Number of credits: 03 credits 45 sections Performance appraisal methods: Lecturer: Nguyen Dang Quang Huy (MSc.) 3 39 sections for academic knowledge in class. 06 sections for practical experience at the corporation. Studying process of 30%: Midterm of 20%: Presentation in groups 50% for Final test: Writing exam without books (Closed exam)
Lecturer: Nguyen Dang Quang Huy (MSc.) huyndq@uef.edu.vn The important role of this subject Trading & Negotiation Preparations before the transaction Proceed to sign the sales contract Sales contract execution Preparations for the goods to be shipped Freight, Transport & Logistics Insurance Powerpoint is a complete presentation graphic package it gives you everything you need to produce a professional-looking presentation Payment Subject requirements Number of credits: 03 credits 45 sections 39 sections for academic knowledge in class 06 sections for practical experience at the corporation Performance appraisal methods: Studying process of 30%: 10% for diligence (attendance in class on time) 20% for activities in class (discussion, exercises or tests) Mid-term of 20%: Presentation in groups 50% for Final test: Writing exam without books (Closed exam) Lecturer: Nguyen Dang Quang Huy (MSc.) Main target of this subject ✓ Basic knowledge of transport: concept & roles of transport ❖ Overview knowledge of Insurance for Import & Export cargo ✓ Thorough understanding of the carriage of goods by all modes of transportation, especially by sea, air & rail ❖ Risks, loss or damage & Insurance conditions in Import & Export ✓ Thorough understanding of carriage of goods in container & multimodal transport ✓ Freight forwarding & all related documentations & procedures Lecturer: Nguyen Dang Quang Huy (MSc.) Vietnamese reference books Giáo trình Vận Tải Bảo Hiểm – Đại Học Kinh Tế Tài Chính (UEF) Giáo trình Vận tải BH ngoại thương Vận tải quốc tế Bảo hiểm vận tải quốc tế TS Trịnh Thu Hương (2011) TS Triệu Hồng Cẩm (2006) Lecturer: Nguyen Dang Quang Huy (MSc.) Nghiệp vụ giao nhận vận tải Bảo hiểm ngoại thương TG: Phạm Mạnh Hiền (2010) English reference books Main Course Book - UEF Some English reference books: Lecturer: Nguyen Dang Quang Huy (MSc.) Main contents ❖ Part 01: Transportation ➢ Chapter 01: General introduction about transportation ➢ Chapter 02: Carriage of goods by sea ➢ Chapter 03: Carriage of goods by air & by rail ➢ Chapter 04: Carriage of goods in container & International Multimodal Transport ➢ Chapter 05: Freight Forwarding Operations (Procedures & Documentations) ❖ Part 02: Insurance ➢ Chapter 06: General introduction about maritime insurance ➢ Chapter 07: Insurance conditions & compensations Lecturer: Nguyen Dang Quang Huy (MSc.) TRANSPORTATION Chapter 01 General introduction about transportation Chapter 01: General introduction about transportation 1.1 – Concept of transportation 1.2 – Specifications of transportation 1.3 – Transportation roles in the Economics, Logistics & SCM 1.4 – Transportation classification 1.5 – Transportation & Foreign Trade 1.5.1 – The relation between transportation & foreign trade 1.5.2 – The allocation of transport responsibility in the foreign trade Lecturer: Nguyen Dang Quang Huy (MSc.) Chapter’s objective Transportation concept Transportation classification Transportation & Foreign Trade The vital role of Transportation Lecturer: Nguyen Dang Quang Huy (MSc.) 10 7.1 – Insurance conditions: 7.1.2 – Institute War Clause (ICC 1982) Coverage risks - Insurance duration (Only applied for Marine Insurance) War, civil war, revolution, rebellion, uprising Civil conflicts arising from these events Be confiscated, restrained or withheld from these events Remnants of bombs or weapons of war Contribution to the General Average - Effective when insured Subject or a part of insured Subject is loaded on board of vessel - And it is terminated when: ⬧ Insured subject or a part of insured subject is unloaded from the vessel ⬧ 15 days expiration from midnight of the arrival date of the vessel to the port / or final unloading location ⬧ Cargo was transshipped to 2nd vessel at transshipment port => The insurance is still effective within 15 days from the arrival date of the vessel to the port Lecturer: Nguyen Dang Quang Huy (MSc.) 11 7.1 – Insurance conditions: 7.1.3 – Institute Strikes Clause (ICC 1982) Coverage Risks Loss or damage of insured subject caused by: - Strikes, workers are banned from working in the factory - Disorder of labors or violence - Any terrorism or actions by terrorists for political purposes - Any sacrifices for General Average & arising salvage costs Insurance duration (Only applied for Marine Insurance) ➔ Same as Insurance condition A, B and C Lecturer: Nguyen Dang Quang Huy (MSc.) 12 Chapter 07 7.2 – Insurance contract for goods transported by sea ❖ Concept: - Insurance contract is a negotiation / agreement between the Insurer & the Insured - The Insurer commits to compensate to the Insured for any loss or damage caused by the agreed risks - The insured must commit to pay the Insurance premium ❖ Features: ❖ Classification: - Compensation - Voyage insurance contract - Trust / Credibility - Insurance contract for many voyages in a - Transferrability Lecturer: Nguyen Dang Quang Huy (MSc.) certain period 13 Chapter 07 7.2 – Insurance contract for goods transported by sea ❖ Content of the contract: Name, address, bank account number of each party Commodity: name, packing type, packaging specification, marking, weight, volume, etc Vessel: technical specifications, name, year of built, flag, DWT, etc Method of loading goods