How to Calculate Marine Cargo Insurance | Best Guide-Xiongda

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Marine Cargo Insurance is an insurance established specifically for sea transportation involving property damage to the goods carried during the carriage of goods.

It is generally purchased by the carrier, or can be purchased separately by the client as needed. Marine insurance is divided into basic insurance and additional insurance, of which the basic insurance includes peace of mind insurance, water damage insurance and all risks.

Marine Cargo Insurance adheres to the principle of timely, reasonable and contract-based claim settlement to provide compensation for the insured party. Goods out to sea in the process will face many uncertainties, marine insurance to a certain extent for enterprises to reduce the trade risk.

A common type of maritime transportation risk

The risk of sea cargo transportation is divided into sea risk and foreign risk. 

 

cargo damage in shipping

 

Marine risks include natural disasters and accidents

Natural disasters, only refers to the bad weather, lightning, floods, drift ice, earthquakes, tsunamis and other manpower irresistible disasters; accidents, mainly including major accidents with obvious marine characteristics. 

External risks refer to all kinds of risks other than those at sea

Divided into general external risks and special external risks: general external risks refer to theft, breakage, leakage, tarnishing, moisture and heat, stringing flavor, rust, hook damage, short volume, fresh water rain, etc. Special external risks, mainly refers to the risks caused by military, political and administrative decrees, etc., which cause the loss of goods. Such as war, strike, non-delivery, rejection, etc.

The calculation method of Marine Cargo Insurance premium

1. insurance premium = insurance amount * insurance rate

2. Insurance amount = invoice CIF price * invoice markup rate (usually 10%) = CIF price * 110%.

Among them, the fixed insurance rate is affected by many factors: cargo type, voyage, packaging, terms and conditions used, insured amount, policy model and limit of liability.

 

Maersk Line suspends sailings

Marine Cargo Insurance

 

Marine Cargo Insurance common sense and compensation related process

When purchasing marine insurance, you need to pay attention to

  1. Comparison of goods, consult a few insurance companies, general marine insurance costs in the value of the goods 3 ‰ -8 ‰.
  2. The beneficiary to write their own company, payout address to write their own company address. If the CIF, guests pay premiums, fill in the customer information.
  3. Insurance for all risks, starting and ending place to write warehouse to warehouse, individual countries can only do warehouse to port.
  4. The cabinet can be insured after loading, because the insurance is warehouse to warehouse, no need to wait until the ship.

 

Marine Cargo Insurance

 

Marine Cargo Insurance Claims process

  1. Loss notification
  2. Survey and inspection
  3. Verification of policy details
  4. Analyze the claim case and determine the responsibility
  5. Calculate the amount of compensation and make payment

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