Marine Insurance Special Presentation

First , in the international trade of goods, insurance is an indispensable condition and link. Among them, the largest amount of business, involving the most extensive is the marine transport cargo insurance.

Second, the marine cargo insurance policy is to insure the risks is divided into basic insurance and other additional risks categories.

1. Free from Paricular Average-FPA, WPA (With Average or With Particular

Average-WA or WPA) and All Risk-AR.

(1) The scope of responsibility of FPA:

1 During the transportation of the insured goods, due to natural disasters, the entire loss or total loss of the entire shipment is caused. Where the insured goods are transported to or away from the seagoing vessel by barges, the cargo loaded on each barge can be considered as a whole batch.

2 The loss of the goods in whole or in part due to accidents caused by the transportation tools.

3 In the event of a vehicle accident, the cargo suffered a total loss due to natural disasters falling on the sea.

4 In case of loading or unloading, all or part of the loss due to the falling of one or several cargoes into the sea.

5 The reasonable expenses paid by the insured person for taking measures to rescue, prevent or reduce the damage to the goods covered by the insured goods, but not exceeding the insured amount of the salvaged goods.

6 The damage caused by unloading at the port of refuge and the special expenses incurred in unloading, storing, and transporting goods at the port of entry and at the port of asylum after the disaster.

7 Costs of sacrifice, apportionment and salvage of common seafarers.

8 The contract of carriage has a “ship collision clause”, and according to this provision, the ship owner should reimburse the ship’s losses.

(2) WPA's scope of responsibility: In addition to the various duties of the FPA, it is also responsible for some of the losses caused by the natural disasters of the insured goods.

(3) Responsibility scope of all risks: In addition to the various liabilities of FPA and WPA, it is also responsible for all or part of the losses caused by the general external reasons during the transit of the insured goods.

2. The additional risk is the expansion and supplement of the basic risk responsibilities. It cannot be separately insured. Additional risks do not have general additional risks and special risks. There are 11 types of general insurance, which include:

Theft , Pilferage and Nondelivery-TPND

Frrsh Water and/or Rain Damage

Risk of Shortage in Weight

Rish of Leakage

Rish of Intermixture and Contamination (Rish of Intermixture and Contamination)

Risk of Intermixture and Contamination

Risk of Odour

Sweating and Heating Risk

Hook Damage Risk

Breakage of Packing Risk

Risk of Rust.

Special additional risks include:

Faliure to Deliver Risk

Import Duty Risk

On Deck Risk

Rejection Risk

Aflatoxin Risk,

Seller's Contingent Risk,

Export of goods to Hong Kong or Macau’s Fire Insurance Extention Clause for Storage of Cargo of Destination Hongkong Inaluding Kowloon, or Macao,

SRCC (Strike Risk)

Ocean Marine Cargo War Risk, etc.

Third , the insurance liability period.

According to the customs of the international insurance industry, the basic insurance is "Warehouse to Warehouse Clause-WW Clause", which means that the insurance liability is from the warehouse or storage place of the consignor of the place of departure stated in the fare insurance policy. Begins to take effect, including the transportation of sea, land, inland rivers and barges during normal transportation, until the goods reach the warehouse of the destination consignee as stated in the insurance policy, but the maximum length of insured cargo cannot be exceeded. 60 days after the seagoing vessel. General additional risks are covered by the scope of liability of all risks. No general additional risks are required to be covered if all risks have been insured, but it should be stated that all risks are not accounted for by all risks. The scope of underwriting liability for maritime war risk insurance for special additional risks, including damages resulting from war, similar warfare and hostile acts, armed conflicts or piracy, and the resulting capture, detention, detention, prohibition, seizure; or Losses caused by conventional weapons (including mines, torpedoes, and bombs); and expenses for general average sacrifices, apportionments, and salvage due to causes. However, it is not liable for damages caused by nuclear weapons such as atomic bombs and hydrogen bombs. The duration of insurance liability for war risk insurance is limited to water hazards, that is, when the goods are loaded at Shanghai port or barge at the port of departure, until the destination is off the seagoing vessel or barge; if the vessel is not unloaded from a seagoing vessel or a barge, it is from the seagoing vessel to the destination port. The insurance liability terminates on the 15th day from midnight on that day. The insurance clause also stipulates that under the premise of insurance against war risks, there is no additional charge for the extension of strike insurance.

Fourth , the basic risk of exclusion of responsibility.

Exclusion liability refers to the loss or expense that the insurance is not responsible for, and generally has the risk of being non-accidental, non-accidental or subject to special coverage. In order to clarify the scope of liability covered by the insurer, the excuse of the basic risks of maritime transport in the People's Insurance Company of China's “Ocean Cargo Cargo Insurance Clause” has the following five items:

1 Loss caused by intentional behavior or negligence of the insured;

2. Losses caused by the responsibility of the shipper;

3 Before the beginning of the insurance liability, the insured goods have been lost due to the existence of poor quality or shortfalls in quantity;

4 The natural loss, intrinsic defects, characteristics of the insured goods, and the losses and expenses caused by the market's falling, transportation delays;

5 War Risk and Strike Insurance Clause stipulations and their liability. The responsibility for the exclusion of air, land and postal transport insurance is basically the same as that of the basic risk insurance of shipping.