chapter 12 cargo insurance

1、Unit 12 Cargo Insurance In international trade, goods traveling long distances to another country, out of the direct control of both the buyer and the seller, may face all kinds ofRisk, which is , exists in most business decisions and transaction. risksIntroduction：Introduction：There are all kinds o

2、f risks in international trade. Insurance is necessary as it transfers risks to the insurance company. Parties Involvedthe insured: 被保险人被保险人 the insurer/underwriter：保险人，：保险人，insurance agent保险代理人保险代理人 insurance broker保险经纪人保险经纪人Contract of InsuranceContract of Insurance A contract of insurance , which

3、 is generally made in the form of an insurance policy, is one between a party who agrees to accept the risk (the insurer) and a party seeking protection from the risk (the insured).insuredinsurerInsurance policypremium Insurance in international trade mainly refers to marine / maritime (cargo) insur

4、ance as the majority of international goods are delivered by sea. perils of sea: 海上风险 Extraneous risks 外来风险 Total Loss： 全损全损 Actual Total Loss 实际全损 Constructive Total Loss 推定全损 Partial Loss： 部分损失部分损失 average: 损失，特指海损 General Average：共同海损 Particular Average：单独海损 The Scope of Marine Insurance CoverThe

5、 Scope of Marine Insurance Cover 海洋运输保险的范围海洋运输保险的范围1. Natural calamities: 自然灾害自然灾害 They are caused by the forces resulting from the changes of nature, e.g., vile weather, thunder, lightning, tsunami, earthquake, flood, etc. 2. Fortuitous accidents: 意外事故意外事故 They include accidents resulting from unex

6、pected causes, the carrying conveyance being grounded, or in collision with floating ice or other objects, as well as fire or explosion.I. Perils of the sea I. Perils of the sea 海上风险海上风险1. Actual Total Loss: 实际全损实际全损 It means that the insured subject matter is totally and irretrievably lost.2. Const

7、ructive Total Loss: 推定全损推定全损 It is estimated that the actual total loss of cargo is inevitable or the cost of salvage or recovery could have exceed the value of the cargo. Total loss 全部损失全部损失II. Ocean losses 海上损失海上损失1.General Average: 共同海损共同海损 It refers to a certain special sacrifice and extra expen

8、se intentionally incurred for the general interests of the ship owner, the insurer, and the owners of the various cargoes abroad the ship.2.Particular Average: 单独海损单独海损 It means that a particular cargo is damaged by any cause and the degree of the damage does not reach a total loss, i.e., only a par

9、tial loss, which shall be borne by the owner of this individual consignment. Partial loss 部分损失部分损失II. Ocean losses 海上损失海上损失It includes theft, fresh and rain water damage, shortage, leakage, sweating and heating, intermixture and contamination, odor, hook damage, breakage of packing, rusting, etc.III

10、. Extraneous risks 外来风险外来风险 The contract of insurance is made in the form of an insurance policy or insurance certificate. coverage: 险别 amount insured: 投保的金额 Insurance Clause in the Sales Contract The insurance clause in the sales contract covers several aspects: the party who is to arrange the insu

11、rance, risks to be covered, the amount to be insured and so on. Who is to insure the goods? The _ is obligated to insure the goods in the case of CIF or CIP, while it is the _ who is responsible to insure the goods under FOB or CFR. but he may ask the seller to arrange insurance on behalf of the buy

12、er. sellerbuyer Risks to be covered the Institute of London Underwriters: 英国伦敦保险业者协会 The Institute Cargo Clauses (ICC): 协会货物条款 China Insurance Clause (CIC): 中国保险条款 Ocean Marine Cargo Clauses: 海洋货物运输保险条款As far as foreign trade concerned, there are various kinds of risks which can be covered under an

13、insurance policy. These risks are divided into 2 catalogues: RisksBasic Risks 基本险Additional Risks 附加险 BASIC RISKS 基本险基本险SCOPE OF COVER 承保范围Ocean Marine Cargo Insurance is basically classified into the following three conditions:Free From Particular Average (F.P.A)With Particular Average (W.P.A.) All

