unit 6.Cargo Transportation Insurance(xin) 国际贸易与实务(周瑞琪版)公开课一等奖省优质课大赛获奖课件

CasestudyCase1:

aChineseforeigntradeexportercontractedwithaCanadianimportertoexport1000pairsofsneakersinCIFterms,timeofshipmentisbetweenJulytoAugustinthecontractandlettersofcredit,5000pairsofsneakerseachmonth,andtransshipmentisallowed.Ourexporterloaded5000pairsofsneakersonboardtheship“Wuyi”on31st,JulyandgotbillofladingforJuly,andloadedtherestofsneakersonboardtheship“Triumph”on10th,AugustandgotbillofladingforAugust.BothshipstransshippedinHongKongandbothlotsofgoodsaretransportedtothefinaldestinationby“Noble”ofMaerskINC.1SEIBOFGDUFSCasestudyCase1:Questions:Wasittransshipment?Why?Couldthesellersafelygetfinanced?Why?2SEIBOFGDUFS

Casestudy

Case1:

(1)itistransshipment.AccordingtoUCP600:”transshipmentmeansunloadingformonemeansofconveyanceandreloadingtoanothermeansofconveyance(whetherornotindifferentmodesoftransport)duringthecarriagefromtheplaceofdispatch,takinginchargeorshipmenttotheplaceoffinaldestinationstatedinthecredit.”Whileinthiscase,thegoodswereshippedby“Wuyi”on31st,Julyandshippedby“Triumph”on15th,August.Bothshipsweretotallydifferent,soitwastransshipment.3SEIBOFGDUFS

Casestudy

Case1:

(2)Thesellercouldsafelygetpaymentforgoodsasaresultofconformitywiththeletterofcreditclauses.4SEIBOFGDUFS

Casestudy

Case2:

aChineseforeigntradeexporterexported30000boxesofgoods,contractingtoshipthegoodsineachlotduringMarchtoAugust,5000boxeseachmonth,paymentbyconfirmedirrevocableletterofcredit.Thecustomerdulysentletterofcreditonwhichthetotalamountareinconformitywiththecontract,buttheshippingclausesindicated“thelatestdateofshipmentis31st,August,bypartialshipment.”Ourexporterdispatched5000boxesinMarch,6000boxesinApril,10000boxesinMayand9000boxesinJune.Thecustomerraisedanobjectiontothis.Arewerighttodothis?Why?5SEIBOFGDUFS

Casestudy

Case2:

inordertogetpaymentinduetime,weweresupposedtodothis.Ascreditisindependentofthecontractandoncethecreditandtherelatingdocumentsareinconformity,theexportercangetpayment.TheLetterofcreditgenerallyindicatethat”thelatestdateofshipmentis31st,August,inpartialshipments.”Soourexporterwasright,butincaseoftroubleinthefollowingdays,weshalladoptpartialshipmentinequallots,whichiscorrespondingtothecontactandletterofcredit.6SEIBOFGDUFS

Casestudy

Case3:AChineseexporterexported1000tonsoftungstenore.Theletterofcreditstipulated“partialshipmentisnotallowed”.Later,theexporterloaded500tonseachonthesameshiponthesamevoyagenumberinFuzhouandXiamen.Andthebillofladingalsoindicateddifferentportofloadinganddateofshipment.Doesthisactbreaktherule？7SEIBOFGDUFS

Casestudy

Case3:

accordingtoUCP600sectionB,”shipmentcommencingonthesamemeansofconveyanceandforthesamejourney,providedtheyindicatethesamedestination,willnotberegardedascoveringapartialshipment,eveniftheyindicatedifferentdatesofshipmentordifferentportsofloading,placesoftakinginchargeofdispatch.”Thus,itdidn’tbreaktheclausesandthebankshallnotrefusetopay.8SEIBOFGDUFS

Casestudy

Case4:ourexporterexportedabatchoftimberhandicrafttoSpaininCIFprices.Thecontractandletterofcreditstipulatedthatshipmentduringmay/June.However,wehaddifficultycharteringavessel,andadoptedpartialshipmentintwotothreelots.Inthiscasedidwebreakthestipulationsofletterofcredit?9SEIBOFGDUFS

