Beruflich Dokumente
Kultur Dokumente
INTRODUCTION:
INTRODUCTION Having a good risk management policy makes good business practice. Examining and evaluating carriers risks and the cargo owner are likely to be more careful and prudent since appreciating risk is one step closer to acting more cautious. Insurance is the most common form of risk management. This presentation shall look at the risks of the carrier and cargo owner are exposed to, and the process of insurance.
Slide 4:
CARGO INSURANCE-FULL VALUE OF THE CARGO CARGO INSURANCE CARRIER LIABILITY
WHAT IS INSURANCE?:
Insurance is essentially a contract between two parties. The first party is the assured, insured or policyholder: These terms are used interchangeably and are all synonymous with the person who wishes to transfer a risk. The second party is the insurance company, insurer or underwriter: Again these names are all used interchangeably and are all synonymous with the party agreeing to take on the risk of the assured in return for a premium. WHAT IS INSURANCE?
INSURABLE INTERESTS:
INSURABLE INTERESTS One may only buy insurance in a marine venture if there is an insurable interest i.e. if the person stands to benefit, or expects to benefit from the safe arrival of the insured goods and will be adversely affected by any damage or loss. Consequently, different persons may have an insurable interest in the goods at any one time, e.g. an exporter, or
confirming house or bank which advances funds to the exporter under, say, a letter of credit. The assured must have an insurable interest at the time of effecting the insurance , except in the case of marine insurance where in order to recover under the policy, the person must be 'interested' at the time of the loss.
INDEMNITY:
INDEMNITY The contract of marine insurance is a contract of indemnity, i.e. in the event of the assured experiencing financial loss or having to incur certain expenses arising from loss of, or damage to the goods, caused by any of the perils stated in the insurance contract, the insurer undertakes to compensate the assured for the financial loss he has suffered. This is opposed to other forms of insurance, such as, building insurance where the underwriter would undertake to build a new building to replace one destroyed by fire.
PRINCIPLE OF RECOVERY/SUBROGATION :
PRINCIPLE OF RECOVERY/SUBROGATION Subrogation happens when any rights which the assured may have against third parties, such as carriers, are transferred to the underwriter. Thus for cargo contaminated by saline water the cargo insurers would compensate the assured and through their right of subrogation pursue the carrier for compensation of their loss. The assured, however, may only recover from one source, e.g. the insurer, in respect of loss or damage. In case of total loss the insurer retains title to the damaged good which he may dispose of as he wishes.
MORAL HAZARD :
MORAL HAZARD Moral hazard is the risk arising from the nature and behaviour of human beings connected with the subject matter of the insurance e.g.: fraud - staging of a loss carelessness - not performing duties unreasonableness in interpreting the policy trend of events factors affecting the larger picture such as economy of a nation. Moral hazards are different from physical hazards e.g. packaging, loading conveyance etc.
CARGO INSURANCE :
CARGO INSURANCE Cargo Owners exposure Shipper / Receiver Loss / Damage to goods Cargo owners contribution towards cost of: General Average Salvage
Slide 19:
Container damaged and repaired for this single voyage
Slide 20:
HEAD ON COLLISION CLOSES PORT Italian 56,800gt Ro/Ro M/V Grande Nigeria (built 2002) & 43,101gt Panamanian vehicle M/V Nada V (built 1984), both 200 meters in length & with thousands of automobiles, in collision -- Antwerp Belgium
Slide 25:
M/V APL Panama 2 months relaxing on the beach in 2006
CARRIAGE CONVENTIONS:
CARRIAGE CONVENTIONS
Slide 29:
ALL POLICIES (A,B &C) COVER: EXW SELLER FCA FAS FOB DAT CPT CIP DAP DDP BUYER CFR CIF v Bob's.ppt http://www.geocities.com/bkip20002/index.html Graphics by Bob http://home.att.net/~kip20002/ The cover commences from the time the goods leave the sellers premises, and terminates upon arrival at the consignees warehouse, or upon expiry of 60 days after completion of discharge of the goods from the overseas vessel at the port of discharge, whichever first occurs. And who has intersest ??? Depends on Incoterms used in its trading
Slide 31:
Institute Cargo Clauses (A) (B) & (C) Cover: 1.1. loss of or damage to the subject-matter insured reasonably attributable to:- 1.1.1. fire or explosion M/V Hanjin Pennsylvania 2002
Slide 32:
Institute Cargo Clauses (A) (B) & (C) Cover: 1.1.2. vessel or craft being stranded, grounded M/V Sea-Land Express
Slide 35:
1.3. total loss of any package lost overboard whilst loading on to, or unloading from, vessel or craft. Institute Cargo Clauses (A) &(B) [Not (C)] 1.2.3. entry of sea, lake or river water into vessel, craft, hold, conveyance, container, liftvan or place of storage.
