Marine Insurance Study Guide Part 3

3 ý và ptich từng ý (high probability của các risk như shrinking… 2. Insurer’s liability to the goods Definition: Set of terms for cargo insurance policies voluntarily adopted as standard terms by many international marine insurance organizations. Institute Cargo Clauses- ICC: issued by the Technical and Clauses Committee of Institute of London Underwriters (ILU) ICC 3 version - 1963 1982 2009 (chủ yếu học 1982, compare with 2009 10 differences - at home) In VN → QTC 1965, QTC 1990 (mất vài năm để dịch qua tiếng ziệt) ICC 1963 ✔FPA- Free from Particular Average (original condition) ✔WA- With Particular Average (original condition) ✔AR- All Risks (original condition) ✔WR- War Risks ✔SRCC- Strike, Riot, and Civil Commotion ICC 1982 ✔C: coverage equivalent to FPA ✔B: coverage equivalent to WA ✔A: coverage equivalent to AR ✔WR ✔SRCC Cargo Clauses of Vietnam • QTC 1965: FPA, WA, AR • QTC 1990: C, B, A (final) ICC 1963 maybe chỉ dính câu hỏi phụ thoi, chính vẫn là ICC 1982, hỏi thêm về trc đó 1963 thì tên j, đổi thành j, cái nào tương ứng với cái nào Why đổi tên? dễ nhớ hơn, bản cũ thì AR all risks vẫn kh cover tất cả risk (kh bao gồm excluded risks) → đổi sang A SCOPE OF COVER- ICC 1982 & QTC 1990 (final) trình bày từng loại bảo hiểm A B C + exclusions + câu hỏi phụ 2.2.1. Risks Cover C clause: this insurance covers loss of or damage to the subject - matter insured reasonably attributable to: ● Stranding, sinking, fire or explosion, collision ● Discharge of cargo at a port of distress → dỡ hàng ở cảng bị/gặp nạn ● Overturning or derailment of land conveyance → ptien đường bộ bị trật bánh ● Sacrifice in and contribution to GA and reasonable expenditures (salvage) → có nhiều cách để sacrifice, kh chỉ ném hàng vd tăng tốc hết lực ● Jettison → related to sacrifice, cụ thể là ném hàng out of vessel to save life ● Missing → in british/vn/french ● Collision → Such proportion of losses sustained by ship owners as is to be reimbursed by the cargo owners under the contract of affreightment “Both to blame Collision” clause → tất cả những phần đóng góp của chủ hàng cho chủ tàu lquan đến điều khoản 2 tàu đâm va nhau cùng có lỗi nằm ở mặt sau của hợp đồng thuê tàu (C/P) → chủ hàng có nghĩa vụ phải trả tiền cho chủ tàu của mình B clause → C clause + 4 risks ● Earthquake, volcanic eruption or lightning - Động đất núi lửa sét đánh ● Washing overboard - Nước cuốn hàng khỏi tàu ● Entry of sea, lake, or river water into vessel craft hold conveyance, container lift van or place of storage Nước tràn vào tàu (nc biển tràn vào hay là nc mưa) nước biển thì phải bồi thường → inspector ktra xem là nước j ● Total loss of any package lost overboard or dropped whilst loading on to, or unloading from, vessel or craft. → mất cả kiện, phải coi có phải 1 package hay kh, nếu hàng rời thì kh đc bồi, đc bồi khi 1 container/thùng carton/package rơi xún biển, if 1 tấn hàng rời rơi thì kh đc bồi A clause → B + auxiliary risks (theft, heating/sweating, rusting..) ● Auxiliary risks: theft, rain- water, leakage, breakage, dampness, heating, hooking, rusting, malicious damage (not by insured), piracy… VD: rỉ thép thì có đc bảo hiểm kh? kh if do nature của hàng hóa, được bồi nếu vì yếu tố bên ngoài Có thể chọn mua loại C hoặc B kèm auxiliary risks thay vì mua A (VD chỉ mua C+ rusting for steel tuỳ loại hàng đó thường gặp risk gì) Vì bảo hiểm A giá rất cao, hàng trái cây thì mua rusting làm rì → reduce premium by buying C/B + specific auxiliary risks • A, B, C are official clauses • Special Clauses: WR, SRCC Exclusions: → học thuộc lòng 7 cái ● Contraband: hàng buôn lậu kh đc bảo hiểm ● Willful misconduct of the assured: lỗi cố ý của ng đc bảo hiểm (fortuity not certainty) ● Deviation: đi chệch hướng (để load thêm hàng chẳng hạn) ● Delay ● Inherent vice or nature of the subject-matter insured (ẩn/nội tỳ) ○ VD: steel rusted kh đc bồi nếu chứng minh là tự thép bị oxi hóa, fruit tự chín ● Unseaworthiness of vessel → đọc law để rõ hơn (physical of vessel - can start voyage, can load cargo, can carry cargo to destination, document certificate, classification, inspection,.. rules (?) to navigate vessel) ● Insolvency or financial default of the owner or the operator of the vessel (chủ tàu gặp kk tài chính thì maybe trộm hàng/container để bán kím tiền, lấy tàu làm mortgage để vay tiền, hàng cũng bị mortgaged luôn) câu hỏi phụ: ntn là seaworthiness of vessel, example and explain last exclusion → loại trừ theo nature/inherent vice of cargo, cái nào thường gặp nhất thì lại bị loại trừ ⇒ phải coi là có phải do yếu tố bên ngoài hay kh vd gỗ cong vênh tự nhiên thì kh bồi, nếu gỗ ngấm nước biển rồi nở lên cong vênh thì đc bồi Bảo Việt có bộ điều khoản bảo hiểm cho loại hàng hóa riêng biệt Dầu very risky, kh đc chở quá vơi (rung lắc, bay, phân tử va chạm dễ nổ cháy) or quá đầy (nở ra, tràn dầu, ô nhiễm MT) → cần kinh nghiệm ⇒ đặt điều khoản riêng cho dầu rời, lấy phí rất cao Than cũng risky, dễ cháy Thịt đông lạnh, risky (tan đá, container lạnh bị j thì hải sản ươn), giá trị cao, nếu hư thì đền rất nhiều (final) explain Transit Clause in marine cargo insurance Transit Clause “from warehouse to warehouse” → Duration of marine cargo insurance Transit Clause → hợp đồng có hiệu lực từ lúc nào đến lúc nào, chấm dứt khi nào ✔Stage from port of discharge to final warehouse: insurance policy terminates either: ● On safe delivery to the final warehouse, or ● On the expiry of 60 days after completion of discharge whichever shall first occur → 1 trong 2, tùy theo cái nào tới trc thì đc áp dụng ✔Departure warehouse: place of storage at the place named herein for the commencement of the transit (2 trg hợp) ● named on insurance contract ● warehouse where goods have been completely packaged and waiting to be loaded onto a road or river transport vehicle to be taken to a seaport or a warehouse named on the insurance contract ✔Final warehouse (4 trg hợp) ● Final warehouse owned or managed by the assured, or (kho sở hữu bởi the assured) ● Store other than in the ordinary course of transit, or (cảng kh nằm trong hành trình, cảng lánh nạn → nếu hàng bị dỡ ra và giữ ở kho cảng lánh nạn quá 60ng kh đc load lên lại tàu cũ thì hdong hết hiệu lực) ● Store using for allocation or distribution, or (kho phân loại/phân phối hàng) ● Store named in insurance policy MARINE CARGO INSURANCE POLICY ▪ Who can buy a marine cargo insurance policy? → buyer/seller tùy loại incoterm ▪ Contract of sale: Legal contract for exchange of goods, services or property to be exchanged from seller to buyer for an agreed upon value ▪ The contract of sale determines who buy the policy ▪ The most common contracts of sale are: FOB, CFR and CIF (CIF seller mua buyer claim) → seller mua bảo hiểm loại C nếu kh negotiate gì, nếu buyer yêu cầu mua BA thì mua và tăng giá ▪ In marine cargo insurance, the person having insurable interest at the time of loss can only recover ▪ Marine cargo policies are freely assignable. Unlike other policies, there is no need for taking insurance company’s consent to transfer policy to the new buyer before voyage, if I am not the owner, I do not have insurance interest, at the time of risk happening, I must have the insurance interest (during voyage), I am the owner the cargo (goods transfer from the seller to buyer) => Special case, seller buy nhưng buyer là người hưởng, buyer là người đi claim (CIF CIP) → có B/L tên mình là đã có insurable interest, freely assignable, transfer mà kh cần cty bảo hiểm cho phép DIFFERENT KINDS OF MARINE CARGO POLICY (4 types) • Voyage policy: insurance policy/ insurance certificate for 1 voyage only (transit clause) • Open cover policy (HĐ bao): large export/import oriented industries usually prefer open cover agreements as they have to make numerous regular shipment who would otherwise find it very inconvenient to obtain insurance cover separately for each and every shipment ○ A marine cargo open cover insurance policy is an agreement between a merchant