To prevent possible damage during international cargo transportation, traders usually purchase insurance for some high-value goods.
Insurance companies issue insurance policies based on the types of insurance insured as one of the cargo documents.
The types of marine cargo insurance are divided into two categories: basic and additional.
The basic types of insurance include free from paricular average (FPA), with average or with particular average (WA or WPA) and all risks (AR).
① The scope of liability of peace insurance includes: total loss or presumed total loss of the entire batch of goods due to natural disasters during the transportation of the insured goods. Total or partial loss of goods due to accidents on the means of transport. When an accident has occurred on the means of transport, the goods are caused by natural disasters before and after the accident, causing total or partial loss at sea. During loading, unloading or transshipment, the total or partial loss caused by one or more pieces of goods falling into the sea. Reasonable expenses paid by the insured for measures to rescue, prevent or reduce damage to the goods within the scope of insurance, but not exceeding the insurance amount of the rescued goods. Losses caused by unloading at the port of refuge after the means of transport is in distress, and special expenses incurred by unloading, warehousing and transportation of goods at the intermediate port or port of refuge. Sacrifice, contribution and salvage expenses of common seamen. The transport contract stipulates a “ship collision liability clause”, according to which the cargo owner shall reimburse the shipowner for the loss.
② Scope of liability of water damage insurance: In addition to the various liabilities of peace insurance, it is also responsible for partial losses of the insured goods caused by natural disasters.
③ Scope of liability of all risks: In addition to the various liabilities of peace insurance and water damage insurance, it is also responsible for all or partial losses of the insured goods caused by general external reasons during transportation.