unit 12 Insurance

UNIT12InsuranceI.IntroductionClassificationsofInsuranceConcerningmeansoftransportation,therearefourkindsofbasicinsurance:MarineinsuranceLandtransportationinsuranceAirtransportationinsuranceMail/ParceltransportationinsuranceMarineinsurancewasappliedtolossesatseaandtheotherthreekindsofinsurancejustdevelopedonitsbasis.II.RisksofMarineTransportationandMarineLosses1.KindsofRisksRiskofMarinetransportationcanbedividedintotwokinds:(1)PerilsoftheSea(海上风险，“海难”)(2)ExtraneousRisks（外来风险）(1)PerilsoftheSeaPerilsoftheSeareferto“NaturalCalamities”(自然灾害)and“Accidents”(意外事故).NaturalCalamitiesrefertothecalamitiescausedbytheforcesofNature,suchasheavyweather,lightning,tsunami,earthquake,andflood.Accidentsrefertotheeventshappenedunexpectedly,suchasthecarryingconveyancebeinggrounded,stranded,sunkorincollisionwithfloatingiceorotherobjectsaswellasfireorexplosion.(2)ExtraneousRisksExtraneousRisksincludeGeneralExtraneousRisks(一般外来风险)andSpecialExtraneousRisks（特殊外来风险）.GeneralExtraneousRisksrefertotherisksarisingfromthegeneralextraneouscausessuchastheft,rain,shortage,stain,leakage,breakage,rusting,hookdamage.SpecialExtraneousRisksrefertotherisksarisingfromthespecialextraneouscausessuchaswar,strike,andgovernmentprohibition.NaturalCalamitiesPerilsoftheSeaRisksofAccidentsMarineTransportationGeneralExtraneousRisksExtraneousRisksSpecialExtraneousRisks2.KindsofMarineLossesDefinition:MarineLosses(海上损失)refertothedamageandlossoftheinsuredgoods,causedbyPerilsoftheSeainthecourseoftransit.①Accordingtothedegreeoftheloss,MarineLossescanbedividedintotwokinds:TotalLoss(全部损失)PartialLoss(部分损失)Totallossmeanstheentirelossofthewholeconsignment,whichiscomposedofactualtotallossandconstructivetotalloss.ActualTotalLossTotalLoss(实际全损)ConstructiveTotalLoss(推定全损)Actualtotallossreferstothetotallossofanentireshipmentwhenthepropertyiscompletelylostordestroyedandofnocommercialvalue.ConstructivetotallossmeansthelosswhereanactualtotallossappearstobeunavoidableorthecosttobeincurredinrecoveringorreconditioningthegoodstogetherwiththeforwardingcosttothedestinationnamedinthePolicywouldexceedtheirvalueonarrival.Partiallossreferstothelossesthatarenotcoveredinactualtotallossandconstructivetotalloss.②Accordingtothenatureoftheloss,MarineLossescanbedividedintotwokinds:GeneralAverage(GA)(共同海损)ParticularAverage(PA)(单独海损)GeneralAverageisacontributionmade,byallpartiesconcernedinaseaadventure,towardalossoccasionedbythevoluntarysacrificeofthepropertyofsomeofthepartiesininterestforthebenefitofall.Itiscalledgeneralaverage,becauseitfallsuponthegrossamountofship,cargo,andfreightatriskandsavedbythesacrifice.GeneralAveragerequiresfourelements:(1)Thedangeriscommoninwhichvessel,cargoandcrewallparticipate.(2)Thedangerisimminentandapparentlyinevitable,exceptbyvoluntarilyincurringthelossofaportionofthewholetosavetheremainder.(3)Theremustbeavoluntaryjettison,orcastingaway,ofsomeportionofthejointconcernforthepurposeofavoidingthisimminentperil.Inotherwords,itisatransferoftheperilfromthewholetoaparticularportionofthewhole.(4)Theattempttoavoidtheimminentcommonperilmustbesuccessful.ParticularAveragesignifiesthedamagesorpartiallosseshappeningtotheship,orcargo,orfreight,inconsequenceofsomefortuitousorunavoidableaccidents;anditisbornebytheindividualownerofthearticlesdamaged,orbytheirinsurers.III.China’sMarineCargoInsuranceClauseandInsuranceCoveragePICC:ThePeople’sInsuranceCompanyofChina(中国人民保险公司)CIC:ChinaInsuranceClause(中国保险条款)1.ContentsofOceanMarineCargoClauseP2012.TypeofInsuranceCoverageTherearemainlytwotypesofinsurancecoverage:basiccoverage(基本险)additionalcoverage(附加险)Basiccoveragemainlyincludes:FPA(平安险)WA/WPA(水渍险)AllRisks(一切险)Additionalcoveragemainlyincludes:GeneraladditionalcoverageSpecialadditionalcoverageGeneralAdditionalCoveragereferstothelosscausedbygeneralextraneousrisks,whichincludesT.P.N.D.(Theft,PilferageandNon-Delivery偷窃、提货不着险)，F.W.R.D.(FreshWaterandRainDamage淡水雨淋险)Shortage(短量险)，IntermixureandContamination(混杂、玷污险)，Leakage（渗漏险），ClashingandBreakage(碰损、破碎险)，TaintofOdor(串味险)，SweatingandHeating(受潮受热险)，HookDamage(钩损险)，Lossand/orDamageCausedbyBreakageofPacking(包装破裂险)，Rusting（锈损险）.TheseadditionalriskscannotbecoveredindependentlyandshouldgowithFPAorWPAandareincludedinAllRisksCoverage.SpecialAdditionalCoveragereferstothelosscausedbyspecialextraneousrisks,whichincludesWarRisk(战争险)，StrikesRisk(罢工险)，FailuretoDeliveryRisk(交货不到险)，ImportDutyRisk（进口关税险），OnDeckRisk(舱面险)，RejectionRisk(拒收险)，etc.,amongwhichWarRiskandStrikesRiskaremorecommon.TheseadditionalrisksareusuallytakenacttogetherwithFPA,WPAandAllRisks.3.CalculationofInsuranceAmountAccordingtothepracticesofinternationalinsurancemarket,theinsuranceamountisgenerallycalculatedbasedontheformula:C.I.F.+10%value,thatistosay,costofgoods+insurancepremium+amountoffreight+apercentageofthetotalsumtorepresentareasonableprofitonsaleofthegoodsandincidentalcostslikeprocessingtheclaim,surveycosts,possibleinflationcostsofreplacements.Itisdonethiswaytocoverthecostsoftransportinthepolicy.Especiallyimportantifthedamageoccursatthefinaldeliverypoint.Sometimes,buyersmayrequestinsur