INTERNATIONAL GOODS INSURANCE SERVICE!
What is international cargo insurance?
What is insurance?
Insurance is an economic contract of compensation between the insurer and the insured.
Insurance is determined to be valid for a certain period of time, when the insured is obliged to pay a sum (premium) to the subject-matter insured under the prescribed conditions.
Along with that, the insurer is responsible for indemnifying the loss of the subject-matter insured due to the agreed risks (insured event).
What is cargo insurance?
Cargo insurance is a contract of indemnity between the insurer and the insured.
When an agreement on cargo insurance is reached, the insurer will indemnify the insured in case the transported goods are lost or damaged due to perils (these risks are specified in the contract of carriage). co-insurance).
In order to be insured, the insured will have to pay a fee called a premium.
Cargo insurance will help protect and minimize damage caused by risks during the transportation of goods such as damage, fire, storm, flood, whirlwind, goods crashing into other objects, etc.
Cargo insurance must be purchased before the risks occur, usually before the goods are shipped.
What is international cargo insurance?
International cargo insurance or cargo insurance in international trade is a type of insurance in which the insurance provider undertakes to be responsible for indemnifying the loss of the insured subject matter of goods during transit. international transfer.
These losses are usually determined by one or more agreed risks. At that time, the insured party is obliged to pay the premium to the insurer.
The subject matter of international cargo insurance is tangible products
Covered methods of international carriage of goods include:
Rail transportation
+ Road transport
+ Sea freight
+ Air freight
What are the conditions for international cargo insurance?
Cargo insurance will have many different types, depending on the condition of the goods, destination, type of transportation ...
The basic conditions for determining international cargo insurance include:
Usual conditions:
+ Class A condition
+ Elimination condition
+ C type condition
Special conditions
+ War
+ Strikes
Find out about the role of international cargo insurance
International cargo insurance is an integral part of import and export activities. International cargo insurance will have significant roles such as:
As a companion of goods being transported: International goods will have to travel a long way from the point of origin to the destination. During the moving journey, the owner does not always follow to supervise and ensure.
Therefore, cargo packages and containers need a "companion" along the way. in order to be able to share the burden and risk in the event of an unexpected incident.
Sharing the burden of risk when an unfortunate loss occurs: Risk of loss of goods due to natural disasters, unexpected accidents such as: stranding, collision, sinking, fire, explosion, theft, robbery sea, storm, tornado, tsunami…. is unpredictable.
Therefore, in order to share the burden and limit damage when risks occur, the goods need to be insured throughout the journey.
Give the sender more peace of mind: The freight unit is only responsible for protecting the goods within a certain range.
Therefore, to ensure that any damage to the goods is minimized in unexpected situations, the goods owner should be equipped with cargo insurance.
General development trend: Cargo insurance has a very long history. Participating in cargo insurance has also become "unwritten" in foreign trade activities around the world.
When shipping goods by sea and loss occurs, how will the cargo insurance process take place?
Some basic concepts
The buyer of insurance is the seller of the goods
Beneficiary of insurance is the buyer at the port of destination
The sea shipping terms relevant to insurance are CIP and CIF.
Coverage conditions are A, B or C
Insurance purchase fee is about 0.06 - 0.075% calculated on the insurance purchase value
Insurance purchase value can be FOB price or CIF price
All provisions relating to liability and disclaimers are set forth in ICC 2009 (Institude Cargo Clauses).
Insurance implementation process
1. The insured notifies the insurance buyer of the loss of goods
2. The policyholder sends a loss notice to the insurer
3. The insurer shall inspect and determine the loss if necessary, the assessment shall be carried out immediately after the consignee notices the loss of the goods. The appraisal process is carried out independently and under the supervision of the insured.
4. The insured signs authorization (POA - Power Of Attorney) for the policyholder to carry out the procedures to claim
5. The insurance buyer (authorized person) shall send a dossier of notice of cargo insurance loss, specifically:
Authorization of the insured for the policyholder
+ Notice of cargo insurance loss (according to the form of the insurance company)
+ Claim for cargo insurance (according to the form of the insurance company) with a detailed list of insured loss and damage
+ Invoice and packing list of the shipment with the damaged item.
+ Sea freight bill of the shipment with the damaged item
6. After the shipment is inspected and the insured amount is clearly determined, the insurance company will send a notice of compensation and release of liability, specifically the amount of compensation to the insurance buyer.
In addition, the insurance company will enclose the claim notice with other documents such as:
+ VAT invoice
+ Debit notes
+ Endorsement notes
+ Declaration for export
For every business operating in the field of import and export, cargo insurance is one of the top priorities. At Timing-Chain International Logistics, we provide Cargo Insurance for Export - Import goods, ensuring to meet all requirements of businesses.
For more information about international cargo insurance, please contact Truong Thanh Logistics at the following address:
Timing-Chain International Logistics - Professional and reputable international shipping