We as issuing bank have received a marine cargo policy which has a box stating vessel to be sailing on or about 23 May 2001. This date is the same date as the on-board date in the BL.
However the policy is issued a day later & dated 24 May 2001.
We would appreciate yr advice as to whether such a policy is acceptable.
Thank you.
Issuance date Vs Effective date of insurance coverage
-
chungmingchang
- Posts: 5
- Joined: Fri Apr 05, 2019 5:16 pm
-
larryBacon
- Posts: 689
- Joined: Fri Apr 05, 2019 5:26 pm
Issuance date Vs Effective date of insurance coverage
For the insurance document to be acceptable, it must be possible to ascertain the effective date of commencement of cover. Otherwise the date of issue by default is the date of commencement of cover.
The wording used can vary, so without seeing this it is difficult to be precise about whether the document is compliant. If the document states that shipment on this vessel is covered "on or about the 23rd May" this will be compliant.
Laurence A. J. Bacon
The wording used can vary, so without seeing this it is difficult to be precise about whether the document is compliant. If the document states that shipment on this vessel is covered "on or about the 23rd May" this will be compliant.
Laurence A. J. Bacon
-
PGauntlett
- Posts: 153
- Joined: Fri Apr 05, 2019 5:25 pm
Issuance date Vs Effective date of insurance coverage
I believe that this document is not acceptable per Art 34e. It has to be clear that cover is effective from shipment date. Simply stating a sailing date is not sufficient. If you search the ICC opinions you should find support for this view.
Issuance date Vs Effective date of insurance coverage
Certain bankers do not realise that a cargo insurance policy/certificate becomes effective based on an event - the commencement of transport - and not based on an issuing date in the cargo insurance policy/certificate.
The cargo insurance document covering Institute Cargo Clauses A, B & C has the "Transit Clause" under the "Duration Clause" section, represented as Article 8.1 that states :
"This insurance attaches from the time the goods leave the warehouse or place of storage at the place named herein for the commencement of transit, continues during the ordinary course of transit and terminates either..."
Bankers should not take the issuing date of an insurance document as the effective date. This is against the backbone doctrine in cargo insurance, where effectiveness is based on and begins to count from the time of an event (commencement of performance of transport).
The ICC Insurance Commission has not been given a good opportunity to comment on the insurance articles in the UCP 500 during the drafting stage. Otherwise this sub Article 34 (e) would be written more clearly to reflect the insurance practice.
To understand further please click on "How to Determine the Effective Date in an Insurance Document" in our website after completion of browsing on the DC PRO website.
We are from www.tolee.com
[edited 2/26/02 8:18:54 PM]
The cargo insurance document covering Institute Cargo Clauses A, B & C has the "Transit Clause" under the "Duration Clause" section, represented as Article 8.1 that states :
"This insurance attaches from the time the goods leave the warehouse or place of storage at the place named herein for the commencement of transit, continues during the ordinary course of transit and terminates either..."
Bankers should not take the issuing date of an insurance document as the effective date. This is against the backbone doctrine in cargo insurance, where effectiveness is based on and begins to count from the time of an event (commencement of performance of transport).
The ICC Insurance Commission has not been given a good opportunity to comment on the insurance articles in the UCP 500 during the drafting stage. Otherwise this sub Article 34 (e) would be written more clearly to reflect the insurance practice.
To understand further please click on "How to Determine the Effective Date in an Insurance Document" in our website after completion of browsing on the DC PRO website.
We are from www.tolee.com
[edited 2/26/02 8:18:54 PM]