International Freight Insurance Strategy

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When you are insured, you always want to find a balance between the insurance coverage and the premium.

To do this, we must first assess the risks that we are faced with, identify which risks are the most probable and most likely to occur, and balance them with the premium rates of different types of insurance.

Of course, there will be much more sense of security, but the premium must also be increased.

Gao Shuhua, chief of cargo insurance Department of PICC Property Insurance Company in Guangdong Province, has been handling international cargo insurance for many years. He believes that when exporters are insured, they usually consider the following factors: 1. the types, characteristics and characteristics of goods; 2. the packaging of goods; 3. the pportation of goods (including pport modes, means of pport, pportation routes); 4. the losses occurred in ports and handling processes; and 5., the political situation of 5. destinations, such as the NATO air strikes in the Confederacy and the Pakistan coup in 1999, if exporters are insured against war risks, exporters do not have to panic about the safety of goods.

"It is very important to take into account the various conditions of the goods, which can not only save the premium, but also improve the degree of risk security in a more comprehensive way.

"Mr. Liu Yong said.

He is the manager of the business department of Lingui light industry technology import and Export Corporation of Guilin.

According to him, he has been doing export business for many years, and their export goods have not had any problems in the pportation, nor have they lost the money.

He believes that the more important reason is that the insurance business is considered more and more comprehensively.

He stressed: "now the export business generally small profits, and the possibility of risk has an increasing trend, so in the insurance policy should be carefully weighed.

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Two. When to choose all risks?

"All risks" is the most common type of insurance.

The letter of credit opened by the buyer is also asking the exporter to insure against all risks.

It is most convenient to insure against all risks, because it covers FPA, WPA and 11 general additional risks, and the applicant has no need to think about additional risks.

However, the most convenient service is the most expensive one.

Mr. Guo Yuqiang is a salesperson of PICC in Shenzhen. He has engaged in cargo pportation insurance business for 6 years.

He said that in terms of premium rate, WPA is equivalent to 1/2 of all risks, and FPA is equivalent to 1/3 of all risks.

Whether to choose all risks as the main risk depends on the actual situation.

For example, wool, cotton, linen, silk, silk, clothing and chemical fiber products are more likely to suffer losses, such as sticky, hook damage, theft, shortage, rain, etc., it is necessary to insure against all risks.

Some goods do not really need to cover all risks, such as low value, naked bulk goods such as ore, steel and iron products. The main risks are covered by F. P. A., and in addition, deck insurance can be insured as additional risks according to the actual situation.

For goods that are unlikely to be damaged, broken or easy to rust, but do not affect the use, such as nails, wire, screws and other hardware products, and second-hand goods such as old cars and old machine tools, the WPA can be insured as the main risk.

It is not enough for some goods to cover all risks as main risks, and special additional risks are also required.

Certain foods containing aflatoxin, such as peanuts, rapeseed and rice, often contain this toxin. They will be refused to import, confiscate or forcibly change their usage because they exceed the limit criteria of the imported country. Therefore, aflatoxin risk should be insured as a special additional risk when exporting such goods.

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Three. Flexible use of main risks and additional risks.

Gao Shuhua introduced a case he handled.

In 1998, a company exported a number of steel products (nude) to Central American countries, and insured the marine insurers from WPA.

After the goods arrived at the destination, they found 5 short unloading.

The consignee contacts the inspection claims agent of the insurance policy to conduct the inspection and check. The inspector issued the inspection report and confirmed that the facts were unloaded, and the consignee claimed the insurance company.

However, the section only insured "WPA" and "short landed" was not covered by the coverage, and the insurance company could not help it.

In response, Mr. Gao suggested that "if the goods are covered by WPA and pppe, the above problems can be solved."

The premium is generally charged at 80% of all risks.

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He explained that when an insurance company claims to make a claim, it must first confirm the cause of the loss, and only the loss caused by the liability range of the insured category will be compensated. Therefore, the additional risk should be chosen for risk factors.

For example, glass products, ceramics, daily necessities or handicrafts and other products, will cause losses due to breakage, insurance can be added to breakage risk on the basis of FPA or WPA. When the products are wet, they will cause fever, mildew, spontaneous combustion and other losses. They should be insured against heat and moisture on the basis of FPA or WPA. Asbestos tiles (boards), cement boards, marble and other building materials products, the main loss due to breakage should be added to the risk of breakage on the basis of FPA.

The target market is different and the rate is different. When exporters calculate the cost of insurance, they can not "cut across the board".

For example, if all risks are covered, the rates in developed countries may be 0.5%, 1.5% in Asian countries and 3.5% in African countries.

In addition, Mr. Guo suggested that when selecting the insurance type, the owner should choose additional risks according to the market conditions. For example, the goods to Philippines, Indonesia and India, because the local docks are in a mess and the risk is relatively large, they should be selected as additional risks, or simply cover all risks.

Four, risk prevention is more important than insurance.

Insurance is a tool for pferring and dispersing risks.

Although the insurance company will be responsible for settling the losses caused by risks, the shippers will be wasting time and effort in the process of claim. Therefore, it is very necessary to take precautions against risks and do some preventive measures on the basis of insurance.

Mr. Guo summed up his claim case and warned: "there are more and more cases of damage caused by the leakage of containers.

"To prevent this risk, one is to choose strong and reputable shipping companies as far as possible, and their hardware devices will be relatively good. Two, check the empty cabinets carefully before loading, to see if there is any leakage, and whether the seals on the door of the cabinets are intact.

We should also check whether there is any peculiar smell, and guess what cargo was in the previous paragraph.

If the food you are loading now is food or medicine, and previously loaded with highly flavored goods or even dangerous chemicals, it may lead to flavour and even make the goods no longer available.

He also suggested that in order to facilitate claims later, the bill of lading had better choose shipowner's bill of lading rather than freight forwarding bill of lading.

Because the shipowner's bill of lading is issued to the consignor in strict accordance with the actual conditions of shipment, and the forwarding bill of lading is inconsistent with the date of shipment and the name of the bill of lading is not in conformity with the actual ship name. This will cause trouble for future claims and evidence collection.