appeal dated August 23, 2011 N 11AP-8120/11).

Moreover, due to the freedom of contract (Article 421 of the Civil Code of the Russian Federation), the parties have the right to stipulate in the contract that such insurance is carried out at the expense of the client.

Clause 2 of Art. 5 of Law N 87-FZ establishes that the client is obliged not only to pay the remuneration due to the forwarder, but also to reimburse the expenses incurred by him in the interests of the client. Therefore, if the transport expedition agreement stipulates that cargo insurance is carried out by the freight forwarder at the expense of the client, the latter is obliged to reimburse the freight forwarder for the insurance costs incurred by him.

By virtue of clause 3 of Art. 421 of the Civil Code of the Russian Federation, the parties have the right to enter into an agreement that contains elements of various agreements provided for by law or other legal acts (mixed agreement). The relations of the parties under a mixed contract are applied in the relevant parts to the rules on contracts, the elements of which are contained in the mixed contract, unless otherwise follows from the agreement of the parties or the essence of the mixed contract.

We believe that the presence in the transport expedition agreement of provisions on the freight forwarder insuring the cargo and on the client’s obligation to reimburse the freight forwarder for the corresponding expenses can be considered as an element of intermediary relations.

According to the norms of civil legislation of the Russian Federation, the intermediary activity of an organization is, in particular, the provision of services for the acquisition of works (services) for third parties. The execution of these transactions is carried out by an intermediary in accordance with the provisions of Chapters 51 “Commission” and 52 “Agency” of the Civil Code of the Russian Federation.

According to paragraph 1 of Art. 991 and art. 1006 of the Civil Code of the Russian Federation, a commission agreement and an agency agreement provide for the obligation of the principal (principal) to pay an intermediary fee.

If the contract does not provide for the amount of remuneration or the procedure for its payment and the amount of remuneration cannot be determined based on the terms of the contract, the remuneration is paid after the execution of the commission agreement in the amount determined in accordance with clause 3 of Art. 424 of the Civil Code of the Russian Federation, that is, at the price that, under comparable circumstances, is usually charged for similar services (paragraph 2, paragraph 1, article 991 of the Civil Code of the Russian Federation).

The above provisions of the norms of the Civil Code of the Russian Federation indicate the advisability of separately allocating the amount of intermediary remuneration or the procedure for determining it in the contract.

In addition, a mandatory condition of intermediary agreements is the submission by the agent (commission agent) of a report on the execution of the order, to which is attached evidence of expenses incurred at the expense of the principal (committent) (Articles 999, 1008 of the Civil Code of the Russian Federation).

Thus, when providing forwarding services, a freight forwarder can be recognized as an intermediary, provided that all the necessary elements of an intermediary agreement are included in the transport expedition agreement. In this case, reimbursement by the client of the forwarder’s expenses will not relate to the sale of the forwarder’s services and cannot be recognized as an object of taxation for VAT and income tax from the forwarder (resolution of the Federal Antimonopoly Service of the North Caucasus District dated 02/05/2013 N F08-8177/12 in the case N A32-2247/2012, FAS of the North-Western District dated October 22, 2009 N A56-55513/2008, Thirteenth Arbitration Court of Appeal dated July 24, 2009 N 13AP-8079/2009, determination of the Supreme Arbitration Court of the Russian Federation dated May 18, 2007 N 5707/07) .

Accounting for insurance transactions

Accounting for settlements for property and personal insurance is carried out using account 76 “Settlements with various debtors and creditors” subaccount 1 “Settlements for property and personal insurance”.
In the debit of account 76, subaccount 1 reflects the transfer of amounts of insurance payments to insurance organizations, write-off of losses due to insured events, amounts of insurance compensation due under an insurance contract to employees of the organization. On the credit of account 76, subaccount 1 “Calculations for property and personal insurance” reflects the amount of insurance compensation received by the organization from insurance organizations in accordance with insurance contracts. Analytical accounting for account 76 subaccount 1 “Calculations for property and personal insurance” is carried out for insurers and individual insurance contracts. In the accounting of an organization, insurance transactions are reflected in four stages:

• 1) calculation of the amount of the insurance premium;
• 2) transfer of this amount to the insurance organization;
• 3) reflection in accounting of the occurrence of an insured event and the insurance compensation due;
• 4) reflection in the accounting of receipt of insurance compensation.

Let's look at these stages in more detail.

Calculation of the insurance premium amount. In accordance with the concluded agreement with the insurance organization, the insured enterprise becomes obligated to pay insurance premiums (payments).

The calculated amounts of insurance payments are reflected in the credit of subaccount 76-1 “Calculations for property and personal insurance” in correspondence with the accounts of production costs (selling expenses) or other sources of insurance payments. According to the law, the cost of products, goods, works and services includes expenses for property insurance of objects directly involved in the production process, liability insurance of organizations that are a source of increased danger, insurance against accidents and illnesses, medical and pension insurance under contracts with non-state pension funds.

Let's look at accounting using the example of property insurance. If property that is used in the production activities of the organization is insured, then the accrued amounts of insurance payments are included in the cost of products (works, services) or as part of sales expenses. This operation is reflected by the entry:

D 20 “Main production”, 25 “General production expenses”, 26 “General business expenses”, 44 “Sales expenses” - K 76-1 “Calculations for property and personal insurance”.

If property is insured that is used for purposes not related to production activities, then the amount of insurance payments is accrued by recording:

D 91-2 “Other expenses” - K 76-1 “Calculations for property and personal insurance.”

It should be noted that the calculation of insurance payments and their inclusion in the cost of products (works, services) is carried out by the organization only after the insurance contract comes into force. If this period is not specified in the contract, the contract comes into force after payment of the insurance premium.

The costs of insuring fixed assets in the process of their creation or acquisition are included in their initial cost by recording:

D 08 “Investments in non-current assets” - K 76-1 “Calculations for property and personal insurance”.

