Can a negotiating bank reject documents due to over insurance ?
Shahed
Toronto
Insurance amount
-
HOANGTHIANHTHU_invalid
- Posts: 189
- Joined: Fri Apr 05, 2019 5:15 pm
Insurance amount
Hi,
See ISBP 745 para K12) whichs says when a credit does not indicate an amount to be insured, an insurance document is to be issued in the currency of the credit and, as a minimum, for the amount indicated under UCP 600 sub-article 28 (f) (ii). There is no maximum percentage of insurance coverage.
Also see R581 / TA111 which says where a credit does not specify a percentage, fixed amount or maximum amount for insurance cover, the insurance document may be expressed for any amount above the minimum of 110 per cent of the gross CIF or CIP value.
Kind regards,
N.H.Duc
See ISBP 745 para K12) whichs says when a credit does not indicate an amount to be insured, an insurance document is to be issued in the currency of the credit and, as a minimum, for the amount indicated under UCP 600 sub-article 28 (f) (ii). There is no maximum percentage of insurance coverage.
Also see R581 / TA111 which says where a credit does not specify a percentage, fixed amount or maximum amount for insurance cover, the insurance document may be expressed for any amount above the minimum of 110 per cent of the gross CIF or CIP value.
Kind regards,
N.H.Duc
Insurance amount
Hi,
Only if the credit expressly states that overinsurence is prohibited or that insured amount must be exactly fixed at a certain percentage.
If the credit merely states "for 110 pct of CIF amount" or similar or if it is silent on the insurance cover, it only sets the bottom limit. In such case there is no discrepancy such as "overinsurance".
Radek
Only if the credit expressly states that overinsurence is prohibited or that insured amount must be exactly fixed at a certain percentage.
If the credit merely states "for 110 pct of CIF amount" or similar or if it is silent on the insurance cover, it only sets the bottom limit. In such case there is no discrepancy such as "overinsurance".
Radek