TIẾNG ANH KINH TẾ insurance

UNIT 10: MARINE CARGO INSURANCE Marine insurance  Marine Insurance covers the loss or damage of ships, cargo, terminals, and any transport or property by which cargo is transferred, acquired, or held between the points of origin and final destination Feature of marine insurance It is based on “Utmost good faith” I.e: both the insured and the insurer’s must disclosed: - Everything which is in their knowledge and - Can affect the contract of insurance  It is a contract of indemnity  Types of marine insurance    Property insurance: insures against financial loss resulting from damage to, or destruction of, property in which the insured has an insurable interest Liability insurance: insures against financial loss resulting from some person or organization making a claim against the insured for damages because of bodily injury, death, property damage, or some other injury for which the insured is allegedly responsible    Total loss or partial loss   Total loss: the insurer is entitle to take over what ever may remain of the subject matter Partial loss: subrogation is to extent of loss paid, excess recovery if any, is to be disbursed to the insured Parties involed     Carrier Charter Consignee Consignor Average In marine insurance, in the case of a partial loss, or emergency repairs to the vessel, average may be declared This covers situations, where, for example, a ship in a storm might have to jettison certain cargo to protect the ship and the remaining cargo “General average” requires all parties concerned in the venture (Hull/Cargo/Freight/Bunkers) to contribute to compensate the losses caused to those whose cargo has been lost or damaged 'Particular Average' is levied on a group of cargo owners and not all of the cargo owners Insurance premium   Financial cost of obtaining an insurance cover, paid as a lump sum or in installments during the duration of the policy A failure to pay premium when due automatically cancels the insurance policy which, upon payment of the outstanding amount within a certain period, may be restored Calculation of Marine Insurance Amount/Premium:   Amount of premium depends on factors like nature of cargo, scope of cover, packing, mode of conveyance, distance and past claims experience Premium can be paid on a monthly/quarterly/half-yearly/yearly basis Insurance Policy - Floating policy Open policy Valued policy Unvalued policy Time policy Voyage policy Time and voyage policy MARINE STANDARD POLICY FORM THE FORM CONTAINS THE FOLLOWING PARTICULARS:             NAME OF INSURED: -POLICY NO.: SUM INSURED: -PREMIUM: STAMP DUTY: -CONVEYANCE/STEAMER: VOYAGE OR JOURNEY: -B/L; LR/GR, RR, AWB NO.: TYPE OF COVER: AND DATE: CLAUSES ATTACHED INTEREST/PROPERTY : DESCRIPTION OF THE ITEM WITH PACKING DETAILS : NAME AND ADDRESS OF SURVEYOR AT DESTINATION CLAIM SETTLING AGENT: PLACE WHERE CLAIM SHALL BE SETTLED: POLICY ISSUING OFFICE ADDRESS AND DATE: SIGNATURE OF AUTHORISED PERSON: Comparison Open cover/ open policy OPEN COVER   OPEN COVER: FOR REGULAR SHIPMENTS AN AGREEMENT OF INSURANCE WITH THE INSURED  TO GOVERN THE INSURANCE COVERAGE OF FUTURE TRANSITS OR SHIPMENTS  COVERAGE LIKE ICC-’A’ OR ‘B’ ETC IS AGREED,  RATE, TERMS, WARRANTIES, CLAUSES, EXCLUSION ARE AGREED  VOYAGE BY SEA OR AIR, TRANSHIPMENT IF ANY IS AGREED  BASIS OF VALUATION OF GOODS IS THERE BUT NO SUM INSURED SPECIFIED IN THE OPEN COVER  LIMIT PER BOTTOM (SENDING) AND LIMIT PER LOCATION ( ACCUMULATION OF RISK) OPEN COVER…  THE INSURER UNDERTAKES TO INSURE ALL SHIPMENTS DECLARED BY THE INSURED  THE ASSURED UNDERTAKES TO DECLARE EACH AND EVERY SHIPMENT WHICH COMES WITHIN THE SCOPE OF OPEN COVER  PREMIUM AND STAMPDUTY PAYABLE AGAINST EACH AND EVERY SHIPMENT  A MARINE POLICY OR CERTIFICATE OF INSURANCE SHALL ISSUED DULLY STAMP DUTY AGINST EACH DISPATCH  A DEPOSITE PREMIUM, EQUIVALENT TO ONE TO THREE MONTH’S TURNOVER SHALL BE ACCEPTED BY INSURER OPEN COVER…  FOR LEGAL PURPOSE OPEN COVER IS LIKE A COVERNOTE AND THEREFORE A STAMPED POLICY OR CERTIFICATE IS ISSUED AGAINST EACH SHIPMENT  THE ADVANTAGES ARE:   AUTOMATIC AND CONTINUOUS COVER IN REGARD TO COVERAGE, RATE, TERMS AND CONDITIONS AND NO NEED FOR ANY NEGOTIATION ON EACH SHIPMENT  ANY INADVERTANT