Casestudy

AnalysissolongasweshipallthegoodsduringMaytoJune,theletterofcredithasnottobeamended.AccordingtoUCP600Section31A,”unlessthereareotherstipulations,transshipmentandpartialshipmentisallowed”.10SEIBOFGDUFSChapterSixCargoTransportationInsurance11SEIBOFGDUFSLearningobjectivesAfterlearningthischapteryouwillbeabletounderstandthefundamentalprinciplesofcargoinsurancebeawareoftherisksandlossesinoceantransportationoutlinethescopeoftheOceanMarineCargoClausesofCICframethecoverageofLondonInstituteCargoClausesunderstandtheprocedureforlodgingclaimsdescribemethodsofstipulatinginsuranceclausesinSalesContracts12SEIBOFGDUFSDefinitionsDefinitionofinsurance “thepracticeofsharingamongmanypersons,risksoflifeorpropertythatwouldotherwisebesufferedbyonlyafew.”Definitionofmarinecargoinsurance “theinsurantenterswithaninsurancecompanyand/oranunderwriterintoacontractofinsuranceinwhichtheinsurancecompanyofaninsurancepremiumandtheinsurancecompanywill,accordingtothetermsindicatedintheinsurancecontract,indemnifytheinsurantofanylossthatoccurswithinthescopeofcoverage”.

13SEIBOFGDUFSPartiesinvolvedinaninsurancepracticetheinsurant/insured/assuredThepartythatprocuresinsuranceCanbetheexporterorimporterdependingontheIncotermsadoptedinthetransactiontheinsurer

ThepartyundertakingtoindemnifytheinsurantagainstlossesordamagesCanbetheinsurancecompany/underwriterInChina,PICCisusuallytheinsurertheclaimantTheinsurantmaynotnecessarilybetheclaimantDependingon:whohastheinsurableinterestofthegoodswhenthegoodsaredamagedorlost14SEIBOFGDUFS6.1FundamentalprinciplesTheInsurableInterestPrincipleTheUtmostGoodFaithPrincipleTheIndemnityPrincipleTheProximatePrincipleTheSubrogationPrincipleTheSharePrinciple15SEIBOFGDUFS6.1.1TheinsurableinterestprincipleDefinition:ThefinancialinterestofapersoninthesubjectmatterinsuredFormsofinsurableinterest:OwnershipofthegoodsChargeofinsuranceFreightApolicywithoutinsurableinterestisinvalidProofofinsurableinterestisrequiredatthetimeofmakingaclaim,notatthetimeofeffectinganinsurance16SEIBOFGDUFS6.1.2TheUtmostGoodFaithPrinciple

(BonaFidePrinciple)BothpartiesbefaithfulandhonestinenteringintotheinsurancecontractMarineInsuranceAct1906:IftheUtmostGoodFaithPrincipleisnotobservedbyeitherparty,theotherpartymayavoidthecontractAvoidanceofthecontractThereisnofraudandtheContractisvalid:serveasevidenceinacourtoflawUsuallyoccurswhenaninsurerrefusestopayaclaim,theinsuredhastherighttochallengetheinsurer’srighttoavoidthecontractAvoidcontracthasnolegalvaluecannotserveasevidenceinacourtoflaw17SEIBOFGDUFS6.1.3TheIndemnityPrincipleDefinitionIntheeventoflossofordamagetothesubjectmatterresultingfromaninsuredperil,heorsheisplacedinthesameposition(notinabetterorworsepositionthan)thatheorsheenjoyedimmediatelybeforethelossoccurredMeansofeffectingindemnityIntheory:byreplacingtheshipsorgoodslostordamagedInpractice:bypayinganamountofmoneyequaltothevalueofthegoodslostordamagedExtentofindemnity:totalindemnificationbelimitedtotheinsuranceamount:110%oftheinsuredvaluetheactuallosssufferedtheinsurableinterestoftheclaimant18SEIBOFGDUFS6.1.4TheProximateCausePrincipleAbouttheProximateCausePrincipleemployedinthejudgmentofcausationbetweenaccidentsandlossesreferstothemajorand/oreffective(notnecessarythefirstorthelast,butthedominant)causethathasledtotheaccident.Theinsurershallonlyberesponsibleforthelossresultedfromthedominantcause.19SEIBOFGDUFS6.1.4TheProximateCausePrincipleHowtodecidetheproximatecauseIncaseofonlyonecause

withininsurancecoverage:theinsurershallindemnifybeyondinsurancecoverage:theinsurershallnotberesponsibleforthelossIncaseoftwoormorethantwocauses