The costs of insuring inventories are included in their original (actual) cost and are reflected in the entry:

D 10 “Materials”, 15 “Procurement and acquisition of material assets”, 41 “Goods” - K 76-1 “Calculations for property and personal insurance”.

According to sub. 7 clause 3 art. 149 of the Tax Code, the provision of insurance services is not subject to VAT.

An enterprise can enter into a property insurance contract for a long period of time, for example 3 years, with an insurance premium paid in advance for the entire insurance period. In this case, when assigning insurance payments to the cost of products (works, services), one should be guided by the Accounting Regulations PBU 1/98 “Accounting Policy of the Organization”. In accordance with this document, the facts of the organization’s economic activities relate to the reporting period in which they occurred, regardless of the time of receipt or payment of funds associated with them.

Based on the foregoing, it is advisable to take into account the amount of insurance premiums for long-term insurance contracts in account 97 “Deferred expenses” by recording:

D97 “Future expenses” - K 76-1 “Calculations for property and personal insurance.”

Subsequently, the amounts reflected in the debit of account 97 are written off to cost accounting accounts by writing:

D 20 “Main production”, 25 “General production expenses”, 26 “General business expenses”, 44 “Sales expenses” - K 97 “Deferred expenses”.

The payment of the amount of insurance payments to the insurance organization is reflected by the entry:

D 76-1 “Calculations for property and personal insurance” - K 50 “Cash”, 51 “Cash accounts”.

Reflection in accounting of the occurrence of an insured event and the insurance compensation due from the insurance company depends on the type of damage received, which may be due to the following factors:

• ? disposal of fixed and working capital lost or damaged as a result of various adverse events;
• ? interruptions (downtime) in the production activities of the organization;
• ? loss of work ability by the organization’s employees, as well as the need to compensate them for the costs of restoring their health;
• ? compensation by the organization for harm caused to individuals and legal entities during the implementation of its business activities.

Write-off of losses due to insured events (destruction and damage to inventories, finished products and other material assets, etc.) is reflected as a disposal of insured property by records:

D 76-1 “Calculations for property and personal insurance” - K 01 subaccount “Disposal of fixed assets”, 10 “Materials”, 43 “Finished products”, 50 “Cash desk”, etc.

If the property damaged as a result of an insured event can be repaired, then the associated costs are also covered by the insurance compensation. To reflect this, an entry is made in accounting:

D 76-1 “Calculations for property and personal insurance” - K 20 “Main production”, 25 “General production expenses”, 26 “General business expenses”, 44 “Sale expenses”.

If, under the terms of the insurance contract, losses or part of losses are not subject to compensation from insurance compensation, then they are considered other expenses of the organization. An entry is made for the amount of such losses:

D 91-2 “Other expenses” - K 76-1 “Calculations for property and personal insurance.”

If the amount of insurance compensation exceeds the organization's actual losses from damage or loss of property, then the amount of such excess is considered other income. An entry is made for the amount of this excess:

D 76-1 “Calculations for property and personal insurance” - K 91-1 “Other income”.

Reflection in accounting for receipt of insurance compensation. The amount of insurance compensation received by an organization from insurance organizations in accordance with insurance contracts is reflected in accounting by the entry:

D 50 “Cashier”, 51 “Cash accounts” - K 76-1 “Calculations for property and personal insurance”.

Example 15.1.

OJSC "Corvette" insured the premises of the production workshop in case of fire. The insurance payment amounted to 50,000 rubles. It was transferred non-cash to the insurance organization. In accordance with the contract, the amount of insurance compensation upon the occurrence of an insured event should be 440,000 rubles.

During the validity period of the insurance contract, a fire broke out in the workshop and the warehouse premises were damaged. The insurance organization paid the amount of insurance compensation in accordance with the contract in full.

The costs of OJSC "Corvette" for the repair of the workshop premises were: for materials - 300,000 rubles, for wages - 50,000 rubles, unified social tax - 13,000 rubles, contribution for social insurance against industrial accidents and occupational diseases - 600 rub.

Reflect in the accounting of JSC Corvette operations on property insurance, receipt and use of insurance compensation.

The solution is given in table. 15.1. The subaccount numbers in the tables are given in accordance with the working chart of accounts, which is given in the Appendix.

Table 15.1

Journal of business transactions of Korvet LLC

With the development of technology and the increase in the speed of delivery of goods, the world seems to be becoming smaller. It has long ceased to be a problem to order part of the assortment from Europe, another part from Asia, and even bring something from America. However, some aspects of accounting remain quite difficult, especially if you are a novice accountant or even manage the documents of a small enterprise yourself. In this article we will analyze logistics issues in accounting and pay special attention to accounting entries for cargo insurance, as well as their forwarding.

What cargo can be insured?

In modern conditions, you can take out insurance for any type of cargo: timber, gas, oil products, food, houses, cars, building materials, furniture and other furnishings. In addition, you can protect not only physical property, but also:

• transportation costs (customs clearance, car rental, etc.) if something out of the ordinary happens and your cargo is stopped at the border, for example, in the event of a sudden embargo, an error in the documents, etc.;
• expected income - if due to some incident you never received it, the insurance company will pay you itself (but there is a limit).

The peculiarities of insurance for international road transport are that the route may pass through several countries, and the policyholder is obliged to warn you about all the dangers existing there (high crime rate, seasonal flooding, etc.), except for those that are a priori known to everyone. The insurance covers the entire territory through which the car will pass.

