Who can issue and sign insurance policies?

Some documents used in international trade should be issued and signed by predefined parties in order that document could function its role.

For example, a bill of lading should be issued and signed by the carrier, master or their agents. 

Additionally freight forwarders could issue and sign bills of lading in some occasions.

Likewise, commercial invoices should be issued and signed by the sellers or exporters and pre-shipment inspection certificates are expected to be issued and signed by the independent surveyors.

Today I would like to explain the issuance party of the insurance policies.

What are the benefits of cargo insurance in international trade?

90% of international cargo transportation is carried out by sea. Again overwhelming amount of sea transportation is handled via containers by means of state of art container vessels.

Container shipment can be accepted as one of the safest mode of transportation in international logistics along with air and rail shipments, but even containerized sea shipments are not free of accidents.

Every year around 750 containers lost at sea in minor incidents. When you include catastrophic events 2000-3000 containers lost in aggregate every year in international sea transportation.

If you add piracy, terrorism, war and strike risks, you will reach substantial risk amount not only for sea transportation, but also other modes of transport as well.

The only way to get rid of risks associated with transportation is to secure the shipment with an appropriate cargo insurance. Today I would like to explain the benefits of cargo insurance in international trade.

What does "Franchise" and "Excess" mean on an insurance policy?

Sometimes insurance companies, insurers, would like to limit their risk exposures, especially when certain damage of the goods is an ordinary expectation throughout the related sector.

In such circumstances insurance companies add technical insurance terms,"Franchise" and "Excess", to the insurance policies, in order to limit their financial responsibilities.

On this article I will try to explain the meanings of "Franchise" and "Excess". 

What does "Franchise" mean on a cargo insurance policy? What does "Excess" mean on a cargo insurance policy.

What is the difference between insurance policy and insurance certificate?

There are 3 types of cargo insurance documents available in international marine cargo insurance market.

These are insurance policy, insurance certificate and declaration under an open cover.

Declaration under an open cover is not used so frequently in daily practice comparing to remaining two insurance document types. 

For this reason knowing details of insurance policy and insurance certificate is very important not only for exporters and importers but also other foreign trade participants.

Today I would like to clarify the differences between an insurance policy and insurance certificate on this article.

What is the difference between policy holder and insured on cargo insurance policy?

In some cargo insurance policies identify both policy holder and insured companies, whereas in some cargo insurance policies issued by defining only insured party.

On this article I will try to explain the meanings of "policy holder" and "insured". 

What does policy holder mean on a cargo insurance policy? What does insured mean on a cargo insurance policy.

More importantly are there any differences between these two terms as specified under marine cargo insurance contracts?