Clearly, credit insurance developed from and with transportation insurance and gained prominence during the Industrial Revolution, when entrepreneurship and commerce were booming. The number of companies has increased and the activity has been concluded less and less on the basis of long-term relationships, while competition has forced companies to sell their products on credit terms. Today, credit insurance is widely used all over the world and especially in Europe. The size of this highly concentrated market is estimated at over $5 billion, and according to forecasts, its growth rate is estimated at 2.5 times the average growth rate of the global economy. 16. What are the advantages of transit insurance itself? Some goods (such as jewelry, pearls, currency, etc.) are excluded from standard freight insurance coverage, as are certain events (e.g. B, the risks of war). Upon request, we offer specific coverage options. If the loss is due to theft or theft, the liability of the sender or receiver depends on various elements.
In the absence of uniform rules on the carrier`s liability, the presence and amount of compensation paid to the consignor depend to a large extent on the mode of transport used to transport the cargo. Each mode of transport operates according to different rules, with great differences in the limitations of liability and defensive measures available to the carrier. For the informed consignor or consignee, these differences between modes of transport determine whether the consignee is dependent on the carrier`s liability or benefits from additional protection from freight insurance. The insured must take appropriate rescue action against the debtor and/or his guarantor, e.B. Seizure and seizure of the assets of the debtor in default (pre-litigation recovery). If possible and necessary, he must pursue and file his application and participate in bankruptcy and other proceedings, especially if they are solvent and a successful decision can be expected sooner or later. As already mentioned (section 4.4.1), in accordance with the general conditions of insurance, the insured must declare his debts in the insolvency proceedings in order to prove the existence of the claim against him or due to him, which has not been set off, etc. If necessary, the insured must assist the insurer in its actions against the debtor, including by designating the insurer as its representative or lawyer with the power to bring legal proceedings on its behalf. CIF is one of the international trade terms known as Incoterms. Incoterms are common trade rules developed by the International Chamber of Commerce (ICC) in 1936.
The ICC established these conditions to govern shipping policies and the responsibilities of buyers and sellers engaged in international trade. Incoterms are often similar to national terms (such as the U.S. Uniform Commercial Code), but are applicable internationally. For example, parties to a contract must indicate the location of the applicable law for their terms. The ICC restricts the use of the CIF for goods transported to those moving by inland waterways or sea. After payment of the claim and signature of the declaration of assignment, the insured must accept all payments made and partial payments made by the debtor or guarantor, including funds from the bankruptcy estate and any sale of security, and transfer them to the insurer immediately or as soon as reasonably possible, in whole or in part, if agreed. according to the insured percentage and its self-preservation. Collections are first assigned to unpaid invoices with the earliest due dates. For all payments made before the payment of the claim, the insured must reduce his claim as well as the value of the goods returned to him before or after deduction of the payment of the claim from the amount of the loan. A derogation from their tradition in transport insurance is generally not known in credit insurance, unless expressly agreed otherwise, and the insurer is generally not obliged to take charge of the goods credited and pay the full amount of the damage (compensation for the lucri damno).
Instead, the damage suffered will be reduced for the value of the returned goods. The current monetary limits of the carrier`s liability must be known to the user and confirmed with the carrier or the modes of transport to be used. Local currency insurance reduces the likelihood of misunderstandings, correspondence and elapsed time related to claims processing. This practice facilitates the immediate replacement of goods and contributes to the general improvement of trade relations in inland transit before loading and after unloading, especially when the duration of carriage and transport possibilities are low In air transport, the shipper may obtain an increase in the carrier`s liability limit by paying an additional fee. The same generally applies to carriage by water by arrangement between the consignor and the carrier. If we try to classify insurance according to the insured purpose (property insurance, life and health insurance and liability insurance), then credit insurance as one of the classes of insurance belongs to property insurance, since trade credit claims represent the assets of the company – more precisely in the subgroup credit insurance and guarantee (in the broad sense of the term, loyalty insurance is also part of this class of insurance). A reserve account for debt service (see §14.4.1) offers some protection against a temporary interruption of income not covered by the insurance. An individual policy is a completed certificate that confirms the existence of transit insurance. For these reasons, the courts have placed insurance contracts in the general category of membership contracts and have developed somewhat more protective provisions for the interpretation of insurance contracts (Baker, 1994). Insurance contracts have long been considered a paradigmatic membership contract (see Contracts: Legal Perspectives). These pecuniary limitations of the Carrier`s liability provide the Shipper with only partial compensation insurance, given the many defenses available to the Carrier.
In general, the fault of the shipper or owner of the goods is a valid defense. Therefore, for example, defective packaging often relieves the freight forwarder. The carrier`s low liability limits and uncertainty about collection have led shippers, as a common practice, to take out freight insurance for goods they ship by air or sea. For consignments transported by rail or road carrier, the need for such insurance may be less mandatory, but the consignor may find it desirable to consult an insurer, in particular if the consignment is of high value or would be excessively exposed to theft or theft. Additional assistance may be requested from the carrier`s loss prevention department. This presentation is intended only to describe a general description of certain types of insurance and not the specific coverage provided by a particular insurance policy or bond. If any of the above points are of interest, we would be happy to receive the additional information to present a more in-depth discussion of the issue. Transport insurance is the right way to protect your products during your trip. CIFCost, insurance and cargo, designated port of destination (This term can only be used for sea shipments.) Although the Seller undertakes to bear all costs and cargo to the port of destination, its delivery liability ends when the goods have been delivered on board the overseas ship to the port of dispatch. Liability for loss or damage: The same as for the FOB and CFR conditions. The seller is responsible for the loss or damage until the goods are delivered on board the overseas ship in the port of dispatch.
Sea Freight Insurance: Although the Buyer is responsible for loss or damage during the « main transport », the Seller undertakes to take out insurance on behalf of the Buyer in accordance with the CIF Conditions. Therefore, CIF shipments are insured under the seller`s sea freight policy. (This is one of only two INCOTERMS that include compulsory insurance. The other term is CIP.) The type of insurance to be provided must be clearly indicated in the purchase contract. The INCOTERMS stipulate that « in the absence of an agreement, minimum coverage of institutional freight clauses shall be provided ». It is essentially a « named risk » cover that is rarely adapted to the needs of the buyer. Insurance must also be in negotiable form so that losses are payable to the buyer or another party who has an insurable interest in the shipment at the time of loss. Proof or proof of insurance is required, which is usually provided by the issuance of a special freight policy or insurance certificate by the seller or his insurer.
The insurance must cover shipping from the place of origin to the buyer`s final destination. A potential conflict zone between the requirements of the CIF terms and insurance coverage is when the insurance actually ceases. By definition, CIF refers to the port of destination. CIF also obliges the Seller to take out insurance that covers the risk of loss or damage to the Buyer, which in almost all cases extends to the delivery of the goods to their destination. Banks are usually involved in financing CIF shipments. If the port of destination CIF is indicated in a letter of credit and another location is indicated in the certificate of insurance, the bank may refuse the certificate. .