International Insurance

1. Number of coverage

   Anmerkungen:

   • 6 standard incurance policies CLausules
2. Misunderstood risks
3. Incoterms rules
4. Vocabulary

   Anlagen:

   • Vocabulary insurance

1. Pre-carriage

   Anmerkungen:

   • Portion of the trip in the exporting country
   1. Theft

      Anmerkungen:

      • +Pre +On
      1. Pilferage

         Anmerkungen:

         • When individuals opportunistically steal cargo (not planned / random).
      2. Organized theft

         Anmerkungen:

         • Carefully planned operations by a group of organized criminals at the entire shipment.
      3. System´s theft

         Anmerkungen:

         • Perpetrated by someone with access to the shipper´s or carrier´s computers, so the remove evidence of the existance of the cargo.
2. Main carriage

   Anmerkungen:

   • The international portion of the voyage.
   1. Mayor
      1. Cargo Movements
      2. Water damage
         1. Rain
         2. Waves
         3. Container sweat

            Anmerkungen:

            • The humidity that condenses on the inside walls of a container and on its cargo
      3. Overboard losses
         1. Deck stow collapse

            Anmerkungen:

            • Stack of containers placed on the deck that collapses in heavy seas.
         2. Flotsam

            Anmerkungen:

            • Cargo that accidentally falls overboard
         3. Jetsam

            Anmerkungen:

            • Cargo that was deliberately jettisoned
      4. Jettison

         Anmerkungen:

         • The act of throwing cargo overboard to save the ship and the remainder of the cargo. ALl parties on board pay for this loss
      5. Fire
      6. Sinking

         Anmerkungen:

         • A ship is damaged, no longer floats, and goes to the bottom of the sea.
      7. Stranding

         Anmerkungen:

         • Ship runs into high ground and can no longer move. No direct damage but time and more cargo movements can do that job,
      8. General average
      9. Piracy

         Anmerkungen:

         • A violent overtaking of a ship and its crew. Indonesian archipelago Somalia Nigeria Togo Red sea Gulf of Aden
   2. Other
      1. Collision

         Anmerkungen:

         • Crush -Ships -Containers -Bridge
      2. Cargo contamnated or affected by other cargo
      3. Hidrance to a shipper
      4. Sowaways

         Anmerkungen:

         • A person who hides onboard and travels to the ship destination.
      5. Arrest a ship
      6. Bankruptcy of companies
      7. Civil movements
   3. Air shipments
      1. Cargo movement

         Anmerkungen:

         • Quick accelerations and decelerations, no fly around turbulences.
      2. Theft and pilferage
      3. Weather
      4. Takeoff
3. On carriage

   Anmerkungen:

   • The portion of the importing country.

Anmerkungen:

• A party who would experience a financial loss in case of a peril.

1. Risk Retention

   Anmerkungen:

   • The company decides to retain a risk and not insure against it
   1. Large international traders

      Anmerkungen:

      • Selfinsure
   2. Exporters or importers that have little exposure

      Anmerkungen:

      • Small value, small shipments and a loss would not be substancial financial.
   3. Exporters or importers that have little relative exposure

      Anmerkungen:

      • The international transactions represent a very small percentage of their business.
   4. No a clearly evaluation of risks

      Anmerkungen:

      • -Ignorance -
2. Risk transfer

   Anmerkungen:

   • Transfer risk to an insurance company
   1. Firms with a lot of exposure
   2. Firms witha a relatively high exposure
   3. Firms with little experience
3. Mixed Approach

   Anmerkungen:

   • The firm decides to retain some risk and transfer the rest.
   1. Maximum amount of exposure willin to risk, implemented with a deductible.

