1. Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Chapter 10 Cargo insurance

2. Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Topics covered in this chapter Introduction Cargo insurance market Lloyds agents Fundamental principles of insurance Effecting cargo insurance Cargo insurance policy form and clauses

3. Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Cargo insurance rating New marine policy form and new institute cargo clauses Cargo insurance claims Cargo claims prevention

4. Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Introduction Cargo insurance embraces an essential element of the export contract. Cargo insurance market An outline of the structure of a cargo insurance market together with its historical background. Lloyds agents The role of the Lloyds agents and their eight main duties.

5. Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Fundamental principles of insurance The four principles explained in depth: Insurable interest, utmost good faith, indemnity and subrogation. Effecting cargo insurance The five key areas embracing insurance cover and three problem areas and their solutions

6. Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Cargo insurance policy form and clauses An outline of the SG policy form. Cargo insurance rating Factors determining the insurance rating important to comprehend when negotiating the policy premium. New marine policy form and new institute clauses Important to understand the composition of a new marine policy form and new institute cargo clauses including method of declaration and scope of cover. Study the check list of discrepancies and their consequences.

7. Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Cargo insurance claims Shippers must comprehend the cargo insurance procedure especially documentation. figure 10.1 and the development of the cargo claim. Figure 10.2 Cargo claims prevention An important area to comprehend is cargo claims prevention.

8. Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Key concepts Ensure you understand the following: Introduction – essential to understand role of cargo insurance in conduct of international trade. Cargo insurance market and all its major factors. Lloyds agents especially their role in the cargo insurance market. Fundamental principles of insurance – very important to comprehend the four main principles. Effecting cargo insurance – the procedure mechanism.

9. Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Cargo insurance policy form and clauses – note key points. Cargo insurance rating – shippers must understand the key areas. New marine policy form and new institute policy clauses – important to become familiar with the policy form and cargo clauses. Cargo insurance claims – shippers must comprehend the mechanism. Cargo claims prevention – shippers must constantly strive to reduce cargo claim in all the areas encountered and thereby contain premium levels.