Freight insurance
Add Time：2024/11/21 20:53:21
I Take out freight insurance.China's export goods are generally insured on a case by case basis.For the export goods concluded on FOB or CFR Terms,the seller has no obligation to apply for cargo insurance.However,before performing the delivery,the seller still bears the risk that the goods may suffer accidental loss during the period from the warehouse to the shipment,and needs to arrange the cargo insurance within this period by itself.For export goods transacted in terms of CIF or CIP,the Seller shall be responsible for handling freight insurance,and shall generally complete the insurance formalities before the goods are transported from the shipping warehouse to the wharf or station.Most of the imported goods in China are covered by open cover.Professional import and export companies or their receiving agents have signed open cover contracts with insurance companies in advance.After signing the contract,the insurance company bears the responsibility of automatic underwriting.
II Determination of insurance amount of freight insurance and calculation of insurance premium:
1.Insured amount of freight insurance.According to the customary practice of the international insurance market,the insurance amount of export goods is generally calculated by adding 10%to the CIF price.The increased 10%is called the insurance premium,that is,the expenses paid by the buyer for this transaction and the expected profit.The formula for calculating the insured amount is:
Insurance amount=CIF value×(1+addition rate)
2.Freight insurance premium.The insurance premium paid by the applicant in the agreed manner is the condition for the insurance contract to take effect.Premium rate is determined by the insurance company according to different risks and destinations according to the loss rate of different types of goods in a certain period of time.The insurance premium is calculated as per the insurance premium according to the insurance rate table.The calculation formula is:insurance premium=insurance amount×Insurance rate.In China's export business,CFR and CIF are two commonly used terms.Since the insurance premium is calculated on the basis of CIF value,the prices of the two terms shall be converted as follows.
Converted from CIF to CFR price:CFR=CIFX[1-insurance rate X(1+markup rate)]
Converted from CFR to CIF price:CIF=CFR/[1-insurance rate X(1+markup rate)]
In the import business,it shall be borne according to the open insurance contract signed by both parties.The insurance amount shall be calculated according to the CIF value of the imported goods,without additional deduction.The premium rate shall be calculated according to the average rate specified in the"special rate table";If the goods are imported FOB,the insurance amount shall be calculated after the average freight rate is converted into CFR value.The calculation formula is as follows:
FOB imported goods:insurance amount=[FOB price x(1+average freight rate)]/(1-average insurance rate)
CFR imported goods:insurance amount=CFR price/(1--average insurance rate)
III Freight insurance freight insurance documents.There are two forms of insurance documents commonly used in international trade.
1.Insurance policy(insurance policy or policy0,commonly known as large insurance policy).It is the official certificate for the establishment of the insurance contract relationship between the insurer and the insured.Due to the different contents and forms of insurance,the most commonly used forms of marine insurance include ship insurance policy,cargo insurance policy,freight insurance policy,ship owner's liability insurance policy,etc.in addition to specifying the insured,the subject matter of insurance(such as the quantity and mark filled in the cargo section)In addition to the items such as means of transport,type of insurance,place of origin and destination,insurance period,insurance value and insurance amount,detailed clauses on the scope of liability of the insurer and the rights and obligations of the insurer and the insured shall also be attached.If both parties need to add or delete the rights and obligations specified in the insurance policy,they can add clauses or add words to the insurance policy.The insurance policy is the official document for the insured to claim against the insurer or appeal against the insurer,and also the main basis for the insurer to settle the claim.The insurance policy is negotiable and is usually one of the documents that the insured conducts negotiation with the bank.In a CIF contract,an insurance policy is a document that the seller must provide to the buyer.
2.Insurance certificate,commonly known as small policy.It is a document issued by the insurer to the insured to prove that the goods have been insured and the insurance contract has come into effect.There is no insurance clause on the certificate,which indicates that the insurance shall be handled in accordance with the terms of the formal insurance policy of the insurer.The insurance certificate has the same effect as the insurance policy.However,when the letter of Credit stipulates that the insurance policy should be submitted,the simplified form of the insurance policy is generally not allowed.