on board of vessel Loading port / Discharge port / Transshipment port Shipping date / Delivery date 10 Insurance Premium Estimated Departure date 11 Place for Loss survey Insurance Condition 12 Place for compensation payment Total insured value / Total amount insured 13 Signed & Stamped Lecturer: Nguyen Dang Quang Huy (MSc.) 14 Chapter 07 7.2 – Insurance contract for goods transported by sea ❖ Responsibilities from both sides: ▪ The Insured ▪ Insurer - Providing insurance certificate to the Insured after collecting the Insurance premium - Arranging compensation in case of loss or damage within the period of time stipulated - Insurance premium payment - Timely informing any loss or damage to Insurer - Providing necessary & detailed information - Promptly taking any measures to prevent or in the contract after receiving the written claims for coverage risks by the Insured limitative any further loss or damage Lecturer: Nguyen Dang Quang Huy (MSc.) 15 Chapter 07 7.3 – Loss inspection & compensation for loss Loss arising during transport or at destination The Insured claims for survey/Inspection Survey proceed for reason & extent of loss Survey certificate or Survey report Proceed to compensate Lecturer: Nguyen Dang Quang Huy (MSc.) Claims for compensation 16 Chapter 07 7.3 – Loss inspection & compensation for loss 7.3.1 – Loss inspection: - Loss inspection is the responsibility of the surveyor or Inspection company authorized by the Insured, in order to determine the extent & reason of loss or damage From that, it is the basis for the compensation - Inspection is carried out when the goods are damaged, broken, deficient, deteriorated at the destination port/airport or during transportation at the request of the Insured - After inspection, survey certificate will be provided by the surveyor, including types: ➢ Survey Certificate: Giấy chứng nhận giám định ➢ Survey Report: Biên giám định Lecturer: Nguyen Dang Quang Huy (MSc.) 17 Chapter 07 7.3 – Loss inspection & compensation for loss 7.3.1 – Loss inspection: The Insured claims for inspection Inspection Certificate The claim is accepted Lecturer: Nguyen Dang Quang Huy (MSc.) The surveyor is assigned by Inspection company Determine the reasons for loss Actual inspection on the scene Classify & determine the extent of loss 18 Chapter 07 7.3 – Loss inspection & compensation for loss 7.3.2 – Compensation for loss: The documents submission to claim for compensation are included: The original copy of Insurance application A claim letter clearly specified the amount of money claimed Original Bill of Lading & Charter Party (if any) Commercial Invoice Invoice for other charges (if any) Certificate of quantity / quality Report on Receipt of Cargo (ROROC) Packing List Any documents related to request for claims from the 3rd party & reply (if any) Sea Protest (Kháng nghị hàng hải) or Log Book (Nhật ký hàng hải) Lecturer: Nguyen Dang Quang Huy (MSc.) 19 Chapter 07 7.3 – Loss inspection & compensation for loss 7.3.2 – Compensation for loss: The Insurer (Insurance company) will compensate for loss based on below principles: Compensation should be paid in money, not paid in kind The scope of responsibility of the Insurer is limited within the amount of money insured plus other expenses: salvage cost, inspection cost, cost of assessment & re-selling damaged goods, cost of claiming 3rd party for compensation, contribution cost into General Average Lecturer: Nguyen Dang Quang Huy (MSc.) 20 Chapter 07 7.3 – Loss inspection & compensation for loss 7.3.2 – Compensation for loss: ❑ General Average (G/A) - Determine any sacrifices or costs which are admitted as General Average - Calculate total General Average & allocate this loss for each interest (Ship-owner, cargo-owner(s)) - Proceed to compensate on the basis of related evidence & documents Lecturer: Nguyen Dang Quang Huy (MSc.) 21 Chapter 07 7.3 – Loss inspection & compensation for loss 7.3.2 – Compensation for loss: ❑ Particular Average: including Total Loss and Partial Loss ⬧ Total Loss: ▪ Actual Total Loss: Compensation = The Amount Insured or The Insured Value Accepted goods abandonment: ➔ Compensation is the same as Actual Total Loss ▪ Constructive Total Loss: Not abandon the goods or be refused for goods abandonment: ➔ Compensation will be calculated basing on the extent of loss Lecturer: Nguyen Dang Quang Huy (MSc.) 22 Chapter 07 7.3 – Loss inspection & compensation for loss 7.3.2 – Compensation for loss: ❑ Particular Average: including Total Loss and Partial Loss ⬧ Partial Loss: - If the insured cargo is damaged as partial loss, the compensation will be calculated basing on the ratio of the Insured value of damaged goods - The ratio of damaged goods or discounted goods will be determined by the surveyor Duration for compensation settlement: - Within 30 days from the date when the Insurer received a valid documents for compensation consideration Lecturer: Nguyen Dang Quang Huy (MSc.) 23 Chapter 07 7.3 – Loss inspection & compensation for loss 7.3.2 – Compensation for loss: ❑ Compensation for loss between vessels: Vessel A Vessel B Vessel damage: US $ 6,000,000 US $ 8,000,000 Cargo damage: US $ 9,000,000 US $ 10,000,000 Determine the level of compensation between two vessels from the collision under below cases: Complete (100%) fault from vessel A Complete (100%) fault from vessel B Fault caused by vessel A is 50%, vessel B is 50% Fault caused by vessel A is 70%, vessel B is 30% (requires calculation of both single liability and cross liability) Lecturer: Nguyen Dang Quang Huy (MSc.) 24 End of chapter 24