5. A shipment of 10,000 USD is insured with the amount 8,500 USD.

Damaged value
in transit caused by the agreed risks is 8,000 USD. Pls calculate the amount of
compensation.

Insurance value (V) = 10,000 USD

Insurable amount (A) = 8,500 USD

Damage value = 8,000 USD

Damage value 8,000
The ratio of damage = = = 0,8
V 10,000

The amount of compensation = 0,8 x 8,500 = 6,800 USD

6. A shipment of 10,000 USD is insured for full value, deductible amount indicated
in the insurance is 1,500 USD. Damaged value in transit caused by the agreed risks
is 8,000 USD. Pls calculate the amount of compensation.

Insurance value (V) = Insurance amount (A) = 10,000 USD

Deductible amount = 1,500 USD

Amount of compensatio = Damage value – Deductible = 8,000 – 1,500 = 6,500 USD

8. Company X importing 400,000 bags of wheat powder with value 3,200,000 USD
(understood as CIF) had concluded a contract of insurance with ICC-2009- clause A
for 110% value of the above shipment. On arrival, the conditions of the goods are as
below:

7,000 bags were wet (in which 5,000 bags were soaked and totally damaged; 2,000
bags were partially damaged and reduced by 30% value)

3,000 bags were torn which led to a reduction in value of 30% of these bags (there is
a remark in the Bill of Lading that “bags are rotten, some are torn”)

a/ What is the amount which the insured can claim from the insurer?

b/ Which documents the insured must present to the insurer for compensation?

Insrance value (V) = 3,520,000 USD

5,000 bags were soaked and totally damaged:

=> The amount of compensation = (5,000 x 3,520,000) / 400,000 = 44,000 USD

2,000 bags were partially damaged and reduced by 30% value:

=> The remaining value = ((2,000 x 3,200,000) / 400,000) x 0,7 = 11,200 USD

=> The amount of compensation = 11,200 USD

a/ The amount which the insured can claim from the insurer = 11,200 + 44,000 = 55,200
USD

b/ Documents the insured must present to the insurer for compensation

- Intimation to the insurance company

- Insurance policy/certificate

- Bill of Lading

- Invoice

- Survey Report

- Debit note

- Copy of sea protest

- Letter of subrogation