第七章保险单据演示文稿1ppt课件

1、 Chapter 7 Insurance DocumentsOwing to long distance transportation, goods under international trade could be damaged by various accidents. Additionally, by loading and warehousing there are also some risks. In order to be indemnified in event of damage, seller or buyer, depending on the trade terms

2、, effects insurance prior to the shipment. Insurance documents are ones, issued by insurance companies, indicating the type and amount of insurance coverage in force on a particular shipment. Used to assure the consignee that insurance is provided to cover loss of or damage to cargo while in transit

3、.Section 1 Risks categoriesI. Risks : Perils and Extraneous risksII. Loss : total loss & partial loss1. Total Loss : Actual loss and Constructive loss2. Partial Loss : General Average & particular averageIII. Expenses: 1. Sue and labor exoense 2. Salvage expenses 3. Continuation expenses 4. Evaluati

4、on expenses.Risks Risks can be divided into general perils and extraneous risks.(1) general perils: it means natural calamities and fortuitous accidents which are caused by the forces resulting from the changes of nature, e.g. vile weather, thunderstorm and lightning, tsunami, earthquake, flood, etc

5、. The action of ordinary winds and waves is not taken as natural calamities. (2) extraneous risks: are risks that are beyond the coverage of the Marine risks mainly including general extraneous risks and special extraneous risks. .General extraneous risks They include theft or pilferage, contaminati

6、on, breakage, sweating and heating, taint of odor, rusting, fresh or rain water damage, short delivery and non-delivery, shortage in weight, clashing, etc.Special extraneous risks They refer to war, warlike operations, hostile acts, armed conflicts or piracy capture, seizure, arrest, restraint or de

7、tainment.Losses Losses sustained by the insured because of the risks listed above come from not only the loss of the goods or damage to the goods, but also from the expenses to the goods the insured sustained in rescuing the goods in danger. The losses and damages to the goods can be divided into to

8、tal loss and partial loss.1. Total loss Total loss is usually classified into two types: one is actual total loss which means that the insured subject matter is totally and irretrievably lost. The another one is constructive total loss which is estimated that the actual total loss of cargo is inevit

9、able or the cost of salvage or recovery could have exceeded the value of the cargo.In case of constructive total loss, the insured may applyto the insurer for compensation in accordance with thepartial loss or constructive loss. In case of the latter, the insured should submit to the insurer the not

10、ice of the abandonment. In this way, the insured passes all the titles to subject matter to the insurer willingly, and applies to the insurer for compensation as per the total loss. .2.Partial loss Partial loss refers to that the loss or damage to the goods is only partial. Partial loss can be eithe

11、r general average or particular average. In the insurance business the “average simply means “loss in most cases. It all goes back to the situation where a ship is in danger and somebodys cargo has to be abandoned. Whose should it be? The captain must make a decision and one of the shipper will suff

12、er. To cover this situation the concept of general average was introduced. It means that whichever shipper loses all or part of his cargo, all the others will club together to re-compensate him for his loss. All policies the insured take out automatically cover them against it. .A particular average

13、 loss is a partial loss which is suffered by the one whose goods are partly lost or damaged. When there is a particular average loss, other interests in the voyage (such as the carrier and other cargo owners whose goods were not damaged) do not contribute to the partial recovery of the one suffering

14、 the loss. An example of particular average occurs when a storm or fire damages part of the shippers cargo and no one elses cargo has to be sacrificed to save the voyage.The cargo owner whose goods were damaged looks to his insurer for payment if his policy covers the specific type of loss suffered.

15、Expenses International cargo transportation insurance not only insures the losses caused by risks but also the losses of expenses. The main expenses are as follows(1)Sue and labor expenses: which are the ones arising from measures properly taken by the insured, the employee and the assignees, etc. f

16、or minimizing or avoiding losses caused by the risks covered in the insurance policy or certificate. The insurer is responsible for compensating such expenses.(2)Salvage charges are expenses resulting from measures properly taken by a third party other than the insured, the employee and the assignee

17、,etc.(3)Continuation expenses are made for the journey of consignments after the journey has been stopped by risks under the cover of insurance policy or certificate.(4)Loss evaluation charges: After a loss is sustained, experts would have to be invited to evaluate the loss to be covered by the insu

18、rer and are covered by the insurer. Section 2 Insurance policyAn insurance policy is a written legal contract between the insurance company and the party insured, containing all terms and conditions of the agreement (normally pre-printed on the back side of the policy). It shows full details of the

19、risks covered, so called also formal insurance document. 1. Key elements of insurance policy 1. Name of the insurer with a signature identified as that of insurance company, or underwriter or insurance agent. 2. Name of the insured, both the seller and the buyer might be the insured provided that th

20、ey have insured interest and with good faith. 3. The insured goods. .Continued 4. Type of risks covered, which should be one of three basic risks, i.e. Free From Particular Average (F.P.A), With Particular Average (W.P.A) and All Risks, added by some supplementary special risks such as War Risk and

21、Strike Risk. 5. Insurance provisions 6. Amount and currency insured 7. Place of claim payable 8. Transport model and Vessels name 9. Loading port and destination port, if transshipment is required, the goods should cover transshipment risks, such as warehouse to warehouse including transshipment ris

22、k. 10.Time and place of issue. 2. Claim against damage or loss The consignee should always note on the delivery document any damage or lgss prior to signing for receipt of the goods. The consignee has the responsibility to make reasonable efforts to minimize loss. This includes steps to prevent furt

23、her damage to the shipment. Expenses incurred in such efforts are almost universally collectible under the insurance policy. Prompt notice of loss is essential. Copies of documents necessary to support an insurance claim include the insurance policy, bill of lading, invoice, packing list, and a surv

