기사의 목차
I. Why Is Cargo Insurance Necessary?
International freight transport always has many potential risks such as loss, damage, theft, natural disasters, traffic accidents… These risks can cause great financial losses for businesses. Therefore, purchasing cargo insurance is an optimal solution to protect goods and minimize risks .
Goods in the world are mostly exchanged and traded mainly by sea, so buying marine cargo insurance is also of special interest to many import-export businesses and shipping units.
Depending on the type of transport and commercial conditions, the insured objects will be different. However, mainly it is insurance of goods and the means of transporting them.
II. Procedures For Purchasing Marine Cargo Insurance
| Steps to Purchase Cargo Insurance | |
|---|---|
| 1. Customers actively research and compare | – Find information and compare insurance packages |
| 2. Contact and request consultation | – Contact the insurance seller directly. If necessary, you can request in-depth advice. |
| 3. Fill in the information and submit the insurance request | – Fill in information online or ask the insurance company to help process it. |
| 4. Review and quote | – The insurance company’s business department receives the request and reviews it. – The insurer sends a quote and explains the terms to the customer. |
| 5. Signing the contract | – Review the negotiated terms again – Both parties completed signing the contract |
| 6. Payment of insurance premiums | – When receiving a payment request, the customer is responsible for paying and reporting to the insurance company. – The insurance company is responsible for confirming whether the buyer has paid or not. |
| 7. Issuance of insurance certificate | – The insurance seller will be responsible for completing the remaining procedures and sending the certificate to the customer. – Can be received via email, post or customers can come directly to the office to receive. |
| 8. Support during insurance process | – Insurance companies must always be ready to support customers throughout the insurance process. – In case of an incident, the customer shall notify the insurance company for assistance in handling the claim. |
III. How To Calculate Cargo Insurance Rates
Please note that each insurance company will have different sales costs and surcharge rates. I just try to summarize, synthesize and present it in a simple way to give everyone the most objective view.
* Cargo insurance premium = Insurance amount (100% ~ 110%) x R
Incoterms contract conditions, for example: CIF = ; With:
– C: Total FOB price of the shipment
– F: Total freight payable
– R: Fee rate = Main fee (R1 ) + surcharge (R2 ) (if any)
1. Main Fee – R1
Usually applied according to ICC conditional insurance, in Vietnam and Korea there are similar laws. If there is a dispute, it depends on the parties involved to handle it according to that law.
| ICC type C | ICC type B | ICC type A | |
|---|---|---|---|
| Acronym | ICC(C) | ICC(B) | ICC(A) |
| Applicable Objects | – Used goods, scrap iron and steel, personal belongings, temporarily imported and re-exported goods | –Full container load (FCL) – Retail goods depend on whether the insurance company accepts them or not. |
– Only applicable for port to port transportation – If it is retail, 20% or more will be added from the original fee. |
| Price Level | 0.08% ~ 0.1% | 0.15% ~ 0.2% | 0.2% ~ 0.5% * Some special cases can be up to 3% |
| Insured Risks | ICC Terms | ||
|---|---|---|---|
| C | B | A | |
| Indirect Cause | |||
| Fire or explosion | ✔ | ✔ | ✔ |
| Means of transport stranded, sunk or capsized | ✔ | ✔ | ✔ |
| Collision with other objects, except water | ✔ | ✔ | ✔ |
| Unloading at the port where the ship took refuge | ✔ | ✔ | ✔ |
| Earthquake, volcanic eruption or lightning strike | ✔ | ✔ | |
| Direct Cause | |||
| General average sacrifice | ✔ | ✔ | ✔ |
| Goods fell into the sea | ✔ | ✔ | ✔ |
| Rescue costs | ✔ | ✔ | ✔ |
| Responsibility for collision is mutual fault. | ✔ | ✔ | ✔ |
| Water washed away from the ship | ✔ | ✔ | |
| Sea water, lake water or river water entering the means of transport or the place of storage (excluding rain water) | ✔ | ✔ | |
| Total loss of cargo lost overboard or during loading or unloading | ✔ | ✔ | |
| Pirates | ✔ | ||
| Crew’s actions | ✔ | ||
| Other risks (theft, damage, non-delivery, shortage of goods,…) | ✔ | ||
Note: The above main fee terms are for sea freight, other types will have separate calculations.
2. Common Additional Charges – R2
| Additional Charges | Reference Fee (%) | |
|---|---|---|
| Domestic Shipping | Railway | 0.05% |
| Road | 0.06% | |
| Sea route | 0.07% | |
| River route | 0.08% | |
| Oversized and overweight cargo | 0.12% | |
| Shipping to Neighboring Countries | 0.03% | |
| Mainly For Air Freight | * Additional risks: – Broken, Bended, Flat – Theft, Lost or Non-Delivery – Wet, Dirty – Mold – And many more |
0.05%/One risk |
| Old Train Fee | Ship age from 16 ~ 20 | 0.125% ~ 0.185% |
| Ship age from 21 ~ 25 | 0.250% ~ 0.375% | |
| Ship age from 26 ~ 30 | 0.375% ~ 0.600% | |
3. Specific Examples
Dehang Company imported 15,000 tons of bagged fertilizer under DAP terms, FOB price was calculated at 200 USD/ton .
The freight to Cat Lai port, Vietnam is 10 USD/ton. The shipment is transported on the 5STARTRANS vessel.
Shipments are insured at 110% CIF at Cat Lai port under ICC(A) conditions.
+ Calculate insurance amount:
– Total FOB price of the shipment (C): 200 x 15,000 = 3,000,000 USD
– Total freight payable (F): 10 x 15,000 = 150,000 USD
– ICC(A) premium rate (R 1 ) = R = 0.30%. Assuming no surcharge
– Estimated total value of goods: ( CIF) = = 3,160,112 USD
– Insurance amount = 110% CIF = 3,160,112 x 110% = 3,476,123 USD
+ Cargo insurance premium = Insurance amount x R = 3,476,123 USD x 0.3% = 10,428.37 USD
