INSURANCE

TRANSPORT
Pham Thi Thu Thu
Pham Thi Huyen My
Do Tuyet Nghi
Bui Ngoc Tuyet
Bui Nhat Vi
 DEFINITIO
N OF ICC
ICC are the provisions of the scope of the insurer's
liability for the insured (commodity) in terms of: Risk
of loss, time, space - or the zoning of insurance risks.
 CONTENT
ICC 1963
• FPA (Free from Particular Average)
• WA (With Particular Average)
• AR (All Risk)
 FPA (FREE FROM
PARTICULAR AVERAGE)
Is a condition of general loss insurance, which only insures losses for 4 main risks caused
(sinking, stranding, fire, collision) and loss of raw materials during loading and unloading.

Specifically, compensation insurance 6 cases:

- Total loss due to natural disasters, unexpected accidents
- Parts loss due to natural disasters, unexpected accidents
- Part loss due to natural disasters but limited to 4 main risks
- Loss of raw materials during loading and unloading, conveying
- Reasonable expenses can be compensated (compensation for the following expenses):
• Rescue expenses
• Expenses for prevention and limitation of losses (within the scope of insurance caused
by third parties who are not insured or their workers)
• Cost of assessment and determination of losses
• Expenses of claims and proceedings
WA ( WITH
PARTICULAR AVERAGE
Compensation insurance in the following cases:
-FPA
- Part loss due to natural disasters is not limited to 4 main risks

)
- Buyers of insurance under WA can also participate in insurance of all kinds of secondary risks
(WA secondary risks: tear, rupture, rust, flattening, warping, warping, steaming, loss of odor,
damage, contamination, rainwater, sea water, crane hooks...)
- The insurer sets the exemption and settles according to the principle:
Do not mention the exemption level of losses due to 4 main risks, risks of war, strikes and sub-
risks caused by humans
Do not add up the costs to achieve the exemption, only calculate the actual loss
Calculated the consecutive losses occurring to reach the exemption level
Each beam Orchid is considered a ship to calculate the exemption
The insured has the right to choose the exemption calculation that is usually in his or her best
interest to receive more compensation
 AR (ALL
RISK)
C O M PE N SAT I O N I NSURANC E I N THE F OL LO WI NG C ASE S

- WA
- Secondary risks (deficiency, fire, collision, damage, breakdown, crane hook,
damage, dirt, steaming, rainwater, sea water, tearing, breaking, rusting,
flattening, warping, rotting, air conditioning failure, theft, theft, theft, delivery
shortage, non-delivery and other hazards when further agreement is reached)
 * FPA and AR do not set exemptions
- Icc 1963 disadvantages:
• Naming insurance conditions by content that makes people easily confused

• Distinguishing total and part losses

• Pirate risk issues

• Insurance form issues

 CONTENT
The excluded risks include:

•
ICC 1982
• Loss or damage due to bad acts, willful actions of the protector.
• Leakage, normal loss in weight, mass or natural wear and tear of the protected object.

Due to the internal rate or nature of the goods.

• Loss or damage due to unqualified, uncooperative packaging. Loss or damage for which there is an immediate danger of delay.

• Loss or damage due to default or financial default of the ship owner, manager, charterer or operator.

• Loss or damage to work using any weapon of war, nuclear response, chemical reaction, radioactive material...

• Damage attempted or willful destruction of a protected object by the scope of activity of any person. Due to unseaworthiness of the vessel, or unfitness for carriage of the goods, of which the Assured was aware at the time the goods were loaded onto the means of

transport.

• Loss of war, civil war, riot, defensive action, confiscation, arrest, probation, imprisonment...

• Loss due to mines, mines, bombs and other war weapons.

• Organizational failure caused by collaborators, participants causing TB disorder

Liability to prove the loss belongs to
the insured (owner)

CONDITI
ON A
CONDITI
ON B
CONDITI
ON C
 CONDITI
The insurance compensation in 12 c ases:
• ON A
Losses caused by secondary risks: tearing, breaking, rusting, flattening, warping, steaming, loss of smell, harm, contamination, malicious or destructive behavior (not that of the insured), bumping into other goods, theft, theft,

robbery, rainwater, delivery of goods or non-delivery, cranes or similar risks A, B, C are the main insurance conditions

• Sub-insurance conditions: war, strike (only existed in ICC 1982, QTC 1990 does not stipulate)

• Excluded risks: Smuggling Error of the insured Ship deviated from the ship ship can not afford to go to the Sea Of The Secretes Lost the financial capacity of the shipowner
 CONDITI
ON B
The insurance compensation in 11 cases:
• Earthquake, volcanic eruption, lightning strike
• Water swept away from the ship
• Seawater, river water, lake water overflowing into the ship, cargo cellar, barge,
means of transport or container
• Total loss of any package due to falling off the ship or falling while unloading
goods
 CONDITI
ON C
- Coverage insurance under condition C includes:
• Loss or existence of covered goods with reasonable cause of fire or explosion;
The ship ran aground, the birds sank,..and unloading at the port of refuge
• TTC
• Part of responsibility that the insured is subject to under the terms of two ships
colliding with each other to be at fault
 C OM PAR E THE 1963 ICC TO
THE 1982 ICC
ICC ICC
Distinguish between total
1963
Distinguishing under
1982
Indiscriminatory in all three
and department losses FPA and WA conditions C, B, A

According to the FPA insurance The scope of the

Risk of stranding, conditions of ICC1963, the liability insurer's liability is both
lying on the ground for insurance for accidents must stranded and stranded
be an unexpected accident
 C OM PAR E THE 1963 ICC TO
THE ICC
1982 ICC ICC
Risk of being swept away
1963
Covered under all 3 FPA,
1982under ICC(B)
Only covered
and ICC(A) conditions,
by waves in the sea WA, AR conditions.
not under ICC(C) conditions

Considered a war risk, Covered but only under

Piracy risk you have to buy
insurance conditions A.
your own insurance.