      Anmerkungen:

      • Deductible: the amount that the firm is responsable
   2. Maximum amount of exposure willin to risk and implement a franchise
   3. The firm choses the risks they want to take depending of the type of insurance

1. Purchasing Marine Cargo Insurance
   1. Open Policy

      Anmerkungen:

      • Insurance contract with which a form insures every international shipment for a period of time.
   2. Special cargo Policy

      Anmerkungen:

      • Insurance policy that covers one shipment.
   3. Insurance certificates
   4. Intermediates
      1. Insurance agent

         Anmerkungen:

         • Asist to obtain the most appropriate coverage
      2. Freight forwarder

         Anmerkungen:

         • Provide generic coverage for a given shipment
2. Coverages
   1. NON-COVER RISKS
      1. Improper packing
      2. Inherent vice

         Anmerkungen:

         • -Rust for iron -Bugs for agricultural or moisture  -Wood split
      3. Ordinary leakage

         Anmerkungen:

         • Evaporation, etc.
      4. Unseaworthy vessel
      5. Nuclear war
   2. Institute Marine Cargo Clauses Coverage A

      Anmerkungen:

      • All risk of loss or damage to the subject matter insured. Not includes directly: -Strikes and Civil disturbances. -Acts of war. -Seizure by a goverment
   3. All risk coverage

      Anmerkungen:

      • Shipments must be under deck -Between two developing countries.
   4. IMCC Coverage B

      Anmerkungen:

      • -Good tolerance for bad weather -Not for machines, paper, finished goods, etc.
   5. IMCC Coverage C

      Anmerkungen:

      • -Minimum coverage required for CIF and CIP.
   6. With-Average Coverage
   7. Free-of-Particular-Average Coverage
   8. Clauses
      1. Strikes coverage

         Anmerkungen:

         • Strikes Riots and Civil Commotions (SR & CC). Covers only the direct physical damage to the shipment. Using an amendment
      2. War and Seizure Coverage

         Anmerkungen:

         • Free of Capture and Seizure Coverage FC & S Additional policy called "The War Risks Only" 
      3. Warehouse to warehouse coverage

         Anmerkungen:

         • Warehouse-Warehouse (or 15 days after arriving to the destination port, which happens first) Is an extension
      4. Difference in conditions

         Anmerkungen:

         • Caluse that allows an importer to complement the coverage offered by the exporter to the coverage level that the importer wants.
      5. General average clause
      6. Constructive Total Loss Coverage Clause
      7. Sue and labor
      8. Inchmaree Clause
3. Other forms
   1. Hull insurance

      Anmerkungen:

      • Contract taken by ship owners to cover the risk of damage of the ship.
   2. Protection and indemnity
   3. Airfreight Policy

1. Notification

   Anmerkungen:

   • -Writing -Description of damage -Record of seal number and condition.
   1. Surveyor

      Anmerkungen:

      • Independent company that investigates damage to shipments on behalf of insurance companies.
2. Protection of damaged cargo

   Anmerkungen:

   • Stop unloading the goods and take several photos. Mark the damaged cargo.
   1. Filling the claim
      1. Timing

         Anmerkungen:

         • 3 days for Ocean Cargo 7 days for air
      2. Documentation
         1. Insurance policy
         2. All bills of landing from origin to final destination
         3. All invoices
         4. Cargo surveyor´s report
         5. Complete packing list and manifests
         6. Seal numbers report
         7. All documents genereated during the voyage of the cargo
         8. Certificate of Product destroyed or thrown away
         9. Salvage bids and receipts
      3. Carrier liability limits

Anmerkungen:

• Oldest insurance market. Edward Lloyd´s coffee house 1688, intermediary between people that want and provide insurance.

Anmerkungen:

• -Foreign customer on an open account basis. -Credit terms.

1. Risk involved
   1. Political risk
   2. Commercial risk
2. Insurance policies avaiable
   1. Goverment programs
      1. Ex-Im Bank
      2. Overseas Private Investment Corporation (OPIC)
      3. The small business administration (SBA)
   2. Private insurance company
      1. The Foreign Credit Insurance Association
      2. Euler American Credit Indemnity
      3. Lloyd´s