I. Scope of responsibility
This kind of insurance is divided into three types: FPA, WPA and All Risks. When the insured goods suffer losses, this insurance shall be liable for compensation in accordance with the provisions of the insurance policy.
(1) FPA
This insurance is responsible for compensation:
1. Total loss or constructive total loss of the insured goods due to bad weather, lightning, tsunami, earthquake and flood in transit. When the insured claims compensation for the presumed total loss, he must entrust the damaged goods and their rights to the insurance company. When the insured goods are transported into or out of a seagoing ship by barge, the goods contained in each barge can be regarded as a whole batch. Presumptive total loss means that the actual total loss of the insured goods is inevitable, or the cost of restoring and repairing the damaged goods and transporting them to the original destination exceeds the value of the goods at that destination.
2. All or part of the goods are lost due to stranding, hitting rocks, sinking, mutual collision, collision with drifting ice or other objects, fire and explosion accidents.
3. In the case that the means of transport have been stranded, hit rocks, sunk and burned, the goods suffered some losses caused by natural disasters such as bad weather at sea, lightning and tsunami.
4. All or part of the losses caused by one or more whole goods falling into the sea during loading, unloading or transshipment.
5. The reasonable expenses paid by the insured for taking measures to rescue, prevent or reduce the damage of the insured goods, but not exceeding the insured amount of the rescued goods.
6. The losses caused by unloading at the port of refuge and the special expenses incurred by unloading, storing and transporting goods at the midway port and the port of refuge after the means of transport are shipwrecked.
7. General average sacrifice, contribution and salvage expenses.
8. There is a clause in the contract of carriage "Liability for Collision of Ships". According to this clause, the cargo party shall compensate the loss of the ship.
water damage insurance
In addition to the above FPA liability, this insurance is also responsible for some losses caused by the insured due to bad weather, lightning, tsunami, earthquake and flood.
(3) All Risks
In addition to the above F.P.A. and W.P.A., this insurance is also responsible for all or part of the losses of the insured goods caused by external reasons in transit.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.