Section 1 a brief introduction of insurance
Basic Principle of Insurance
1 Utmost good faith
2 Insurable interest
3 Principle of indemnity
4 Principle of proximate cause
5 Principle of subrogation
varieties of marine Insurance
Section2 Marine Insurance Coverage
Perils of the Sea
1 Natural Calamity
2 Fortuitous Accidents
Loss and cost incident to transport by sea
1 Loss arising from transport by sea
Degree of loss: total loss and partial loss
Property of loss: General Average and Particular Average
The definitions of General Average and Particular Average
Conditions of Genaral Average
Differences between Genaral Average and Particular Average: reason for loss, loss obligations
General Average Contribution
Related Parties: Owner, shipper, payer
Two principles of General Average Contribution:
Firstly, contribution according to the actual loss and extra charges
Secondly, contribution according to the article’s value in proportion
Charges of the sea
1 Sue and labor charges
2 Salvage charges
Exclusions of insurance Company
1 Loss is caused by intentional behavior of the insured
2 Loss is caused by the sender
3 Loss is caused by the poor quality or quanlity short fall of the insured goods prior to the insurance policy come into effect.
4 Loss is caused by natural reasons, inherit drawback ,fall price and late shipment of the insured goods
Basic Average
1 FPA: Free from particular average
2 WPA: With average of with particular average
3 All Risks
Insurance responsibility of Basic Average
1 The meaning of Warehouse to Warehouse Clause
2 Coverage of W/W is effected by different Trade Terms
Under CIF, coverage of insurance responsibility is actual w/w
Under FOB or CFR, coverage of insurance responsibility is ship to warehouse
（Damage Caused by Heating and Sweating）
Additional Average
1 Normal Additional Average
Theft,Pilferage and Non-Delivery:TPND
Fresh Water and Rain Damage
Risk of Leakage
Risk of Shortage
Hook Damage
Risk of Contamination
Risk of Clash and Breakage
Risk of Rust
Risk of Odour
Damage Caused by Heating and Sweating
2 Particular Additional Average
War risk
Risk of Strike,Riots and Civil Commotions:SRCC
Failure to deliver
Import duty risk
On deck risk
Rejection risk
Aflatoxin risk
Appending Clause of warehouse fire risk
Section 4 Institute Cargo Clauses
（A）：ICC（A）
Varieties of Institute Cargo Clauses
1 ICC（A）
2 ICC（B）
3 ICC（C）
4 Institute War Clauses-Cargo
5 Institute Strikes Clauses-Cargo
6 Malicious Damage Clauses
Insured fisks and exclusions of ICC
1 Insured fisks and exclusions of ICC(A)
2 Insured fisks and exclusions of ICC(B)
3 Insured fisks and exclusions of ICC(C)
4 Insured fisks and exclusions of War Risk
5 Insured fisks and exclusions of Srikes Risk
6 Insured fisks and exclusions of Malicious Damage
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Coverage of Risks:
Coverage of Risks: W/W
Coverage of War Risks: Water transport
Section 5: Transportation insurance under other transportation way
Overland transportation risks
Overland transportation risks including: overland transportation risks and air transportation all risks, it adapts W/W clause
Air transportation risks
Air transportation risks including: air transportation risks and air transportation all risks, it adapts W/W clause
Parcel post risks
Parcel post risks including: parcel post risks and parcel post all risks, it adapts W/W clause
Section 6 Insurance Practice
Insurance
1’ Choices of the insurance average
Characters of Cargo
Packing of Cargo
Line and Port of Transport
Season of Transport
2’Deciding insured amount
Export: adding 10% to CIF or CIP
Insured value=CIF*(1+I%)
CIF=CFR/(1-(1+I%)*i)
CIF=CFR/(1-1.1R)
3’Payment of insurance premium
insurance premium=insured value*insurance premium rate
Insurance Document
1’Insurance Policy: form of Insurance Policy
2’Insurance Certificate
3’Combined Certificate
4’Endorsement: Endorsement is a certification that insured need to add or verify the content of insurance document
Insurance Claim
1’Lossing Advice
2’Chaiming to carrier
3’Reasonable Saving Measures
4 Preparing Claim documents
5’Subrogation
Counting the reparations
Notice: All loss are need to compensate or compensating according to the exclusive rate no matter IOP
It includes Deductible and Franchise.
PICC use Deductible
Insurance Clauses of sales contracts
1’Under “F” and “E” terms and CFR, CPT contracts, insurance clauses should be: To be covered by the buyer
2’ Under “D” terms contracts, insurance clause should be: To be covered by the seller
3’ Under CIF or CIP contracts, insurance clause should be: To be covered by the seller for …% of total invoice value against…, … as per and subject to the relevant ocean marine cargo clauses of the Pepole’s Insurance Company of China,dated…
Summary:
This chapter mainly introduces the coverage of marine insurance, the coverag and clauses of marine insurance in our country, as well as transportation insurance practice of imported $ exported goods,etc.the important one is marine insurance ,the difficult point is the choice of the coverage of insurance.
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.Life Insurance Knowledge:Life Insurance , private, death, employee pensions and annuities,life insurance, educational, life insurance companies
