CargoCopenhagen 23 April 2014

Arild Larsen – Underwriting Manager, If Ebbe Larsen Larsen – Nordic Cargo Director , Codan

The Nordic Association of Marine Insurers

- Insurance Conditions- General Average- Policy Forms- Certificates/Letter of Credit Conditions- Underwriting/risk evaluation/pricing- Transit Liability, Sea, Air, Land, Rail – liability to cargo- Delivery Terms/Incoterms 2010

The Nordic Association of Marine Insurers

Contents

INSURANCE CONDITIONS

Losses recoverable A B CTheft / shortage yes Heavy weather yesHandling yesWaterdamages yesTot.loss units during handling yes yesCargo overboard yes yesWater intermediary storage yes yesFire / explosion yes yes yesTransport accident yes yes yesNatural disaster yes yes yesGeneral Average yes yes yesSalvage expenses yes yes yes

ALL RISKS A - ICC (A)

with exclusions

EXTENDED TRANSPORT ACCIDENT - ICC (B)

named perils

TRANSPORT ACCIDENT - ICC (C)

named perils

Insurable value

─ Sum insured = Insurable value ?

─ Underinsurance

─ Overinsurance

Period of insurance

─ Commencement

─ Termination - ICC Termination Clause

Special Clauses (re exclusions in Chapter 6)

- Thermo clause- Total loss as a result of delay- Extraordinary charges for unloading- Debris removal- Strikes, sabotage, acts of terrorism- Overage tonnage (16 years or older) - ICC

Classifacation Clause, overaged vessels- Business interuption- War Risks

- Various other special clauses in the market.

1Policies

─ Single voyages/transits (from A via B to C)

─ To and from fairs, exhibitions, repair etc.

─ Projects

─ Removals (offices/household/machinery etc.).

2Annual policies

─ Workmen’s own and/or hired tools

─ Distribution of own goods

3Open covers / floating policies

Annual contracts to cover our client’s in and/or outgoing

Consignments throughout the year.

Tailormade to client’s insurable needs Only consignments by hired means of transit Geographical limits Maximum value per means of transit Stock throughput ? (Local policies/Master Policy)

U N D E R W R I T I N G

CARGO INSURANCE

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- Facultative risks

- Floating policies.

Facultative: - Singel risk

- Object to be insured: - (size, weight, robust, sensitive, attractive … ?)

- Value EUR: ……….. (new or secondhand value?)

- Packing, palletized, containerized

- Voyage from A via B and C to D (number of handlings?)

- Terms of delivery (Incoterms)

Facultative cont’d.

- Transport route (pirate-/war zones, heavy weather, road conditions, safe port facilities/parking etc.?).

- Preservey wanted? (shipcranes, large modules or constructions, dry tow/wet tow).

- Choose applicable conds. (A, B or C?) and deductible.

- Finally calculate premium (…with alternatives?).

….. and then

the height of the day ……..

L U N C H

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Thank you for listening !