First, the basic insurance
Among the basic risks, including free from particular average (FPA), WPA (with particular average, referred to as WPA or WA) and all risks (all risks).
(1) Ping An Insurance
Ping An Insurance is one of the three basic risks in which the scope of liability is very small. The specific scope of coverage of the insurance is as follows:
1. In the course of transportation, the actual total loss or estimated total loss of the insured goods due to accidents caused by natural disasters and means of transport.
2. Loss of all or part of the insured goods due to accidents such as stranding, striking, sinking, collision, collision with drifting ice or other objects, and fire or explosion.
3. In the case of accidents such as stranding, reefing, sinking, or burning, the cargo has suffered some damage caused by natural disasters such as severe weather, lightning, and tsunami before or after the cargo.
4. All losses or partial losses caused by one or several pieces of the insured goods falling into the sea during the loading and unloading process.
5. The insured shall take reasonable expenses for the rescue of goods that are in danger of underwriting liability and prevent or reduce the damage measures, but not to exceed the amount of insurance for the goods to be rescued.
6. Transportation vehicles encounter natural disasters or accidents, need to stop at the port in the middle or at the refuge port, resulting in special charges incurred for unloading, loading, storage and transportation of goods.
7. Sacrifice, apportionment and salvage costs incurred by the general average.
8. There is a “ship collision clause” in the contract of carriage, according to which the shipowner’s loss should be reimbursed by the shipper.
The original English intention of free from particular average is that the individual average is not responsible for compensation. According to the explanation of the individual average of the international insurance industry, it refers to partial losses, so the original coverage of the FPA only compensates for all losses. However, in the long-term practice, the scope of responsibility of the FPA has been supplemented and revised, and the scope of responsibility of the current FPA has exceeded the limit of only the total loss.
The scope of WPA's liability, in addition to the various liabilities listed above, is also responsible for some of the losses caused by natural disasters such as severe weather, lightning, tsunamis, earthquakes and floods.
It can be seen that the coverage of WPA insurance is relatively large. It does not only cover the losses caused by water stains. At the same time, it does not cover the losses caused by all water stains. For example, the losses caused by fresh water are not compensated.
(3) All risks
The scope of liability for all risks, in addition to all the liabilities of FPA and WPA, also includes the total loss or partial loss of the insured goods caused by the general external causes of the goods during transportation.
Insuring all risks does not mean that the insurance company covers all risks, and the losses caused by special external causes in the shipping are not included. In addition, after insuring all risks, it is no longer necessary to insure the general additional insurance, as it is included, so as not to increase the payment of unnecessary insurance premiums. Due to the large scope of liability for all risks, its insurance premium is also high among the three basic risks.
The Provisions for Marine Transportation Cargo Insurance of the People's Insurance Company of China also made specific provisions on the responsibilities of the above three basic risks. The warehouse to warehouse (W/W), which is commonly used in the international insurance industry, is the insurance liability of the insurance company. It is the port of departure from the insured goods. The shipper warehouse begins until the goods arrive at the warehouse of the destination port (land) consignee as stated in the insurance policy. When the goods enter the consignee's warehouse, the insurance liability is terminated. However, when the goods are discharged from the port of destination from the sea-going vessel for 60 days, the insurance liability is terminated regardless of whether the insurance goods enter the consignee's warehouse. As mentioned in the introduction to this chapter, the accidental loss of goods occurs on the way from the seller’s warehouse to the port of shipment, rather than the port of departure (land) warehouse stated in the insurance policy, which does not meet the scope of the “storage-to-warehouse clause”. The company refused to pay.
I exported a batch of porcelain to Australia and insured the insurance. When loading the ship, 10 boxes were dropped due to the hook tripping. Can this loss be claimed by the insurance company?
During the loading and unloading of the transshipment, all or part of the loss caused by one or several pieces of the insured goods falling within the sea is also within the scope of the insurance. According to this, the insurance company can make a claim.
In addition, the exclusion liability is clearly defined in the above three basic risks. The so-called exclusion liability refers to the loss or expense that the insurance company clearly stipulates not to underwrite. The Provisions for Marine Transportation Cargo Insurance of the People's Insurance Company of China stipulates that the insurer shall not be liable for the following losses:
1. Loss caused by the insured's intentional act or negligence.
2. Loss caused by the responsibility of the consignor.
3. Loss caused by poor quality or short-term quantity of the insured goods before the commencement of insurance liability.
4. Natural wear and tear, intrinsic defects, characteristics of the insured goods, and losses or expenses caused by falling market prices and delays in transportation.
5. The scope of liability and exclusion of the provisions of the marine transport cargo war risk clause and the cargo transport strike insurance clause.
Second, additional risks
In the marine insurance business, in addition to the above-mentioned basic risks of insuring goods, importers and exporters may, according to the characteristics of the goods and actual needs, select some appropriate additional risks as appropriate. Additional risks include general additional risks and special additional risks.
(1) General additional risks
General additional insurance covers the losses caused by general external risks, mainly including: stealing and picking up the goods, fresh water and rain, short-term insurance, mixed pollution, leakage, damage, breakage, heat, and heat. There are 11 kinds of damage insurance, packaging rupture insurance and rust damage insurance.
General additional insurance cannot be insured separately, and can only be added on the basis of the basic insurance premium insurance and WPA insurance.
(2) Special additional risks
Special additional insurance refers to the risk of risk and loss caused by special external causes such as military, political, national policy or administrative measures. Special additional insurance underwritten by the People’s Insurance Company of China, including war risk and strike insurance, as well as delivery less than insurance, import duty insurance, deck insurance, refusal insurance, aflatoxin insurance and export goods to Hong Kong or Macau Storage warehouse fire insurance liability extension clause.
A unit in Shanghai imported a batch of goods from abroad under CIF conditions, and the seller has handled all risks. After the goods were unloaded in Shanghai, they were stolen at the dock that night. Can the buyer claim compensation from the insurance company?
A: You can claim from an insurance company. Because all risks include theft and picking up the goods. Moreover, the "warehouse to warehouse" clause adopted by all risks, the loss caused by theft at the dock that night should be within the liability of the insurance company.