and an insurance company to insure all goods in transit within the agreement until either party cancels the agreement ○ The characteristics of open policy: Automatic, flexible, economical → giải thích 3 characteristics: - automatic (sign only 1 policy, next shipment kh cần sign lại và cty apply policy automatically, trc mỗi chuyến cần inform name, cargo, POL POD và cty send confirmation) - flexible (allow changes in types of goods, quantity,… nếu mà quên inform thì maybe 1-2 lần họ vẫn sẽ bảo hiểm, but quên nhiều lần quá thì khum, everywhere, flexible có thể đi từ bất kỳ POL POD nào cũng đc) - economical (reduced many costs, wholesaler luôn rẻ hơn retailers) • Valued policy: Predetermined Value - The insurer and insured agree on the value of the insured property (ship or cargo) before the voyage begins. This value becomes the basis for any potential payout in case of a total loss. • Unvalued policy → too risky nên rất hiếm • Value Determined After Loss: The value of the insured property is determined after a loss occurs, typically based on invoices, purchase receipts, or market value at the time of loss. → vì sao có giá value trên invoice mà kh ghi vào policy? - fluctuations, • Payout Based on Actual Value: The insured receives compensation based on the proven actual value of the lost property. Content of marine cargo policy Insurance value •V = C + I + F + (a) = CIF + (a) (1) • I = V x R = CIF x R (2) • Replace (2) to (1) CIF = C + CIF x R + F ⇒CIF(1-R) = C + F ⇒ V = CIF = (C+F)/(1-R) (a=0) ⇒V = (C+F)(1+a)/(1-R) (a=10%) Vì sao a=10% → expected profit, cover cost that paid in advance (book truck trước,..) \ Insurance amount •A ≤ V •A = V = (C+F)/(1-R) (a=0) ◼⇒A = V = (C+F)(1+a)/(1-R) (a=10%) A=V most popular Insurance premium •I = A (V) x R = (C+F) R/(1-R) •I = (C+F)(1+a)R/(1-R) (exercises) insurance amount+premium A Malaysian Company imported 20,000MT from Vietnam, with price of 350USD/MT FOB Cat Lai HCMC, Incoterms 2020. Rice was packed with 100kg per package. At port of destination, some cargoes were lost and damaged, survey report noted as follows: -100 p were damaged because of fire (all) -150 p were lost during discharging at port of destination (AB) -200 p were lost because carrier sold them to pay for fuel (no) -120 p were wet because of sea water entry (AB) -200 p were lost because of broken packages, 50% loss (A only) -50 p were wet because of rain damage (A only) -100 p were got dirty because the hold of vessel was not clean. (no) 1.Calculate the insurance amount and insurance premium (clause B ICC 1982 with R= 1%; freight = 20USD/MT) 2.Calculate the indemnity payment. If cargoes were insured with A ICC 1982 then recalculate indemnity payment? → Đề kh nói nên supposed (a) bnh cũm đc, 100% 110% đều đc Answer: Suppose a=10%, assume A=V=110%CIF Áp công thức → Insurance amount: V= 110%*(350*20000+20*20000)/(1-1%)=8,222,222.22 USD Insurance premium: I=1%V = 8222222.22*1%=82,222.22 USD 1 package=0.1MT Loss & damage (giá trị tổn thất): 100p were damaged cuz fire (1) 150p were lost during discharging at POD (2) 120p were wet because of sea water entry: (3) 100p (200p*50%) were lost because of broken packages: (4) 50p were wet because of rain damage: (5) → thay vì tính từng cái thì có thể cộng tổng số package lại rồi nhân sau (vd clause B 370p*0.1=37, rồi tính indemnity = (37/20000) * V = … Indemnity payment clause A ICC 1982: all 5, 520 packages ⇒ (52/20000)*V= 21377.78 USD clause B ICC 1982: (1)(2)(3), 370p ⇒ 15211.11 USD clause C ICC 1982: only fire, 100p ⇒ 4111.11 USD A shipment of cargo by sea was insured with insurance amount of $30,000. At the port of destination, as waiting for the berth, the vessel was anchored out of the port. At the time of waiting, vessel was burned and all cargoes were lost at actual total loss. How much will the shipper be indemnified by the insurer? a. 33.000USD b. 30.000USD c. 30.000USD + firefighting cost d. No indemnity as waiting is an exclusion → kh cộng firefighting cost, partial