TRANS OCEAN MARINE CARGO TRANSIT INSURANCE by alicejenny

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TRANS OCEAN
MARINE CARGO
   TRANSIT
 INSURANCE


Customer Manual




   20th July 2009
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            WHEN SHOULD YOU INSURE YOUR CARGO?
            In international trade, the responsibility to insure the goods during the various stages of transport is
            clarified by the use of INCOTERMS. The diagram below helps you to determine which stage of transport is
            covered by the seller’s marine cargo transit insurance and which part of the transport is covered by the
            buyer’s marine cargo transit insurance.



Incoterms    Who buys         From                 Port of loading                 Port of discharge          To

 Ex Works    Freight         Warehouse                                                                     Warehouse
             Risk            Warehouse                                                                     Warehouse
             Insurance       Warehouse                                                                     Warehouse

 FOB         Freight         Warehouse                                                                     Warehouse
             Risk            Warehouse                                                                     Warehouse
             Insurance       Warehouse                                                                     Warehouse

 CFR         Freight         Warehouse                                                                     Warehouse
             Risk            Warehouse                                                                     Warehouse
             Insurance       Warehouse                                                                     Warehouse

 CIF         Freight         Warehouse                                                                     Warehouse
             Risk            Warehouse                                                                     Warehouse
             Insurance       Warehouse                                                                     Warehouse

 DDU/ DDP    Freight         Warehouse                                                                     Warehouse
             Risk            Warehouse                                                                     Warehouse
             Insurance       Warehouse                                                                     Warehouse



                                     Seller


                                     Buyer




            Note:
            EXW, DDU and DDP are commonly used for any mode of transportation.
            FOB, CFR, CIF are used for sea and inland waterway




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WHY SHOULD YOU INSURE YOUR CARGO?
                                    Ex Works



Origin Haulage




Origin Handling




                                     FOB



Vessel Shipment




                                      CIF


 Destination
  Handling




 Destination
  Haulage
                                       DDU


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                  SUMMARY OF BENEFITS OF INSURING THROUGH
                 TRANS OCEAN MARINE CARGO TRANSIT INSURANCE

Coverage
    Cover specifically tailored for flexitank shipments
    Ability to offer flexible cover in line with INCOTERMS 2000
    Mitigation costs including debris removal up to € 250,000
    (USD 300,0001)
    Deliberate storage in the course of transit up to € 500,000
    (USD 600,0001)
    For any one loss or incident, up to € 5,000,000
    (USD 6,000,0001)

Excess for all cargo claims during transport
    Nil

Premium
    Import/Export:
      o Agreed percentage of CIF cost + 10%

          Inland Transit and/or FOB or similar terms:
              o Agreed percentage of FOB cost +10%




1
    Subject to Currency Fluctuation


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MARINE CARGO TRANSIT INSURANCE

1. What does “Carrier’s liability” mean?
When Trans Ocean and/or a carrier accept to transport the goods, they have an obligation to deliver them
in the same conditions as received. If the goods are delivered damaged, the customer is allowed to claim
compensation for their loss, from Trans Ocean and/or the carrier.

Trans Ocean and/or a carrier trade under Terms and Conditions, or International Conventions, which limits
their liability. This means that the compensation payable by Trans Ocean and/or the carrier for loss or
damage to the goods could be below the actual value of the goods. Trans Ocean standard trading
conditions limits Trans Ocean’s liability to USD 500 per tonne of product lost up to a maximum of USD
12,000.



2. What is Marine Cargo Transit Insurance?
Marine Cargo Transit Insurance covers goods lost or damaged whether carried by land, sea or air. It
protects the cargo owner against Carriers/ Forwarders limitations of liability.

When you chose to buy Marine Cargo Transit Insurance through Trans Ocean, Trans Ocean will raise the
Marine Insurance Certificate, which evidences that your shipment is insured.



3. What is the role of Trans Ocean?
Trans Ocean is authorised to offer Marine Cargo Transit Insurance to their customers in accordance with
Incoterms 2000 by the Insurers with whom the policy is placed.

By customers, we mean Cargo Owners, to whom the local Trans Ocean office provides freight forwarding
services, including fitting of the Flexitanks.

The term customers do not include Freight Forwarders or Traders who do not own the goods during transit.
Trans Ocean offices can sell insurance to the Cargo Owner through other freight forwarders subject to the
forwarders not charging any premium and subject to the certificate of insurance being issued in the name
of the Cargo Owner.




4. What is insured under the Trans Ocean Marine Open Cover?
The cover offered under Trans Ocean’s Marine Open Cover is a ”Comprehensive” cargo transit insurance,
the widest form of coverage available in the market. It covers any actual unforeseen physical loss or
damage which may occur during the course of an insured voyage.




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5. Territories where we cannot sell Marine Cargo Transit Insurance without prior
   agreement from Trans Ocean Risk Management team and current insurers:




              Customers in    From / To
Armenia            No            Yes
Bahrain            No            Yes
Belarus            No            Yes
Brazil             No            Yes
Chile              No            Yes
Egypt              No            Yes
Georgia            No            Yes
Ghana              No            Yes
India              No            Yes
Iran               No            Yes
Jordan             No            Yes
Kazakhstan         No            Yes
Kuwait             No            Yes
Kyrgyzstan         No            Yes
Mexico             No            Yes
Oman               No            Yes
Pakistan           No            Yes
Philippines        No            Yes
Qatar              No            Yes
Tajikistan         No            Yes
Ukraine            No            Yes
Uruguay            No            Yes
Uzbekistan         No            Yes
Yemen              No            Yes




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Main policy features;

The summary below does not supersede or replace the policy wording, copy of which is available on request.