Ifallcausesarewithintheinsurancecoverage,theinsurerholdresponsiblefortheloss.20SEIBOFGDUFS6.1.4TheProximateCausePrincipleHowtodecidetheproximatecauseIftheformercauseiswithinthescopeofinsurancecoverageandthelatteroneisoutofthescopeofinsurancecoverage,providedthereisadirectchainofcausationbetweenthem,theformercauseisregardedastheproximatecauseandtheinsurershallbeheldresponsibleforthelossordamage.Iftheformercauseiswithintheexclusionofthecoverageandthereisadirectchainofcausationbetweentheformerandlattercause,theproximatecauseisconsideredoutofthescopeofinsurancecoverageandtheinsurerneednotbeheldresponsibleforthelossordamage.21SEIBOFGDUFS6.1.5TheSubrogationPrincipleDefinitionWhenthelossofthepropertyinsurediscausedbyathirdparty,theinsurerisautomaticallyentitledtocompensationfromthethirdpartyafterindemnificationhasbeenmadetotheinsurant.Therightofsubrogationisexercisedeitherinthenameoftheinsurerorthatoftheinsured.TheamountrecoveredTheamountrecoveredshallbelimitedtotheamountoftheclaimpaidundertheinsurance.Iftheinsurermayrecovermorethantheamountpaidbyhimasaclaim,hemustpassthesurplusproceedstotheinsured.22SEIBOFGDUFS6.1.6TheSharePrincipleDefinitionUnderthecircumstanceofdoubleinsurance,alltheinsurersshall

jointlybearthelossonthesubjectmatterandsharethelossaccordingtotheirrespectiveinsuranceproportion.Doubleinsurancetheinsuredhastheriskscoveredbytwodifferentinsurancecompaniesupontheidenticalinterestintheidenticalsubjectmatter.Eachinsurerisnormallyonlyliable,incaseoftotalloss,topaytheinsuredtotheextentofthesumwrittenagainsthisownname(theamountofhissubscription)incaseofpartialloss,someproportionofthatsum.23SEIBOFGDUFS6.2MarineRisksandLossesPerilsofthesea海上风险External/Extraneousrisks外来风险Risks风险Naturalcalamities自然灾害Unexpectedaccidents/fortuitousaccidents意外事故Generalrisks普通外来风险Specialrisks特殊外来风险24SEIBOFGDUFS6.2.1MarineRisksTwotypesofrisksPerilsofthesea

Naturalcalamities

Causedby

forcemajeureeventssuchasheavyweather,lightening,Tsunami,earthquake,volcaniceruption,thunderbolt,etc.Unexpectedaccidents/fortuitousaccidentsCausedbyaccidentssuchasfire,explosion,vesselbeingstranded,grounded,sunkorcapsized,collision,missing,etc.25SEIBOFGDUFS6.2.1MarineRisksExternalrisks/extraneousrisksGeneralrisks

Causedbycommonfactorssuchastheft,freshwaterrain,shortage,leakage,clashandbreakage,odor,heatingandsweating,hookdamage,rust,breakageofpacking,etc.Specialrisks

Causedbymilitaryfactors,politicalfactors,governmentregulationssuchaswar,striking,confiscation,etc. 26SEIBOFGDUFS6.2.2MarineLossesTotalloss全部损失Partialloss部分损失Losses损失Actualtotalloss实际全损Constructivetotalloss推定全损Generalaverage共同海损Particularaverage单独海损27SEIBOFGDUFS6.2.2MarineLossesTwotypesoflossesTotalLoss:lossoftheentirevalueofthesubjectmatterActualtotallosscargohasbeentotallylostorhasbeendamagedtotheextentthatithaslostitsoriginalusageConstructivetotallosscargoisnottotallylost,buttheactualtotallossshallbeunavoidableortherestorationfeestogetherwithothermiscellaneousexpenseswillexceedtheanticipatedamountofprofit.28SEIBOFGDUFS6.2.2MarineLossesPartialLoss:apartialdamagetoorthetotallossofpartoftheinsuredcargo.Particularaverage

