When drafting insurance clauses, the following issues should be noted.
(1) Specify the insurance clauses to be insured, whether it is CIC clauses or ICC clauses; in addition, American insurance clauses are also acceptable.
(2) Specify the type of insurance, whether it is FPA, WPA or all risks. If one or more additional insurances are required, they should also be stated.
(3) Specify which party is responsible for insurance. If it is an FOB or CFR contract, it should be specified that the buyer is responsible for insurance. However, in order to avoid the transportation risk from the factory or warehouse to the dock, the seller can add “warehouse to ship” insurance (Before Loading Risk); if it is a CIF contract, it should be specified that the seller is responsible for insurance.
(4) Specify the insurance premium. If it exceeds 10%, the excess insurance premium incurred should be borne by the buyer.
(5) The signing date of the insurance policy cannot be later than the date of shipment. If the insurance contract is signed after the goods are shipped, the goods will not be insured during the period from shipment to the signing of the insurance contract.
(6) According to the nature and characteristics of different commodities, choose to add relevant additional insurance. (7) Pay attention to the compatibility of the trade terms of the contract with the age and seaworthiness of the ship.
In import contracts concluded under the trade terms of CFR or CIF, the exporter is responsible for chartering the ship. The shipper is concerned about the level of transportation costs, but does not pay attention to the age and seaworthiness of the ship. For the importer, it cannot be that the safety factor of the freight is ignored just because the transport insurance is insured. If the shipper and the carrier collude with each other and deliberately sink the dilapidated ship without loading or loading a small amount of goods on the way, it is not absolutely impossible. Even if there is no fraud, the consignee should pay attention to the age and seaworthiness of the ship. According to international practice, insurance companies will charge an additional insurance premium for cargo insurance for cargo carried by ships over 15 years old. In order to prevent the importer from bearing the increased insurance premium, the CFR or CIF contract should include a clause on the additional premium for old ships.