Dealing with international cargo transportation insurance is almost a matter for every single export business, but it must be safe and economical but not simple. Because the actual situation is very different, how to use insurance flexibly and avoid the risks in the transportation of export goods is a highly skilled professional work. International cargo transportation insurance is the most complicated in terms of business content. It has many varieties, not only main insurance and additional insurance, but also additional insurance, special additional insurance and special additional insurance. The choice of the main insurance, the combination of the main insurance and the additional insurance requires professional knowledge.
Risk selection of five elements
When you apply for insurance, you always want to find a balance between insurance coverage and insurance premiums. To do this, we must first assess the risks we face, identify which risks are the most likely, most likely to occur, and weigh them in combination with insurance rates for different types of insurance.
Of course, the multi-investment insurance will be much safer, but the premiums will definitely increase. When exporters are insured, they usually have to consider the following factors: 1. The type, nature and characteristics of the goods; 2. The packaging of the goods; 3. The transportation of the goods (including transportation methods, means of transport, transportation routes) 4. The loss situation occurred in the port and loading and unloading process; 5. The political situation of the destination, such as during the NATO airstrikes in 1998 and the Pakistani coup in 1999, if the war risk insurance was insured, the exporter would not have to The security problem was scared.
“It is very important to comprehensively consider the various situations of the goods being delivered, so that it can save the premiums and improve the risk protection level more comprehensively.” Considering more in the insurance business and comprehensively will minimize your losses. . At present, the export business generally has a meager profit, and the possibility of risk increases. Therefore, it should be carefully weighed when insuring. ”
When to use all risks to access the most comprehensive financial (banking, insurance, securities, foreign exchange, rural credit cooperatives, city commercial banks, foreign banks) information and the most valuable financial resources, please visit the China Financial Resources General Bank "all risks" is the most A common type of insurance. The letter of credit issued by the buyer is also required to require the exporter to insure all risks. It is most convenient to insure all risks, because its scope of responsibility includes FPA, WPA and 11 general additional risks, and the insured does not have to bother to consider what additional risks to choose. However, often the most convenient service has to pay the most. As far as insurance rates are concerned, WPA rates are equivalent to about 1/2 of all risks, and FPA is about 1/3 of all risks.
However, whether to choose all risks as the main insurance depends on the actual situation. For example, wool, cotton, hemp, silk, silk, clothing and chemical fiber products are more likely to suffer losses, such as fouling, hook damage, theft, shortness, rain, etc., it is necessary to insure all risks. Some goods do not need to insure all risks, such as low-value, bare-packed bulk goods such as mineral sand, steel, cast iron products, the main insurance can be insured for insurance; in addition, according to the actual situation, the insurance can also be used as insurance Additional insurance. For goods that are unlikely to be damaged, broken or rusted but do not affect the use, such as iron nails, wire, screws and other small hardware goods, as well as old cars, old machine tools and other second-hand goods, you can take the WPA insurance as the main insurance .
Some goods are insured for all risks as the main insurance may not be enough, but also need to insure special additional risks. Certain foods containing aflatoxins, such as peanuts, rapeseed, rice, etc., often contain such toxins and are rejected, confiscated or forcibly altered due to exceeding the importing country’s limit on the toxins. Loss, then, when exporting such goods, aflatoxin should be covered as a special additional insurance. Flexible use of primary and additional risks
Case introduction: In 1998, a company exported a batch of steel (naked) to a Central American country, and insured the insurance company with “waterlogging insurance” for marine cargo transportation. After the goods arrived at the destination, they found that they were short-loaded. The consignee contacts the inspection claim agent listed in the insurance policy for inspection. The inspector issues an inspection report to confirm the short-discharging fact, and the consignee then claims to the insurance company. However, this section of the transportation only insured the "waterlogging insurance", "short unloading" is not within the scope of coverage, the insurance company can not help. In this regard, the industry insiders suggested: "If such goods are insured against WPA and theft is not dangerous, you can solve the above problem. The premium for insurance is generally charged at 80% of all risks."
