國(guó)際貿(mào)易實(shí)務(wù)多媒體學(xué)習(xí)課件unit

1、Unit 7 Cargo Transport InsuranceIntroduction2. Information4. Reading Practice3. Language Tips 1.Unit Points 5. Exercises 1.Unit Points & FocusContentsObjectivesPreview Case123ObjectivesThe insurance clause in the sales contractThe three basic insurance coverage and additional insurance coverage unde

2、r C.I.The importance of cargo transport insuranceThe different marine risksAfter reading this unit, you will understandThe different marine lossesHow to prepare the application form of insurancePreview Case A Chinese company exported some wheat to Denmark. The price term employed was CIF Copenhagen.

3、 During transshipment in India, part of the cargo was soaked by heavy rain. When the ship arrived at the port of destination, the importer claimed compensation from the insurance company. However, the insurance company refused to compensate claiming that damage caused by rain was not included in W.P

4、.A. coverage. Contents7.1 Basic Concepts in Insurance7.2 Different Risks 7.3 Different Losses7.4 The Different Ocean Marine Insurance Coverage Under C.I.C. 7.5 Commencement and Termination of Different Insurance Coverage7.6 Export and Import Insurance Practice and insurance documents7.7 Insurance Cl

5、aims7.8 Insurance Clauses in a sales contract7.1 Basic Concepts in Insurance 1.Insurer The insurer is the party that provides the insurance service and makes compensation in case of loss. For example, PICC, the Peoples Insurance Company of China, is the biggest insurer in China. Another term “ under

6、writer ” is also used to refer to the insurer. This term is originated from the Corporation of Lloyds, London, where the insurer was required to sign his name at the end of the insurance policy. 2.Insured The insured is the party who is insured against possible loss and to whom compensation is made.

7、 In international trade, the party which effects insurance is usually the insured. 3.Insurance policy The insurance policy is the contract concluded between the insurer and the insured. 4.Insured amount The insured amount is the amount of money the insurer agrees to cover the insured goods against l

8、oss. In other words, the insured amount is the upper limit on compensation payable to the insured in case of loss. In international trade, the insured amount is often the CIF value of the consignment plus 10%. The additional 10% compensates for the loss of profit expected from the transaction. 5.Pre

9、mium The premium is the money paid to the insurer for the insurance service. The premium is always presented as a percentage of the insured amount.Students Task Why is the insured amount generally based on the CIF value of the goods rather than the FOB value of the goods?7.2 Different Risks About 80

10、% of the goods in international trade are transported by sea. In this unit, we focus on marine transport insurance. There are two main categories of risks as shown in the diagram below.Perils of the sea Natural calamity Fortuitous accidentsExtraneous risks General extraneous risks Special extraneous

11、 risksNatural calamity refers to natural disasters such as vile weather, tsunamis, earthquakes, volcanic eruptions, storms, lightning and so on.Fortuitous accidents are events happening to the vessel such as stranding, grounding, collision, ship sinking, fires, explosion, ship missing and so on.Gene

12、ral extraneous risks are risks due to theft, rain, leakage, shortages, breakage, dampness, mildewing, heating, taint of odor, hooking and rusting.Special extraneous risks are risks such as on deck, war, strikes, failure of delivery, rejection, etc.7.3 Different Losses Losses caused during the transi

13、t of goods can be classified into total loss and partial loss. Total loss might be actual total loss or constructive total loss, while partial loss can be further divided into particular average and general average.Total lossActual total loss Constructive total lossPartial loss Particular averageGen

14、eral averageActual total loss means the insured goods are totally damaged, or have been lost or found valueless upon arrival.Constructive total loss occurs when the actual loss of the insured goods is unavoidable, or when the ship or the consignment has to be abandoned because the cost of salvage or

15、 recovery will exceed the value of the ship and the consignment upon arrival. Particular average is the partial loss suffered by the party whose consignment is partially lost or damaged. When the loss or damage occurs, no cargo of other parties has to be sacrificed to save the voyage. General averag

16、e is the partial loss resulting from a deliberate act of the ships master, such as throwing overboard all or part of the cargo to save the ship. In this case, all beneficial parties will share the loss of the specific consignor. Case A ship was transporting cargo at sea, when suddenly heavy smoke wa

17、s seen coming from the ships hold. Thinking that the cargo was on fire, a sailor turned on the fire hose and sprayed water on the cargo. Part of the cargo was soaked and damaged. However it turned out that the engine had given off the smoke and there was no fire at all. The sailor had been mistaken.

