Beruflich Dokumente
Kultur Dokumente
By
Rayner W S Tan (CMILT,UK) (MLogM)
Senior Lecturer
UniKL Mitec
Marine Insurance
Codified in the UK Marine Insurance Act 1906
(MIA)
Institute Cargo Clauses (A), (B) & (C)
Institute Time Clauses Hulls
Valued Policy, Unvalued Policy & Open Cover
highest premium
Cl. 1: covers all risks or loss or damage to cargo
Exclusions: Cl. 4-Cl. 7 e.g.. Ordinary wear & tear
ICC (B)
mid-range cover
Why Insure ?
Common practice in the commercial world
Protection against financial losses
resulting from damage, pilferage, theft and non
receipt of entire or part of a consignment.
Protection against financial claims that
can be made against the owner of goods on
board a vessel in case of a declared general
average (the goods themselves being
undamaged).
CONTRACT OF INSURANCE
In between the insured and insurer
INSURED:-
INSURER:Policy:-
Fire On Board
CASUALTY AT WHARFTSIDE
What to Insure?
Value of insurance calculate as below:
Cost of goods + freight and shipping cost
PLUS an uplift of 10% to cover administrative
expenses and increases in price of goods have to be reordered.
Insurance Value= (Value of goods + Cost of Transport) x 1.10
Additional risks is vary from commodity, they are not same for iron
pipes and vehicles for instance.
How To Insure?
Through Supplier
Contract placed CIF (Cost Insurance Freight) ,
relieves buyer of the task of making insurance
arrangement.
Disadvantage:
Supplier obliged only buy the cheapest insurance
coverage.
Consignee no continuity or standardization in
procedure. Insurance contract is placed with a
different company by someone acting on behalf of
the buyer only.
How To Insure?
Self Insurance
When buyer decides not to insures outside and
choose to bear risks of transportation.
Common practices- small consignment with low
value.
The overall risks should be limited, so there are no
disastrous consequences in case of loss.
This type usually gives problem in yearly budget
as settlement of claims can drag for years.
How To Insure?
Floating Policy With An Insurance
Company
Adopted by many commercial firms with regular
flow shipment.
Floating (an open) policy is the results of
negotiation between parties.
The larger amount of business for the insurer, the
better the terms they are prepared to offer.
Consignee benefits with dealing with the same
insurance agent., under same terms with
standardization of reporting claims.
Insurance Documents
Insurance Certificates-
Insurance Documents
Survey Report
Documents established by insurance
companys agent at destination when
consignment received in bad order.
Since its expensive should be requested when
it is expected loss or damage will exceed the figure
considered reasonable by the underwriters or
when a survey report registered by the insurer.
Basis of settlement of an insurance claim
and can be accompanied by an estimate of
repair approved by the surveyor.
Insurance Claims
Documents required to Process Claims:
1- Survey report or Senior Officers report,
according to the extend of damages.
2- Estimates and/or invoices for the cost of
repairs, goods which have to be procured
and send for local purchase of replacement
parts, whenever possible, approved by the
surveyor to facilitate settlement.
3- Copy of the invoice for the original
shipment.
4-Copy of claim letters to the responsible
party and response(s) and
5-Short landing certificates or certificates
of loss when entire cargo is missing.
INCIDENT
CAUSING LOSS
IS THE
PROXIMATE
CAUSE
AN INSURED
PERIL or
EXCEPTED
UNDER POLICY ?
MITIGATING
LOSS
CLAIMS PROCESS
CLAIMS
SUBMISSION
CLAIMS
INVESTIGATION
CLAIMS
APPROVAL
or REJECTION