Selection of Cargo Insurance
In international trade, the transportation of import and export goods and cargo transportation insurance are two important but problematic links. In the face of the fierce competition , how to choose the correct type of insurance for the goods and avoid risks is undoubtedly a problem that every enterprise must face to solve. Among the three basic risks in China's marine cargo insurance clause, the liability scope of F.P.A. is the smallest, that of W.A is the second, and that of all risks is the largest. In contrast, the rate of F.P.A. is the lowest, followed by W.A., and all risks are the highest. Therefore, when the insured chooses the insurance risk, it should be comprehensively measured according to the actual situation of the transportation of the goods, which should be considered. To fully protect the goods, we should try our best to save the expenditure of insurance premiums, reduce trade costs and improve economic efficiency. I think importers and exporters should take the following factors into account when they are insured.
The first point is the type, nature and characteristics of the goods. The risks and losses that goods of different nature and characteristics may encounter in transit often vary greatly. Therefore, the nature and characteristics of the goods must be fully taken into account in order to determine the appropriate insurance. Grain commodities are characterized by moisture, after long-distance transport of water evaporation, may cause a short amount. In transit, if the ventilation equipment is poor, but also easy to sweat, fever and mildew. For this kind of commodity, it is generally possible to cover shortage coverage and sweat& heating coverage on the basis of W.A.
The second point is the packing of the goods. The packing mode of the goods will directly affect the good condition of the goods. If container transportation is used, the loss of goods caused by various risks in transit is relatively small. However, it may also cause damage to the goods because the container itself is not clean, or damage in transit. For instance, A company accepted a commission of the consignor and arranged for a batch of tea leaf to be exported by sea. When the consignee unloaded the container at the port of destination, he found that the peculiar smell in the container was heavy. It was found that the goods carried on the previous voyage of the container were fine tea. As a result, the tea leaf was contaminated with fine tea. Therefore, it is necessary to increase clash & breakage coverage and intermixture & contamination coverage on the basis of F.P.A. or W.A.
The third point is the political situation at the port of shipment and destination. For example, in Egypt, Syria, Iran and other regions of the Middle East where the political situation is unstable.If war risks coverage is add, importers and exporters do not have to be frightened about the safety of the goods. In the 1980s, an importer entered into a deal with a foreign buyer under the condition that CIF. It was during the Gulf War, the ship carrying import and export cargo sank by a missile while sailing on the high seas. The insurance company did not indemnify the insurance company because it was not insured against war risk coverage at the time of insurance. Thus it can be seen that it is vital to be aware of the political situation.
How to correctly choose freight insurance is a professional job. In order to prevent trouble reasonably and favorably, all factors must be taken into account when insurance is insured.