(I) Marine Bulk Tung Oil Insurance
Due to its own characteristics, tung oil is easily contaminated, deteriorated and other losses during transportation, so it is necessary to provide special protection different from general cargo insurance. For this reason, insurance companies have established marine bulk tung oil insurance, which can be insured separately.
The scope of liability of marine bulk tung oil insurance includes the shortage of tung oil caused by any reason that exceeds the deductible rate specified in the insurance policy, leakage loss, and contamination or deterioration loss of tung oil caused by any reason. The exclusions of marine bulk tung oil insurance are the same as those stipulated in the marine cargo insurance clauses.
(II) Seller’s Interest Insurance
When the export goods are sold under FOB or CFR terms, the buyer shall arrange the cargo transportation insurance by himself. Once the goods are damaged during transportation, if the buyer does not pay the bill, the seller will not only be unable to recover the payment, but also cannot claim compensation from the insurer because he has not purchased cargo insurance. This will inevitably cause economic losses. In order to compensate the seller’s losses in a timely manner, insurance companies in my country have established a special insurance type of seller’s interest insurance. For all export goods that are sold under FOB or CFR trade terms and under commercial credit payment terms, exporters should purchase seller’s interest insurance so that their losses can be compensated in a timely manner.
According to the provisions of the seller’s interest insurance clause, the insurer is responsible for compensating the seller for the loss of the goods within the scope of cargo insurance liability stated on the insurance policy, but only when the buyer does not pay the purchase price of the damaged goods. It can be seen that the insured must meet the following two conditions to obtain compensation under the seller’s interest insurance: first, the loss of the insured goods must be covered by cargo insurance, and second, the buyer refuses to pay the purchase price of the damaged goods. As for other losses suffered by the seller due to the buyer’s refusal to take delivery of the goods, they are not the responsibility of the insurer.
Since the buyer’s failure to pay the bill of lading violates the sales contract, he should bear the liability for breach of contract. The insurer can only seek compensation from the buyer after obtaining the right of subrogation. Therefore, the seller’s interest insurance clause also stipulates that the insured should transfer his right to seek compensation from the buyer or a third party to the insurer.