Insurance of import and export goods by sea

---

---

For goods exported and imported by sea, in these cases, the risks will not be avoided. Therefore, the insurance of import and export goods by sea is an important part to prevent the loss and damage that is too great to happen unexpectedly to the goods.

What is insurance for import and export goods by sea?

A form of insurance that applies to goods, property or objects that are shipped by sea from one place to another. The insurance provider will pledge to the child premium as well as compensation to the assured in case of risks and damages to the goods during the insurance.

Risks in insurance of import and export goods by sea

Risks to goods are usually divided into several categories. However, it is mainly divided according to its origin and insurance operation as follows:

1. According to derived sources:

• Natural disasters: including natural phenomena that cannot be controlled by humans such as storms, whirlwinds, tsunamis, rough seas, etc.
• Due to the disaster of the sea: disasters that can occur with ships transporting in the sea, such as stranding, wreck, explosion, missing, etc.

• Due to other unexpected accidents: external impacts do not fall into the risks mentioned above. These risks can occur in the process of loading and unloading of goods, storage, ... in road transport and shipping (by sea).

2. According to insurance operation:

• Common risks: include unexpected and accidental risks such as natural disasters, marine disasters, unexpected accidents, etc.
• The risk is separately insured: this case will be specified when the two parties agree on a contract, not compensation under the original conditions. The risks, in this case, maybe war, strike, terrorism, ...
• Uninsured risk: for risks naturally arising from the nature of the goods or fault of the assured.

Losses in import and export cargo insurance by sea

Losses in import and export cargo insurance by sea are classified by:

1. Scale and extent of loss:

• Partial loss: is a loss in quantity, weight, volume or value.
• Total loss: applies in cases where the insured's loss, damage, deterioration or deformation is no longer the same as when it was originally insured.

2. According to the nature of the loss:

• General average: the costs or sacrifices incurred for the purpose of saving the goods and goods from a common danger.
• Private loss: this loss only results in damage to the rights of the owner and the owner.

Insurance conditions in insurance of import and export goods by sea

Insurance conditions stipulating the scope of liability of the insurer for the subject-matter insured include the following specific conditions:

1. Conditions of insurance C:

Applicable in the event that the cargo or property is damaged due to the following:

• The ship ran aground, capsized and sank.
• The ship is impacted, hit by any object except water.
• Fire or explosion.
• The vehicle is overturned or derailed.
• Carrying cargo at the port where the ship is in distress.
• Goods were thrown from the ship.
• The vehicle is missing and the cargo is lost.

2. Insurance conditions B:

In addition to the above risks, the insured will also be compensated when the following risks occur:

• Earthquakes, volcanic eruptions or lightning strikes.
• The goods were washed away from the ship or thrown off the ship.
• Where the goods are spilled.
• Goods lost due to unloading through the ship's rail at the port.

3. Insurance conditions A:

In addition to the risks mentioned in insurance conditions B and C as above. If the subject-matter insured falls into the following cases, it will still be compensated:

• Theft, theft.
• Lack of materials.
• Rusty, broken during transport.
• Tearing, breaking, getting wet or soiled, ...

Above is the whole share of insurance for import and export goods by sea. Hopefully, with this article, you have added a lot of useful information related to this type of insurance. If you have any questions or need assistance, you can contact LEC Group with the information below!

LEC GROUP

Head Office: Road 4, Phu My 1 Industrial Zone, Phu My Ward, Phu My Town, Ba Ria - Vung Tau, Vietnam.

Add: No. 28 Thao Dien Street, Thao Dien ward, District 2, Ho Chi Minh City, Viet Nam.

Hotline: (+84) 909 800 136 & (+84) 901 388 136.

Email: info@lecvietnam.com & thao.nguyen@lecvietnam.com

Website: https://lecvietnam.com/

---

---