Compared to the ICC 1963, the new insurance conditions from

In use ICC1982 are clearer and easier to understand. The name of

the insurance conditions is C, B, A instead of the old names
FPA, WA, AR should be easier to remember, easier to use.
 CONTENT
ICC 2009
Risk covered
•Institute cargo clauses (A)
• Institute cargo clauses (B)
• Institute cargo clauses (C)
 content ICC 2009 Risk covered

Institute cargo clauses (A):

This insurance covers all risk of loss or damage to the subject-matter insured except as excluded
by the provisions
Institute cargo clauses (B)
This insurance cover, except as excluded by the provisions
+ Loss of or damage to the subject-matter insured attributable to
• Fire
• 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
• Earthquake volcanic eruption or lightning
+ Loss of or damage to the subject-matter insured caused by
• General average sacrifice
• Jettison or washing overboard
• Entry of sea lake or river water into vessel craft hold conveyance container or place of storage

+ Total loss of any package lost overboard or dropped whilst loading on to, or unloading from,
 content ICC 2009 Risk covered

Institute cargo clauses (C)

This insurance covers, except as excluded by the provisions
- Loss of 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 damage to the subject-matter insured caused by
• General average sacrifice
• Jettison
 COMPARE THE 1 9 8 2 ICC TO
THE 2 0 0 9 ICC
ICC
1982
“loss damage or expense
Risks exclude packing or caused by insufficiency or
lacking of delivery unsuitability of packing or
preparation of the
subject- matter insured
ICC
2009
“loss damage or expense caused
by insufficiency or unsuitability
of packing or preparation of the
subject- matter insured to
withstand the ordinary incidents
of the insured transit where such
packing or preparation is carried
out by the Assured or their
employees or prior to
attachment of this insurance
 COMPARE THE 1 9 8 2 ICC TO
THE 2 0 0 9 ICC
ICC ICC
1982 2009
“loss damage or expense “loss damage or expense
arising from the use of directly or indirectly caused
Risks of immunity from
any weapon of war by or arising from the use of
the use of atomic
employing atomic or any weapon or device
weapons, nuclear or
nuclear fission and/ or employing atomic or nuclear
radioactive substances.
fusion or other like fission and/ or fusion or other
reaction or radioactive like reaction or radioactive
force or matter” force or matter”
 COMPARE THE 1 9 8 2 ICC TO
THE 2 0 0 9 ICC
ICC ICC
1982 2009
“ loss damage or expense
“loss damage or expense
proximately caused by
Risks exclude caused by delay, even
delay, even though the
late delivery though the delay be caused
delay be caused by a risk
by a risk insured against
insured against (except
(except expenses payable)
expenses payable)
 COMPARE THE 1 9 8 2 ICC TO
THE 2 0 0 9 ICC
ICC ICC
1982 2009
“loss damage or expense “loss damage or
Risks exclude arising from insolvency or expense caused by
due to inability to financial default of the insolvency or financial
pay the debt owner's managers default of the owner's
charterers or operators of
managers charterers or
the vessel”
operators of the vessel"
 COMPARE THE 1 9 8 2 ICC TO
THE 2 0 0 9 ICC
ICC
1982
Unseaworthiness of vessel or
craft, Unfitness of vessel craft
Risk of conveyance container or liftvan
for the safe carriage of the
immunity due subject-matter insured.
-The Underwriters waive any
to terrorist acts breach of the implied
warranties of the ship and its
fitness to carry the subject
matter insured to destination.
ICC
2009
unseaworthiness of vessel or craft or
unfitness of vessel or craft for the safe
carriage of the subjectmatter insured
- unfitness of container or conveyance for the
safe carriage of the subject-matter insured.
- not apply where the contract of insurance has
been assigned tothe party claiming hereunder who
has bought or agreed to buy the subject-matter
insured in good faith under a binding contract.
- The Insurers waive any breach of the implied
warranties of seaworthiness of the ship and
fitness of the ship to carry the subject-matter
insured to destination.
 COMPARE THE 1 9 8 2 ICC TO
THE 2 0 0 9 ICC
ICC
1982
Goods are insured only when
they leave the warehouse or
Covered period are stored at the place named
in the coinsurance to initiate
the transfer.
ICC
2009
goods first move in the
warehouse or in a place of
storage for the purpose of
loading the goods directly into or
onto the vehicle or means of
transport for the commencement
of their carriage. transfer.
 COMPARE THE 1 9 8 2 ICC TO
THE 2 0 0 9 ICC
ICC
1982
the destination is changed by
Terms of change the Assured, held covered at
a premium and on conditions
of itinerary to be arranged subject to
prompt notice being given to
the Underwriters.
ICC
2009
-the destination is changed by the
Assured, this must be notified
promptly to insurers for rates and
terms to be agreed.;
- Underwriters must notify the
insurer on the basis of insurance
and conditions to be satisfied
 COMPARE THE 1 9 8 2 ICC TO
THE 2 0 0 9 ICC
ICC ICC
1982 • covers2009
the Assured which
includes the person claiming
-shall not inure indemnity either as the

Insurance to the benefit of

person by or onwhose behalf
the contract of insurance was
benefit terms the carrier or effected or as an assignee,
• shall not extend to or
other bailee. otherwise benefit the carrier
or other bailee.
THANK YOU FOR
YOUR ATTENTION