News and Articles
CIF SALES & CARGO INSURANCE
In this article we’ll cover some grey zones regarding one of the most prominent seaway trade incoterms: CIF (Cost, Insurance, and Freight).
If you are looking to insure your cargo in transit there are chances that you’ll be offered a marine cargo policy based on institute cargo clauses by your underwriter or broker. These are set of terms for cargo insurance adopted as standard terms by many international marine insurance organizations, including the Institute of London Underwriters. In order to insure cargo under a marine policy you will need to have an insurable interest. Most likely this marine policy will be a subject to the English law and practice, meaning that the following definition by the Marine Insurance Act 1906 (as revised by the Insurance Act 2015) will apply:
1) Subject to the provisions of this Act, every person has an insurable interest who is interested in a marine adventure.
2) In particular a person is interested in a marine adventure where he stands in any legal or equitable relation to the adventure or to any insurable property at risk therein, in consequence of which he may benefit by the safety or due arrival of insurable property, or may be prejudiced by its loss, or by damage thereto, or by the detention thereof, or may incur liability in respect thereof.
Sales agreement would be a logical place to see who stands in this legal or equitable relation to the adventure or to any insurable property at risk. Most commonly used terms of trade for the sale of goods are published by International Chamber of Commerce and are called ICC’s Incoterms (2010). These terms provide a standard set of terms that spell out the respective rights and obligations of the parties to a contract of sale, including definition of the critical point during transportation of goods when the risk of loss or damage is transferred from the seller to the buyer.
Here are three main points to be noted by the buyer under CIF Incoterms. Read more…
Alandia Hatch Cover Seminar in Riga
Marine Underwriting Services team had the great pleasure of organizing Seminar “Hatch cover inspections, maintenance and repairs – Safeguarding the owner’s interest” with our long standing partners – Alandia. The Seminar was held in Riga on October 9th.
Among the attendants there were superintendents and technical managers from shipping companies from Latvia, Lithuania and Estonia.
Alandia Marine is one of the leading marine insurance providers in Scandinavia. They have significant experience in claims relating to leaking hatch covers.
Today’s hatch covers are relatively large, complex and unexpectedly refined pieces of engineering. This means that rather small errors or defects can have very damaging effects, far beyond what our everyday experience would lead us to understand. Leaking hatch covers can also lead to damage to the vessel itself i.e. flooding, accelerated corrosion and ultimately even to loss of the vessel.
The ship’s cargo hatches leak for a variety of reasons, but mainly due to poor maintenance or failure to close them properly. During the seminar Mr. Walter Vervlosem of IMSC Group of Companies, a specialist in ship inspections, hatch cover inspections, P&I related surveys, shared his extensive expertise on the design, operation and maintenance of hatch covers.
We are convinced that all participants who attended the seminar gained a lot of useful information and new knowledge how to properly and safely operate hatches. Link to the presentation
Marine Underwriting Services SIA is management general agency providing marine hull, P&I and charterers liability, cargo and transport and logistics underwriting and claims management services for Forsakringsaktiebolaget Alandia.
It is well established that merchant shipping involves an element of risk. The casualties and claims are various. In this article we will look at the risks which are covered by a property insurance – Hull and Machinery insurance (H&M). The relevant claims could be machinery damage, grounding, fire and explosion, etc. The costs of those casualties can be counted, most importantly, in human lives and injuries, but also in financial costs to Ship-owners, Charterers and their Insurers.
According to the Nordic Association of Marine Insurers annual report 2018, machinery claims are the most frequent individual claim type, while grounding is placed as a second frequent type of claims. In this article we will focus on the grounding and other emergency situations that, for instance, might have been caused by machinery damage.
Having handled various grounding incidents and emergency situations, as well as having seen how such incidents are handled by other H&M Underwriters, we are motivated to share our experience.
Generally, there are two types of contracts for salvage assistance:
1) No cure – no pay
2) Lump sum or daily rate basis
The most common first type of contract is the Lloyd’s Open Form. Such contract enables services to be rendered on the basis that the renumeration to the salvors is determined after the completion of the services, either by a court or by an arbitrator.
The second type of contract is that which is specifically negotiated and tailored for the work to be undertaken and in which either the lump sum or daily rate is agreed.
The decision whether to agree a traditional “no cure – no pay” type of agreement or to negotiate a fixed price contract usually depends on the degree of urgency and availability of the alternative contractors with suitable salvage craft. Read more…
FREIGHT FORWARDER IN GENERAL AVERAGE SITUATIONS: DOOR TO DOOR
Read our latest article to find out more about liability exposure of Freight Forwarders and NVOCC’s with a focus on risks relating to bills of lading and general average scenario.
Liner ships transport goods and commodities of every sort all around the world, which amounts to approximately 60 percent of the seaborne trade. Chances are that you are reading this on a device that arrived from South Korea, drinking your morning coffee that originated in Kenya, all while being clueless about the ramifications of container shipping.
Behind each shipment stands an exporter who sells its goods to someone in another country, known as an importer. While they may engange in the whole operation of commerce independently, more often than not, cargo owners would contract agents to take care of all formalities with customs, export documents and transportation. There are a lot of variables in this process, therefore, these agents - freight forwarders or NVOCC’s (Non-Vessel Operating Common Carrier) arrange cargo movement to an international destination for their clients.
The role of a freight forwarder here looks relatively simple: make all the necessary separate carriage arrangements with the sea, air or land carriers for cargo delivery from point A to point B and perhaps include a few other value-added services. However, they might face unexpected liabilities, especially when it comes to waterborne trade. Read more…
HDI GLOBAL SPECIALTY SE: NEW NAME OF INTER HANNOVER
Herewith we would like to inform you that from 1.1.2019 International Insurance Company of Hannover SE is renamed to HDI Global Specialty SE.
Renaming is based on joint venture between HDI Global SE and Hannover Re SE, creating a Global Specialty Insurance carrier to offer growth capacity to clients and broaden products and service offering.
The new HDI Global Specialty SE is starting with premium volume over 1 billion Euro and is aiming for substantial organic growth.
The business will be written in the same legal entity as before, however under a new name HDI Global Specialty SE (A+ rating confirmed in July 2018). Change of name does not entail changes in Marine Underwriting Services work, as well as terms and conditions of cooperation with our customers and partners. More information
CYBER SECURITY. IS THE SHIP SEAWORTHY?
The International Maritime Organization (IMO) defines the Maritime Cyber Risk as a measure of the extent to which a technology asset is threatened by an event, which may result in shipping related operational, safety or security failures as a consequence of information or systems being corrupted, lost or compromised. read more..