國際貿易實務與操作

InternationalTradePracticeandOperation1Chapter8CargoInsurance

TeachingObjectives1.Discussthescopeofmarineinsurance.2.ExplainChinaInsuranceClauseandInstituteCargoClause.3.Discusstypesofinsurancedocuments.2Section1MarineInsurance

1.DefinitionMarineinsuranceisdefinedasacontractofmarineinsurancewherebytheinsurerundertakestoindemnifytheassuredinamannerandtotheextenttherebyagreed,againstmarinelosses.Marinelossisreferredtoasthespecialterm“average”.3Section1MarineInsurance

2.ScopeThescopeofmaritimeinsurancecovers:insuredperils,averageandinsuredexpenses.Perilsresultfromeitherlossofdamagefromthesealikenaturalcalamityandfortuitousaccidentsorextraneousrisks.Accordingtotheextentoftheloss,itcanbeeithertotalorpartial.Partiallosscanbeclassifiedas:generalaverageandparticularaverage.Therearemainlytwotypesofexpensesincurred:sueandlaborexpensesandsalvagecharges.4Section1MarineInsurance

PerilsLossfromtheseaExtraneousrisks

NaturalcalamityFortuitousaccidentGeneralextraneousrisksSpecialextraneousrisks5Section1MarineInsurance

AverageTotallossPartiallossExpensesActualtotallossConstructivetotallossParticularaverageGeneralaverageSueandlaborexpensesSalvagecharges6Section1MarineInsurance

CASE8-1(GreatChinaMetalIndustriesCo.Ltd.v.MalaysianInternationalShippingCorp.):In1989,fortycasesofaluminumcanbodystockincoilswereconsignedfromSydneytoKeelung,Taiwan.Therespondentissuedabillofladingdated5October1989,acknowledgingreceiptofthegoodsinapparentgoodorderandcondition.InthecourseofitspassageacrosstheGreatAustralianBight,thevesselencounteredheavyweather.Thatweatherhadbeenforecastbeforethevesselleftport.Someofthegoodsweredamaged.Issue:Shouldtherespondentberesponsibleforthedamagesofthecoils?7Section2ChinaInsuranceClausesThemostcommonlyusedtermsincargoinsuranceinChinaisChinaInsuranceClause(C.I.C.).AccordingtoC.I.C.clauses,marinecargoinsurancecanbedividedintobasiccoverageandadditionalcoverage.TherearethreestandardclausesunderC.I.Cbasiccoverage:FreefromParticularAverage(FPA),WithAverageorWithParticularAverage(WAorWPA),AllRisks.8Section2ChinaInsuranceClausesBasicCoverageAdditionalCoverageFPAWA/WPAAllRisksGeneralAdditionalCoverageSpecialAdditionalCoverage9Section2ChinaInsuranceClauses1.BasicCoverageAmongthethreeclauses,FPAisthenarrowestformofcoverage.Inadditiontoprovidingcoverageforatotallossofthegoodsresultingfromanaccidenttothevessel(duetoperilsofthesea),partiallossesresultingfromtheperilsoftheseaarerecoverableonlyifthevesselhasbeenstranded,sunk,burnedorinacollision.WPA

extendstheFPAcoveragetocoverpartiallossduetoperilsofthesea.Ifthevesselhasbeenstranded,sunkorburned,orhascollidedwithanothervessel,lossesarerecoverableinfull.10Section2ChinaInsuranceClausesAllRisksoffersthemostcomprehensivecoverage.Itcoversallrisksofphysicallossordamagefromanexternalcause,butdoesnotincludewar,strikes,riots,seizureordetention,unlessendorsedbyaspecialclauseorseparatepolicy.WarehousetoWarehouseClauseisadoptedinstipulatingthetermsofcommencementandterminationofbasicmarineinsuranceclauses.11Section2ChinaInsuranceClauses2.AdditionalCoverageApartfrombasiccoverage,theimporter/exportermayalsoprocureadditionalcoverageagainstthelossofordamagetothegoods,whichcanbedividedintogeneraladditionalcoverageandspecialadditionalcoverage.Warrisksandstrikerisksaretwomostimportantspecialadditionalcoverages.Thewarrisksonlycoverwater-bornerisks.12Section3InstituteCargoClause