Because the insurance company must first confirm the cause of the loss when making claims, only the losses caused by the scope of the insurance policy will be compensated. Therefore, the choice of additional insurance should be considered for the risk factors. For example, products such as glass products, ceramics, daily necessities, or handicrafts will be damaged due to breakage. Insured can be used to protect against breakage risks on the basis of FPA or WPA. Hemp products will cause heat and cause mildew after damp. Losses caused by spontaneous combustion, etc., should be covered by the risk of fire or water damage insurance; asbestos tile (board), cement board, marble and other building materials, the main loss due to broken, should be in Ping An On the basis of the insurance, the insurance is broken.
The target market is different and the rates are different. When exporters calculate the cost of insurance, they cannot be “one size fits all”. For example, if all insurance is insured, the rates in developed countries in Europe and America may be 0.5%, 1.5% in Asian countries, and 3.5% in African countries. In addition, when selecting the insurance type, the owner should choose additional insurance according to the market conditions, such as goods to the Philippines, Indonesia, and India. Because the local terminal is in chaotic situation and the risk is relatively large, you should choose to steal the goods and avoid the risk and short-term insurance as additional risks. Or simply insured all risks.
Risk prevention is more important than insurance
Insurance is a tool for transferring and diversifying risks. Although the insurance company will be responsible for the loss caused by the risk, the owner is time-consuming and laborious in the process of claiming, and it is not a small price. Therefore, it is necessary to prevent the risk and to take some preventive measures on the basis of insurance. When summing up his claim case, Mr. Guo reminded: “There are more and more cases of damage to the goods due to the leakage of the container.” To prevent this risk, first, choose a ship company with strong strength and good reputation. Their hardware equipment will be relatively better; the second is to carefully check the empty cabinet before loading, to see if there is any leak, the seal at the door of the cabinet is intact. Also check to see if there is any smell, speculate on what goods were loaded in the previous paragraph. If you are going to load food or medicine now, and if you have previously loaded a strong smell of goods or even a very dangerous chemical, it may lead to odor and even make the goods no longer usable.
Freight insurance common sense question and answer:
1. Which parts of the logistics process will involve cargo insurance? What kind of insurance is there?
A: In the process of logistics operations, as long as it involves the operation of goods, the operational aspects of supervision may involve cargo insurance. The most important links in general insurance are storage operations, air transportation, sea transportation, and land transportation operations. In many cases, insurance for port operations is insured as part of transport insurance. The insurance in the maritime transportation process is divided into basic insurance and additional insurance. The basic insurance is divided into three types: insurance, water and all risks. The types of insurance during land transportation mainly include land transportation insurance and land transportation. Insurance in the air transportation process is divided into air transportation insurance and air transportation all risks.
2. What problems should the insurance company pay attention to in the case of loss of goods or loss of goods?
A: In the legal relationship of logistics insurance, one party to the logistics contract enters into an insurance contract with the insurer. In the case of the loss of the goods or the loss of the goods caused by the reasons of the parties to the non-insurance contract, the insurer shall first compensate the goods to the interested parties, and then obtain the status of the interested party of the goods, and have the right to recover from the responsible person. At this point, you should pay attention to the following issues. First, it is determined in advance that the goods interested parties have not arbitrarily waived any rights related to the damaged goods. This is to ensure that the insurer's rights can be fully compensated. Secondly, after the insurer claims, it should obtain all relevant evidence related to the subrogation and litigation, and should obtain the cooperation of the interested parties. Again, pay attention to property preservation and evidence preservation. Logistics insurance contracts tend to be large, and property preservation must be exercised when necessary to ensure the interests of the insurer. Finally, the legal relationship of logistics is complex and professional. Therefore, professional lawyers in logistics and maritime affairs should be selected in pre- and post-legal legal consultation.
3. How to apply for insurance claim procedures?
A: In the event of loss of goods or loss of goods, the following procedures are required to apply for insurance claims: First, the claimant provides the following documents to the insurance company: the original insurance policy or insurance certificate, the transportation contract, the invoice, the packing list, and the carrier. The letter or other documents required by the third party responsible party for compensation, the documents that the insured has fulfilled the recovery procedures, the inspection report issued by the foreign insurance agent or the foreign third party notary public agency, and the maritime report. The loss of goods caused by maritime affairs is generally paid by the insurance company, the shipowner does not bear the responsibility, the cargo damage certificate, the claim list and so on. After the insured has completed the relevant formalities and delivered the documents, he waits for the insurance company to verify the responsibilities, decide whether to pay the compensation, and how to pay. If the insurance company decides to pay compensation, the insurance company will finally pay the insured.