Risk, Title & Insurance

Title
Title means ownership
Title passes from exporters to buyers,
and the transfer of title takes place at
any point during the transaction, from
the signature of the contract to the
final payment.
‘Title to the goods passes with risks.’
Note
Incoterms do not indicate the exact point (location) of
transfer of title. They only determine at which point there
is a transfer of risk from the seller to the buyer.
Title to goods cannot pass under a contract for sale prior
to their identification to the contract (Section 2-501), and
unless otherwise explicitly agreed the buyer acquires by
their identification a special property as limited by this Act.’
(UCC, Section 2-401).

Risk
2 main risk involved in the sale of goods:
The risk of the goods injuring a
third party
The risk of loss or damage
These risks are transferred at the point of delivery
under the standard of Incoterms
Insurance
Policy of insurance: a legal contract between the insurer and the
person(s), business, or entity being insured (the insured).
Certificate of insurance: a document issued by an insurance
company or broker which verifies the existence of an insurance
policy and summarizes the key aspects and conditions of the policy.
Letter of insurance: a letter from the exporter to the buyer
stating that the goods are insured.

Types of cargo policy Institute cargo clause

Based on the number of shipments
Tailor-made policy: Provide insurance coverage
for a single shipment
Floating policy: Provide insurance coverage for
multiple shipments as long as they fall into the
policy’s periods and geographical limits, there is no
3 types of Cargo clause:
need to clarify the detailed information of each
shipment.
Open cover policy: Provide insurance coverage for
Clause
multiple shipments, but the insured party must
provide all necessary information of each shipment
to grant the insurance contract with the insurer.
Clause
Based on the value of goods specification:
Unvalued policy: this policy will not specify the Clause
valued of goods, instead, the value of the goods is
left undetermined and is only assessed when a loss
or damage occurs.
Valued policy: the Valued Policy is the marine
insurance policy that sets a predetermined value for
the insured item
General Exclusion Clause:
Poor packaging Inherent vice of the goods
Insolvency Wear and tear of goods
Delay War, riots, strikes, and civil strife
Unseaworthiness of vessel
A-B-C
“all risks” cargo insurance policy, cover all clauses
from Cargo Clause B & C, excluded General Exclusion
Clause
Cover clause from Cargo Clause C and risk of washing
overboard; entry of sea lake/river water into vessel
craft, container or place of storage and package lost
overboard of while unloading
Loss of or damage to the subject-matter
insured attributable to: fire or explosion, vessel or
craft being stranded, grounded, sunk or capsized,
overturning or derailment of land conveyance, collision
or contact of vessel craft or conveyance with any
external object other than water, discharge of cargo at
a port of distress,
Loss of or damage to the subject-matter
insured caused by: general average sacrifice,
jettison.