Theft / Pilferage

Theft/Pilferage is an additional risk in international trade cargo transportation insurance, covering losses caused by theft or pilferage of goods during transit. Theft refers to the stealing of entire goods, while Pilferage refers to the stealing of part of the goods within the packaging. This term is commonly used when insuring against All Risks or adding Theft, Pilferage and Non-Delivery (TPND). Usage scenario: When goods are damaged due to third-party theft at ports, warehouses, or on transport vehicles, the insured can claim compensation from the insurance company. Note: Theft insurance does not cover losses caused by short shipment by the shipper, natural loss, or non-delivery of entire goods (which requires separate TPND coverage); when claiming, documents such as police report and carrier's accident certificate are required. The difference from 'Non-Delivery' is that theft emphasizes secret stealing of goods, while non-delivery means goods cannot be delivered after arriving at destination, which may be caused by various reasons and not necessarily theft. Foreign trade practitioners should clearly specify insurance coverage in contracts and retain relevant evidence.