Apartiallossofthesubjectmatterinsuredcauseddirectlybyaperilinsuredagainst,NoothercargosacrificedtosavethevoyageTheownerwhosufferedthedamagerefertotheinsurancecompanyprovidedhispolicycoversthespecificloss.Generalaverage

Apartial&deliberatesacrificeoftheship,freight,orcargo,oradditionalexpensesincurredtorescueashipanditscargofromimpedingdangerorforthecommonsafetyoftheadventureunderaperiloftheseaorsomeotherhazards.29SEIBOFGDUFSGeneralAverageConditionsforgeneralaverageDangerthreateningcommonsafetymateriallyexists,notforeseen.Measuresshallbetakendeliberately&reasonablyforcommoninterest,aimingtoremovethecommondangerofbothvesselandcargoSacrificeshallnotbecausedbyperilsdirectlySacrificeisspecialized&expensesareadditional,notwithinoperationbudget,Actionsshallbesuccessfulinsavingthevoyage

30SEIBOFGDUFSGeneralaverageG.A.ContributionThepartysufferingG.A.isentitledtoaratablecontributionfromtheotherpartiesinterested.Twokindsofgeneralaverageloss:SacrificeofpartofthevesselorcargoExpensesincurredLoss&expensesshallbesharedamongcarrier,cargoownersinproportiontotheirrespectiveinterestedvaluebenefitedfromtheG.A.31SEIBOFGDUFSGeneralaverageThecalculationofG.A.ContributionToidentifythetotalgeneralaverageloss.

TotalGAloss=thesumofsacrifices+theextraordinaryexpenses

Toidentifythetotalgeneralaveragecontributoryvalue.

Thecontributoryvaluereferstothevalueofpropertysavedastheresultofthegeneralaverageact.TotalGAcontributoryvalue=theactualvalueofthepropertysaved+GAlossexcludingadditionalexpensesTocalculatethegeneralaveragepercentage.Tospecifytheindividualgeneralaveragecontributionofallpartiesconcerned.

GAContribution=ContributoryValue×GApercentage32SEIBOFGDUFSGeneralaverageIllustrationSupposeacargovesselloadedwithcargoofPartyAandPartyBstrandedintransit.Tosavethevesselaswellasthegoodsonit,themasterorderedtothrow1000casesofgoodstothesea.ThevalueofthegoodsthrownoverboardforPartyAis20%ofhisgoods(thetotalvalueofhisgoodsisCNY0)andthatforPartyBis10%ofhisgoods(thetotalvalueofhisgoodsisCNY60000).ExtrawagesfortheseamentoperformtheactamountedtoCNY5000.ThevalueofthevesselisaboutCNY5000000.BasedontheinformationabovewhatistheG.A.contributionforeachpartyinvolved?33SEIBOFGDUFSGeneralaverageCalculation:TotalGAloss=0x20%+60000x10%+5000 =CNY15000TotalGAcontributoryvalue=0x80%

+

60000x90%+5000000+0x20%+60000x10%

=CNY5080000 GApercentage=(TotalGAloss/Total

GAContributoryvalue)x100%

=(15000/5080000)x100%=0.295% G.A.ContributionbyPartyA=0x0.295%=CNY59 G.A.ContributionbyPartyB=60000x0.295%=CNY177G.A.ContributionbytheCarrier=5000000x0.295%

=CNY1475034SEIBOFGDUFSGeneralaverageGoverningRuletheInternationalGeneralAverageRules(alsoreferredtoastheYork-AntwerpRules).DifferencesbetweenGAandPACausesPAisusuallycauseddirectlybyseaperils,GAiscausedbyintentionalmeasurestakentosavethecommoninterest.IndemnificationPAisoftenbornebythepartywhosecargoisdamagedGAshouldbeproportionallycontributedamongallpartiesbenefitedfromtheintentionalmeasures.

