International Trade

Zhejiang Normal University

 Chapter 9Cargo Transportation Insurance

Section One: Marine Insurance（海运保险）

Section Two: Risks，Losses and Expense（风险、损失和费用）

Section Three: Marine Insurance Coverage（保险险别）

Section Four: Insurance Value（保险报价）

Section Five: Insurance Premium（保险费用）

Section Six: Forms of Marine Insurance Contract（海运保险合同

格式）
 Introduction of the insurance
coverage of marine cargo transport

the exclusion of
Basic risks additional risks responsibilities
basic coverage
and
time limit
of insurance

F.P.A W.P.A All risks

General Special
additional risks additional risks
 Introduction of the insurance coverage of marine
cargo transport
Take out Insurance

Practice of marine cargo insurance

Cautions for insurance

Insurance claim
 海洋运输货物保险保障的风险

海上风险 外来风险

自然灾害 意外事故 一般外来风险 特殊外来风险

P226
 Section One Marine Insurance
At present, according to the different transportation methods,
there are ocean marine transportation insurance, overland
transportation insurance, air transportation insurance and
parcel post transportation insurance in our country. Among all
these, ocean marine transportation insurance is mostly and widely
used in international trade practical business. The ocean marine
transportation insurance is also the first used insurance and so has
the longest history among the all. The overland transportation
insurance and air transportation insurance have been developed
on the basis of ocean marine transportation insurance. P227
 Definition of Ocean Marine Transportation Insurance

Marine insurance is defined as a contract of

insurance whereby the insurance in return for
premium collected undertakes to indemnify the
insured in a manner and to the extent thereby
agreed, against marine losses, that is to say, the losses
incidental to marine adventure. Such insurance
involving the marine conveyance of cargo from one
country to another is, then, marine cargo insurance,
which is seen as an indispensable adjunct to foreign
trade.
 Section Two Risks, Losses and Expenses

According to the loss or damage caused by risks included in

different coverage and the expenses involved, the insurance
company is responsible for indemnifying the insured goods.
Obviously, risk, loss and coverage are closely related to each
other. In order to have a clear understanding of the contents of
insurance, these three terms should be clarified.
 1 Risks P229

While the cargo traveling to another country, it is likely to

encounter various perils which may cause the goods to suffer loss
of one kind or another. Marine risks in connection with cargo in
transit can be classified into two types: perils of the sea and
extaneous risks. Perils of the sea are caused by natural calamities
and fortuitous accidents; the latter, by various extraneous reasons,
including general extaneous risks and special extraneous risks.
Marine Risks:
a. Perils of the sea: Natural calamities and Fortuitous
accidents
b. Extraneous risks: General extraneous risks; Special
extraneous risks
 Perils and Losses Covered by Marine Insurance (海
洋货物运输保险的风险与损失)

Natural
Calamities
Perils of the
Sea
Fortuitous
Perils Accidents

General ～
Extraneous
risks and
losses Special ～
P229
 2 Losses
Marine Losses:

a. Total Loss: Actual total lossConstructive total loss

b. Partial Loss: General averageParticular average

Total Losses

Total loss refers to the loss of the entire shipment caused

by the occurrence of one of the perils of the sea, fire, or some
other reasons.

(1) Actual total loss (2) Constructive total loss

Partial Losses

Partial loss refers to the loss of part of a

consignment. According to different causes, partial
loss can be either general average or particular
average.

(1) General average (2) Particular average

 3 Expenses
Marine losses are the damages or losses of the insured goods
incurred by perils of the sea. Losses sustained by the insured
because of the risks listed above come from not only the loss of
the goods or the damage done to the goods, but also from the
expenses the insured sustained in rescuing the goods in danger.
Transportation insurance not only insures the losses caused by
risks but also the losses of expenses. The main expenses
include:

1) Sue and labor expense

2) Salvage charges
 Losses sustained by the insured because
of the risks come from not only the loss of
the goods or the damage done to the
goods, but also from the expenses the
insured sustained in rescuing the goods in
danger. Transportation insurance not only
insures the losses caused by risks but
also the losses of expenses.

