Export
Issue No. 48 - August/September 2009
Is annual or one-trip right for your goods?
by Ms Sarah Newman
There are several different ways to arrange Marine Transit cover for export goods, with several insurance types and extensions available.
MGA Insurance Brokers has been international and local Marine covers for more than 30 years and is familiar with the various cover types and their merits.
Under standard international marine cargo terms (Incoterms), the insurable interest in goods being transported is transferred at the agreed point of sale, for example:
• Ex-Works (EXW) - when the goods leave the seller’s warehouse.
• Cost and Freight (CFR) - the seller pays freight and insurance costs.
• Free on Board (FOB) - where the risk of loss of or damage to the goods transfers from the seller to the buyer when the goods pass the ship’s rail in the port of shipment.
This explains where transfer of title occurs and responsibility for loss or damage is clearly identified, but the question remains, what is the best means of arranging insurance to protect your venture?
It is always preferable for title holders of goods to arrange their own insurance because while you may have purchased the goods - cost, insurance & freight (CIF) i.e. including insurance - there is no obligation on the seller to provide anything but a basic cover.
The most restricted cover is Institute Cargo Clauses C) which will cover for major perils of Fire, Explosion, Sinking and Stranding and General Average sacrifice, but does not cover any losses arising...
