第四章 货物运输保险

1、Chapter FourCargo Transportation Insurance12/15/20211Section 1Brief Introduction of Cargo Transportation Insurance12/15/202121. Functions of Cargo Transportation Insurance(1) Risks TransferInsurance is a risk transfer mechanisms, whereby the individual or the business enterprises can shift some of t

2、he uncertainty of life onto the shoulders of others.(2) Risk SpreadingBase on the principle that the fortunate helps the unfortunate, the industry of insurance has been developed to overcome these financial losses.(3) IndemnityThis concept is concerned with the value of compensation.12/15/202132. Th

3、e Basic Factors of Cargo Transportation Insurance(1) Insured(2) Insurer (Underwriter)(3) Subject of Insurance(4) Insurance Policy(5) Conditions(6) Insured Amount(7) Insurance Premium(8) Insurance Claim12/15/20214Section 2The Content of Cargo Transportation Insurance12/15/202151. The Classification o

4、f RisksRisksNatural CalanitiesFortuitous AccidentsSpecial Extraneous RisksCommon Extraneous RisksPerils of SeaExtraneous Risks12/15/20216(1) Perils of the SeaPerils of the sea are those caused by natural calamities and fortuitous.i. Natural calamitiesii. Fortuitous Accidents(2) Extraneous Risks Gene

5、ral extraneous risks include: theft or pilferage, rain, shortage, contamination, leakage, breakage, taint of odor, dampness, heating, rusting, hooking, etc. Special extraneous risks include: war risks, strikes, non-delivery of cargo, refusal to receive cargo, etc.12/15/202172. Losses LossesActual To

6、tal lossConstructive Total LossGeneral AverageParticular AverageTotal LossPartial Loss12/15/20218(1) Total LossTotal loss refers to the loss of the entire shipment caused by the occurrence of one of the perils of the sea, fire, or some other reasons.i. Actual total lossii. Constructive total loss(2)

7、 Partial LossPartial loss means the total loss of part of the insured cargo.i. General Averageii. Particular Average12/15/202193. ExpensesTransportation insurance not only insures the losses caused by risks but also the losses of expenses. The main expenses include:i. Sue and labor expensesii. Salva

8、ge charges12/15/202110Section 3Marine Insurance Coverage and Clauses12/15/2021111. Basic Coverage(1) FPA (Free from Particular Average)The FPA policy provides coverage for total losses and general average emerging from actual “marine perils”.(2) WPA (With Particular Average)This insurance covers wid

9、er than FPA.(3) All RisksBesides the risks covered by FPA and WPA, All Risks also provides cover against some extraneous risks of loss or damage.12/15/2021122. Additional Risks(1) General Additional Risksi. Theft, pilferage and/or non-delivery clauseii. Fresh water and/or rain damage clauseiii. Shor

10、tage clauseiv. Intermixture and contamination clausev. Leakage clausevi. Clash and breakage clausevii. Taint of odor clauseviii. Sweat and heating clauseix. Hooks damage clausex. Breakage of packing clausexi. Rust clause(2) Special Additional Risks12/15/2021133. Special Coverage(1) Ocean Marine Insu

11、rance Clause on Frozen ProductsIt is classified into two kinds, that are Frozen Risk and Frozen All Risk.(2) Ocean Marine Insurance Clause on Wood Oil BulkIt is established especially for the wood oil bulk, so that it could be covered independently.12/15/2021144. The Duration of Ocean Marine Insuran

12、ce(1) The Duration of Basic Coverage(2) The Duration of War Risk(3) The Duration of Strike Risk(4) Marine Cargo Extension Clause(5) The Duration of Special Coverage12/15/202115Section 4London Insurance Institute Clause12/15/2021161. The Classification of Institute Cargo Clause (ICC) Institute Cargo

13、Cause A. Institute Cargo Cause B. Institute Cargo Cause C. Institute War Clause-Cargo. Institute Strike Clause-Cargo. Malicious Damage Clause.12/15/2021172. Institute Cargo Clause and Exclusions(1) ICC(A)i. Exclusionsii. Exclusions of Unseaworthiness and unfitness of the carrying vessel or lighter,

14、including the containersiii. Exclusions of Wariv. Exclusions of Strike(2) ICC(B)(3) ICC (C)12/15/202118Section 5Insurance of Land, Air and Postal Transportation12/15/2021191. Insurance of LandA high volume of business is now conveyed by rail and road. It is essential that adequate cover be obtained

15、for the land carriage. Again, the insurance broker or trade association can give valuable advice. Insurance coverage for land transportation can be divided into two categories: Land Transportation Risk, almost equivalent to WPA, and All Risks for land transportation, almost equivalent to Marine All

16、Risks.12/15/2021202. Insurance of AirBy the nature of air movements, short transit times, lighter packing required, quick clearance at destination points and, in most places, stricter theft-pilferage control, a significant number of export dispatches are sent by air these days. While an air disaster

17、 is spectacular and concentrates the public attention exceptionally, it is true that air traffic is one of the safest methods of moving goods.There are also two types of coverage: Air transportation risk and air transportation All Risks.12/15/2021213. Insurance of Postal TransportationParcel post in

18、surance covers the losses of or damage to the parcels caused by natural calamities, fortuitous accidents or external risks. It includes Parcel Post Risk and parcel post All Risks. On the basis of these two basic coverages, some additional risks may be added if circumstances require.12/15/202122Secti

19、on 6Insurance Clauses in Sales Contract12/15/2021231. Examples of Insurance Clauses in Sales ContractIn FOB, CFR or FCA, CPT contract, the insurance clause may simply be stipulated as: “Insurance: To be covered by the buyer.”In CIF or CIP contract, the clause should make it clear as to who is respon

20、sible for effecting insurance, the risks covered, the methods of ascertaining the insurance amount, and the insurance clauses adopted.12/15/2021242. Points for Attentioni. Make clear by which way to cover the cargo, ICC Clause or CIC Clauseii. Make clear the insured coverage, WPA, FPA or All Risks,

21、as well as the Additional Riskiii. Make clear who is the insurediv. Make clear the insurance amountv. Make clear the validity of insurance clausevi. The date of policy can not be later than the date of Bill of Ladingvii. Keep the currency of policy same as that of invoice in order to avoid the risk

22、of foreign exchangeviii. Pay attention to trade terms in sales contract as well as the ship-age12/15/202125Section 7Practice on Marine Cargo Insurance12/15/2021261. Choosing the Right CoverageThe clear distinction among the clauses FPA, WPA and All Risks is of great practical significance.Products s

23、hould be insured in the appropriate category.A good rule of thumb is that an exporter should insure for the coverage accepted in his particular trade.12/15/2021272. Insurance Premium(1) Insurance AmountIf the CIF or the CIP value cannot be determined, the minimum amount of insurance coverage would be 110% of the amount requested under the L/C for payment, acceptance or negotiation, or 110% of the amount of the invoice, whichever is the greater.(2) Insurance PremiumInsurance amountCIF(CIP) price(1percentage of addition)Premiuminsurance amountpremium rate12/15/2021283. Insurance PolicyIns