Cargo transportation insurance

In the international business of goods, which side is responsible for marine insurance, should be decided by the price terms confirmed by both side. For example, in the FOB or the CFR, the duty of buying marine insurance is belongs to buyer, but in CIF, seller should assumed this liability. The general procedure of buying marine insurance is:

1.Confirming the insured amount

Insured amount is the basis for the calculation of the insurance premium, and also the basis for the calculation of the restitution if the damage of goods happened. Normally, the insured amount should be calculated according to the expected profit of CIF shown on the invoice. But different countries have different situations, and their way to manage the import and export trade are also different. In general, there are two main ways to calculate the insured amount, one of it is individual insurance, the other one is according to the forwarded general contract.

2.Fill in the insurance policy

Insurance policy is the applicant's written application to the insurer for insurance, the primary coverage of it include the name of applicant, the name, mark, number and packing of insured goods, insured amount, name of the transportation equipment, sailing date, from to, date and type of insurance, stamp and signs.

3.Pay the insurance premium and get the insurance policy

Insurance premium is calculated according to premium rate of investment insurance. Premium rate is confirmed by different type of insurance, goods, way of transport, and destination and referenced the international rate level. It has two different kind, general freight rate and specify freight rate, the first one is for normal cargo, the other one is for some special cargo and the insurance premium will be added from the general one.

After paid the premium,the insured can obtain the insurance policy. The insurance policy actually constitutes an insurance contract between the insurer and the insurer, which is the insurance certificate of the insurer to find the insurer. After the event of loss or loss within the scope of insurance happened, the policyholder may claim compensation by the insurer.

4.Lodge claims

When the insured goods are lost or damaged or occurred with any accident within the scope of insurance liability, the policyholder may claim compensation from the insurer.