Documents for an accountant keeping records of logistics operations

There are two types of documents that an accountant keeping records of logistics activities must be familiar with: general and private. The list of general ones includes the second part of the tax code, and the provision “Accounting for inventories” of PBU 5/01 of 2001, and methodological instructions. Private documents come into play when specific transactions need to be carried out. Thus, when delivering cargo by a transport company, accounting is kept on the basis of the following documents:

• Federal Law “On transport and forwarding activities” No. 87-FZ dated June 30, 2003;
• rules of transport and forwarding activities approved by Decree of the Government of the Russian Federation of September 8, 2006 No. 554;
• Civil Code of the Russian Federation, in particular Chapter 41 “Transport expedition”;
• Order of the Ministry of Transport dated February 11, 2008 No. 23 “On approval of the Procedure for registration and forms of forwarding documents.”

If we are talking about forwarding, it is also important to obtain documents on the basis of which a specific operation will be carried out. They include an order to the forwarder, forwarding and warehouse receipts, as well as a transport expedition agreement, which specifies the role of the transport company: intermediary or service provider.

General principles of forwarding transactions

When ordering freight forwarding and insurance, accounting and tax accounting can be carried out in various ways. Choosing the right option often depends on whether you are buying or selling an item. If you buy, you can make the postings as follows:

1. Include in the original cost of the entire batch. If several types of goods are delivered at once, transportation costs are divided proportionally among all classes of goods. Transportation costs in this case are reflected in the inventory account depending on the group of goods. This method is ideal if you know exactly how much it took for delivery. Typically used when ordering one type of product.
2. Summarize on a separate sub-account. The detail may vary, it all depends on your company and accounting policies. It is only important to correctly determine the amount of funds written off, which is calculated on the basis of the average percentage of transportation and procurement costs and the amount of disposed inventory. The formula is as follows: Expenses written off = amount of inventory disposed of X average percentage of expenses: 100%. In this case, the average percentage is calculated according to the following formula ((Balance of expenses at the beginning of the month + expenses incurred during the month): (balance of inventory + amount of received inventory)) x 100%. The data is calculated without taking into account internal movements within warehouses.

For each category of goods, the company has the right to establish its own accounting method depending on the specifics of the purchase of a particular product.

If it is necessary to make an entry for sales, freight forwarding and other services related to the transportation of goods are recorded in sales expenses and reflected in account 93. Transportation costs between internal warehouses of the enterprise fall into the same category.

In the case where the customer of the forwarding agent or insurance is an intermediary and does not receive the goods at his warehouse, in order to post them it is necessary to determine whether the costs are incurred during the acquisition or during the sale of the goods. Further amounts are posted either as sales expenses or as transportation expenses to the place of use.

Also, two accounting methods can be used for the same cargo. This trick is often used when ordering goods from abroad. All expenses before customs are included in the initial cost of the goods, and transportation within the territory of your country is included in sales costs.

Basic provisions

Currently, cargo insurance is not a mandatory procedure. Taking out an insurance policy can rather be considered a precautionary measure that cargo owners must take.

If the cargo was damaged during transportation and the insurance company recognized the occurrence of an insured event, its owner will receive monetary compensation, thanks to which he will be able to continue to carry out his business activities.

Insurance relationships arise between cargo carriers, shippers and insurance companies.

Currently, Russian insurers offer their clients two types of policies:

• insurance policy for cargo, the exact name of which is not indicated in the documents;
• insurance policy for cargo, the contents of which are described in detail in the completed documentation.

Insurance companies set rates as a percentage of the cost of transported goods. In this case, the insurer takes into account the geography of the area along which the upcoming route is laid, the type of transport and cargo.

In some cases, agreements are concluded between insurers and shippers under which an unconditional and conditional deductible is applied.

If the insurance contract is concluded in foreign currency, the insurer may significantly increase its rates (by an average of 30%).

The rules of cargo transport insurance provide for the issuance of an insurance policy to the owner of the cargo after signing the contract.

The insurance policy is an official confirmation of the accomplished fact of cargo insurance. This document must promptly reflect any manipulations with the transported cargo.

When issuing it, no corrections or amendments are allowed, since the insurance policy will immediately be considered invalid.

The insurance company begins to fulfill its obligations under the insurance policy at the moment the insured transfers his cargo to the carrier. The validity of this policy will cease only upon the arrival of the cargo at its destination and its unloading at the recipient's warehouse.

You can learn what role social insurance plays in the social policy of the state from the article: the basics of social insurance. Read about managing the social insurance system here.

Cargo insurance and accounting

In accounting, cargo insurance during transportation is always included in the total cost of the goods or in sales expenses. This mainly applies to situations where insurance is a separate line in payment documents. Here's an example:

The company paid TC the invoice for transportation and received an invoice and a statement for an incomplete amount. The remaining amount was included in the forwarder's report. The full amount was indicated in the forwarding receipt.

In this case, the forwarder is an intermediary who insures the cargo on behalf of the client and reports on it (the forwarder's report can be considered the agent's report). You can incur expenses based on the forwarder's report.

But a much more common situation is when the logistics company takes on insurance costs and includes them in the final cost of transportation. In this case, insurance does not need to be recorded somewhere separately.

Of course, you can refuse insurance altogether, but for international shipments such a decision is fraught with problems, because insurance is not only an additional expense, but an additional guarantee that losses will be compensated.

Who needs cargo insurance and why?

Many customers, when concluding an agreement with a logistics company and completing various papers, are faced with the need for “compulsory insurance.” They give the required amount and remain in absolute peace, hoping that they have protected their property. However, it is not. Cargo insurance, which is required by government agencies to issue a transportation permit, is designed to protect other road users from troubles that may arise when transporting your luggage by road. The money paid will cover the cost of repairing the highway if the truck damages it, restoring communications, road signs, etc. that were hit by the car. That is, in this case, the insurance protects not you, but other people.

Carriers also insure themselves against various risks, since, as already mentioned, they are responsible for the things entrusted to them, and will compensate you for losses if something happens due to their fault. Upon acceptance of an order for delivery, the cargo is immediately insured, but only to the extent that the carrier's protection is required. To fully protect your luggage, you can try another type of cargo insurance - for any unforeseen event - this is entirely voluntary, because according to the legislation in force in Russia, you cannot be forced to take care of your own property.