35SEIBOFGDUFS

Casestudy

Case1:Avesselcollapsedwithflowingicebergsontheseaandacrackwasfoundedononesideofthevessel.Seawaterfloodedinandpartofthecargowaswet.Thecaptainhadtocallatthenearestporttodrainoffwaterandafterwardsthrewoffsomebulkygoodsintotheseatomakethevesselfloating.Whichpartbelongstogeneralaverageandwhichbelongstoparticularaverage?36SEIBOFGDUFS

Casestudy

Analysis:ParticularAverage:crackofthevesselandpartofthecargoundergonesoaking;GeneralAverage:thevesselshippedtothenearestportandthelossesthereafter.37SEIBOFGDUFS6.2.3ExpensesincurredTwotypesofexpensesSueorlaborexpenses

Whenthesubjectmattersufferstheriskswithininsurancecoveragetheinsuredtakesmeasurestoavertorminimizethelossordamagetothesubjectmatterinsured.TheinsurerpayssueorlaborexpensestotheinsuredSalvagecharge

WhenthesubjectmattersufferstheriskswithininsurancecoverageAthirdparityotherthantheinsuredtakesmeasurestosavethesubjectmatterIfthesalvageeffectiveandsuccessful,chargescanberecovered.(“No-Cure，No-Pay”principle)38SEIBOFGDUFS6.3CoverageofmarinecargoinsuranceofCICBasiccoverageTypesFPA(FreefromParticularAverage)WPA(WithParticularAverage)A.R.(AllRisks)FeaturesCanbecoveredindependentlyAdditionalcoverageTypesGeneraladditionalinsurancecoverageSpecialadditionalinsurancecoverageFeaturesShouldgowithbasiccoverage39SEIBOFGDUFS6.3.1BasicinsurancecoverageFPANon-liabilityofindemnificationtoaparticularaverageThemostlimitedscopeofcoverageWPA(WA)OnestepfurtherfromFPA:thepartiallossoftheinsuredgoodscauseddirectlybynaturalcalamitiesWPA=FPA+partiallossduetonaturalcalamitiesARMostcomprehensivecoverageAllrisksshallnotcoverallrisks,excludingspecialadditionalcoverageandexclusionsAR=WPA+generaladditionalinsurancecoverage40SEIBOFGDUFS41SEIBOFGDUFS6.3.2AdditionalInsuranceCoverageTypesofadditionalcoverageGeneraladditionalinsurancecoverage(11types)TPND(Theft,PilferageandNon-delivery) 偷窃提货不着险FreshWaterRainDamage 淡水雨淋险RiskofShortage 短量险RiskofIntermixtureandContamination 混杂沾污险RiskofLeakage 渗漏险RiskofClashandBreakage 碰损破碎险RiskofOdor 串味险DamagecausedbyHeatingandSweating 受热受潮险HookDamage 勾损险RiskofRust 生锈险LossforDamageCausedbyBreakageofPacking包装破裂险42SEIBOFGDUFS6.3.2AdditionalInsuranceCoverageTypesofadditionalcoverageSpecialadditionalcoverage(8types)WarRisk 战争险Strikes,Riots&Commotions(S.R.C.C.) 罢工民变险FailuretoDeliveryRisk 交货不到险ImportDutyRisk 进口关税险 OnDeckRisk 舱面风险RejectionRisk 拒收险AflatoxinRisk 黄曲霉素险FireriskextensionclauseforstorageofcargoatdestinationHongkong,includingLowloonorMacao