loss thì đc nhma total loss thì kh, partial loss đc cộng vì có save/protect… firefighting cost sẽ là chủ tàu trả, bảo hiểm kh trả vì kh save đc gì waiting vẫn trong hành trình, kh phải delay trong exclusion nếu là partial thì sẽ bồi firefighting cost nhma kh quá insurance amount 30k 10,000 MT of rice with insurance value of $500.000USD, were insured with insurance amount of $250,000. Partial loss of rice was $100,000 by insurable risks. How much would the insured be indemnified? a. 125,000USD b. 100.000 USD c. 250,000USD d. 50,000 USD A Malaysian Company imported 20,000MT from Vietnam, with price of 550USD/MT CFR Klang Port Malaysia Incoterms 2020. Sugar was packed with 100kg per package. At port of destination, some cargoes were lost and damaged, survey report noted as follows: 150 p were damaged because of washing overboard (AB) 250 p were lost during discharging at port of distress (all) 180 p were lost because carrier sold them to pay for fuel (no) 120 p were wet because of sea water entry (AB) 200 p were lost because of broken packages, 50% loss (A only) 50 p were wet because of rain damage (A only) 120 p were got dirty because the hold of vessel was not clean. (no) Calculate the insurance amount and insurance premium (clause B ICC 2009 with R= 1%; freight = 20USD/MT) Calculate the indemnity payment. If cargoes were insured with A ICC 2009? Answer: Assume A=V=110%CIF CIF=CFR/(1-R) = 11,000,000/(1-1%)=11,111,111.11 USD V= 110% CIF = 12,222,222.22 USD Insurance premium: I=1%V=122,222.22 USD Clause B: 150+250+120=520 packages Indemnity payment for B clause: (520*0.1/20000)*V=31,777.78 USD Clause A: 150+250+120+100+50=670 packages Indemnity payment for A clause: (670*0.1/20000)*V=40,944.44 USD Company A Vietnam exports rice, CFR Klang Port, Incoterms 2020. Along the way, the ship encountered a storm, 400 bags of rice fell into the sea due to the storm causing the ship to tilt, the ship hit a reef, temporarily reducing the value by 200,000 USD. The captain decided to throw the cargo into the sea to escape the storm. The captain declared general average. Knowing that: - the value of the ship is 10 million USD, - there are 15,000MT of rice (60 kg/bag), the contract price is 500 USD/MT, - the freight is 30 USD/MT Liner (I=O=S=T= 1USD/MT), paid at the port of destination; 300 bags were thrown into the sea; the ship's engine was broken due to overwork and had to be repaired: 260,000 USD. Question: a. Allocate the general average in the above sea voyage (2 points) b. How much will the insurance company compensate, if the goods are insured under condition C, ICC 1982? (R= 1%, F= 30USD/MT) (1.5 points) c. How much will the shipowner be compensated if he buys hull insurance under condition ITC 1995? (0.5 points) V. MARINE HULL INSURANCE (final) hull insurance có phải thuần túy là bảo hiểm tài sản (property) kh? → không, vì có thêm collision liability so hull insurance is not absolutely property insurance What are the owners' insurable interests in his vessel? ● The capital (asset) interest ● Potential legal liabilities ● Income interest HULL INSURANCE - an insurance practice applied to a vessel during its operation in international maritime, machinery and equipment, and collision liability Subject matter insured ● Hull ● Machinery and Equipment ● Collision Liability (Ngân + Liên) Subject- matter insured: ● Hull and machinery insurance is to protect the shipowner’s investment in the ship. It is basically a property insurance which covers the ship itself, the machinery and equipment. The owner will be protected for losses caused by loss of or damage to the ship and its equipment ● Furthermore, the insurance covers some liabilities, normally collision liability with another ship (known as RDC – “Running Down Clause”) –and sometimes also liability for colliding with other objects than another ship (known as FFO “Fixed and Floating Objects). ● The third part of the insurance is cover for salvage and general average contributions.