Bài thuyết trình Insurance - NSURANCE IN INTERNATIONAL TRADE

Bài thuyết trình Insurance - NSURANCE IN INTERNATIONAL TRADE

INSURANCE IN INTERNATIONAL TRADE GROUP 3

I DEFINITION

II SELLERS’ OBLIGATIONS

III DIFFERENCES BETWEEN INSURANCE

POLICY AND INSURANCE CERTIFICATE

CIF (Cost, Insurance, Freight)

- The sellers delivers when the goods pass the ship’s rail at the port of shipment

-Bearing the costs and freight necessary

-But the risk of loss or damage to the goods

as well as the costs due to events occurring after delivery are transferred from the seller to the buyer.

Linh Thùy

DEFINITION

Linh Thùy

DEFINITION

Insurance

to hedge against the risk of uncertain loss

-The equitable transfer of the risk of a loss, from one entity to another, in

exchange for payment

Linh Thùy

Insurer policyhoder policyhoder Insured/ Insured/

Premium

Linh Thùy

DEFINITION

Linh Thùy

DEFINITION

CIF Incoterm 2000

Insurance Seller’s obligation

My Ngan

The seller must obtain at his own expense cargo insurance as agreed in the contract, such that the buyer, or any other person

shall be entitled to claim directly from the

insurer and provide the buyer with the

insurance policy or other evidence of

insurance cover

My Ngan

The minimum insurance shall cover the

price provided in the contract plus ten per cent (i.e 110%) and shall be provided in the

currency of the contract.

My Ngan

The insurance shall be contracted with underwriters or an

insurance company of good repute and, failing express agreement to the contrary, be in accordance with minimum cover of the

Institute Cargo Clauses (Institute of London Underwriters) or any

similar set of clauses The duration of insurance cover shall be in

accordance with B5 and B4

Hoang Uyen

When required by the buyer, the seller shall

provide at the buyer's expense war,

strikes, riots and civil commotion risk

insurances if procurable

Hoang Uyen

Insurance Policy vs

Quynh Nhu

1/ NATURE Quynh Nhu

Insurance Policy

(IP)

IP is a contract

between the insurer

and the insured

Determines the claims

which the insurer is

legally required to pay

Insurance Certificate

(IC)

IC certifies that an insurance policy has been bought

In marine insurance, IC serves to assure the insurance is in effect for the goods in transit

Quynh Nhu

Open Policy

Blanket policy/ floating

policy

Issued once by the

insurer under contract to

cover all shipments

made by the exporter

over a period of time

Specific Policy

Voyage policy

Issued by the insurer to cover a particular shipment or one shipment only

Quynh Nhu

IP

Includes all the

Terms and conditions of

An insurance certificate does

not contain all of the terms

of the policy but some core and general terms like: parties, validity, name of the insurance…

=> An abstract of the most important provisions of the insurance contract

3/ STRUCTURE

Nomarly non-negotiable Can not be assigned to a third paty

Unacceptable under the terms

of L/C

Viet Trinh

Viet Trinh

Nguyen Thong

Nguyen Thong

Q&A

1.In CIF, the critical point must be:

A.Seller’s ware house.

B.When the consignees have been put on board.

C.At the delivery port.

D.It can be negotiated by the two parties

2 Two common marine insurance documents:

A Insurance policy and insurance certificate

B Insurance contract and insurance

certificate

C Both of them

D None of the above

3 Which cargo insurance basis has the widest coverage?

4 Which is not included in an insurance certificate:

A the document lists the effective date of the

policy

B the type of insurance coverage purchased

C the types and amount of applicable liability

D the detailed insurance terms of the policy

THE END

THANK YOU FOR YOUR ATTENTION