Chapter6 Introductional cargo transportation insurance.（课件）《国际贸易实务双语教程》同步教学（清华大学出版社）

Chapter Six International Cargo Transportation Insurance Learning objectives Understand the fundamental principles of cargo insurance. Know the risks and losses in ocean transportation. Know the coverage of London Institute Cargo Clauses Master the scope of Ocean Marine Cargo Clauses of CIC. Master the methods of stipulating insurance clauses in sales contracts. Case Study A vessel collapsed with flowing icebergs on the sea and a crack was founded on one side of the vessel. Sea water flooded in and part of the cargo was soaked. The captain had to call at the nearest port to drain off water and afterwards threw off some bulky good into the sea in order make the vessel floating. Which loss happened belongs to general average and which belongs to particular average Analysis The loss of the vessel being cracked and part of the cargo undergone soaking belong to particular average. The vessel shipped to the nearest port and the losses thereafter belong to general average. Introduction Whichever mode of transport is used, there will always be risks at any stage of transit. Accidents will result in loss of or damage to the goods. So marine insurance was pushed into rapid development. Definition of insurance: “The practice of sharing among many persons, risks of life or property that would otherwise be suffered by only a few.” Parties involved in an insurance: the insurant / insured; the insurer; the claimant 1. Fundamental principles of insurance Insurable interest principle Utmost good faith principle Proximate principle Indemnity principle Insurable interest principle Definition: The financial interest of a person in the subject matter insured A policy without insurable interest is invalid. Proof of insurable interest is required at the time of making a claim, not at the time of effecting an insurance. Utmost good faith principle Both parties be faithful and honest in entering into the insurance contract. Marine Insurance Act 1906: If the Utm