Compulsory insurance of company property

First, let's look at the costs of compulsory insurance of a company's property, and then we'll find out why difficulties actually arise. So, if a company incurs costs for compulsory (established by the law of the Russian Federation) insurance, such costs should be included in other expenses. In this case, the limits of insurance rates are taken into account (those are approved in accordance with the requirements of international conventions and Russian laws).

And now to the difficulties - often difficulties are caused by the interpretation of the concept of “compulsory insurance”. Thus, insurance premiums of the insurer (insurance premiums) for compulsory insurance are recognized as costs for which it is allowed to reduce the tax base for income tax (in accordance with Article 263 of the Tax Code of the Russian Federation), only if the current legislation of the Russian Federation defines:

• property objects that are subject to compulsory insurance;
• the minimum amount of the insurer's insurance premium;
• risks against which property must be insured.

In this case, the insurer must have a license for the type of insurance in question. Cm.:

• Letter of the Ministry of Taxes and Taxes of the Russian Federation dated 09.09.2004 No. 02-4-10/252 “On the recognition of insurance expenses for profit tax purposes”;
• clause 3 art. 3, paragraph 2 art. 32 of the Federal Law of November 27, 1992 No. 4015-1 “On the organization of insurance business in the Russian Federation”;
• Art. 936 of the Civil Code of the Russian Federation.

Example - property insurance incurred costs for compulsory insurance of the company's property in accordance with the current laws of the Russian Federation in the reporting period in the amount of 125 thousand rubles. Tariffs for insurance of this type of property are not approved at the legislative level.

Since the tariffs for compulsory insurance of company property are not approved by law, the costs incurred are allowed to be included in expenses in order to reduce income tax in full (in the amount of 125 thousand rubles).

Insurance of company property – vehicles

If a company owns vehicles, it is subject to Federal Law No. 40-FZ dated April 25, 2002, according to the instructions of which vehicle owners must insure the risks of civil liability in case of harm to life, health, or property of third parties during the operation of cars and other vehicles.

The text of the mentioned law provides a complete list of conditions put forward by the tax service in order to consider the conclusion of an insurance contract mandatory. Therefore, the costs of purchasing compulsory motor liability insurance can be included in the costs of compulsory insurance.

Civil liability insurance for the operation of hazardous facilities

There have been many cases where the Federal Tax Service refused to accept the costs of compulsory civil liability insurance for companies whose activities operate hazardous facilities. The justifications for this were as follows.

Mandatory liability insurance for damage to enterprises operating hazardous production facilities is provided for in Article 15 of Federal Law No. 116-FZ of July 21, 1997. However, according to the Federal Tax Service of the Russian Federation, this legislative act does not meet the requirements mentioned above. In particular, insurers do not have licenses that would be issued specifically for the provision of civil liability insurance when using dangerous objects.

But nowadays it is possible and necessary to argue with the tax authorities. At the time when the Federal Tax Service cited the above justifications, refusing to reduce the taxable base for income tax, Federal Law No. 255-FZ of July 27, 2010, which contains a list of dangerous objects, the amount of insurance contributions and other conditions, had not yet been issued. concluding a compulsory insurance contract.

After this law came into force, the tax service lost its grounds for refusing to reduce the tax base for income tax. Moreover, the Letter of the Ministry of Finance of the Russian Federation dated January 18, 2016 No. 03-03-06/1/1119 states that the costs of compulsory insurance can be taken into account as part of the company’s expenses for tax accounting purposes if we are talking about civil liability insurance owner of a dangerous facility for causing damage to the property of third parties, health and life of citizens due to an accident at this facility.

Example – insurance of company property related to hazardous objects

SEC "Master Farmer" owns warehouses intended for storing raw materials. These warehouses, in accordance with the current laws of the Russian Federation, were classified as hazardous facilities. The company had to enter into a compulsory civil liability insurance agreement and incur costs in the amount of 60 thousand rubles.

In accordance with sub. "g" clause 1 art. 6 of Federal Law No. 255-FZ of July 27, 2010, the insured amount under a compulsory insurance agreement for other dangerous objects is 10 million rubles.

At the same time, the base rate of insurance tariffs (annual) (as a percentage of the insured amount) for raw materials warehouses (line 7.10) is 0.285 - according to the Directives of the Bank of Russia dated December 19, 2016 No. 4234-U.

The insurance rate coefficient for this enterprise is 1.

Let's calculate the approved tariff: 10,000,000 rub. x 0.285% = 28,500 rubles.

It is 28,500 rubles that will be accepted by the tax service in order to reduce the tax base for the company’s income tax. And the difference between the actual expenses of the SEC “Master Farmer” and the approved tariff will not be accepted for profit tax purposes: 60,000 rubles. – 28,500 rub. = 31,500 rubles.

Insurance in cargo transportation

Insurance is a civilized and normal practice of relations between the insurer and the policyholder, which makes it possible to manage risks, or more precisely, the consequences of the occurrence of risks. Road freight transportation is no exception in this regard. Any motor carrier is required to enter into at least one insurance contract - compulsory motor liability insurance. This transaction is binding by law. But the domestic insurance market, of course, is not limited only to OSAGO or CASCO. For cargo owners, forwarders and carriers, there are other types of risk insurance in case something happens to the cargo. Despite the fact that there are about a dozen types of insurance contracts in cargo transportation, this article will highlight three types: a cargo insurance contract, a forwarder liability insurance contract, and a carrier liability insurance contract.

Terminology.

A short section intended to succinctly explain the terms used in the article. There will be no long and boring interpretations here that pretend to be comprehensive and encyclopedic.

