INTERNATIONAL TRANSPORT

AND INSURANCE

Mr. CHÂU THẾ HỮU – MBA

International Business
Administration Department
0907 414 021
huuct@huflit.edu.vn
chauthehuu@gmail.com
 CHAPTER 9

RISKS IN
MARINE CARGO INSURANCE
 Content
1. Definition of Risk
2. Classification of Risk
3. Absolute excluded risks
1. DEFINITION OF RISK
 Risks in insurance refer to sudden accidents
or incidents occurred in the voyage, causing
damage to the cargo. It is accidental and
unpredictable.
2. CLASSIFICATION OF RISK
 Based on Origin
 Based on Insurance terms
2.1. Based on Origin of Risk
 Acts of the God
 Accidents / Perils of the sea
 Others
2.2. Based on Insurance terms
 Marine Risks
 Extraneous Risks
 Excluded Risks
2.2.1. Marine Risks
 Including natural disasters and incidents
taking place suddenly and accidentally in
the sea, which are unpredictable and
irresistible.
Act of God
Unexpected accidents in the sea
Main / Primary risks:
 Stranding

 Sinking

 Fire, explosion

 Collision

Secondary risks:
 Missing ship

 Jettison

 Barratry and Malicious Acts

 Piracy
A. Primary risks
Stranding (mắc cạn)
 The case where the bottom of the ship is close to
the seabed or collide with an obstacle, making it
impossible to continue its normal journey and
often to depend on outside assistance.
A. Primary risks
Sinking (đắm)
 Cases where the means of transport is
drowned in the water and, thus, can not
continue the journey.
A. Primary risks
Fire, explosion
 Fire: chemical reaction that emits heat and

Causes of fire which are under liability insurance:

- sudden heat caused by objective factors.
- negligence or intention of the master or the sailor.
- Fire under appropriate circumstances
- Cargo caught by spreading fire
 Damage of cargo caused by fire fighting is covered.
 Explosion: including physical and chemical explosion

 Explosion due to excluded risks (e.g. war…) is not

covered.
 A. Primary risks
Collision
 The situation in which the means of transport crashes or
collides with other moving or fixed objects (except water).
 Which cases are considered as “collision”? The ship is
crashing into:
- Another ship’s fishing net?
- Another ship’s anchor (mỏ neo) ?
- Big wave?
 Collision risk: material damage of the subject insured
 Collision liability: liability toward third party, relating to
other ship, cargo. Including:
1. Colliding with other objects except the ship (iceberg, reef)
2. Collision between 2 ships: None to blame / One to blame /
Both to blame
 B. Secondary risks
 Missing ship: The ship is considered missing if no
information about it is heard after the time when it
should have arrived at the dock.
 Jettison: action to make the ship light or to save it from
distress. Jettison is a voluntary sacrifice to save the ship
and/or remaining cargo.
 Barratry and Malicious Acts (mạnh động và manh
tâm): Illegal actions of the master and his crew,
including their merciless or deceptive conception against
goods or ships, which are harmful to the shipowner or
charterer.
 Piracy: Institute Cargo Clause (ICC) A.
2.2.2. Extraneous Risks
 Risk from external accidental effects and
not belong to marine risks above.
 Unexpected accidents can take place on
the sea (but not due to ocean disaster), on
the land, the air, in transit, loading and
unloading, forwarding, storage of cargo.
2.2.2. Extraneous Risks
 Rain Fresh Water Damage - R.F.W.D.
 Rain Fresh Sea Water Damage - R.F.S.W.D.
 Non - Delivery - ND.
 Thief, Pilferage & Non-Delivery (TPND)
 Leakage, Shortage - L'kge, S'tge
 Breakage, Bending, Denting - B'kge, B.D.
 Hook Damage (H.D).
 Nail (N).
 Damage caused by rubbing or scratching.
2.2.2. Extraneous Risks
 Damage caused by grease or oil
 Contact with Oil, Other (C.O.O.C)
 Contact with Other Cargo (C.O.C)
 Contact with Acid
 Contact with Rats
 Contact with mold
 Rusting
 Sweating and/or Heating -S.H
 Self-burning
 Contamination….
2.2.3. Excluded risk
 War Risk
 Strikes, Riots and Civils Commotions Risk
 Consequences of radiation (Direct / Indirect)
 Common wear and tear
 3. ABSOLUTE EXCLUDED
RISKS
1. Contraband (buôn lậu)
2. Insured’s fault
3. Unseaworthy ship
4. Unreasonable ship deviation
5. Inherent defects of the goods.
6. The shipowner’s lack of financial control
Câu hỏi ôn tập
1. Trình bày các rủi ro trong bảo hiểm hàng
hải.
2. Rủi ro phụ trong bào hiểm hàng hóa vận
chuyển bằng đường biển là gì, bao gồm
những rủi ro nào?
THANK YOU FOR LISTENING