L/C requires insurance policy or certificate endorsed in blank ….. and [ii] bill of lading made out to order and endorsed in blank or made out to the order of the issuing bank [ABC Bank].
B/L presented under the L/C shows to the order of the ABC Bank. Insurance certificate is endorsed by the beneficiary in blank, but in the face of the insurance certificate it shows consignee as [name and address of the applicant].
There is an anomalies of the consignee in the B/L and the Insurance certificate. B/L shows the issuing bank’s name under consignee whereas insurance shows the applicant’s name.
Do you think this is a discrepancy ?
In the event of any damage of the goods, can an issuing bank lodge any claim given the consignee is the applicant, not the issuing bank.
Your thoughts, please.
Regards,
Shahed
Consignee on the insurance certificate
-
HOANGTHIANHTHU_invalid
- Posts: 189
- Joined: Fri Apr 05, 2019 5:15 pm
Consignee on the insurance certificate
Hi,
Paragraph L5 of ISBP 745 refers to consignee information on C/O. According to this paragraph, when an L/C requires a transport document to be issued "to order", "to the order of shipper", "to order of issuing bank", "to order of nominated bank (or negotiating bank)" or "consigned to issuing bank", the C/O may show the consignee as any entity named in the L/C except the beneficiary.
According to ICC Opinion R699 / TA607, the above principle equalizes to other documents (I would like to add, including insurance document) on which there is consignee information completed.
So, the fact that the insurance certificate in question shows the consignee as the applicant’s name whereas the B/L shows the consignee as “to the order of the ABC Bank” does not constitute a discrepancy.
According to ICC Opinion R322, by requesting an insurance document to be endorsed in blank, the issuing bank is seeking to receive a document which is capable of transfer by means of completion of the endorsement, i.e. the assured party (holder) would become the issuing bank or the applicant. So, in my opinion, in some cases and if necessary, the issuing bank as a holder in due course can file claim to the insurer regardless whether the insurance policy shows the consignee as the applicant’s name.
Kind regards,
N.H. Duc
[edited 3/8/2016 2:07:24 PM]
Paragraph L5 of ISBP 745 refers to consignee information on C/O. According to this paragraph, when an L/C requires a transport document to be issued "to order", "to the order of shipper", "to order of issuing bank", "to order of nominated bank (or negotiating bank)" or "consigned to issuing bank", the C/O may show the consignee as any entity named in the L/C except the beneficiary.
According to ICC Opinion R699 / TA607, the above principle equalizes to other documents (I would like to add, including insurance document) on which there is consignee information completed.
So, the fact that the insurance certificate in question shows the consignee as the applicant’s name whereas the B/L shows the consignee as “to the order of the ABC Bank” does not constitute a discrepancy.
According to ICC Opinion R322, by requesting an insurance document to be endorsed in blank, the issuing bank is seeking to receive a document which is capable of transfer by means of completion of the endorsement, i.e. the assured party (holder) would become the issuing bank or the applicant. So, in my opinion, in some cases and if necessary, the issuing bank as a holder in due course can file claim to the insurer regardless whether the insurance policy shows the consignee as the applicant’s name.
Kind regards,
N.H. Duc
[edited 3/8/2016 2:07:24 PM]