The role of insurance for the society in current context is undeniable. With insurance being the backup, human will be more confident to face the risk in their lives. Insurance plays an important role in risk sharing, damage sharing and cost stabilization. Therefore, as a result, insurance for import-export cargo is indispensable when we bring our commodity through countries and territories, with the long journey taking time and effort.
The Insured
Import-export cargo insurance is insured for the cargo in transport process, or waiting for transport in front of the external risk causing damage, loss inside or outside Vietnam border.
The coverage
The coverage is limit on the risk level of the insured that insurance company can pay. It is compared the coverage in insurance as a fence, define the level and cases which insurance company can pay. The bigger the coverage is, the higher the benefit level for the insured is.
Insurance contract category
Import-Export cargo (for ocean freight ) insurance is divided into 2 types:
Voyaged policy is marine insurance which covers the risk of a ship cargo during a specific journey. It means when the process of import- export end, the responsibility of the insurer is closed.
Open policy is a type of insurance which covers the risk of ship’s cargo in definite number of voyages in definite time. Thus, if the company has import- export activities frequently, using open policy will save cost more effectively than voyaged policy.
Assessment and compensation
When the cargo meets risk, the insurer will be in charge of compensation for the insured. For example, the case of Vietsun Integrity ship sank in Can Gio on 19 October 2019, the insurance will base on the insurance policy, look up the coverage of the commodities and give the appropriate compensation rate as negotiated.
The assessors will be authorized by the insurance company for assessment, damage cause determination, the extent of damage, then base on the contract to calculate the value of compensation.
For further details about process and appropriate insurance policy please contact: (+84)28.6275.0447