The policyholder is the one who insures his risk. Insurer is an insurance company. Insurance premium is the money paid for insurance. Insurance payment is money paid by an insurance company upon the occurrence of an insured event. Excess is the part of the loss that is not covered by insurance.

Cargo insurance contract.

Most often, such an agreement is concluded between the insurer and the cargo owner, who has decided to reduce the risk of loss or damage to the cargo during transportation. However, nothing prohibits a carrier or forwarder from concluding this type of contract. This type of contract has the following features:

• insurance of each shipment of cargo sent;
• determining the amount of the insurance premium based on the value and nature of the cargo;
• availability of an unconditional franchise;

Among insurance contracts, this contract provides the best protection for the cargo owner in the event of loss or damage to the cargo.

The insurer has the right to inspect and evaluate (including with the involvement of an expert) the cargo.

This type of contract is characterized by one feature related to the declaration of the value of the cargo (insurance value). According to Art. 947 of the Civil Code of the Russian Federation, the insurance amount (the amount payable upon the occurrence of an insured event) should not exceed the actual value of the insured property.

Let's look at an example. Let's say the cargo owner insures a shipped batch of sweets, the actual (insurance) value of which is 100 thousand rubles. In this case, the contract sets the insurance amount at 50 thousand rubles. An insured event occurs and the insurer becomes aware of the actual cost of the batch of sweets. In this case, he compensates the cargo owner not 50 thousand rubles, as it might seem at first glance, but 25 thousand rubles, as stated in Art. 949 Civil Code of the Russian Federation:

“If in a property or business risk insurance contract the insured amount is set below the insured value, the insurer, upon the occurrence of an insured event, is obliged to compensate the insured (beneficiary) for part of the losses incurred by the latter in proportion to the ratio of the insured amount to the insured value.

The contract may provide for a higher amount of insurance compensation, but not higher than the insured value.”

Forwarder liability insurance.

Such an agreement is concluded for the purpose of transferring the risks of the forwarder to the insurance company. These contracts are very specific and not every lawyer can adequately analyze them and point out to the forwarder the risk factors of a particular contract. Often in such contracts the wording “against all risks” is used, however, this does not mean that the insurance company will happily and with a smile pay compensation for any reason. The risk of cargo damage due to temperature violations (refrigerator risk or refrigerated risk), as well as the risk of cargo loss due to fraud, are almost always an option for this type of insurance contracts.

A number of conditions of forwarder liability insurance contracts are conditionally feasible. For example, in almost every such agreement the insured undertakes to organize transportation by transport no older than 10 years or to make rest stops for the crew only in guarded parking lots. Formally, these conditions are not impossible, however, which of the forwarders in practice checks the year of manufacture of the car and trailer when concluding a request for transportation or can oblige the carrier to stop only at guarded parking lots?

Carrier liability insurance.

Such an agreement is somewhat similar to a forwarder's risk insurance agreement, but its effect extends to the transportation of goods performed by specific vehicles (the link can be both to the state registration plates and to the owner of the vehicle). As with forwarder liability insurance, insurance for certain types of risk is an option.

This type of insurance is quite useful for carriers, especially those transporting perishable goods that do not allow prolonged exposure to temperature (ice cream, dumplings, etc.). Almost all insurers, when insuring refrigeration risks, require a working thermal recorder, the installation of which is not a big problem, and the installation price cannot be compared with possible losses.

Insurance of other risks under a contract of carriage or transport expedition.

From March 18, 2021, carriers and forwarders have the opportunity to insure their risks associated with non-fulfillment or improper fulfillment of contracts. The fact is that, according to Art. 932 of the Civil Code of the Russian Federation, insurance of the risk of liability for breach of contract is allowed only in cases provided for by law. By virtue of Part 2 of Art. 168 of the Civil Code of the Russian Federation, an agreement concluded in violation of the law is an invalid transaction and does not create obligations for its parties.

The Supreme Court of the Russian Federation, in its Review of judicial practice on disputes related to contracts for the carriage of goods and transport expeditions, noted that such contracts are widespread in international practice, do not violate the rights of third parties and are provided for by Russian laws governing air and sea transportation of goods. In addition, the Supreme Court noted that the refusal to pay insurance compensation on this basis constitutes dishonest behavior of the insurer, which, in accordance with Part 5 of Art. 166, entails derogation of the legal significance of the statement about the completion of an invalid transaction.

Federal Law No. 59-FZ of March 18, 2020 added clause 19 to Article 34 of the Motor Transport Charter, and clause 4.1 was added to Article 3 of the Federal Law “On Freight Forwarding Activities”, allowing carriers and forwarders to insure the risks of liability to counterparties for violation of the terms of the contract.

Considering the strong legal lobby of insurers, we can count on a decrease in the number of satisfied claims for recovery from carriers and forwarders of losses caused by delays in unloading under supply contracts, when the shipper (supplier) pays the buyer a fine, calculated as a percentage of the price of the consignment of goods, and then recovers the payment fine from the transport company.

Insurance rules.

After concluding an agreement with the insurer, the policyholder usually receives an insurance policy (beautiful and colorful) and an insurance contract. However, you should know that in addition to these two documents, the insurance rules adopted by the insurance company also influence the legal relationship of the insurance contract. Be sure to request a certified copy of these rules before concluding a contract, so that if an insured event occurs, you have an official document that you can refer to in a dispute with the insurer.

The insurance contract takes precedence over the insurance rules, that is, the rules apply in all cases where the contract does not provide otherwise (Article 943 of the Civil Code of the Russian Federation). For example, the rules may establish that when insuring refrigerated risk, the age of the refrigeration unit should not exceed 10 years, and the contract may set this age at 15 years. In this case, if a dispute arises, in most cases the age of the refrigeration unit from the contract will apply (15 years).

You should read the rules, as well as the insurance contract, very carefully, preferably with the assistance of an experienced and qualified lawyer who will point out all the subtle points of such a contract. As a result, you will get a clear understanding of whether you need such insurance, or whether paying the insurance premium will be a waste of money.

