Part2 Reading Marine Cargo Insurance Chinese 3.Expenses Expenses covered by ocean cargo insurance fall into two kinds.One is sue and labor expenses arising from measures properly taken by the insured and his agent for minimizing or avoiding losses caused by the risks covered in the insurance policy.The other one is salvage charge paid to a third party who comes to salvage the ship and the consignment. Marine Insurance Coverage Under China Insurance Clause(CIC),there are two types of coverage for ocean marine cargo insurance: basic coverage and additional coverage.According to the nature of the goods insured,the cargo owner may choose one of the basic covers.If more protections are needed,he may further insure his goods against one or several additional risks.No additional risk can be purchased to insure goods independently. ⑤大连理工大学出版社
Part 2 Reading Marine Cargo Insurance 3. Expenses Expenses covered by ocean cargo insurance fall into two kinds. One is sue and labor expenses arising from measures properly taken by the insured and his agent for minimizing or avoiding losses caused by the risks covered in the insurance policy. The other one is salvage charge paid to a third party who comes to salvage the ship and the consignment. Marine Insurance Coverage Under China Insurance Clause (CIC), there are two types of coverage for ocean marine cargo insurance: basic coverage and additional coverage. According to the nature of the goods insured, the cargo owner may choose one of the basic covers. If more protections are needed, he may further insure his goods against one or several additional risks. No additional risk can be purchased to insure goods independently. Chinese
Part2 Reading Marine Cargo Insurance Chinese 1.Basic Coverage FPA(Free from Particular Average) FPA covers: (1)Actual total loss or constructive total loss of the whole consignment insured caused in the course of transit by natural calamities like heavy weather,lightning,tsunami,earthquake and flood. (2)Total or partial loss caused by accidents:carrying conveyance being grounded,stranded,sunk or in collision with floating ice or other objects as fire or explosion. (3)Partial loss of the insured goods attributable to heavy weather,lightning and/or tsunami,where the conveyance has been grounded,stranded,sunk or burnt,irrespective of whether the event or events took place before or after such accidents. ⊙大连理工大学出版社
Part 2 Reading Marine Cargo Insurance 1. Basic Coverage FPA (Free from Particular Average) FPA covers: (1) Actual total loss or constructive total loss of the whole consignment insured caused in the course of transit by natural calamities like heavy weather, lightning, tsunami, earthquake and flood. (2) Total or partial loss caused by accidents: carrying conveyance being grounded, stranded, sunk or in collision with floating ice or other objects as fire or explosion. (3) Partial loss of the insured goods attributable to heavy weather, lightning and/or tsunami, where the conveyance has been grounded, stranded, sunk or burnt, irrespective of whether the event or events took place before or after such accidents. Chinese
Part2 Reading Marine Cargo Insurance Chinese (4)Partial or total loss consequent on falling of entire package or packages into sea during loading, transshipment or discharge. (5)Reasonable cost incurred by the insured in salvaging the goods or preventing or minimizing a loss recoverable under the policy,provided that such cost shall not exceed the amount insured of the consignment so saved. (6)Losses attributable to discharge of the insured goods at a port of distress following a sea peril as well as special charges arising from loading,warehousing and forwarding of the goods at an intermediate port of call or refuge (7)Sacrifice in and contribution to general average and salvage charges. (8)Such proportion of losses sustained by the ship owners as is to be reimbursed by the cargo owner under the Contract of Affreightment"Both to Blame Collision"clause. ⑤大连理工大学出版社
