This transaction set communicates cargo insurance information related to a shipment from an insurance provider or freight forwarder to the shipper, consignee, or other relevant parties. It is typically sent following shipment initiation to confirm that insurance coverage has been arranged and to provide details about the protected cargo. The transmission begins with the ST (Transaction Set Header) and BGN (Beginning Segment) to establish the message context, followed by a CUR (Currency) segment specifying the currency of all monetary amounts, and REF (Reference Identification) segments that link the insurance advice to relevant shipment or policy references. The N1 (Name) segment identifies parties involved in the transaction, such as the insurance carrier or the party responsible for the shipment.

For example, Global Logistics Inc. receives a shipment of electronics from ManuTech Corporation bound for RetailCorp’s warehouse in Singapore. Global Logistics arranges cargo insurance through SafeShip Insurance and sends an X12 362 message to both parties. The message includes an L5 segment describing the cargo contents and marks, V1 segment identifying the vessel carrying the shipment, R4 segments for the port of origin and destination, and nested AMT segments showing the insured value in USD and the premium amount. Multiple REF segments within the L5 loop cross-reference the bill of lading number and insurance policy number, while DTP segments timestamp when coverage begins and when the shipment is expected to arrive. This documentation ensures all parties confirm that the cargo is properly insured before goods leave the warehouse.