1 TRANS OCEAN MARINE CARGO TRANSIT I N S U R A N CE Customer Manual 20th July 2009

Transcription

1 1 TRANS OCEAN MARINE CARGO TRANSIT INSURANCE Customer Manual 20 th July 2009

2 2 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 FOB CFR CIF DDU/ DDP 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 2

3 3 WHY SHOULD YOU INSURE YOUR CARGO? Ex Works Origin Haulage Origin Handling FOB Vessel Shipment CIF Destination Handling Destination Haulage DDU 3

4 4 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 300,000 1 ) Deliberate storage in the course of transit up to 500,000 (USD 600,000 1 ) For any one loss or incident, up to 5,000,000 (USD 6,000,000 1 ) 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 4

5 5 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, What is Marine Cargo Transit? Marine Cargo Transit 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 through Trans Ocean, Trans Ocean will raise the Marine 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 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 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. 5

6 6 5. Territories where we cannot sell Marine Cargo Transit without prior agreement from Trans Ocean 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 6

7 7 Main policy features; The summary below does not supersede or replace the policy wording, copy of which is available on request. Insured Insured Goods Customers who have instructed Trans Ocean to insure their cargo under the policy. 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 s Covered 1. Loss or damage to goods resulting from a transport fortuity eg. sinking of a vessel. 2. War s (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, 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 Voyages 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 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 ; Strikes ; 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. 7

8 8 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, charges incurred 2, Import taxes *(if you want such costs to be recoverable as per * below ) 3, C&F 19, Provision insurance of CIF Total CIF 19, Insured value CIF + 10% 21, Import Taxes*: 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 Institutes clauses 1. NIL for loss or damage during transport % on total insured value lost through loading and discharge operation 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 8

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