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Foreign trade dry goods - calculation formula for foreign trade insurance premiums

sofreight.com sofreight.com 2023-09-14 14:36:01

According to different situations, the handling and calculation methods of import and export cargo transportation insurance are also different. .

In import and export cargo transportation insurance, the insured has two main methods of handling it: Apply for insurance on a case-by-case basis and sign a general insurance contract.

Transaction-by-transaction insurance means that each batch of speCIFic goods is purchased separately. It is suitable for situations where transactions are frequent but the volume of goods is small. The insurance premium is calculated based on the value of the goods and the mode of transportation for each transaction.

The scheduled insurance general contract refers to a long-term insurance contract signed between the insured and the insurance company, covering multiple shipments of goods within a period of time. This method is suitable for large and frequent transactions, and can simplify the insurance operation process and reduce handling fees.

 

In export cargo insurance, the insurance amount and insurance premium are usually calculated based on the CIF price( Cost, Insurance, Freight , cost plus freight). The insurance company will determine the insurance amount and premium based on this price.

Insurance amount =CIF Price × 110% (Insurance bonus)

insurance =CIF Price × 110% × insurance rate

Among them, the insurance rate is set by the insurance company based on the nature and risk level of the goods.

For imported goods insurance, the insurance amount and insurance premium are calculated differently depending on the transaction terms of the goods.

For FOB price( Free On Board , FOB price) Transacted goods:

Insurance amount = FOB Price × ( 1 average shipping rate average insurance rates)

insurance = Insurance amount × average insurance rate

For C&F price( Cost and Freight , cost plus freight price) transacted goods:

Insurance amount =C&F Price × ( 1 average insurance rates)

insurance = Insurance amount × average insurance rate

Average freight rates and average insurance rates are determined by insurance companies and reflect the general cost of transporting goods.