Sue and labor expenses

Expenses

Salvage charges
 Section Three Marine Insurance Coverage

People’s Insurance Company of China

Ocean Marine Cargo Clauses
CIC

Two groups

Basic Insurance Coverage Additional Insurance Coverage

1．Basic Insurance Coverage（基本险别）
CIC
1) Free from Particular Average（平安险）

2) With Average/With Particular Average

(W.A./W.P.A.) （水渍险）

3) All Risks（一切险）

4) The free obligation of the above three basic

coverages（基本险别的除外责任）
 2 Additional Insurance Coverage附加险别

1) General Additional Risks（一般附加险）

2) Special Additional Risk（特殊附加险）

General Additional Insurance Coverage

 偷窃提货不着险（Theft,Pilferage and Non-

Delivery:TPND）
 淡水雨淋险（Fresh Water and Rain Damage）

 渗漏险（Risk of Leakage）

 短量险（Risk of Shortage）

 钩损险（Hook Damage）

 污染险（Risk of Contamination）

 碰损破碎险（Risk of Clash and Breakage）

 生锈险（Risk of Rust）

 串味险（Risk of Odour）

 受潮受热险（Damage Caused by Heating and

Sweating)
Pay attention to：No additional risk can be
purchased to insure goods independently. Since
the scope of cover of general additional risks is
already included into that of All Risks, it is not
necessary for the goods to be insured by
additional risks if it is insured by All Risks.

 2) Special Additional Risk

 Special additional risk differs from general addition risk in
that the former covers loss or damage caused by some
special extraneous reasons such as politics, law, regulations
and war. On the other hand, like general additional risk,
special additional risks can not be used to insure goods
alone either.
 Special additional risks include:

*War Risk
*Strike Risk
*On deck risk
*Import duty risk clause
*Rejection risk
*Aflatoxin risk
*Failure to delivery clause
*Ocean Marine Cargo War Risk
*Fire Risk Extension Clause for Storage of Cargo at
destination HongKong, including Kowloon or Macao
 3 Insurance under other Transportation Methods

In international trade, in addition that the goods shipped by sea

must be insured, the goods transported by land, air and parcel post
should also be insured. Therefore, the insurance company may
have different clauses and terms to meet the need of different
transportation.

Overland transportation insurance

Air transportation risks insurance

Parcel Post Insurance

 4 Commencement and Termination of Insurance

The insured goods are covered from the time when they
leave the warehouse at the place named in the policy for
the commencement of the transit and continue to be
covered until they are delivered to the final warehouse at
the destination named in the policy, but the policy
provides an overriding time limit of 60 days after the
completion of discharge of the insured goods from the
seagoing vessel at the final port of discharge. On the
expiration of that time limit of 60 days the cover ceases to
protect the goods even though they have not reached the
final warehouse.
 5 London Insurance Institute Cargo Clauses
ICC

London Insurance Institute Cargo Clauses was first made in

1912. The newly revised London Insurance Institute Cargo
Clauses in 1982 include 6 kinds:
(1) Institute Cargo Clause A;
(2) Institute Cargo Clause B;
(3) Institute Cargo Clause C;
(4) Institute War Clause-Cargo;
(5) Institute Strike Clause-Cargo;
(6) Malicious Damage Clause;
 责任起讫范围

Basic Insurance W / W Clause

（仓至仓条款）
General Additional
Risk
Strike Risks
Special
Additional Risk
War Risks 水面危险
或运输工
具上危险
London Insurance Institute Cargo Clauses伦敦保
险协会海运货物保险条款
Basic Risk

ICC（C） F.P.A.

ICC（B） W.P.A.

