EXERCISE RISK MANAGEMENT AND INSURANCE

1. Hung Vuong Vsl with insurance value of 10mil transported cargoes of

Tocontap (rice, 2 mil in value), and Vinafood 1 (tea, 3 mil in value), Vinafood
2 (coffee, 3 mil in value). During the trip, the storm came and blew away
500,000usd of coffee in the sea. The master decided to threw cargo of
Tocontap, loss of 1 mil, for the safety of the whole trip. Freight of all cargoes
that will be collected at destination is 500,000usd. The master also decided to
speed up the vsl, avoiding the storm are. At port of destination, the master
announced GA and asked all the shipper to pay deposit. The repair cost of
machine is 200, 000usd,.
Calculate the contribution to this GA

2. A vessel with insurance value 10mil transported cargo of shipper A(1mil) and
shipper B (2mil), freight to collect was 300,000USD. During the shipment, the
storm came and blew away 200,000USD of shipper B. The master decided to
throw cargo of shipper A (200,000USD) into the sea and speed up the engine
of vessel. At the port of destination, the master declared G/A and asked shipper
A and shipper B pay bond for G/A. Repair cost of engine was 300,000USD.
The contribution of shipper B for this G/A is:
a. …68,702.2901USD………………… b. 52,000USD
c. 68,000USD d. 100,000USD
An importer of Vietnam imported
10,000MT of fertilizer, price is 380USD/MT CIF PhuMy Incoterms 2010. Freight is
30USD/MT, and insurance rate is 1%. The insurance value of this shipment is:
a. 4,141,414USD b. 4,555,555USD
c. 3,800,000USD d. 4,180,000USD

3. In the trip from Vietnam to India, the Vessel (V= 12mil) carrying cargoes of
Vinafood 1 (1mil), Vinafood 2(2mil) and Namviet (2 mil). Freight to collect is
500,000 USD. In the storm, cargo of Vinafood 2 got wet, total loss of
300,000USD. The Master decided to throw cargo of Namviet into the sea, total
loss of 500,000 USD, then speed up the engine to be fast back to the port of
destination. He declared GA and asked consignees to pay GA bond. The
contribution of Vinafood 2 is:
a. 10.500 USD b……………………………………
c. 5500 USD d. No contribution

4. It took 2.5 months for a vessel departing from Vietnam to German. The vessel
transited in Suez after 01 month, then lost track from Suez. How long would
this vessel be considered to be missing under UK Maritime Law?
 5. A company in Vietnam imported milk powder from Australia with price of
200USD/MT CFR Cat Lai, Incoterms 2010. The storm came suddenly during
the trip and 20% of cargo got wet as result of sea water. In order to run faster to
avoid the storm, the shipmaster decided to throw cargo into the sea and speeded
up the engine. Then, he declared General Average. At the port of destination,
shipmaster asked shipper to pay bond for this G/A.
1. Calculate this G/A and contribution of each party.
More information: Insurance value of vessel is $2 mil. Total cargo is 50,000 packages
(50kg/p). Freight is $28/MT FIO, to collect (I=O=S=T= 1USD/MT).
Repair cost of engine is $80,000.Total cargo of jettison is 5,000 packages

In the trip from Vietnam to India, the Vessel (V= 12mil) carrying cargoes of Vinafood 1 (1mil),
Vinafood 2(2mil) and Namviet (2 mil). Freight to collect is 500,000 USD. In the storm, cargo
of Vinafood 2 got wet, total loss of 300,000USD. The Master decided to throw cargo of
Namviet into the sea, total loss of 500,000 USD, then speed up the engine to be fast back to the
port of destination. He declared GA and asked consignees to pay GA bond. The contribution of
Vinafood 2 is:
a. 10.500 USD b………
49,418.6047……………………………
c. 5500 USD c. No contribution

A company in Vietnam imported cement from Korea with price of 300USD/MT FOB Busan,
Incoterms 2010. The storm came suddenly during the trip. In order to run faster to avoid the
storm, the shipmaster decided to throw cargo into the sea and speeded up the engine. Then,
he declared General Average. At the port of destination, shipmaster asked shipper to pay
bond for this G/A.
1. Calculate this G/A and contribution of each party.
More information: Insurance value of vessel is $2 mil. Total cargo is 100,000
packages (50kg/p). Freight is $28/MT FIO, to collect (I=O=S=T= 1USD/MT).
Repair cost of engine is $100,000.Total cargo of jettison is 10,000 packages.
2. How much would the insurer indemnify the shipper if the Vietnamese shipper insured his
cargo with B clause, QTC 1990?
3. How much would the insurer indemnify the ship-owner if the vessel was insured with All
Risk clause ITC 1995?

Question 16 (0.25 marks): Aviation liability insurance for passengers covers:

A. Third party’s loss and damage C. B and D
B. Passenger’s death and injury D. Loss and damage of passengers’
luggage
A company in Vietnam imported milk powder from Australia with price of 800USD/MT
CFR Cat Lai, Incoterms 2010. During the trip, the vessel collided into an iceberg, water got
into the vessel and 25% of cargo got wet as result of sea water. The vessel was broken with a
hole (the vessel was repaired later at port of destination with cost of 500,000USD). In order
to stop sea water enter from the hole, the shipmaster decided to use cargo 500,000USD to fix
the hole then throw cargo into the sea to run faster, together with speeding up the engine.
Then, he declared General Average. At the port of destination, shipmaster asked shipper to
pay bond for this G/A.
More information: Insurance value of vessel is $10 mil. Total cargo is 500,000 packages
(50kg/p). Freight is $28/MT FIO, prepaid (I=O=S=T= 1USD/MT). R= 1%. Repair cost of
engine is $100,000.Total cargo of jettison is 5,000 packages.
Question 2 (2 marks): Calculate this G/A and contribution of each party.
Question 3 (1 marks): How much would the insurer indemnify the shipper if the Vietnamese
shipper insured his cargo with B clause, QTC 1990?
Question 4 (1 marks): How much would the insurer indemnify the ship-owner if the vessel
was insured with All Risks clause ITCH 1995?

One vessel (30mil) was transporting 200 container of NamViet (seafood); 100
container of BTM (sofa) and 150 container of SamSung (electronic) in the sea. As the
storm came and blew away 20 container of NamViet; 10 container of Samsung, the
Master decided to speed up the vessel to navigate back to the port of destination. The
repair cost was 500,000USD. When they waited for the berth to discharge cargo, 20
container of Samsung got fire. In order to extinguish fire, the firemen pumped water
(cost 20,000). Master declared GA
Analyze this GA
Calculate the contribution (container of NamViet: 20,000/cont; BTM: 40,000/cont;
Samsung: 80,000/c0n)