Project Ⅱ Task 5 Marine Cargo Transport Insurance

Learning Objectives To realize the perils and losses in ocean transport To master the three basic insurance coverage and additional insurance coverage under C.I.C. To understand the ways of preparing the application form of insurance. To understand the ways of stipulating insurance clauses in sales contract

As we have previously talked about, there is usually a long distance between the seller and the buyer in international trade. No matter which mode of transport has been chosen, all kinds of risks or perils may appear and cause certain loss of or damage to the goods at each stage of their journey. In order to the financial losses, importers or exporters usually change the uncertain risks into fixed charges by effecting insurance. If any unfortunate incidents within the coverage of the insurance occurred, the insured would be with certain amount of money. Marine Cargo Insurance minimize minimize v. 将 …… 减到最少 compensate v. 偿还, 补偿, 付报酬 compensated

Contents Section 1 Basic Concepts in Insurance Section 2 Marine Perils and Losses Section 3 Marine Insurance under C.I.C. Section 4 Export and Import Insurance Practice Exercises

There are many kinds of insurance in the society, such as life insurance, property insurance, insurance against accidental injury, diseases and so on. But, now, in this chapter, we will only focus on cargo insurance, a sort of transport insurance. Cargo insurance is a contract whereby the insurer (insurance company), on the basis of premium, undertakes to the insured against loss from certain risks or perils to which the cargo insured may be exposed. It is aninsurer of international trade. Section 1 I. Cargo insurance indispensable indemnify v. 赔偿, 补偿, 保护 indispensable a. 不可缺少的 adjunct n. 附属物, 附件, 修饰语 adjunct

Subject matter insured refers to the thing, item, and subject that the insurance is insured. It can be visible or invisible.Subject matter insured Section 1 II. Subject matter insured III. Insurer The insurer, also called underwriter, is the party to an insurance arrangement who undertakes to indemnify for losses or provide service, which usually indicates the insurance company or the individuals who run an insurance firm. The following are some common insurers in China:

The insured is the party who is insured against losses and to whom the compensation is made. It usually refers to the owner of the goods. Section 1 IV. Insured V. Insurance policy Insurance policy is a writing whereby a contract of insurance is made in which the rights and duties of the insurer and the insured are set out. It mainly includes the following information: name of the insurer, name of the insured, subject-matter insured, insured value, insured amount, insurance liability, excluded duties, period of insurance, premium and so on.insured valueinsured amount

The insured amount is the amount of money the insurer covers against the losses of the insured. Generally speaking, the insured amount is the maximized amount of the compensation payable to the insured. The premium is imposed on the basis of insured amount. In international trade, the insured amount is usually 110% of the CIF (CPT) value. The additional 10% would be used to compensate the loss of profit from the transaction. Section 1 VI. Insured amount VII. Premium The premium is the money paid by the insured to the insurer for the insurance service. It is always a percentage of the insured amount. With the differences in insurance coverage, commodities, modes of transportation and ports of destination, there would be different insurance percentages applied.