出口货物到香港（包含九龙在内）或澳门在存仓火险责任扩张险43SEIBOFGDUFS6.3.3Exclusionslossordamagebytheintentionalactorfaultoftheinsured;lossordamageundertheliabilityoftheconsignor;lossordamagefromtheinferiorqualityorshortageoftheinsuredgoodspriortotheattachmentofthisinsurance;lossordamagefromnormalloss,inherentviceornatureoftheinsuredgoods,lossofmarketand/ordelayintransitandanyexpensesarisingtherefrom;Inherentvice:theinherenttendencyofthecargotodeteriorateduetotheessentialinstabilityofthecomponentsorinteractionamongcomponentsnotresultedfromexternalcause.Risksandliabilitiesexcludedbytheoceanmarinecargowarrisksclausesandstrike,riotandcivilcommotionclausesofC.I.C.44SEIBOFGDUFS6.3.4DurationofBasicInsuranceThisreferstotheperiodthroughoutwhichtheinsurancecompanyundertakesaninsuranceliability.usuallyfollowsWarehousetoWarehouseClause(W/WClause)FromthetimethegoodsinsuredleavethewarehousenamedinthePolicyforthecommencementofthetransitUntiltheinsuredgoodsaredeliveredtotheconsignee’sfinalwarehouseatthedestinationnamedinthePolicyLimitedto60daysafterthecompletionofdischargeoftheinsuredgoodsfromtheseagoingvesselatthefinalportofdischargebeforetheyreachtheabovementionedwarehouse45SEIBOFGDUFS6.3.4DurationofBasicInsuranceWarRiskW/WClausenotsuitableforW.R.FromthetimethegoodsinsuredloadedonboardthevesselnamedinthePolicyforthecommencementofthetransitUntiltheinsuredgoodsareunloadedfromthenamedvesselattheportofdestinationnamedinthePolicyIfnotunloaded,limitedto15daysafterthemidnightofthedaywhenthevesselarriveattheportofdestination46SEIBOFGDUFS

Casestudy

Animporterimportedabatchofchina,incaseofcollisionandbreakage,coveringallrisksadditionalwithriskofclashandbreakage.Isthisright?47SEIBOFGDUFS

Casestudy

Analysis:

Itiswrong.Allrisksincluderiskofclashandbreakage.Soriskofclashandbreakageisredundant.48SEIBOFGDUFSCasestudyCase2:OurexporterexportedaloadofcargotoaMiddle-EastcountryunderCIFtermsandcoveredWPAinadditiontoTPND,butthevesselwasdetainedasaresultoftheIran-Iraqwar.Theimporterlodgedaclaimtotheinsurancecompany.Cantheimporterbecompensated?49SEIBOFGDUFSCasestudyCase2:

Questions:Inthepreviouscase,whichtypeofinsuranceshouldbecoveredsothattheinsuranceshallmakeindemnity?50SEIBOFGDUFS

Casestudy

AnalysisFailuretodeliverriskshallbecovered.Failuretodeliverriskreferstotherisk,onceloadedonboardthevessel;failtobedeliveredatthedestinationwithinsixmonthsofscheduleddateforarrivalduetowhatevercauseitmightbe.However,theinsurantshallhandleequity-transferringproceduressoastogetcompensation.51SEIBOFGDUFS

Casestudy

Case3:Ourexporterexported1,000balesofclothtoAustralia,coveringWPA100baleswerewettedasaresultofleakageofthepipeduringtransit.Shouldtheinsurancecompanymakeindemnities?52SEIBOFGDUFS

Casestudy

Case3:Analysis:Theinsurancecompanyisnotliableunlessfreshwaterraindamagewascovered.53SEIBOFGDUFS

Casestudy

Case4:Avesselwascaughtinastormduringthetripandwatercameintothecompartments,resultinginUSD6000oflosses.ThislotofgoodsvaluedatUSD18000wascoveredwithFPA.Threedayslater,thevesselcaughtafire.shallShall6000dollaroflossesbeindemnifiedbytheinsurancecompany?54SEIBOFGDUFS

