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Marine Cargo Loss Payment (Partial Loss)

Marine Cargo Loss Payment (Partial Loss). 王以文 95 年 5 月 26 日. Index. Measure of Indemnity Cases Study Second-Hand Machinery Replacement Clause (Applying to Second-Hand Machinery). Measure of Indemnity. May be valued or unvalued policy but normally a valued policy

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Marine Cargo Loss Payment (Partial Loss)

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  1. Marine Cargo Loss Payment(Partial Loss) 王以文 95 年 5 月 26 日

  2. Index • Measure of Indemnity • Cases Study • Second-Hand Machinery Replacement Clause(Applying to Second-Hand Machinery)

  3. Measure of Indemnity • May be valued or unvalued policy but normally a valued policy • “Valued as the same as Amount Insured”

  4. 損失賠償

  5. Case Study(For General Cargos) Case I • Interest Insured: 3 cartons of jeans @ US$100, 100 pcs/per carton • Valued / Sum Insured: 110% of invoice value (=US$33,000) • Arrival in Shortage Condition: 25 pcs shortage • Gross Sound Value at Arrival = US$36,000Gross Damaged Value at Arrival = US$33,000 Claim Payment: 1. US$33,000 × (US$36,000 – US$33,000) = US$2,750or US$36,000 2. US$100 × 25 pcs × 110% = US$2,750

  6. Case Study(For New Machinery) Case I • Interest Insured: A set of Machinery • Value: US$1,000,000 • Valued / Sum Insured: US$1,100,000 • Arrival in Damaged Condition (Partial Loss) • Gross Sound Value at Arrival: US$1,200,000Gross Damage Value at Arrival: US$900,000 • Repairing / replacement Cost for Damaged Parts: US$200,000 Loss Payment: Case I Normally Insurers will pay US$200,000 for the repairing / replacement cost only. Actually client can ask for settlement in accordance with CL. 71 US$1,100,000 × (US$1,200,000 – US$900,000) = US$275,000 US$1,200,000

  7. Second-Hand Machinery Replacement Clause (Applying to Second-Hand Machinery) In the event of loss of or damage to any part or parts of an insured interest caused by a peril covered by the Policy, the amount recoverable hereunder shall not exceed such proportion of the cost of replacement or repair of such part or parts as the insured value bears to the value of a new machine, plus additional charges for forwarding and refitting the new parts, if incurred, but excluding duty unless the full duty is included in the amount insured, in which case loss, if any, sustained by payment of additional duty shall also be recoverable. Provided always that in no case shall the liability of Underwriters exceed the insured value of the complete machine.

  8. Loss Payment Formula(For Second-Hand Machinery) 損失部份零件之修理費用或重置成本 × 約定之保險價值 + 運送或安裝費用 新機器的價值 =賠償金額

  9. Case Study(for Second-Hand Machinery) Case I • Subject Matter Insured: a set of Second-Hand Machinery • Original Purchase Price US$1,000,000 • Book Value US$500,000 • Sum Insured: US$500,000 • Value as Sum Insured as Specified in the Policy • Arrival at Damaged Condition • Repairing Cost: US$600,000 – including US$200,000 for forwarding & refitting charges • Value of New Machine: US$450,000 • Value on Arrival: Sound Value: US$150,000 Damaged Value: US$20,000 {

  10. Case Study(for Second-Hand Machinery) • Insurers Insist to Pay:US$450,000 × US$500,000 = US$225,000 US$1,000,000On the Grounds: 1. 50% Depreciation 2. Subject Sum Insured Limit • Client may ask:1. C.T.L. (loss amount US$600,000 exceeds Value at Arrival US$150,000) & abandon the salvage to Insurers (US$500,000 – US$20,000). or2. ask for partial loss & in accordance with Second-Hand Machinery Replacement Clause US$400,000 × US$500,000 + US$200,000 US$450,000 = US$600,000 (instead of US$644,445) but max payment of US$500,000, assured can also keep the salvage.* Subject no fraud involved.

  11. Case Study(for Second-Hand Machinery) Case II • All as above but value of new machine: US$1,500,000 value at arrive: US$750,000 (sound value) US$200,000 (damaged value) Insurers Agree to pay US$500,000 as constructive total loss which accepted by client & Insurers keep the salvage of US$200,000 (Net payment US$300,000) Correct calculation as stipulated by Second-Hand Machinery Replaced Clause US$400,000 ×US$500,000 + US$200,000US$1,500,000 = US$333,333 & insured keeps the salvage  If no Second-Hand Machinery Clauses applied but subject to MIA 1906  Insurers shall payUS$500,000 ×(US$750,000 – US$200,000) US$750,000 = US$366,666 & insured keeps the salvage

  12. Case Study(for Second-Hand Machinery) Case III • All as case I above but vale of new machine US$1,000,000 – but sound value at arrival US$500,000 & damaged value at arrival US$150,000 Insurers agree to pay US$600,000 × US$500,000 = US$300,000 US$1,000,000 Client can ask 1. C.T.L. (US$600,000 > US$500,000) Insurers pay US$500,000 & keep the salvage of US$150,000 (Net payment US$350,000). or 2. ask for partial loss & keep the salvage US$400,000 × US$500,000 + US$200,000 = US$400,000 US$1,000,000 If no Second-Hand Machinery Clause involved: US$500,000 ×US$500,000 – US$150,000= US$350,000 US$500,000

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