cont EXCLUSIONS:
cont EXCLUSIONS 4.4. Inherent vice 4.5. delay 4.6. Insolvency or financial default of the owners, managers, charterers or operators of the Vessel 4.7 (B & C) [4.8 (A)] loss, damage or expense arising from the use of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.
TRANSIT CLAUSE:
Regardless of whether cargo is insured under (A), (B) or (C) clauses, the cover commences from the time of cargo leaves the sellers premises, continues during the ordinary course of transit and terminates upon arrival at the consignees warehouse. In transit Policy clause the cargo during the transit and the insurance will be terminate : After completion of discharge of the cargo from the overseas vessel at the port of discharge , or named place which stated in it policy, or from the cargo complete discharge from the ocean going vessel or upon expiry of 60 days whichever first
occurs. In the Indonesian marine cargo Policy coverage, common practice, the transit claused to be less, i.e. 21 days and especially for inter islands to be 15 days. In case of delay of the voyage, the insurance cover still valid until the cargo complete to be discharged at the destination port, where the delay was beyond the Insured control. i.e: in case of the deviation of the carrying vessel for temporary repair or other reasonable incidents where justified in the contract of carriage (Bill of Lading) TRANSIT CLAUSE
GENERAL AVERAGE:
There is a General Average act where an extraordinary sacrifice or expenditure voluntarily and reasonably made or incurred in time of peril for the purpose of preserving the property imperilled in the common adventure (Marine Insurance Act 1906 s66) GENERAL AVERAGE
PARTICULAR AVERAGE:
PARTICULAR AVERAGE Damage to ship and cargo from fire will be borne by the shipowner and cargo owner (loss lies where it falls). A particular average loss is a partial loss of the subjectmatter insured, caused by a peril insured against, and which is not a general average loss. It is also the expenses incurred by or on behalf of the assured for the safety or preservation of the subject-matter insured, other than general average and salvage charges, and are called particular charges.
Slide 52:
Risk A B C Cargo Handling Wet Damage (saline) Theft Contamination (from other cargo) Fire/Exp Stranding/sinking Overturning of land Conveyance Heavy Weather Piracy SUMMARY OF ICC CLAUSE
Slide 56:
Please record weather condition when the discharge operation, whether it contributes to the incident Check The master/CO, whether he made Note of Protest Check Mates receipt, whether
was there any remark ? And what Bs/L clause ?? Is there any LOI ? If there attend other party of interest, check and put in the reporty name and from which party did they attend.
CONCLUSION:
CONCLUSION Liability and risk are facts of life, identifying, recording, mitigating and managing risk is a serious business. Clearly provide standard procedures of the company to the staff, applied standard trading operating (STC), and The rest of this training manual will help in managing these risks.
Slide 59:
Illustration two Ship runs aground (error in navigation) and suffers hull damage. Water enters one of the cargo holds and a cargo of machinery spare parts is damaged by sea water. The Master attempts to refloat the ship through its own power but this leads to further hull damage. Master then calls for help and a salvage company provides assistance and tows the vessel to a port of refuge. Vessel is repaired and completes the voyage. The Shipowner declares Particular Average.
Slide 60:
Thank You