14、 Risk. “average”, when used for insurance has not the usual meaning. It is an anglicised translation of France word, meaning loss. Free from Particular Average平安险 Literally it means that Particular Average is excluded from indemnity.单独海损不赔 It covers Total loss or Constructive Total Loss by natural c

15、alamities自然灾害, Partial Loss on certain conditions, and expenses incurred in General Average sacrifice. With Particular Average水渍险 It covers FPA and partial loss of the insured goods caused by heavy weather 恶劣气候,lightening, tsunami 海啸,earthquake and/or flood. All Risks It covers FPA and WPA and all r

16、isks of loss of or damage to the insured goods whether partial or total, arising from external causes in transit.Additional coverage 附加险附加险 Generally additional coverage 一般附加险Specially additional coverage 特殊附加险 This kind of risk cant be covered independently; they shall be underwritten depending on

17、one kind of the basic risks. General Additional Risks 一般附加险 1.Theft, Pilferage and Non-delivery (TPND) 偷窃、提货不着险 2.Freshwater and Rain Damage 淡水雨淋险 3.Risk of Shortage 短量险 4.Risk of Intermixture and Contamination 混杂、玷污险 5.Risk of Leakage 渗漏险 6.Risk of Clashing and Breakage 碰损破碎险 7.Risk of Odor 串味险 8.D

18、amage Caused by Sweating and Heating 受潮、受热险 9.Hook damage 钩损险 10.Loss and / or Damage Caused by Breakage of Packing 包装破裂险 11.Risk of Rusting 锈损险 Special Additional Risks 特别附加险There are 8 special additional risks. 1.Failure to Deliver Risk 交货不到险 2.Import Duty Risk 进口关税险 3.On Deck Risk 舱面险 4.Rejection

19、 Risk 拒收险 5.Aflatoxin Risk 黄曲霉素险 6.War Risk 战争险 7.Strike Risk 罢工险 8.Fire Risk Extension Clause for Storage of Cargo at Destination Hong Kong, Including Kowloon, or Macao 出口货物到香港（包括九龙在内）或澳门存仓火险责任扩展条款 The amount insured The minimum amount insured should be CIF or CIP value of the goods plus 10%; addit

20、ional premium, if required, will be for buyers account. “Warehouse to Warehouse” clause仓至仓条款仓至仓条款 the responsibility of the insurer begins from the delivery of the goods from the sellers warehouse to the warehouse of the buyer at the port of destination. Examples of insurance clauses in the sales co

21、ntract Insurance: To be covered by the Seller against . (risk) according to Ocean Marine Cargo Clauses of the Peoples Insurance Company of China dated January 1, 1981. For transactions concluded on CIF bases, the insurance coverage will be for 110% of the invoice value against the risks specified in

22、 the sales confirmation. If additional coverage is required by the Buyer, the Buyer must have the consent of the Seller before shipment, and the additional premium is to be borne by the Buyer. Issues of making an insurance claim If the goods arrive in damaged condition, *written protest书面抗议 *make no

23、tations 批注，记录 short-landed memo 货差证明，短缺证明书 *retain保留 seals封箱条 tallyman 理货员，点货员 tally sheet理货单 tally company 理货公司 *claim settling agent 理赔代理人1.to insure W.P.A (F.P.A)投保水渍险（平安险） Please insure F.P.A at your end. 请在贵处投保平安险。 We generally insure W.P.A on C.I.F sales. 按CIF价出售的货物，我们一般投保水渍险。2.to insure (cove

24、r)against 投保险 Please cover the goods against War Risks. 请将货物投保战争险。 We have insured the goods against All Risks. 我们已将货物投保一切险。Sentence Patterns3.to arrange (effect, cover, take out) insurance投保 As our order was placed on a CIF basis, the insurance is to be arranged by you. 由于我方是按CIF价订货的，应由你方投保。 We wil

25、l effect insurance on your behalf. 我方愿代贵方投保。 Have you taken out insurance for us on these goods? 贵方是否已代我方对此货物投保？4. cover v. 保险， 投保 to cover insurance/to hold sth covered办理保险 We shall cover the goods against all risks.We shall cover all risks and war risk for you. This insurance policy covers us agai

