International cargo insurance is an insurance policy that takes various goods in the process of international cargo transportation as the subject of insurance. International cargo transportation includes ocean transportation, railway transportation, air transportation and other means. According to the mode of transportation of the subject of insurance, the types of international cargo insurance are divided into four categories: ocean cargo insurance, land cargo insurance, air cargo insurance and parcel insurance.
Ocean cargo insurance includes three basic categories.
(1) Peace of Mind (FPA): This name has been used for a long time in my country’s insurance industry. Its original English meaning is that no compensation is paid for single marine losses. According to the international insurance industry’s interpretation of single marine losses, FPA only compensates for total losses. However, in the long-term practice, the scope of liability of FPA has changed. At present, the scope of liability of FPA has exceeded the limit of only compensating for total losses.
(2) Water damage insurance (WPA): In addition to the scope of liability of “FPA”, the scope of liability of WPA also includes partial losses of the insured goods caused by natural disasters such as bad weather, lightning, tsunamis, earthquakes, floods, etc.
(3) All Risks: In addition to the liability of “PFA” and “WRC”, the scope of liability of this insurance also includes the loss of goods caused by various external reasons during the transportation.
The above three types of insurance are the basic types of insurance for cargo transportation. The insured can choose one of them. On the basis of insuring PFA and WRC, the insured can also choose several general additional risks. The general additional risks include 11 types: Theft, Pilferage and Non-Delivery (TPND), Fresh Water and/or Rain Damage (FWRD), Risk of Shortage, Risk of Intermixture and Contamination, Risk of Leakage, Risk of Clash and Breakage, Risk of Odour, Hook Damage, Damage Caused by Sweating and Heat. Heating, Breakage of Packing, and Risk of Rust. In the above three basic insurance types, there are clear provisions for exclusions. Exclusions refer to losses or expenses that the insurance company clearly stipulates will not be covered.