The presented insurance policy has the following stipulation;
" The cover will be paid ,if and only if the transporting vessel (s) have a valid ISM Certificiate and Classification Certificate (According to institute Classification Clause 01.01.2001)during the transport."
And L/C has no other specific condition for the insurance policy / B/L / vessel .
My question, this stipulation could be a ground for refusal ?
Thanks and regards,
[edited 12/27/2004 9:04:53 AM]
Insurance & ISM
Insurance & ISM
Yahya,
My personal thoughts without responsibility or liability:
1. A term of the Credit or an article of the UCP has not apparently been breached.
2. I imagine that there is not any international standard banking practice (in the widest sense of the term) on the question. (I assume you’ve consulted the ‘opinions’, for what they are worth.)
3. It would seem to me distinctly possible that the identification of the stipulation has arisen by virtue of an examination that goes beyond one of reasonable care (by a banker). It all depends on how obvious the stipulation is on the document (which of course I’ve not seen).
Given the above I would feel much happier taking up the document than refusing it.
My personal thoughts without responsibility or liability:
1. A term of the Credit or an article of the UCP has not apparently been breached.
2. I imagine that there is not any international standard banking practice (in the widest sense of the term) on the question. (I assume you’ve consulted the ‘opinions’, for what they are worth.)
3. It would seem to me distinctly possible that the identification of the stipulation has arisen by virtue of an examination that goes beyond one of reasonable care (by a banker). It all depends on how obvious the stipulation is on the document (which of course I’ve not seen).
Given the above I would feel much happier taking up the document than refusing it.
Insurance & ISM
In my view the insurance policy is acceptable. It does not appear to be unvalid and/or inconsistent with any other required document or L/C.
With regards,
Pavel Andrle
With regards,
Pavel Andrle
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larryBacon
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Insurance & ISM
Yahya asks the question about grounds for refusal, but does not state the grounds. This can only be refused for non-compliance with the requirements of the LC or non-compliance with UCP. Since there are no grounds cited in either category, there is no discrepancy.
Laurence
Laurence