Part 2 Reading Marine Cargo Insurance (4) Partial or total loss consequent on falling of entire package or packages into sea during loading, transshipment or discharge. (5) Reasonable cost incurred by the insured in salvaging the goods or preventing or minimizing a loss recoverable under the policy, provided that such cost shall not exceed the amount insured of the consignment so saved. (6) Losses attributable to discharge of the insured goods at a port of distress following a sea peril as well as special charges arising from loading, warehousing and forwarding of the goods at an intermediate port of call or refuge. (7) Sacrifice in and contribution to general average and salvage charges. (8) Such proportion of losses sustained by the ship owners as is to be reimbursed by the cargo owner under the Contract of Affreightment “Both to Blame Collision” clause. Chinese
Part2 Reading Marine Cargo Insurance Chinese WPA(With Particular Average) Aside from the risks covered under FPA as above,this insurance also covers partial losses of the insured goods caused by heavy weather,lightning,tsunami,earthquake and/or flood. All Risks All Risks is the most comprehensive basic coverage.Aside from the risks covered under the FPA and WPA as above,it also covers all risks of loss of or damage to the insured goods whether partial or total,arising from external causes in the course of transit.It should be noted that"All Risks"does not,as its name suggests,really cover all risks.The"All Risks"clause excludes coverage against damage caused by war,strikes,riots,etc. 2.Additional Coverage Additional coverage includes general additional risks and special additional risks. 大连理工大学出版社
Part 2 Reading Marine Cargo Insurance WPA (With Particular Average) Aside from the risks covered under FPA as above, this insurance also covers partial losses of the insured goods caused by heavy weather, lightning, tsunami, earthquake and/or flood. All Risks All Risks is the most comprehensive basic coverage. Aside from the risks covered under the FPA and WPA as above, it also covers all risks of loss of or damage to the insured goods whether partial or total, arising from external causes in the course of transit. It should be noted that “All Risks” does not, as its name suggests, really cover all risks. The “All Risks” clause excludes coverage against damage caused by war, strikes, riots, etc. 2. Additional Coverage Additional coverage includes general additional risks and special additional risks. Chinese
Part2 Reading Marine Cargo Insurance Chinese General Additional Risks According to Ocean Marine Cargo Clauses of the People's Insurance Company of China,there are eleven general additional risks:TPND (Theft,Pilferage and Non-delivery),FWRD(Fresh Water Rain Damage),Risk of Shortage,Risk of Intermixture and Contamination,Risk of Leakage,Risk of Clash and Breakage,Risk of Odor, Risk of Sweating and Heating Damage,Risk of Hook Damage,Risk of Packing Breakage,and Risks of Rust.All these eleven risks are included in All Risks,therefore,if the goods have been insured against All Risks,the insured need not effect the general additional risks. Special Additional Risks Special additional risks covers the loss or damage caused by special extraneous reasons.They include War Risk,Strikes Risk,Risk of Failure to Delivery,Risk of Import Duties,Deck Risk,Rejection Risk,Aflatoxin Risk, and Fire Risk Extension Clause for Storage of Cargo at destination Hongkong,including Kowloon,or Macao. Special additional coverage is usually taken out together with FPA,WPA or All Risks. ⑤大连理工大学出版社
Part 2 Reading Marine Cargo Insurance General Additional Risks According to Ocean Marine Cargo Clauses of the People’s Insurance Company of China, there are eleven general additional risks: TPND (Theft, Pilferage and Non-delivery), FWRD (Fresh Water Rain Damage), Risk of Shortage, Risk of Intermixture and Contamination, Risk of Leakage, Risk of Clash and Breakage, Risk of Odor, Risk of Sweating and Heating Damage, Risk of Hook Damage, Risk of Packing Breakage, and Risks of Rust. All these eleven risks are included in All Risks, therefore, if the goods have been insured against All Risks, the insured need not effect the general additional risks. Special Additional Risks Special additional risks covers the loss or damage caused by special extraneous reasons. They include War Risk, Strikes Risk, Risk of Failure to Delivery, Risk of Import Duties, Deck Risk, Rejection Risk, Aflatoxin Risk, and Fire Risk Extension Clause for Storage of Cargo at destination Hongkong, including Kowloon, or Macao. Special additional coverage is usually taken out together with FPA, WPA or All Risks. Chinese