Beneficiary.

When concluding an insurance contract or upon the occurrence of an insured event, the policyholder may indicate as the person who will receive the insurance compensation a third party - the beneficiary (Article 939 of the Civil Code of the Russian Federation).

In this case, the beneficiary is not a party to the insurance contract. The insurer has the right to demand that the beneficiary perform the actions provided for in the insurance contract if they were not performed by the insured (provide a certain package of documents, provide access to a specialist to the damaged cargo, etc.). This rule is an exception to the general rule, which establishes the absence of obligations for persons not participating in this obligation (Part 3 of Article 308 of the Civil Code of the Russian Federation).

Subrogation.

The law provides for the right of the insurer to demand from the person responsible for the losses caused to reimburse the insurance compensation paid (Article 965 of the Civil Code of the Russian Federation). In fact, subrogation is a form of recourse claim. The right to subrogation may be limited solely by the contract or insurance rules, and this must be clearly indicated in the text of these documents. If this instruction is not available, the insurer is granted this right on the basis of law.

An insurance company is not a charity. Having paid the insurance compensation to her client, she will go to the responsible person (not necessarily the culprit) and demand that he compensate for the loss caused. For example, if a freight forwarder entered into an insurance contract and received compensation after the occurrence of an insured event, the insurer will contact the carrier with whom the freight forwarder entered into an agreement and demand payment of the amount that it paid to the freight forwarder.

There is an important note to this example. For example, a freight forwarder and a carrier have a long-standing relationship that they plan to maintain in the future. To do this, after the occurrence of an insured event, they enter into an agreement that the forwarder waives any claims for compensation for damage caused. The insurance company approaches the carrier with a subrogation claim, and in response receives a copy of the no-claims agreement. In this case, the insurance company has the right to demand that the forwarder return the insurance compensation (Part 4 of Article 965 of the Civil Code of the Russian Federation).

If you have an unpleasant situation and the counterparty asks you to provide information, documents or letters to receive insurance compensation, you should think twice. In any case, you will have to compensate for the damage caused (only if you have not insured your risks and your case is not recognized by your insurer as falling under the definition of insurance), the only question is to whom. Courts usually assume that the insurance company does not make unreasonable payments, so in a dispute with the insurance company you have less chance of getting a decision in your favor than in a dispute with your counterparty.

Cargo insurance by the carrier or forwarder.

It would seem, why should a carrier or forwarder enter into a liability insurance agreement with many exceptions and nuances, if you can simply insure the cargo and be calm about it? But it's not that simple.

Parts 1 and 2 of Article 930 of the Civil Code of the Russian Federation state that property can be insured under an insurance contract in favor of a person (the policyholder or beneficiary) who has an interest in preserving this property based on law, another legal act or contract. A property insurance contract concluded when the policyholder or beneficiary has no interest in preserving the insured property is invalid.

Parts 4 and 5 of Article 4 of the Law of the Russian Federation of November 27, 1992 No. 4015-1 “On the organization of insurance business in the Russian Federation” separate property insurance and business risk insurance.

The objects of property insurance may be property interests associated with the risk of loss (destruction), shortage or damage to property.

The objects of business risk insurance may be property interests associated with the risk of losses from business activities due to violation of their obligations by the entrepreneur's counterparties or changes in the conditions of this activity due to circumstances beyond the entrepreneur's control, including the risk of not receiving expected income.

Since the carrier or forwarder does not have a direct interest in the safety of property, however, there is an interest in eliminating (partially or completely) liability for damage, damage or loss of cargo accepted for transportation, they cannot insure the cargo directly, since this not in their interest.

Paragraph 11 of the Plenum of the Supreme Court of the Russian Federation dated June 27, 2013 No. 20 established that the interest in preserving property under a voluntary insurance agreement is to preserve it from the negative consequences provided for by the insured event. In the same paragraph, the Supreme Court of the Russian Federation determined that if the insurer disputes the validity of the voluntary property insurance contract concluded by him due to the lack of interest of the insured (beneficiary) in preserving the insured property (clause 2 of Article 930 of the Civil Code of the Russian Federation), the burden of proving the lack of interest of the person in whose favor the insurance contract is concluded rests with the insurer.

A similar position is expressed in the Resolution of the Presidium of the Supreme Arbitration Court dated May 14, 2013 No. 16805/12.

FAQ (frequently asked questions).

This section will provide answers to frequently asked questions regarding cargo insurance and freight forwarder and carrier liability.

Q. Should the cargo owner, freight forwarder or carrier insure high-value cargo?

A. It shouldn't. Compulsion to conclude contracts is not allowed (Article 421 of the Civil Code of the Russian Federation). If a cargo owner, forwarder or carrier wishes to insure the cargo or their liability, they can only do so voluntarily.

Q. If the cargo and/or the forwarder's liability were insured, is it acceptable not to contact the insurance company for compensation?

A. Acceptable. The cargo owner or forwarder has the right to apply to both the insurance company and its counterparty for compensation for damage caused.

Q. Does carrier or forwarder liability insurance cover the risk of damage to objects on the shipper's or consignee's premises?

A. Only if this is expressly provided for in the contract or insurance rules. But standard insurance contracts do not cover such risks.

Q. If I paid part of the insurance premium, but then decided not to enter into an insurance contract. Is it possible to return part of the paid insurance premium?

A. No, unless this is expressly provided for in the insurance contract (paragraph 2, part 3, article 958 of the Civil Code of the Russian Federation). At the same time, the right to pay the insurance premium in several payments is provided for by law (Part 3 of Article 954 of the Civil Code of the Russian Federation).