IV Insurance claim.It refers to the claim made by the insured to the insurer when the insured's goods suffer from the risk loss within the scope of insurance coverage.In international trade,if the insurance is covered by the seller,the Seller shall endorse and transfer the insurance policy to the buyer or its receiving agent a
II Determination of insurance amount of freight insurance and calculation of insurance premium:
1.Insured amount of freight insurance.According to the customary practice of the international insurance market,the insurance amount of export goods is generally calculated by adding 10%to the CIF price.The increased 10%is called the insurance premium,that is,the expenses paid by the buyer for this transaction and the expected profit.The formula for calculating the insured amount is:
Insurance amount=CIF value×(1+addition rate)
2.Freight insurance premium.The insurance premium paid by the applicant in the agreed manner is the condition for the insurance contract to take effect.Premium rate is determined by the insurance company according to different risks and destinations according to the loss rate of different types of goods in a certain period of time.The insurance premium is calculated as per the insurance premium according to the insurance rate table.The calculation formula is:insurance premium=insurance amount×Insurance rate.In China's export business,CFR and CIF are two commonly used terms.Since the insurance premium is calculated on the basis of CIF value,the prices of the two terms shall be converted as follows.
Converted from CIF to CFR price:CFR=CIFX[1-insurance rate X(1+markup rate)]
Converted from CFR to CIF price:CIF=CFR/[1-insurance rate X(1+markup rate)]
In the import business,it shall be borne according to the open insurance contract signed by both parties.The insurance amount shall be calculated according to the CIF value of the imported goods,without additional deduction.The premium rate shall be calculated according to the average rate specified in the"special rate table";If the goods are imported FOB,the insurance amount shall be calculated after the average freight rate is converted into CFR value.The calculation formula is as follows:
FOB imported goods:insurance amount=[FOB price x(1+average freight rate)]/(1-average insurance rate)
CFR imported goods:insurance amount=CFR price/(1--average insurance rate)
III Freight insurance freight insurance documents.There are two forms of insurance documents commonly used in international trade.
1.Insurance policy(insurance policy or policy0,commonly known as large insurance policy).It is the official certificate for the establishment of the insurance contract relationship between the insurer and the insured.Due to the different contents and forms of insurance,the most commonly used forms of marine insurance include ship insurance policy,cargo insurance policy,freight insurance policy,ship owner's liability insurance policy,etc.in addition to specifying the insured,the subject matter of insurance(such as the quantity and mark filled in the cargo section)In addition to the items such as means of transport,type of insurance,place of origin and destination,insurance period,insurance value and insurance amount,detailed clauses on the scope of liability of the insurer and the rights and obligations of the insurer and the insured shall also be attached.If both parties need to add or delete the rights and obligations specified in the insurance policy,they can add clauses or add words to the insurance policy.The insurance policy is the official document for the insured to claim against the insurer or appeal against the insurer,and also the main basis for the insurer to settle the claim.The insurance policy is negotiable and is usually one of the documents that the insured conducts negotiation with the bank.In a CIF contract,an insurance policy is a document that the seller must provide to the buyer.
2.Insurance certificate,commonly known as small policy.It is a document issued by the insurer to the insured to prove that the goods have been insured and the insurance contract has come into effect.There is no insurance clause on the certificate,which indicates that the insurance shall be handled in accordance with the terms of the formal insurance policy of the insurer.The insurance certificate has the same effect as the insurance policy.However,when the letter of Credit stipulates that the insurance policy should be submitted,the simplified form of the insurance policy is generally not allowed.
IV Insurance claim.It refers to the claim made by the insured to the insurer when the insured's goods suffer from the risk loss within the scope of insurance coverage.In international trade,if the insurance is covered by the seller,the Seller shall endorse and transfer the insurance policy to the buyer or its receiving agent a