18、 In the above case, can the partial loss be considered as general average?The following criteria determine that the partial loss is a general average:The ship or the consignment was in actual danger.The measures taken were deliberate and reasonable.The expenses and sacrifice were extraordinary and t

19、hey are the direct result of general average act.The expenses and sacrifice were effective. A general average is mostly adjusted in conformity with the provisions of the York/Antwerp Rules ( ), which are frequently used in the international shipping and referred to in carriage contracts. In case of

20、general average act, the parties involved shall all pay a general average contribution proportionally. The contribution is adjusted between the ship owner and the cargo owner by the average adjuster who is appointed by the ship owner or the carrier.7.4 The Different Ocean Marine Insurance Coverage U

21、nder C.I.C. The Ocean Marine Cargo Clauses of the China Insurance Clauses provides both basic insurance coverage and additional insurance coverage for marine cargo transport. There are three kinds of basic insurance coverage under C.I.C.: Free from Particular Average (F.P.A.), With Particular Averag

22、e (W.P.A.) and All Risks. Besides the three kinds of basic insurance coverage, there are other two kinds of additional insurance coverage: General Additional Risks and Special Additional Risks. The following diagram shows how the insurance coverage under C.I.C. are related:Additional Insurance Cover

23、ageBasic Insurance CoverageAll Risks W.P.A.F.P.A.Special Additional RisksGeneral Additional Risks losses: 7.5 Commencement and Termination of Different Insurance CoverageFor the three basic insurance coverage, insurance takes effect as soon as the insured cargo is taken away from the warehouse in th

24、e place of shipment listed on the insurance policy. It terminates when the cargo is carried to the final warehouse listed on the insurance policy, or 60 days after the goods are discharged from the ship in case they fail to reach the warehouse during a reasonable period of time. The above stipulatio

25、n is commonly referred to as Warehouse to Warehouse Clause. If within 60 days after the goods have been discharged from the ship, or if the goods are taken to a destination other than the one specified on the insurance policy, the insurance terminates thereupon. Case A consignment was shipped from S

26、henzhen to Singapore under All Risks. The ship arrived on 20th, April and the goods were discharged on the second day and stored in a warehouse at the port of destination. The goods caught fire on the same night and were all damaged. In this case, will the insurance company compensate for the loss?

27、For War Risks, the insurance begins when the goods have been shipped on board and it ends when the goods are unloaded from the ship. In case the goods remain on board the ship after the ship has arrived at the port of destination, War Risks insurance stops 15 days after the goods arrive at the port

28、of destinationCase An exporter in Qingdao signed a CFR contract to sell soybean to a European buyer. The buyer arranged insurance for the cargo. The cargo was damaged in a transport accident during the transit from the sellers factory to the port of shipment. According to Warehouse to Warehouse Clau

29、se, is it reasonable for the seller to claim for compensation from the insurance company? 7.6 Export and Import Insurance Practice and Insurance DocumentsIn the case of a CIF contract, the exporter will effect insurance. Insurance shall be effected before shipment is made or before the consignment i

30、s delivered to the carrier. In the case of an FOB or CFR contract, the buyer will effect insurance.When effecting insurance for the goods, the exporter has to decide on the insurance coverage. When deciding on insurance coverage, the following five factors shall be considered:The characteristics of

31、the cargo; The packing of the cargo; The transportation mode, transportation vessel and transportation route; Possible losses and damages during transit;The political situation at destination and during transit.Insurance 7.7 Insurance Claims1.Valid period of claims Insurance claims are made when dam

32、age or losses occur during the insured period. The period for insurance claims is usually 2 years from the date when the cargo is discharged from the vessel. 2.The survey and claim settlement agent On discovering damage to or losses from the consignment, the Survey and Claim Settlement Agent shall b

33、e notified to examine the damage or losses to the cargo and, if the claim is found to be justifiable, pay indemnity to the consignee. In some cases, the indemnity may be paid later by the insurer instead of the Surveying Agent.QuestionThe insurance policy may include the clause “Claim, if any, payab