Insured              Customers who have instructed Trans Ocean to insure their cargo under the policy.

Insured Goods        1.   Bulk liquid products carried in flexi tank, steel tank containers, drums
                     2.   Temperature sensitive products carried in refrigerated or insulated containers

                     * Excludes loss or damage, liability or expenses to the actual shipping container or any liability
                     arising from their use.

Main Risks Covered   1.   Loss or damage to goods resulting from a transport fortuity eg. sinking of a vessel.
                     2.   War Risks (while on board a seagoing vessel or an aircraft only).
                     3.   Physical risks of loss or damage as a result of Strikes, Riots and Civil Commotions
                     4.   Debris removal (of the product) if damage caused by an insured peril and cost are
                          reasonably incurred, up to a maximum of EUR250,000.
                     5.   Terrorism except when deliberately stored.

                     Excludes any costs incurred in respect to damage to Third Party equipment or costs incurred to
                     prevent or mitigate pollution and/or contamination.

Main exclusions      1.   Inherent vice or nature of the subject matter insured.
                     2.   Fermentation.
                     3.   Fear of Contamination
                     4.   Wilful misconduct of the assured.
                     5.   Ordinary leakage, ordinary losses in weight or volume or ordinary wear and tear eg. volume
                          differential due to temperature fluctuation
                     6.   Delay.
                     7.   Insolvency or financial default of carrier (only if aware).
                     8.   Deliberate damage to or deliberate destruction of the subject matter insured.
                     9.   Loss arising from nuclear weapons

Voyages              From World to World

Duration             •        The insurance attaches from the time the product is loaded (pumped through pipe
                              line) into the flexi tank/ steel tank containers or other receptacle for the imminent
                              commencement of transit until unloaded/ pumped out immediately after arrival
                              provided that the maximum period of cover from the time of discharge from the
                              vessel/or aircraft at the final port/airport is 60 days

                     It also includes:

                     •        60 days for deliberate storage in warehouses that takes place between the places of
                              departure and final destination, if the insured decide to do so.
                     •        Should you require storage cover during the course of transit in excess of 60 days,
                              please contact us and we will be able to arrange adequate insurance for you at
                              favourable rate.

                     N.B: In respect of specific Institute cargo and Commodity clauses (for example War Risk;
                     Strikes Risk; Termination of Transit Clause (Terrorism) and Frozen Food Clauses) attachment
                     and expiry may differ. It is important that the attachment and expiry dates are assumed only
                     after consulting the relevant institute commodity Clause.




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Policy limit         1.   EUR 5 Million any one loss or incident
                     2.   EUR 500,000 for deliberate storage in the course of transit (see above in Duration clause).

Basis of valuation   As declared by the insured subject to CIF + 10%

Premium Example      Import / Export
                     For a premium of 0.3% of CIF + 10%

                     Example

                     Basis of valuation CIF + 10%

                     Costs of the goods                                                          14,000.00
                     Freight charges incurred                                                     2,000.00
                     Import taxes * (if you want such costs to be recoverable as per * below )    3,500.00
                      C&F                                                                        19,500.00
                     Provision insurance premium @0.3% of CIF                                        58.50
                     Total CIF                                                                   19,558.50
                     Insured value CIF + 10%                                                     21,514.35

                     Insurance Premium @0.3%                                                       64.41

                     Import Taxes*: Insurance does not cover import taxes which are costs born from import
                     procedure and do not result from an incident. The policy will not cover import taxes on goods
                     that are lost prior to the point where import taxes are due. These are recoverable by the
                     customer in accordance with import custom procedure. Only taxes paid on goods lost in free
                     circulation are recoverable, subject to such taxes being included in the basis of valuation for the
                     calculation of the premium as shown above.

Excess               1.   NIL for loss or damage during transport
                     2.   1.0 % on total insured value lost through loading and discharge operation

Institutes clauses   The following institutes clauses form part of the policy (please contact us for more information
                     regarding the institute clauses and extensions which form part of this policy);
                     DVT Cargo transit insurance conditions 2000 (DVT Cargo 2000/2008)
                     Institute Cargo Clauses (A)                                                              CL.252
                     Institute War Clauses (Cargo)                                                            CL.255
                     Institute Strikes Clauses (Cargo)                                                        CL.256
                     Institute Radioactive Contamination Chemical Biological and Electromagnetic              CL.370
                     Weapon Exclusion Clauses

Returned Shipment    Subject to being immediately reported to underwriter and to the payment of an additional
                     premium equivalent to the full transit premium, return shipment are covered eg. port
                     blockage or the buyer refuses the goods.


                     1.   Until finally disposed or
                     2.   For a period not exceeding 30 days whilst in transit or storage whichever shall first occur.

Reforwarded goods    Goods forwarded as intended and refused at destination are covered until such goods are
                     finally disposed of subject to:


                     1.   Subsequent transit and/or storage risk being immediately advised to underwriters
                     2.   Payment of an additional premium if required




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