Marine Insurance South Africa
Marine Insurance Overview
Marine Insurance in South Africa: In order to insure something, the owner must have a financial interest in it. This is true for your car, house or cargo. In any sale of goods, the ownership will pass from the seller to the buyer. The contract of sale will state the responsibilities of each party and those responsibilities are normally referred to be using INCOTERMS.
Accordingly, it is important your clients understand the full impact of these terms before they sign any contract involving the international sale of goods.
Marine Insurance Incoterms
Incoterms were designed to standardize contract terms – thus making it easier to follow what obligations, expenses, risks & other elements affect international trade. The terms are divided into four categories:
- E-Terms - where the Seller (Exporter) makes the goods available to the Buyer (Importer) at the Seller’s own premises only
- F-Terms – where the Seller is called upon to deliver the goods to the carrier appointed by the Buyer
- C-Terms – where the Seller has to contract for carriage, but without assuming the risk of loss to the goods or additional costs due to the loss occurring after shipment. CIF & CIP being exceptions where the seller is compelled by the terms to arrange Marine Insurance in addition to contracting for carriage (no greater obligation than Institute “C” Clauses & valuation of CIF plus 10%)
- D-Terms – where the Seller has to bear all costs & risks needed to bring the goods to the country of destination (these terms are normally only used by the motor trade)
Read on for additional information about Incoterms, or contact us at Chadwicks Risk & Insurance for additional information in regard to marine insurance in South Africa.