Basic Marine Cargo Insurance Presentation

Report
MARINE CARGO INSURANCE
Pieter Venter
TRIDENT ADVANTAGE CC
AGENDA
AGENDA
1. WHY INSURE?
2. BASIC PRINCIPLES OF INSURANCE
3. TYPES OF MARINE CARGO POLICIES
4. TYPES OF MARINE CARGO COVERS
5. MAIN MARINE CARGO CLAUSES
6. EXPLANATION OF MAIN CARGO CLAUSES
7. WHEN A CLAIM OCCURS
8. LETTERS OF CREDIT
WHY INSURE?
1. PARTIAL LOSS (Particular Average)
2. TOTAL LOSS
3. GENERAL AVERAGE
BASIC PRINCIPLES OF MARINE INSURANCE
1. INSURABLE INTEREST
2. UTMOST GOOD FAITH
3. INDEMNITY
4. RISK
5. SUBROGATION
6. PROXIMATE CAUSE
7. SUE AND LABOUR
TYPES OF CARGO POLICIES
THERE ARE 3 BASIC TYPES OF MARINE POLICIES
1. FACULTATIVE POLICY (ALSO KNOWN AS "ONE-OFF")
2. OPEN POLICY (DECLARATION BASIS)
3. ANNUAL / BI-ANNUAL / QUARTERLY
CERTIFICATE OF INSURANCE ONLY EVIDENCE OF ABOVE
TYPES OF MARINE CARGO COVERS
1. BASIC CARGO INSURANCE
2. STORAGE COVER
3. STOCK THROUGHPUT INSURANCE
4. CONSEQUENTIAL LOSS INSURANCE
(loss of profit / loss of contract)
5. TRADE DISRUPTION INSURANCE
(business unable to operate normally)
6. SHIPPER’S LIABILITIES
(dangerous cargoes)
MAIN MARINE CARGO CLAUSES
THE MAIN CARGO CLAUSES ARE:
Institute Cargo Clauses which consist of:
• Institute Cargo Clauses (A) / Air
• Institute Cargo Clauses (B)
• Institute Cargo Clauses (C)
• Institute War Clauses
• Institute Strikes Clauses
(C) CLAUSES
INSTITUTE CARGO CLAUSES "C“
Cover loss of or damage to the subject matter insured,
“reasonably attributable to”:
•
•
•
•
•
Fire or explosion;
Vessel of craft being stranded, grounded, sunk or capsized;
Overturning or derailment of land conveyance;
Collision or contact of vessel, craft or conveyance with any
external object other than water;
Discharge of cargo at a port of distress;
or “caused by:”
•
•
General average sacrifice;
Jettison.
(B) CLAUSES
INSTITUTE CARGO CLAUSES "B“
Similar to "C" clauses, but offers additional cover “reasonably
attributable to”:
•
Earthquake, volcanic eruption or lightening;
or “caused by”:
•
•
•
Washing overboard.
Entry of sea, lake or river water into the vessel, craft, hold,
conveyance, container, liftvan or place of storage.
Total loss of any package lost overboard or dripped while
loading on to or unloading from vessel or craft.
(A) / AIR CLAUSES
INSTITUTE CARGO CLAUSES "A“ / AIR
Cover against “all risks” of loss physical* or damage to the subject
matter insured. Words “all risks” mean “fortuitous loss”*, except as
specifically excluded:
•
•
•
•
•
•
•
•
Willful misconduct of the assured;
Ordinary leakage, ordinary losses in weight or volume or
ordinary wear and tear;
Insufficient or unsuitability of packing or preparation of the
subject matter insured;
Inherent vice or nature of the subject matter insured;
Delay;
Insolvency or financial default of carrier;
Deliberate damage or destruction;
Loss arising from nuclear weapons.
WAR / STRIKES CLAUSES
INSTITUTE WAR CLAUSES CARGO
Cover loss of or damage to the subject matter insured, “caused by”:
•
•
•
war civil war revolution rebellion insurrection, or civil strife
arising therefrom, or any hostile act by or against a belligerent
power;
capture seizure arrest restraint or detainment, arising from risks
covered under 1.1 above, and the consequences thereof or any
attempt thereat;
derelict mines torpedoes bombs or other derelict weapons of
war.
INSTITUTE STRIKES CLAUSES CARGO
•
•
Strikers, locked-out workmen, or persons taking part in labour
disturbances, riots or civil commotions;
any terrorist or any person acting from a political motive average
sacrifice.
WHEN A CLAIM OCCURS
1. DO NOT GIVE CLEAN RECEIPTS !!!!
2. ADVISE BROKER / INSURER IMMEDIATELY
3. ACT AS THOUGH UNINSURED
4. MITIGATE LOSS
5. KEEP CONTAINER SEALS / TAKE PHOTOGRAPHS
6. PLACE 3RD PARTIES ON NOTICE
7. ENSURE ONLY APPROVED REPAIRER’S ARE USED
8. CAN NOT ABANDON WITHOUT INSURER AGREEMENT
LETTERS OF CREDIT
1. NEGOTIATE REASONABLE CONTRACT OF SALE
2. ENSURE CORRECT TERMS OF SALE APPLY
(INCOTERMS)
3. PROVODE COPY OF LC TO BROKER / INSURER
4. PROVISIONS MUST BE STRICTLY COMPLIED WITH
5. WILL MORE THAN LIKELY NOT MATCH POLICY
6. “COPY BLANK ENDORSED”
IN CONCLUSION
1. UNDERSTAND YOUR INSURANCE NEEDS
2. ENSURE YOU HAVE THE CORRECT COVER
3. READ YOU POLICY
4. EMPLOY A SPECIALIST MARINE BROKER
5. INSURANCE DOES NOT REPLACE COMMON
KNOWLEDGE
6. WHEN IN DOUBT, “ACT AS THOUGH UNINSURED”
THANK YOU
If you have any questions, please contact
TRIDENT ADVANTAGE CC at:-

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