1. Insurer, insured, policyholder
The insurer, also known as the underwriter, is a person who collects insurance premiums and pays the agreed compensation (insurance amount) to the other party after the insurance accident occurs. It is usually an insurance company. The insured is a person who suffers damage and has the right to receive compensation when the insurance accident occurs. In international cargo transportation, it is usually an importer or exporter. The insurer, or the insurer, is a person who applies for insurance from the insurer, enters into an insurance contract with the insurer, and is obliged to pay the insurance premium in accordance with the insurance contract. The policyholder can be the insured or not. For example, under the terms of FOB and CFR trade contracts, the seller can handle the insurance procedures on behalf of the buyer, then the seller is the policyholder and the buyer is the insured.
2. Object of insurance, insurance interest, insurance risk, insurance accident
The object of insurance, that is, the subject of insurance, refers to the goods in international cargo transportation in international cargo transportation insurance. The insurance interest refers to the economic interest enjoyed by the policyholder or the insured in the object of insurance. The insurance risk refers to the dangers and accidents that have not yet occurred and can cause damage to the object of insurance and the limits of the scope of liability of the insurer. An insurance accident refers to an insurance risk that has already occurred.
3. Insurance amount, insurance premium, and insurance period
The insurance amount refers to the maximum amount of compensation that the insurer should pay to the insured when an insurance accident occurs. Its size is directly related to the actual value of the goods. The insurance premium is the fee paid by the insured or the policyholder to the insurer. It is an advance payment for the compensation that the insurer may pay in the future. Insurance premium = insurance amount x insurance premium rate. The insurance period is the effective period of the insurance contract. The insurer will only be responsible for compensating losses if an insurance accident occurs within the insurance period.