Chapter6--Cargo-Transportation-Insurance

Chapter6CargoTransportationInsurance6.1BriefIntroductionofCargoTransportationInsurance1.FunctionsofCargoTransportationInsurance–Ininternationaltrade,goodstravelinglongdistancestoanothercountry,outofthedirectphysicalcontrolofboththebuyerandtheseller,mayfaceallkindsofrisksorlossesandthereforemustbeinsuredagainstlossesordamagesateachstageoftheirjourney.–Thefunctionsofcargotransportationinsuranceareasfollows:(1)RisksTransfer.Insuranceisarisktransfermechanisms,wherebytheindividualorthebusinessenterprisescanshiftsomeoftheuncertaintyofriskontotheshouldersofother.(2)Riskspreading.Insuranceisaprocessforspreadingrisk,sothattheburdenofanylossisbornenotbytheunfortunateindividualdirectlyaffectedbutbythetotalbodyofpersonunderconsideration.(3)Indemnity.Itistheprinciplethattheassuredcannotrecovermorethanhisactuallossasheobjectiveofinsuranceisonlytoprovidecompensativeforthelosssufferedbytheassured.2.TheBasicFactorsofCargoTransportationInsurance(1)Insured.Thepartywhoisinsuredagainstlossandtowhompaymentcoveringthelosswillbemadeistheinsured.(2)Insurer(underwriter).Ininsurance,thepartywhoinsuresothersagainstlossordamageandundertakestomakepaymentincaseoflossiscalledtheinsurer.(3)Subjectofinsurance.Itreferstothepropertywhichisinsured.(4)Insurancepolicy.Itisalegaldocumentsettingouttheexacttermsandconditionsofaninsurancetransaction(5)Conditions.Theunderwritertakesdifferentresponsibilitiesaccordingtodifferentconditionschosenbytheinsured.(6)Insuredamount.Itistheactualvalueoftheinsurablecargo.AnditistheamountofCIFvalueplusits10%or15%representingananticipatedprofitforthebuyer.(7)Insurancepremium.Itispayabletotheinsurerwhenheissuedtheinsurancepolicyorcertificate.(8)Insuranceclaim.Theunderwritershouldgetreadytocompensateforthelossifpossible.•Accordingtothelossesordamagescausedbyrisksincludedindifferentcoverageandtheexpensesinvolved,theinsurancecompanyisresponsiblearecloselyrelatedtoeachother.•Inordertohaveaclearunderstandingofthecontentsofinsurance,thesethreetermsshouldbeclarified.6.2ScopeofCargoInsurance6.2.1Risk6.2.1.1TheClassificationofRisksRisksPerilsofSeaExtraneousRisksNaturalCalamitiesFortuitousAccidentsSpecialExtraneousRisksCommonExtraneousRisks(1)Perilsofthesea.–Perilsoftheseaarethosecausedbynaturalcalamitiesandfortuitous.–Alltheperilsmustoccuratseaandmustbebecauseofsea,otherwisetheinsurancewillnotcoverthem.①Naturalcalamities.(自然灾害):Disasterssuchasvileweather,thunderandlighting,tsunami,earthquake,floods,etc.②FortuitousAccidents.（以外事故）Accidentssuchasshipstranded,strikingupontherocks,shipsinking,shipcollision,collidingwithicebergsorotherobjects,fire,explosion,shipmissing,etc.(2)Extraneousrisks.–Extraneousrisksareriskscausedbyextraneousreasons,consistingofgeneralextraneousrisksandspecialextraneousrisks.Generalextraneousrisksinclude:Theftorpilferage,rain,shortage,leakage,heating,hooking,etc.Specialextraneousrisksinclude:warrisks,strikes,non-deliveryorcargo,refusaltoreceivecargo,etc.6.2.2LossandExpense•Marinelossesarethedamagesorlossesoftheinsuredgoodsincurredbyperilsofthesea.•Marinelosses:a.Totallosses:ActualtotallossandConstructivetotallossesb.Partiallosses:GeneralaverageandParticularaverage6.2.2.1TheClassificationofLossesLossesTotalLossPartialLossActualTotalLossConstructiveTotalLossGeneralAverageParticularAverage(1)Totalloss.Itreferstolossoccurswheretheinsuredgoodshavebeentotallylostordamaged,orfoundtobetotallyvaluelessonarrival.①Actualtotalloss.Theactualtotallossoccurswheretheinsuredgoodshavebeentotallylostordamaged,orfoundtobetotallyvaluelessonarrival.②Constructivetotalloss.Aconstructivetotallossoccurswhenthecostofsalvagingtheshipmentwouldbemorethanthesalvagedvalueofthemerchandise.(2)Partialloss.Partiallossmeansthelossofpartoftheinsuredcargo.①GeneralAverage.Itmeansthatwhichevershipperlosesallorpartofhiscargo,alltheotherswillclubtogethertorecompensehimforhisloss.•Allpoliciestheinsuredtakeoutautomaticallycoverthemagainstit.Itisbaseduponarelationshipbetweentheship-ownerandalltheshipperswhohavecargoaboardthesamevesselonaparticularvoyage.–Asfortheactofgeneralaverage,certaincriterianeedtobemet.Namely,theactmustbe:-Extraordinary.Fortheretobeageneralaverageloss,theremustbean“extraordinary”sacrificeorexpenditurewhichismadeforthebenefitofallthepartiestothecommonadventure.-Voluntarilyandreasonablymade.“Voluntarilymade”infersthattheactionofmakingasacrificeisintentionallymadeonwillingnessratherthanontheordersofothers.“Reasonablymade”infersthatthemasterofavesselmustactreasonablywhenmakingasacrificeforwhichotherswilleventuallybepartlyliable.-Intimeofperil.Alossmaybeclaimedingeneralaverageactwhichcausesthatlosstotakeplace“intimeofperil”.-Successful.Theactionoftheship’smastershouldbesuccessfulinsavingthevoyage.②ParticularAverage.Itmeansapartiallosssufferedbypartofthecargo.•Itmeansthataparticularconsignmentissufferedbyonewhosegoodsarepartlylostordamaged.•Whenthereisaparticularaverageloss,otherinterestsinthevoyage(suchasthecarrierandothercargoownerswhosegoodswerenotdamage)donotcontributetothepartialrecoveryoftheonesufferingtheloss.differencebetween