OMMISSION TO INSURE OR DELAY IN SHIPMENT ADVICE IS IGNORED BY THE INSURER PROVIDED THERE IS SUFFICIENT DEPOSIT  SINCE THE RATE IS AGREED AT INCEPTION AND IT HELPS THE INSURED TO KNOW THE COST OF INSURANCE THE INSURER CAN CHECK THE RECORDS OF THE ASSURED ABOUT THE SHIPMENTS COMING UNDER TERMS OF OPEN COVER OPEN POLICY   Open Policy/ Floating Policy: A stamped document Sum Insured: Estimated Annual Turnover  Details of cargo or goods to covered, mode of transport, voyage from –to, basis of valuation, Limit per sending, Rate of premium etc are mentioned on the policy  All the shipments coming under the scope are covered to the extent sum insured is available  Policy can be issued for an amount to take care of shipments for 03 months or so at the commencement and can be increased subsequently but before the sum insured is exhausted  Policy is issued for 12 months but lapses if the sum insured is exhausted Open Policy…  For increase in S I additional premium at rate agreed is paid  Fresh policy if sum insured is exhausted  Declarations are made, giving details of dispatches made during the fortnight or month as agreed, to Insurer and S I is reduced accordingly  Details of dispatch: GR/RR no Date Description of goods Qty/wt Balance Amount Open Policy……  A Certificate of Insurance is issued against declarations for the fortnight or month as the case may be  Since policy is a stamped document, certificates are not stamped  Open policy is issued for inland transit  At the end of the policy period, the policy is adjusted and premium against the balance unutilized S I is refunded  Advantages of Open Policy:  Automatic and continuous insurance protection  Administrative labour is reduced  Saving in stamp duty Open Policy……  The insurer can check the records of the insured in regard to dispatches made in terms of the open policy  The policy can be cancelled by either party after giving a notice of 30 days  Location limit at any one location should not exceed a specified amount mentioned in the open policy conditions Cargo insurance  Cargo insurance is underwritten on the Institute Cargo Clauses, with coverage on an A, B, or C basis, A having the widest cover and C the most restricted Valuable cargo is known as specie Different types of marine loss Marine Insurance Claim Procedure • In case of loss/damage in transit, a monetary claim should be lodged with the carrier within the time limit to protect recovery rights • Appointment of surveyor or claim representative in agreement with the insurer to determine the nature, cause and extent of loss/damage • The surveyor informs the insurer of the approximate value of loss incurred • The claim procedure takes from one to three weeks Documents Required for Marine Insurance Claim  • Original Invoice & packing List – if forming part of Invoice • Document of declaration of consignment • Damage Certificate from the carrier •a Survey Report (SR) (Biên giám định)  a Cargo Outturned Report (COR) (Biên dỡ hàng)  a Report on Receipt of Cargo (ROROC) (Biên nhận hàng với tàu) How to claim       Take immediate steps to minimize loss Inform nearest office of the insurance company or claim settling agent mentioned on the policy In case of damage to goods whilst on ship or port, arrange for joint ship survey or port survey Lodge monetary claim with carrier within stipulated time period Submit duly assigned insurance policy/certificate along with the original invoice and other documents required to substantiate the claim such as: • Bill of Lading • Packing list • Copies of correspondence exchanged with carriers • Copy of notice served on carriers along with acknowledgment/receipt • Shortage/Damage Certificate issued by carriers ... marine insurance    Property insurance: insures against financial loss resulting from damage to, or destruction of, property in which the insured has an insurable interest Liability insurance: ... of marine insurance It is based on “Utmost good faith” I.e: both the insured and the insurer’s must disclosed: - Everything which is in their knowledge and - Can affect the contract of insurance. ..Marine insurance  Marine Insurance covers the loss or damage of ships, cargo, terminals, and any transport or property