Voluntary insurance of company property

Article 263 of the Tax Code of the Russian Federation provides a complete list of costs that are allowed to be classified as expenses for voluntary insurance of company property. Such costs should be included in other expenses in order to reduce the tax base for income tax (in the amount of actual expenses incurred). It is worth paying attention to the following Letters from the Ministry of Finance and the Tax Service:

1. Letter of the Ministry of Finance of the Russian Federation dated December 8, 2017 No. 03-03-06/1/81913 (it states that insurance costs are allowed to be classified as expenses in order to reduce income tax if insurance of financial and business risks is a prerequisite for the implementation of company of economic activity provided for by the current laws of the Russian Federation).
2. Letter of the Federal Tax Service of the Russian Federation dated October 15, 2009 No. 3-2-09/ [email protected] (the text of the letter states that if the customer (authorized body) put forward a requirement to ensure the execution of a municipal/state contract, then insurance contributions under the liability insurance contract under the contract can be taken into account when calculating income tax on the basis of sub-clause 10, clause 1 of Article 263 of the Tax Code of the Russian Federation. But there is a condition - this type of security for the execution of the contract should not be excluded by the tender documentation).

Important! If the type of insurance is not included in the list of the Tax Code of the Russian Federation, it is not permissible to accept costs for tax accounting purposes.

Insurance of company property - reflection of expenses in tax accounting

According to paragraph 6 of Art. 272 Tax Code of the Russian Federation:

• under the terms of the insurance contract (non-state pension provision), insurance (pension) contributions are made as a one-time payment;
• For contracts concluded for a period of more than 1 reporting period, costs are recognized evenly over the term of the contract in proportion to the number of calendar days of the contract in the reporting period.

The reporting periods for income tax are:

• first quarter;
• half year;
• nine months of the calendar year.

Accordingly, any period that turns out to be more than 3 months (quarter) goes beyond one reporting period. This means that the taxpayer has an obligation to take into account the costs incurred in proportion to the number of calendar days of the agreement in the reporting period.

Often, insurance companies allow clients to pay for services in installments - and then the costs for each insurance payment will be recognized evenly over the period corresponding to the period for payment of premiums (month, quarter, half-year, year), in proportion to the number of calendar days of the contract in the reporting period. It is important that the contract with the insurer clearly states the period for which insurance premiums are paid. If the insurance premium is paid in installments, and the period for which this payment is made is not specified, this contribution can be taken into account at the end of each reporting period based on the number of calendar days in such reporting period and the corresponding part of the insurance premium. See Letter of the Ministry of Finance of the Russian Federation dated April 13, 2018 No. 03-03-06/1/24595.

Existing subtleties

Any cargo owner who is not familiar with the intricacies of the Federal legislation in force in Russia may make mistakes when insuring it, which will entail additional financial costs.

To smoothly bypass existing pitfalls, you must perform the following steps:

• approach the choice of a transport company that will transport the cargo with great responsibility;
• carefully read all the documents proposed for signature, especially understand in detail the points written in small print (if any);
• choose an insurance company that will enjoy the respect and trust of clients (it wouldn’t hurt to monitor the Internet and ask what reviews the selected insurer has);
• check the availability of registration documents from the insurer;
• when drawing up the contract, include all possible insured events that, in the opinion of the shipper, may happen to his goods;
• familiarize yourself with all proposed insurance policies and rates;
• pay the insurance premium through any bank branch, where the payer will be given a corresponding receipt.

Very often, when concluding contracts between insurers and cargo owners, no misunderstandings arise, since the parties very quickly find a compromise on any controversial issue.

Troubles begin when an insured event occurs, since not every insurance company has the desire to voluntarily part with its funds.

In such situations, cargo owners must act in accordance with Russian legislation and strictly comply with the terms of the insurance contract:

• after the occurrence of an insured event, the shipper must urgently notify the insured of the accomplished fact;
• draw up a paper application and submit it to the insurer;
• together with the application, submit the policy to the insurance company;
• ensure that a representative of the insurance company visits the scene of the incident within 3 working days and records the damage or theft of the cargo on the spot;
• ensure that all documents are drawn up correctly, without corrections;
• present your claims to the insurer (if problems arise, you should not waste time, but rather contact a lawyer to obtain legal assistance and coordinate further actions).

The insurer is obliged to prepare an appropriate report within 5 working days indicating damage to the cargo. After handing over this document to the owner of the cargo, the insurer can begin paying the money.

Answers to common questions about company property insurance

Question No. 1: Are there any plans in the near future to expand the list of cases in which it is necessary to conclude compulsory insurance contracts?

Answer: Yes, the Russian Government is considering options such as compulsory insurance or issuing a financial guarantee in case of information leakage. In addition, the possibility of insuring workers against job loss is being discussed.

Question No. 2: Is it possible to estimate the costs of paying insurance contributions for compulsory pension insurance, social insurance in case of temporary disability and in connection with maternity in relation to Article 263 of the Tax Code of the Russian Federation?

Answer: This makes no sense, since the costs you mentioned are already taken into account in order to reduce the tax base for income tax on an independent basis. See Letter of the Ministry of Finance of the Russian Federation dated June 14, 2016 No. 03-03-06/1/34409, sub. 1, 45 p. 1 art. 264 Tax Code of the Russian Federation.

Question No. 3: What to do if tariffs for compulsory insurance are not approved?

Answer: In this case, compulsory insurance costs should be included in expenses in the amount of actual costs incurred.

Paid the insurance premium

The cost of the policy is the insurance premium. If we are talking about compulsory insurance, then the tariffs are determined by the state. But the parties agree among themselves on the cost of voluntary insurance.

In accounting, calculations for car insurance (both compulsory and voluntary) must be carried out in a separate subaccount “Calculations for property and personal insurance” of account 76. On this subaccount, keep analytical records depending on the types of insurance.

On the date of payment of the insurance premium, record the advance payment. Insurance costs are recognized in accounting from the date the insurance contract comes into force. If such a date is not provided for in the contract, then it is considered to have entered into force at the time of payment of the insurance premium (Article 957 of the Civil Code of the Russian Federation).

