2026 update: railway transport insurance is a voluntary type of insurance and protects the property interests of the owner or user of rolling stock within the risks stated in the contract. Insurance of wagons and locomotives, of cargo and of liability are different types of cover; the sum insured, territory, deductible, exclusions and inspection procedure must be agreed separately.
Railway transport insurance
Railway transport insurance, or railway wagon insurance, applies to railway rolling stock that is owned, rented or leased. Despite the low statistics of losses and accidents involving railway transport, railway transport insurance is one of the most popular types. Almost all railway companies take out this type of insurance because wagons are expensive and restoring them takes considerable time and money, and sometimes it is practically impossible to restore railway rolling stock after an accident.
Who needs railway transport insurance
- owners and operators of rolling stock who lease wagons or carry clients' cargo;
- industrial enterprises with their own fleet of wagons and tank cars on siding tracks;
- lessees and tenants — leasing and rental contracts often expressly require wagons to be insured;
- companies that raise credit secured by rolling stock.
For the owner of a large fleet, losing even a few units means not only the cost of repair or replacement, but also downtime, disrupted transport schedules and client claims. Insurance turns these unpredictable costs into a clear annual premium.
What is accepted for railway transport insurance
Non-self-propelled towed vehicles are accepted for insurance, namely: wagons, trailers, containers, tank cars and other (non-self-propelled) means designed for carrying passengers, baggage, cargo, cargo-baggage and postal items over railway tracks.
Self-propelled rolling stock, such as locomotives, may be insured under a separate agreement with the insurer — the terms, risk assessment and inspection requirements for it are usually agreed individually.
Cover under a railway transport insurance contract
The insurance contract covers damage to or loss of railway transport equipment resulting from:
- objects falling onto the insured object;
- fire or spontaneous combustion (except short-circuiting of electrical equipment);
- a transport accident that occurred while the railway transport was moving;
- theft or hijacking of railway transport;
- a natural disaster or natural phenomenon;
- unlawful acts of third parties (except hijacking or theft).
Additional cover for railway transport insurance
You can additionally insure railway transport against the risks of damage, loss and/or destruction resulting from:
- running-in of railway transport after repair;
- training trips;
- testing of new designs, as well as other trial or demonstration trips that require special permission.
What this type of insurance does not include
A rolling stock insurance contract protects the wagons themselves. Other risks are arranged separately:
- cargo carried in the wagons — under a cargo insurance contract;
- harm caused to third parties, their property or the environment — under a liability insurance contract;
- the life and health of employees — under compulsory employee accident insurance (OSRNS) and voluntary programmes.
In addition, insurers' rules usually exclude natural wear and tear and corrosion, breakdowns caused by manufacturing defects or failure to observe the deadlines for scheduled repairs, intentional acts of the policyholder, military action and nuclear risks. The exact list must be checked in the rules and the contract.
How the sum insured is determined
The sum insured is set for each unit of rolling stock on the basis of its actual value: market, book or replacement value. For leased wagons, the lessor is usually named as the beneficiary. If the fleet is large, the insurer may accept it for insurance under a general list stating the numbers, types and values of the wagons, and new units are added by a supplementary agreement.
Price and rates for railway transport insurance
The cost of railway transport insurance is determined by analysing the risk to be insured, but in general railway insurance risks do not belong to the group of risks with a high probability of occurrence.
The rate is affected by the type and age of the rolling stock, the kind of cargo carried (especially dangerous goods), the routes and territory of operation, the loss history, the size of the deductible and the number of units in the contract.
Documents required
- an insurance application and a list of rolling stock with numbers and year of manufacture;
- documents confirming ownership, rental or leasing rights;
- technical passports and information on the last scheduled repair;
- information on routes, cargo carried and losses in previous periods.
What to do when an insured event occurs
- Take measures to reduce the damage and ensure safety at the scene.
- Notify the insurer immediately, within the period stated in the contract.
- Keep the damaged wagon until it is inspected by the insurer's representative, or agree the repair with the insurer.
- Obtain reports and documents on the incident from the competent authorities and the carrier.
- Submit to the insurer an application, documents on the value and the repair estimate.
Common mistakes
- new wagons that joined the fleet after the contract was concluded are not included in it;
- the sum insured is not reviewed when the value of the rolling stock changes;
- repair is started before the insurer's inspection;
- expecting a policy on wagons to cover damage to cargo or liability to third parties.
To choose cover for a rolling stock fleet and compare the terms of insurers, you can get a consultation from a broker.