DefinitionInstituteCargoClausesareasetoftermsforcargoinsurancepoliciesvoluntarilyadoptedasstandardtermsbymanyinternationalmarineinsuranceorganizationsincludingtheInstituteofLondonUnderwritersandtheAmericanInstituteofMarineUnderwriters.Therearethreetypesofcover:InstituteCargoClausesA(ICC(A))InstituteCargoClausesB(ICC(B))InstituteCargoClausesC(ICC(C))Also:InstituteCargoClauses–WarClausesInstituteCargoClauses–StrikesClausesandInstituteMaliciousDamageClause13Section3InstituteCargoClauseICC(A),ICC(B),andICC(C)canbeinsuredseparately;WarClausesandStrikesClausescanalsobeinsuredseparatelyunderspecialarrangementswiththeunderwriter.MaliciousDamageClauseisanadditionalcoveragewhichcannotbeinsuredseparately.ExceptMaliciousDamageClause,otherICCclauseshaveeightsectionsrespectively:(1)riskscovered,(2)exclusions,(3)duration,(4)claims,(5)benefitofinsurance,(6)minimizinglosses,(7)avoicanceofdelay,(8)lawandpractice.14Section3InstituteCargoClauseCase8-2

(SourceFoodTechnologyv.UnitedStatesFidelityandGuarantyCo.):SourceFoodTechnology,operatedinMinnesota,US,reliedonbeefimportingfromCanada.TheUSDepartmentofAgricultureclosedthebordertoCanadianbeefduetoMadCowdisease.SourceFoodcouldnotreceivebeefithadorderedandhadtoshutdownfacilitieswhilesearchingfordomesticsupplies.Itfiledaclaimwithitsinsurertocollectonitsbusinessinterruptioncoverage.

15Section3InstituteCargoClauseThepolicystatesthattheinsurerwillpay“theactuallossofbusinessincomeyousustainduetothenecessarysuspensionofyouroperationsduringtheperiodofrestoration.Thesuspensionmustbecausedbydirectphysicallosstoproperty.”Itincludedlosses“causedbytheactionofcivilauthority.”Issue:

ShouldtheInsurerpaythelossofSourceFood?16Section4InsuranceClausesinaContractofSale

Insurancecanbearrangedbyeithertheimporter(FOB,CFRetc,butnoobligation)ortheexporterdependingonthetradetermagreed.InCIFandCIPterms,thesellerhastoprocuremarineinsuranceagainstthebuyer’sriskoflossofordamagetothegoodsduringthecarriage.Ifthereisnospecificrequirementontheinsurancecoverage,thesellerisrequiredtoobtaininsuranceonlyonminimumcover.Ifthebuyerwishestohavetheprotectionofgreatercover,hewouldeitherneedtoagreeasmuchexpresslywiththesellerortomakehisownextrainsurancearrangements.17Section4InsuranceClausesinaContractofSaleTheAssured,theInsurerandtheBrokerAninsurancecontractiscalledapolicy.Apremiumisthepricepaidtotheinsurerforinsuranceprotectionforaspecifiedperiod.Thepartiestoaninsurancepolicyaretheinsurer(theinsurancecompany)andtheassured(thepersoncoveredbythepolicy’sprovisionsortheholderofthepolicy).Theinsureristheoneassumingariskinreturnforthepaymentofapremium.

18Section4InsuranceClausesinaContractofSaleInsurancecontractsareusuallyobtainedthroughanagent,whoordinarilyworksfortheinsurancecompany,orthroughabroker,whoisordinarilyanindependentcontractor.Apersoncaninsureanythinginwhichheorshehasaninsurableinterest.Onehasaninsurableinterestinpropertywhenonewouldsustainafinanciallossfromitsdestruction.19Section4InsuranceClausesinaContractofSale2.ContentsofInsuranceContractAccordingtotheInsuranceLawofChina,aninsurancecontractshallprincipallyinclude:theinsured,theinsurer,subjectmatterinsured,insuredamount,insuredvalue,lengthoftime,coverage,premium,compensationandsoon.SampleofInsuranceContract:P16420Section4InsuranceClausesinaContractofSale3.TypesofInsurancePoliciesValuedandUnvaluedPoliciesAvaluedpolicyisapolicywhichspecifiestheagreedvaluedofthesubjectmatterinsured;Anunvaluedpolicystatesmerelythemaximumlimitofthesuminsuredandleavestheinsurablevaluetobeascertainedsubsequently.21Section4InsuranceClausesinaContractofSaleVoyage,TimeandMixedPoliciesUnderavoyagepolicythesubjectmatterisinsuredintransitfromonepointtoanother.Underatimepolicythesubjectmatterisinsuredforafixedtime.Underamixedpolicythesubjectmatterisinsuredbothforaparticularjourneyandacertainperiodoftime.22Section4InsuranceClausesinaContractofSaleFloatingPolicy,OpenCovers,BlanketPolicies,thePeriodofCoverFloatingPolicy:forregularexporterstocovershipmentsofayear.Itcannotbelodgedwithothernegotiabledocumentsforeveryshipment,soacertificateofinsurancetakesitsplace.OpenCover/CoverPolicy:validfor12months,nototalfigureforallshipments,onlyamaximumfigureforanyindividualshipment.Ablanketpolicy:alumpsumpremium,insteadofapremiumatseveralrates,shallcoverallshipments.23