26、nst breakage. Insurance is to be covered by the buyers.保险将由买方办理。 n. 保险 degree of cover/extent of cover保险范围 We have arranged the necessary insurance cover. 我们已办理了必要的保险。 coverage n. 承保范围；险别总称 insurance coverage保险范围 W.P.A. coverage is too narrow for a shipment of this nature. Please extend the coverage

27、 to include TPND. 对这种性质的货物只投保水渍险是不够的，请加保偷窃提货不着险。 5.to insurefor按金额投保 We shall insure the goods for 110% of the invoice value. 我方将按发票金额110%投保此货物 We wish you to insure the goods for the invoice value plus 10% 我方希望贵方按发票金额加10%投保。 6.to insure with向投保 We usually insure with the Peoples Insurance Company o

28、f China for the goods sold on CIF basis. 我方一般对按CIF价出售的货物向中国人民保险公司投保。 Insurance is to be effected by the sellers against All Risks for 110% of the invoice value with the Peoples Insurance Company of China. 由卖方按发票金额110%向中国人民保险公司投保一切险。Insurance _the 100 ton of wool.2. Insurance _all risks insurance _11

29、0 of the invoice value 4. insurance _ a slightly higher premium/insurance _the rate of 55. insurance _ PICConagainstforatatwithononagainston Insurance _the 100 ton of wool.2. Insurance _all risks insurance _110 of the invoice value 4. insurance _ a slightly higher premium/insurance _the rate of 55.

30、insurance _ PICCagainston Insurance _the 100 ton of wool.2. Insurance _all risks insurance _110 of the invoice value 4. insurance _ a slightly higher premium/insurance _the rate of 55. insurance _ PICCagainstoninsurance后介词的用法：1.表示所保的货物，后接 on，如： insurance on the 100 ton of wool。2. 表示投保的险别。后接 against。

31、如： Insurance against all risks 3. 表示保额。后接for 如 insurance for 110 of the invoice value 4. 表示保险费或费率， 后接at，如：insurance at a slightly higher premium，insurance at the rate of 55. 表示向某保险公司投保，后接with， 如：insurance with PICC We have covered insurance on the 100 metric tons of wool for 110%of the invoice value

32、 against all risks. 7.to compensate for 赔偿 If any damage to the goods occurs，a claim may be filed with the insurance agent at your end, who will undertake to compensate for the loss sustained. 货物如发生损坏，可向贵地的保险代理提出索赔。他们将赔偿贵方遭受的损失。 We are sorry to learn that your goods were badly damaged during transit

33、 and the insurance company will compensate you for the losses according to the coverage arranged. 我方很遗憾得知贵方货物在途中严重受损。保险公司将按照投保险别赔偿贵方损失。 8.to submit an insurance claim (= lodge the claims for) 提出保险索赔 An insurance claim should be submitted to the insurance company or its agents within 30 days after th

34、e arrival of the consignment at the port of destination. 保险索赔应在货物到达目的港30天内提交保险公司或其代理商。 Should any damage be incurred you may approach the insurance agents at your end and submit an insurance claim supported by a survey report. 如果货物发生损坏，贵方可凭检验报告与贵处保险代理联系并提出保险索赔。9. be borne by/ for ones account 由由承担、支

35、付承担、支付 We can cover other additional risks, but the extra premium will be for the buyers account. 我们可以投保其他附加险，但是额外的保险费应由买方承担。 Risks other than All Risks and War Risk can be covered, if the insurance company accepts, and then the extra premium should be borne by the buyer. 如果保险公司同意并且额外的保险费由买方支付，除一切险和

36、战争险以外的其它险别也可投保。 Specimen Letter Dear Sirs Thank you for your letter of June 28, in which you inquired about the insurance of your Order No. 447. Generally speaking, if goods are sold on CIF basis, as it is in your case, we insure goods against All Risks for 110% of the invoice value. Should the buye

