When a dangerous accident occurs at sea when transporting goods by sea, the insurer will compensate the expenses incurred by taking appropriate measures to avoid the occurrence and expansion of losses according to their nature and compensation principles. Regarding the expenses that the insurance company is responsible for compensating, there are mainly the following types.
(1) Rescue costs
Rescue costs refer to the costs incurred by the insured or its agents, employees and assigns to avoid or reduce the risk of cargo accidents within the scope of insurance. Reasonable expenses incurred by taking various rescue and protection measures in case of loss. Rescue expenses should meet the following three conditions:
First, the rescue action must be taken by the insured and its agents, employees or assigns. Expenses incurred by unrelated personnel for rescue actions do not fall within the scope of rescue expenses.
Second, only rescue expenses within the scope of insured liability can be compensated by the insurance company.
Third, the rescue expenses should be necessary and reasonable. The insurance company will not compensate for expenses caused by improper rescue behavior. The amount of compensation for rescue expenses is limited by the insurance amount, and cannot exceed the insurance amount at most.
(2) Salvage expenses
If a cargo-carrying ship encounters a shipwreck midway, the insurer and a third party other than the insured shall take rescue measures. After the rescue is successful, the rescued person shall The remuneration paid by the party to the salvage party is called salvage fee. Since salvage avoids or reduces losses to ships and cargo, thereby reducing the amount of compensation paid by the insurance company, the salvage costs should be borne by the insurance company. The following three conditions must be met for the establishment of maritime rescue and the generation of salvage expenses:
First, the rescued ship or cargo must be in a dangerous situation that cannot save itself. As long as one party to the ship or cargo is in distress, that is, Maritime rescue is possible.
Second, the rescuer must be a third party unrelated to the insured or the insurer.
Third, the rescue act must have actual results, and the rescuer is entitled to appropriate remuneration, that is, the insurance company will pay the rescue fee.
(3) Other expenses
In order to prevent or reduce damage to the cargo when the ship encounters maritime risks during the journey, it is incurred due to unloading, warehousing and transporting the cargo at the halfway port or port of refuge. The insurer is responsible for compensation for the costs, as well as the additional costs paid for inspection, survey, notarization, adjustment, and auction of damaged goods when the insurance claim is established.