Foreign Trade Import And Export Business Insurance Practice

< p > < strong > I. insurance.

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< p > < href= > http://www.91se91.com/news/index_c.asp > > CIF > CIP, etc. the seller has the responsibility to handle the insurance. Generally, the insurance procedures should be completed before the goods are shipped from the shipping warehouse to the dock or station.

Most of the imported goods in China are covered by an open insurance policy. Each professional import and export company or its receiving agent has an Open Cover in advance with the insurance company.

After signing a contract, the insurance company has the responsibility of automatic underwriting.

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< p > < strong > two. Determination of insurance amount and Premium: < /strong > < /p >

< p > 1. insurance amount (Insured Amount).

According to the customary practice of the international insurance market, the insurance amount of exported goods is usually calculated by CIF plus 10%, which is 10% more than the insurance premium, that is, the cost of the exchange payment and the expected profit of the buyer.

The formula for calculating the amount of insurance is: < /p >

< p > < a href= "http://www.91se91.com/news/index_c.asp" > Insurance amount < /a > = CIF value of goods * (1+ addition rate) < /p >

< p > 2. premium (Premium).

It is the condition for the insurance contract to become effective when the insured pays the premium according to the agreed way.

The insurance premium rate (Premium Rate) is determined by the insurance company according to the compensation rate of different periods and different types of goods, according to different risks and destinations.

The premium is calculated according to the premium rate according to the premium. The formula is: premium = insurance amount * premium rate.

In China's export business, CFR and CIF are two commonly used terms.

Since the premium is calculated on the basis of the CIF value, the two terms should be converted into the following terms.

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< p > converted from CIF to CFR: CFR=CIFx[1- premium rate X (1+ addition rate)] < /p >

< p > converted from CFR to CIF: CIF=CFR/[1- premium rate X (1+ addition rate)] < /p >

< p > < < a href= > http://www.91se91.com/news/index_c.asp > Import > < /a >, according to the contract of insurance signed by both parties, the amount of insurance shall be calculated according to the value of the imported goods, and the premium rate shall be calculated according to the average rate of fees stipulated in the "special rate table"; if FOB imports are converted into CFR value after the average freight rate is converted, the insurance amount shall be calculated again, and the formula is as follows: < /p >

< p > FOB imported goods: insurance amount =[FOB price x (1+ average freight rate)] / (1- average premium rate) < /p >

< p > CFR imported goods: insurance amount =CFR price / (1-- average premium rate) < /p >

< p > < strong > three. Insurance document.

There are mainly two forms of insurance documents commonly used in international trade.

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< p > 1. insurance policy (Insurance Policy or Policy0, commonly known as large insurance policy).

It is a formal certificate for the relationship between the insurer and the insured. Because of the different contents and forms of insurance, the most commonly used forms of marine insurance are ship insurance policy, cargo insurance policy, freight insurance policy and ship owner's liability insurance policy.

In addition to containing the items of the insured, the insured subject matter, such as the quantity and mark of the insured section, the means of pport, the risk, the place of departure, the time limit for insurance, the value of the insurance and the amount of insurance, the detailed provisions of the insurer's liability and the rights and obligations of the insurer and the insured are also included.

If the parties concerned need to add or delete the rights and obligations stipulated in the insurance policy, they may affix clauses or words to the insurance policy.

The insurance policy is a formal document of the insurer's claim against the insurer or an appeal to the insurer, and it is also the main basis for the insurer to settle his claim.

The insurance policy is pferable and is usually one of the documents to be negotiable against the insured by the insured.

In the CIF contract, the insurance policy is a document that the seller must provide to the buyer.

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< p > 2. Insurance Certificate, commonly known as small policy.

It is a document issued by the insurer to the insured, certifying that the goods have been insured and the insurance contract has entered into force.

There is no insurance clause in the certificate indicating that the terms specified in the insurance policy of this insurer are in accordance with the terms.

The insurance certificate has the same effect as the insurance policy, but when the insurance policy is stipulated in the letter of credit, the insurance policy can not be simplified in general.

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< p > four. Insurance claim.

It means that when the insured person's goods are covered by the risk of loss within the scope of the insurable liability, the insured claims to the insurer.

In international trade, if the seller takes the insurance, the seller will endorse the insurance policy endorsed to the buyer or his receiving agent after delivery. When the goods arrive at the port of destination, if the damage is found, the buyer or his receiving agent as the legal assignee of the insurance policy shall claim compensation to the insurer or his agent in situ.

In order to facilitate the timely inspection of losses after the export of goods to foreign destinations, China's insurance companies have paid compensation in place. A testing or claims agency has been established in more than 100 countries.

As for the inspection claims for imported goods, the relevant professional import companies or their entrusted receiving agents shall claim compensation from the local people's Insurance Company at the port or other receiving place.

When the insured or his agent claims the insurer, the following works should be done.

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< p > 1. when the insured knows or finds that the goods have suffered losses within the scope of the insurance liability, they shall notify the insurance company in time and keep the scene as far as possible.

The insurer will check with the parties concerned, investigate the extent of the loss, investigate the cause of the loss, determine the nature and responsibility of the loss, take the necessary rescue measures, and issue a joint inspection report.

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< p > 2. when the insured goods arrive at the destination, when the insured or his agent takes delivery of the goods, he finds that the goods are obviously damaged, the whole piece is short, or the bulk goods are damaged. They should ask the tally department to obtain the damaged or short certificate.

If the damage is involved in the liability of the third party, the claim should first be made to the responsible party or claim for compensation.

The claim can be made to the insurance company on condition that the claim for the third party is retained.

When obtaining the insurance compensation, the insured shall pfer the relevant rights and interests of the damaged goods to the insurance company so that the insurance company can take the place of the insured or recourse to the third party by the insured's name.

The right of the insurer is called The Right of Subrogation.

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< p > 3., adopt reasonable rescue measures.

After the insured goods are damaged, the insured and the insurer have the responsibility to take possible and reasonable measures to prevent the loss from expanding.

The insurance company is responsible for compensating for the reasonable expenses incurred for salvaging, preventing or reducing the loss of goods.

The insurer can rescue and fail to fulfil the obligation of rescue, and the insurer has the right to refuse to compensate for the loss or even the total loss.

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