As a rule, an insurance contract is concluded for a period exceeding one month. In this case, write off the insurance premium as expenses on a monthly basis in proportion to the duration of the contract. The term of the insurance contract does not exceed one month? Then include the insurance premium as part of the costs in the month when the insurance contract came into force.

It happens that the insurance contract is not valid from the first day of the month. In this situation, calculate the amount of expenses to be written off in proportion to the number of remaining days of the month.

Income tax

For income tax purposes, expenses for property and liability insurance are other (Article 263 of the Tax Code of the Russian Federation). Expenses for compulsory insurance can be written off strictly within the limits of tariffs approved by the state.

A special situation with voluntary property insurance. It is allowed to take into account only expenses for those types of insurance that are provided for in paragraph 1 of Article 263 of the Tax Code of the Russian Federation. For example, this is voluntary insurance of transport, cargo, fixed assets, inventory items, etc. Payments for voluntary insurance policies should be taken into account when calculating income tax as part of other expenses. And in full.

How to write off an insurance premium in tax accounting

Example A company bought a car. Before picking up the car from the showroom, we paid by payment order for an annual (from April 28, 2015 to April 27, 2021) OSAGO policy in the amount of RUB 13,680. In addition, we decided to conclude an insurance contract against damage and theft also for the period from April 28, 2015 to April 27, 2021. The insurance premium under the CASCO contract is 90,000 rubles. - transferred in non-cash form. Both insurances were paid at once on April 28.

On this day, the accountant made the following entries: DEBIT 76 subaccount “Expenses under MTPL agreements” CREDIT 51 – 13,680 rubles. – the insurance premium under the MTPL agreement is transferred;

DEBIT 76 subaccount “Expenses under CASCO agreements” CREDIT 51 – 90,000 rub. – the insurance premium under the CASCO agreement is transferred.

Then, on April 30, the accountant made the following entries: DEBIT 26 CREDIT 76 subaccount “Expenses under MTPL agreements” – 112.44 rubles. (RUB 13,680: 365 days x 3 days) – the cost of the insurance premium under the MTPL agreement for April 2015 was expensed;

DEBIT 26 CREDIT 76 subaccount “Expenses under CASCO agreements” – 739.73 rubles. (RUB 90,000: 365 days x 3 days) – the cost of the insurance premium under the CASCO agreement for April 2015 was expensed.

The company calculates income tax on a monthly basis based on the actual profit received. Therefore, the accountant took into account the same amounts in April expenses as in accounting.

The accountant will make similar entries at the end of each month while the insurance contract is valid. That is, May 31, June 30, etc. Only you need to take into account not 3 days, but the number of days in the corresponding month. For example, for May it is 31 days, and for June it is 30 days. But in April 2021 there are only 27 days to count. After all, on April 27, the contracts end.

If the company has entered into a voluntary motor liability insurance agreement, reflect the expenses in the accounting records as usual. That is, in a separate subaccount of account 76. But when calculating income tax, it is impossible to take into account the costs of voluntary motor third party liability insurance.

According to inspectors, such costs do not reduce the income tax base. After all, the costs of voluntary liability insurance are taken into account when calculating income tax if the condition for such insurance is dictated by international requirements and is necessary for the organization to conduct business (subclauses 8 and 10 of clause 1 of Article 263 of the Tax Code of the Russian Federation). For example, if an organization cannot use a company car on the territory of a foreign state without concluding a voluntary motor liability insurance agreement. In other cases, the costs of voluntary liability insurance are considered economically unjustified.

Due to differences in accounting and tax treatment of voluntary insurance costs, a constant difference arises. It is necessary to calculate the permanent tax liability from it (clauses 4 and 7 of PBU 18/02).

“Unified” tax on the simplified tax system

If an organization pays a simplified tax on income, then the cost of property insurance will not affect its tax obligations in any way. Companies that have chosen the “income minus expenses” object can only take into account the costs of purchasing compulsory property and liability insurance policies (subclause 7, clause 1, article 346.16 of the Tax Code of the Russian Federation). This must be done as insurance premiums are paid in full. But the costs of voluntary insurance do not reduce the tax base for the simplified tax - they are not included in the closed list from paragraph 1 of Article 346.16 of the Tax Code of the Russian Federation.

Errors in cargo insurance that lead to denial of insurance compensation

Insurance is, in simple terms, something like a bet. The insurance company is betting that nothing will happen to your cargo, but you are betting on the contrary. Of course, any agency is interested in including in the contract such risks, the probability of which is very low, and keeping the profit in the form of your contribution. Also, they will not compensate for losses from troubles caused by your fault. Therefore, be careful when concluding an agreement and try to avoid mistakes such as:

1. Unaccounted for insurance situations - think carefully about which accidents most threaten your cargo en route. When transporting internationally, study the current state of affairs within the countries that the vehicle will cross, their customs legislation, etc.
2. Late Incident Notification – The agreement specifies the time within which you must report the incident described in the agreement. If you do not do this, the other party will be released from its obligations.
3. Late registration of insurance - remember that it takes time to collect all the necessary papers, otherwise you simply will not have time to protect your cargo before shipment.
4. Incorrect information about the cargo - inconsistencies in weight, names, description, etc. can be the reason for non-recognition of an insured event.
5. Deviation from the approved path - you cannot spontaneously and unreasonably deviate from the intended road without warning the insurance company, because this will void all agreements.
6. Traveling with faulty equipment - if, when considering an insured event, it turns out that an unreliable car was sent on the trip, and this led to an accident, damage to cargo, etc., there will be no payment.
7. Incorrect packaging - before sending, check the quality of the packaging: boxes, containers, pallets, films, as well as the correct placement. Otherwise, the insurance company classifies the losses as caused by your negligence.