24、ey report (usually prepared by a claims agent).Insurance certificate保险凭证/小保单 At insurance certificate is a document issued to the insured certifying that insurance has been effected. It contains the same details as an insurance policy except that the version of provisions is abbreviated. If a docume

25、ntary credit calls for insurance policy, bank will refuse an insurance certificate for payment because the latter relies on other documents, lack of complete independence.Cover note暂保单 Cover note is a document normally issued to give notice that an insurance has been placed pending the making policy

26、 or certificate. Such document is normally applied by the buyer before shipment from the sellers country under the term of FOB by which goods would be on the way after the buyer receives the shipment notice, therefore it does not contain full details of the insurance, such as quantities of the goods

27、 to be insured, amount to be insured, vessels name, and so on. The insurer shall also make claims payable if the goods were damaged or lost after issuing the cover note and prior to issuing formal policy. Normally, documentary credit will not require a cover note as the insurance documents.Open cove

28、r约定保单 An open cover is an insurance document by which the underwriter undertakes to issue a specific policy subsequently in conformity to the terms of cover, called also a general insurance for the recurring shipment. The details of the insurance for each shipment may be unknown usually when the ins

29、urance is effected. The operation of an open cover for the insured is likewise bound to declare each shipment effected thereunder unless the insurance contract otherwise provided. Upon receipt of declaration, the underwriter issues the policy. Regarding to payment to the seller under an open cover u

30、nder a credit, UCP500 states “banks will accept a declaration under an open cover pre-signed by insurance companies or underwriters or their agents. Summary Among insurance documents stated above, insurance policy is the most formal one, which can substitute others if necessary. Exactly speaking, if

31、 a L/C specifically calls for an insurance or declaration under an open cover, banks will accept, in lieu thereof, an insurance policy. Under a letter of credit, the minimum amount of an insurance document should be 110 percent of either (a) the CIF or CIP value of shipment, (b) the amount of the pa

32、yment specified in the L/C, or ( c) the gross amount of the commercial document. .Banks will not accept an insurance document which bears a date of insurance later than the date of loading on board or dispatch or taking in charge as indicated in the related transport document. It is noted that docum

33、entary credit transactions indicating CIF or CIP pricing should list an insurance document in their required documentation. Usually, “cover note issued by insurance brokers are not accepted in L/C transactions unless authorized specifically by the L/C.Functions of insurance documents 1.Insurance pol

34、icy is legal certificate for insurance contract 2. Its the certificate for indemnity 3. Its right certificate which can be transferred from the transferor to transferee.Main parties of insurance business 1.The insurer, which receives the application of insurance from the insured; 2.The insured , whi

35、ch applies to insurer for a specific basic risk; 3.Beneficiary, which has insurance benefit and lodges a claim when the goods suffers from the losses during transit.The content of I.P (I. Description of goods) 1.Marks & Nos. means that shipping marks should appear in the face of ocean bill of lading

36、 and conform to that of other documents.。Normally, it shows as per Invoice No.xxx. 2. Quantity; the weight or quantity should appear in the insurance documents. If the quantity is measured as pieces, the maximum pieces should be marked. If the quantity is measured as gross weight or net weight, eith

37、er gross weight or net weight should be marked. Bulky goods should be named as “IN BULK. 3.Name of insured goods: which can be the same as that of L/C. The commodity name should be conformity with the name of invoice. 4.Amount insured: normally, amount insured should be 110% of commercial invoice. O

38、f CIF value. The currency must be the same as that of L/C. 5.Total amount insured; which should be expressed in words so that the amount is changes by somebody. Section 3. Insurance Clause 1. The wording of basic risk2. Insurance amount 3. Cover the goods for clauses of PICC or ICC4. Claim place, su

39、rvey report, and insurance currency. III. Premium and insurance rate Normally, premium is printed “As arranged in insurance documents. Unless stipulated otherwise, the premium may not be stipulated. If the L/C demands specific rate of premium, insurance company may mark concrete rate and amount of p

40、remium. IV. Insurance Conditions Conditions(承保险别) is the key content of insurance documents. When filling in the insurance documents，pay attention to the wording of insurance condition, which should be exactly the same as that mentioned in documentary L/C. If L/C does not stipulate concrete conditio

41、ns or merely mention “Marine risk、“Usual risk or “Transport risk etc., the insured can cover the goods for any one of ALL RISKS, WPA, or FPA. If L/C demands to cover the goods for ICC, the insured can cover the goods for any one of the ICC A, ICC B or ICC C.V. Satisfaction Agent and Payable Place 1.

42、Agent: which is assigned by insurance company and usually located in port of destination. When the goods are lost or damaged during transportation, consignee should ask the agent to survey the goods and issue survey report. 2. Payable Place: which is marked as per the stipulation of documentary L/C.

43、 Payable currency and place should be clearly mentioned in insurance documents/. VI. Signatures of Insurance Company 1. The issuance date and place of insurance documents: The date of insurance documents should not be later than the date of ocean bill of lading. 2. The signature of insurance company

44、: The signature is essential for validity of insurance documents. VI. Other Contents 1.Invoice NO. which is necessary to appear in the insurance documents or marked “As per invoice. 2.Contract NO. and L/C NO.：which are printed as per the concrete contents of contract or L/C. 3.Per conveyance: which

45、covers the name of steamer or conveyance. 4.Sailing date: which is shown by date of ocean bill of lading or As per B/L date.Continued 5. Shipment port and port of destination: When the goods are shipped from port of shipment to port of destination, both port of shipment and port of destination shoul

46、d be marked 6. Number of original policy: when L/C does not demand concrete copies of insurance documents, exporter should present a full set of documents. .Continued 7. Endorsed or blank endorsed: which can be divided into three types as follows: (1) Blank endorsed (2) Specific endorsed(记名背书):when L/C demands “Del