Casestudy

Analysis:FPAdoesnotcovermarineriskscausedbynaturalcalamitiesbutinthiscase,naturalcalamitiescameafteraccidents.AccordingtoCICC,theinsurancecompanyshallmakecompensations.55SEIBOFGDUFS6.4CoverageofmarinecargoinsuranceofICCLondonInstituteCargoClauses(ICC)InstituteCargoClauses(A)–ICC(A) InstituteCargoClauses(B)–ICC(B) InstituteCargoClauses(C)–ICC(C) InstituteWarClauses–Cargo InstituteStrikeClauses–CargoMaliciousDamageClauses56SEIBOFGDUFS6.4CoverageofmarinecargoinsuranceofICCICC(A/B/C)haveindependentandcompletestructureandcanbecoveredseparatelyInstituteWar/StrikeClausealsohaveindependentandcompletestructure,butcanbecoveredseparatelyonlyafteragreementfromtheinsurer.MaliciousDamageClausesisanadditionalcoverageandcannotbecoveredindependently.57SEIBOFGDUFS58SEIBOFGDUFS6.5OthertypesofcargoinsuranceTwotypesofoverlandinsuranceOverlandTransportationRisk≈WPAOverlandtransportationAllRisks≈A.R.Durationofinsurance:W/WclauseTwotypesofairinsuranceAirtransportationRisk≈WPAAirtransportationAllRisks≈A.R.Durationofinsurance:W/Wclause,buttheinsuranceshallbelimitedto30daysaftercompletionofdischargeoftheinsuredgoodsfromtheaircraftatthefinalairportofdischarge.59SEIBOFGDUFS6.5OthertypesofcargoinsuranceTwotypesofparcelpostinsuranceParcelpostRisk≈WPAParcelpostAllRisks≈A.R.Durationofinsurance:W/Wclause,butinthecaseoffailureofdelivery,wherethedurationofinsuranceterminatesontheexpiryof15dayscountingfromthemidnightofthedaywhenthenoticeofarrivaloftheparcelisissuedbythepostofficeatthedestination.Note:

additionalrisksunderOceanMarineCargoInsurancecanbeapplicabletoOverlandTransportationInsurance,AirTransportationInsuranceandParcelPostInsurance.60SEIBOFGDUFS6.6ProceduresofcargoinsuranceTocalculatetheinsuranceamountTodeterminetheinsurancecoverageToobtaintheinsurancepremiumrateToapplyformarineinsuranceandpaytheinsurancepremiumToobtainaninsurancedocumentTolodgeaninsuranceclaimatthetimeoflossordamage61SEIBOFGDUFS6.6.1TocalculatetheinsuranceamountInsuranceamount:theamountofinsuranceindicatedintheinsurancepolicyandagreeduponbytheinsurantandtheinsurerThehighestamountofindemnitybytheinsurerinthecaseoftotallossThebasisforthecalculationofinsurancepremiumInsuranceamount=CIF(CIP)×(1+markuprate)Markupcoverstheexpectedprofitandincidentalcostsincurred.Markuprateisnormally10%62SEIBOFGDUFS6.6.2TodeterminetheinsurancecoverageTheinsurancecoverageforCIForCIPisminimumcoverage.i.e.F.P.A.coverageasperC.I.C.FactorsinfluencingtheinsurancecoverageforotherIncotermsthenatureofproductthepackingconsiderationsthecarriersofthetransporttheshippingrouteportsconsiderations,etc.63SEIBOFGDUFS6.6.3ToobtaintheinsurancepremiumrateInsurancepremiumratecanbeobtainedfromtheinsurancecompany.Normallyvaryfrom0.5%to2.5%ormoreThevariationofpremiumdependsonfactorssuchasthecarryingvesselthenatureofthepackingusedthetypeofcoverageneededthepreviousexperiencewiththeinsurerthenatureandvolumeofthegoodsinsuredthemodesoftransportationadopted64SEIBOFGDUFS6.6.4ToapplyformarineinsuranceandpaytheinsurancepremiumForapplying,oneneedstofillinaproposalformorapplicationform(Specimen6.1)Detailsincludethenameoftheinsured,quantity,packing,shippingmarks,insuranceamount,placeofshipmentanddestination,nameofthecarryingconveyance,shippingdateandcoverage,etc.Uponapplying,oneneedstopaythepremiumtotheinsurer.Insurancepremiumreferstothefeeschargedtotheinsuredbytheinsurerfortheindemnityliabilityundertaken.Withoutpayingthepremium,theinsurancecontractwon’tbecomevalid.InsurancePremium(I)=insuranceamount×premiumrate(R)=CIF(CIP)×(1+markuprate)×premiumrate(R)65SEIBOFGDUFS6.6.5ToobtaininsurancedocumentsFeaturesofinsurancedocumentsanevidenceoftheinsurancecontractadocumentdefiningtheobligationsoftheinsurerandtheinsuredthebasisforthelodgingandsettlingofaclaimMaininsurancedocumentsinsurancepolicyinsurancecertificateopenpolicycombinedcertificate66SEIBOFGDUFS6.6.5Toobtai