37、r require broader coverage, the extra premium is for buyers account. We would like to inform you that there are three principal perils under the Ocean Marine Cargo Clauses of the Peoples Insurance Company of China dated January 1, 1981: FPA (Free from Particular Average), WA or WPA (With Average or

38、With Particular Average), and A/R (All Risks). A/R is the broadest form of coverage, which covers all risks of loss of or damage to the insured goods whether partial or total, arising from external causes in transit. The insurance terminates when the goods reach the consignees warehouse at the desti

39、nation named in the policy. It is limited, however, to sixty days after completion of discharge of the insured goods from the seagoing vessel at the final port of discharge before they reach the above-mentioned warehouse or place of storage. PICC enjoys high reputation in settling claims promptly an

40、d equitably. It has agents in almost all major cities and ports all over the world to handle claims. It will be very convenient to file claims against the loss of or damage to the goods with the insurance agent at your end. In case of the claim, the insured is required to submit the following docume

41、nts: *Original Policy or Certificate of Insurance *Original or copy of B/L *Packing List and Invoice *Certificate of Loss / Damage, or Short-landed Memo, and Survey Report *Statement of Claims Please feel free to contact us again if you have any further questions or you may contact the agent of PICC

42、 at your end at (phone number, followed by the address). Yours faithfully Explanation： A. Generally speaking, if goods are sold on CIF basis, as it is in your case, we insure goods against All Risks for 110% of the invoice value. 1.insure：vt. 保险，投保 insure goods against (risk) for 110% of the invoice

43、 value: 按照发票价格的110%投保（险别） Please insure the goods With Particular Average. We insure (goods) against Leakage. 2.insure with an insurance company insure for sb. sth. insure sb. on sth. B. Should the buyer require broader coverage, the extra premium is for buyers account. coverage：n. 承保范围，保险险别 We are

44、glad to say we can provide such coverage. C. A/R is the broadest form of coverage, which covers all risks of loss of or damage to the insured goods whether partial or total, arising from external causes in transit. cover: insure 投保，给保险 1.vt. Please cover the goods With Particular Average. 2.n. 保险，保险

45、单，保险责任 scope of cover 保险责任范围 D. The insurance terminates when the goods reach the consignees warehouse at the destination named in the policy. It is limited, however, to sixty days after completion of discharge of the insured goods from the seagoing vessel at the final port of discharge before they

46、reach the above-mentioned warehouse or place of storage. 1.effect / provide / arrange / cover / take out insurance投保，办理保险 We think it simpler to have the insurance taken care of by you. 2.保险费，保险金，保险额 He has 50,000 fire insurance on the house. E. It will be very convenient to file claims against the

47、loss of or damage to the goods with the insurance agent at your end. 1.claim： file a claim against a loss or damage with the insurance company: 2.end： He wound up the American end of the business and went home.Explanation of Model Letter 12-1 A. We shall recently have a consignment of raincoats unde

48、r the order No. 34698 enclosed, valued at US $ 40,000 最近我们有批34698号订单的雨衣， 订单随函附上，金额为40，000美元Explanation of Model Letter 12-1 B. We plan to arrange the insurance on all the raincoats supplied against TPND, contamination and Rain in addition to WPA at the rate of 10% for the sum of US$40,000 from Shang

49、hai to Hang Kong with your company. 我方计划由贵公司对我方所有雨衣供货投保，除了投保水渍险之外，还投保偷窃、提货不着险，以及防玷污和雨淋险，保费为10%，从上海到香港，保额为40，000美元。Explanation of Model Letter 12-2 As we now desire to have the shipment insured on your side, we shall appreciate it very much if you could kindly arrange to insure the same on our behalf

50、 against All Risks at invoice value plus 10%. Please charge the cost to our accounts. 现我方意于在贵方所在地为这批货投保，因此如果贵方能代表我方安排投保一切险，我们将非常感谢。保险金额为发票金额加10%，费用记在我方账上。Explanation of Model Letter 12-3 A. This is to acknowledge receipt of your letter dated August 20th concerning Order No.9876 for 300 cases of battery, requesting us to effect insurance on your behalf for the