Category: Trade Assurance

Marine insurance refers to the insurance specially established for marine transportation. It is an insurance that can avoid property damage caused by goods during transportation. Generally speaking, the insurance is purchased by the carrier, or it can be purchased separately by the entrusting party as needed. Marine insurance is divided into basic insurance and additional insurance, of which basic insurance includes Ping An insurance, water damage insurance, etc.

Why buy marine insurance

Marine insurance adheres to the principle of timely, reasonable and contract-based claims settlement, and provides compensation to the insured. Goods will face many uncertainties in the process of going to sea. Marine insurance reduces trade risks for enterprises to a certain extent.

Common types of maritime transport risks

The risks of maritime cargo transportation are divided into maritime risks and external risks.

Shipping Risk

1. Maritime risks include natural disasters and accidents. Natural disasters are severe weather, lightning, floods, drift ice, earthquakes, tsunamis and other irresistible disasters; accidents include major accidents with obvious marine characteristics.

External risk

2. External risks are various risks other than marine risks, which are general external risks and special external risks. Common external risks are theft, breakage, leakage, contamination, moisture and heat, odor, rust, hook damage, lack of quantity, rain, etc. Special external risks are mainly risks caused by military, political and administrative laws and other reasons, resulting in loss of goods. Such as war, strike, non-delivery and rejection.

Marine insurance common sense and compensation related procedures

Common sense of marine insurance

Global supplier reminder: Enterprises need to pay attention to the following common sense when doing marine insurance.

1) Shop around and consult several insurance companies. Generally, the cost of marine insurance is 3‰-8‰ of the value of the goods.

2) The beneficiary should write his own company name, and the payment address should write his own company address. If it is CIF, the guest pays the premium and fills in the customer information.

3) Insure all risks, write warehouse to warehouse from start to end, and some countries can only do warehouse to port.

4) Insurance can be purchased after packing, because the insurance is from warehouse to warehouse, it does not need to wait until the ship starts.

Notice of Loss

1. Notice of Loss. In the event of an insured event or a loss within the scope of the insurance liability, the insured shall notify the insurer immediately.

Survey and inspection

2. It is the joint inspection of the port. When the goods arrive at the port and find damage, the consignee should notify the insurance company in time, apply to the commodity inspection department for a joint inspection, find out the cause of the damage, the amount and extent of the damage, and compile a port joint inspection report or situation record.

Off-site joint inspection

3. When the goods arrive at the destination, if there is a shortage or damage within the scope of insurance liability, the consignee can conduct a joint inspection through the local insurance company and compile a joint inspection report. After passing the inspection of the goods, the compensation personnel will determine the attribution of the responsibility for the damage to the goods.

Documents required to apply for inspection

When applying for inspection to the insurer or its inspection agent, the inspection applicant shall provide the necessary documents, including application inspection form, ocean bill of lading, cargo invoice, maritime report, insurance document, packing list, tally list, and cargo weight list Wait.

Claims Judgment Basis

In the link of “Analyzing Claims and Determining Responsibilities”, the insurer will review the relevant documents (such as insurance documents, accident inspection reports, insurance accident certificates, insurance subject matter rescue and repairs, etc.) for compensation determination.

Compensation is generally calculated based on the claim list, which can be adjusted by the insurer or its agent.

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Global suppliers believe that international trade has certain risks，The goods will face many uncertain factors in the logistics process. In order to ensure the safety of the goods and reduce the risk rate, marine insurance must be a very favorable property protection. When faced with damage to the goods, the company should make a claim as soon as possible to keep the loss within a controllable range.