Insurance cover

[SteveC]

We regularly issue L/Cs requiring an Insurance Certificate where it is expected that the cover will be for at least 110% of invoice value, either by wording to that effect in the L/C or by way of Art 28.f.ii.

Against these L/Cs we are occasionally presented with an Insurance Cert where the final figure has been rounded down to the nearest cent (or other currency). For example if the CIF value was USD269,854.31, the calculation for insurance gives us USD296,839.741 but the insurance cover is rounded down to USD296,839.74. Technically this is less than the minimum 110% required by either the L/C or UCP.

ICC Opinion R468 appears to be the only published opinion on this sub-article but does not really assist in determining whether this is a discrepancy or not, it is more concerned with cover in excess of 110%.

I would like to canvass opinion on who would, or would not, reject an insurance document showing cover in my example above.

Many thanks

[DanielD]

In docdex 241, there is an example of de "minimis rules" (first time I see this rule used in doc. credits context, but maybe I am wrong). It is about a weight rounded down: 1,627.70 kgs rounded down to 1,627.--. I wonder and I hope it would apply to your question.
Daniel

[SteveC]

Thanks Daniel

Anyone else?

[JohnLim]

I agree with Daniel. I will not reject this policy based on the example given.

Regards
Hong

[SteveC]

Thanks John,

Any opinions from Jeremy, Christian and Jim?

[AsifMahmoodButt]

R468 may provide an answer to your query,
regards, Khalid

[SteveC]

Hi Khalid,

Thanks for the response. However, as indicated in my original post, I don't believe R468 provides the answer. That only appears to be concerned with situations where insurance is in excess of the 110%.

Regards