ICC（A） A.R.
Additional Risk
 •协会货物保险条款（Institute Cargo Clause，ICC）
The newly revised London Insurance Institute Cargo Clauses in
1982 include 6 kinds:
1、 ICC（A）：协会货物条款（A）
2、 ICC（B）：协会货物条款（B）
3、 ICC（C）：协会货物条款（C）
4、 Institute War Clause-Cargo
5、Institute Strike Clause-Cargo
6、Malicious Damage Clause •除恶意损害险外
，其余5种均可单
独投保。
Insurance Documents

1) Insurance Policy
The Seller，transferable
The insured：
after endorsement

Claim at赔付地点： Destination

Date of Insurance： Not late than B/L

 2) Insurance Certificate
3) Combined Certificate
When the goods are exported to Hong Kong, and some countries in
Southeast Asia, the insurance company sometimes adds the coverage and
insurance amount on the commercial invoice which is made out by a
foreign trade company. This is a certificate which combines the invoice
with the insurance policy. It is the simplest insurance certificate in use.

4) Endorsement保险更改批单
After insurance has been taken out, if the insured wants to replenish
or change the contents of the policy, he may apply to the company for the
same. After agreement by the company, another certificate which
indicates the relative amendment will be issued. This certificate is called
endorsement.
Open Policy预约保单
This type of policy is of great importance for export
business, it is convenient method for insuring the
goods where a number of consignments of similar
export goods are intended to be covered. An open
policy covers these shipments, as soon as they are
made, under the previous arrangement between the
insured and the insurance company.
 6 Choosing the right coverage

The clear distinction among the clauses F.P.A., W.P.A. and All
Risks is of great practical significance. It may help exporters
choose the right coverage. Products should be insured in the
appropriate category.
e.g.
Special Additional Risk特殊附加险
 1、战争险（War risk）
 战争险的保险责任起讫：仅限于水面危险

 案例分析：某公司出口某货物，投保一切险加战争
险，该船抵达目的港开始卸货时，当地发生武装冲
突，部分船上货物及部分已卸到岸上的货物被毁。
问：保险公司如何赔偿？
2、罢工险（Risk of Strike,Riots and Civil
Commotions:SRCC 罢工暴动民变险）
 罢工险是保险人承保罢工者、被迫停工工人、参加
工潮、暴动和民众、战争的人员采取行动所造成的
承保货物的直接损失，对间接损失不负责，如由于
劳动力短缺或无法使用劳动力,致使堆放码头的货物
遭到雨淋日晒而受损、冷冻机因无燃料而中断造成
的被保险货物的损失不负责赔偿。

•注：罢工险的保险责任期间是“仓至仓”；已
投保战争险又加保罢工险时，一般不另行收费
。
3、 Failure to deliver交货不到险
 被保险货物从装上船开始，6个月仍不能运到原定
目的地交货，则不论何种原因，保险公司均按全
损赔付。
4、 Import duty risk进口关税险
 承保货物已发生保险责任范围内的损失，但被保
险人仍需按货物的完好状态完税而遭受的损失。
5、 On deck risk舱面险
6、 Rejection risk拒收险
7、 Aflatoxin risk黄曲霉素险
8、Fire Risk Extension Clause for Storage of Cargo at
Destination Hong Kong including Kowloon or Macao存
仓火险责任扩展条款
 Section Four Insurance Value

Insurance value, in marine cargo insurance, is the actual

value of the insurable cargo. It is generally calculated as: Cost
of goods+amount of freight+insurance premium+percentage of
the total sum to represent a reasonable profit for the buyer.
Insurable value is the maximum amount payable by the
insurance company in case of loss and premium is calculated
and paid on the basis of this amount.
 Section Five Insurance Premium

The insurance premium is payable to the insurer

when he issues the insurance policy or certificate. The
premium charge for the insurance policy is calculated
according to the risks involved. A

保险费的计算公式是：保险费=保险金额×保险费率

保险金额=CIF（CIP）货价×（ 1+投保加成率）

保险费=CIF（或CIP）价×（1+投保加成率）×保险费率
As to the Insurance Documents, please refer to the text book
and understand how to make all those documents