34、le at _ in _.” What should be filled in the blanks?3.Claim documents When claiming an indemnity, the insured shall present the following documents: insurance policy or certificate, invoice; packing list, weight memo, survey report, and others as necessary. 4.Exclusion Exclusion is the situation in w

35、hich the insurer is deemed not responsible for damage to or losses from the cargo. For the three basic insurance coverage under C.I.C., the insurer is entitled to the following exclusions: Deliberate act or fault of the insured. Losses falling under the liability of the consignor. Inferior quality o

36、r shortage in the consignment before the insurance takes effect. Losses arising from the natural loss, inherent vice or nature of the insured goods; losses arising from fluctuations in the market and/or delays in transit, and any expenses arising thereof.Risks and liabilities covered and excluded by

37、 the war risks clauses and strike, riot, and civil commotion clauses under C.I.C. Example In July 2007, a trading company in Shandong, China exported 10 metric tons of fresh fruit to a European country under a CFR contract. The cargo was transported by China Ocean Shipping Company and a clean bill o

38、f lading was issued. When the vessel arrived at the destination port, it was found that 50% of the fruit was rotten. The fruit had gone bad because of the delay in transit. Is the insurer responsible for making compensation for the loss? 5.Right of subrogation After paying a claim to the insured, th

39、e insurer is subrogated to all the rights and claims the insured has against the third party that has caused the damage to the goods. The insured, after receiving the indemnity, will commonly sign a letter of subrogation to the insurer. 7.8 Insurance Clauses in a Sales Contract Insurance clauses in

40、a sales contract or L/C may vary. Usually, these clauses will specify the following: which party is to effect insurance; how much the insured amount is; the type of insurance coverage; etc. Here are some insurance clauses you might find in a sales contract: When the trade term is FOB, CFR, FCA or CP

41、T, the contract insurance clause may be: Insurance: To be covered by the Buyer. Insurance: To be effected by the Seller on behalf of the Buyer for 110% of total invoice value against All Risks as per Ocean Marine Cargo Clause of the Peoples Insurance Company of China, dated 1/1/1981, premium to be p

42、aid for Buyers account. When the trade term is CIF or CIP, the contract insurance clause may be: Insurance: To be covered by the Seller for 110% of the total invoice value against All Risks and War Risks as per Ocean Marine Cargo Clause of the Peoples Insurance Company of China, dated 1/1/1981. Insu

43、rance: To be covered by Seller for 110% of invoice value covering Institute Cargo Clauses A and Institute War Clauses as per I.C.C. dated 1/1/1982.QuestionThe value of an export contract was 10,000 USD, the insurance rate was 0.8%, and the insured amount was 110% of the contract value. How much was

44、the insured amount and the premium respectively in this case?CalculationAn export company quoted the contract price at 10,000 GBP CIF London per M/T and the insured amount was 110% of the invoice value. The importer requested the company quote a new price under CFR. How much should the exporter quot

45、e to insure his profit stays the same? The insurance rate is 0.5% in this case.2.InformationThe History of Insurance3.Language TipsLanguage Tips4.Reading PracticeTransport Insurance 5.Exercises&KeysExercisesTranslateJudge123Explain Project 4.Explain the following terms in simple English and give the

46、ir Chinese equivalents.EnglishChinese1. natural calamity2. fortuitous accidents3. insured 4. insurer5. premium6. general average7. particular average8. exclusion9. insurance policy10. insurance coverage自然災(zāi)害意外事故被保險(xiǎn)人保險(xiǎn)人共同海損保險(xiǎn)費(fèi)除外責(zé)任單獨(dú)海損保險(xiǎn)單保險(xiǎn)險(xiǎn)別. Judge whether the following statements are true (T) or fals

47、e (F).Under All Risks, the insurance company will make compensation for losses or damages caused by all kinds of risks. （ ）The risk of fresh water leakage is covered by W.P.A. （ ）Companies can insure their cargoes against Institute Cargo Clauses with P.I.C.C. （ ）According to China Insurance Clauses, special additional risks can not be covered alone. （ ）Under C.I.F., the seller is obliged to insure the goods against the minimum insurance coverage.（ ） FTFT T. Translate the following sentences into Chinese. 1.Insurance applica