What is international insurance and everything you need to know about its types and conditions.
In today's world, many companies are not limited to operating within the borders of a particular country and expanding their operations beyond the borders of the country. As with indoor business, overseas insurance is one of the most important principles that all companies are required to adhere to. International insurance has different types, each of which has its own principles. In this article, Sinbad intends to address in detail the issue of international insurance.
What is International Insurance?
Working in international business requires all individuals and entities to comply with insurance standards. Given that the individual is operating abroad, therefore, domestic insurance laws and regulations are no longer applicable and international insurance is involved. International insurance is based on the laws and regulations established by various conventions and treaties. This type of insurance has a different title, one of the most important of which is international transportation insurance, which we will cover below.
What is International Transportation Insurance?
As previously discussed in detail in International Freight, we all know that this type of transport involves many different ways. International transportation is actually the transportation of goods from one country to another. In the case of international transport insurance, the insurance contractor or the same insurer undertakes to pay for the loss incurred by the employer or insurer in the whole process of freight transport along the route in the event of any loss to the employer. Compensate according to the provisions and materials mentioned in the insurance contract concluded between the parties.
How is International Insurance Performed?
International insurance, because of its importance in the field of international business, especially transportation, is regulated by contracts between the two parties, referred to as international insurance contracts. Both parties to the insurance must expressly discuss all relevant matters in the terms of this contract. The most important of these are insurance premiums paid by the insurance contractor that vary in each mode of transportation.
Why is International Insurance Important?
International transportation is the transfer of funds of one person or even one country to another. The long distances that go through this process are associated with risks. Governments have made compulsory enforcement of these types of insurance in order to avoid wasting the funds of individuals and the government itself.
Types of International Transportation Insurance
International transportation takes place in a variety of ways, including air and land. The losses that may be incurred by the goods and freight in each of these methods will also be different, and therefore the provisions and items placed in the relevant international transportation insurance will also vary. Types of international transportation insurance include the following:
- Land Transportation Insurance
- Maritime Insurance
- Aviation Insurance
- International Export Insurance
- Imported international insurance
International Land Transport Insurance
In the international transportation of goods by land, different incidents can occur, causing little or no damage to the individual. It is therefore a prerequisite for one to consider insuring one's burden internationally in view of these cases. The most important damages that can occur in land transportation can be accident, theft, delay and failure to deliver goods, destruction and decay of some goods.
Damages caused by factors such as seizure of illicit goods, damages caused by inherent defects of goods and freight, delay in delivery and delivery of goods, economic changes, lips and scratches and dents, corrosion and paint damage, it does not cover damage caused by natural hazards such as earthquakes and hurricanes and open air damage.
International Maritime Insurance
Today a large volume of freight is carried out by sea using ships. This method of transportation is also not risk free and may occur during the transportation of cargo to its destination. In this type of insurance, the insurance contractor compensates the employer if all the damages caused to him are due to sea accidents. Maritime insurance covers a number of the following.
Insurance of total loss of load
Under this type of maritime insurance, the insurance contractor only compensates the employer for damages if the entire burden is lost as a result of accidents at sea, and if part of the burden is small, if left, the contractor will have no obligations.
General Loss Insurance
Depending on the circumstances that occur during sea transportation, part of the burden on the employer may be eliminated, in which case the damage to the burden is not only on the employer or the owner but also on the total amount of damage between all parties and those The beneficiaries of this time are divided. Examples of this type of marine insurance can include things like unloading the ship to rescue it, damages caused by using fire extinguishing equipment such as water to extinguish the fire, unloading and loading the load in an emergency such as landing a ship. Kurdish.
International aviation insurance
With the advances in the aviation industry as well as the advantages that this method of international transportation brings, today the aviation industry has taken on a large volume of international transportation. The carriage of goods and cargo by air is subject to accidents and risks that may cause losses to the employer, in which case the contractor shall be obliged to compensate it according to the provisions of the insurance contract.
International Import Transport Insurance
These types of insurance contracts, which also cover a large percentage of freight insurance, actually cover the risks and dangers of companies being sent from one country to another. In this type of insurance, the originator of the same country is the consignor and destination of the insurance contractor warehouse.
International Export Transportation Insurance
In this type of insurance, cargoes from inside the country are covered by another country. The terms and conditions mentioned in export insurance contracts are quite similar to import insurance contracts and the only difference between the two is at the source, one of the cities in the country and the destination, one of the cities in the foreign country.
The importance of international insurance is steadily increasing as international trade grows. There is a great deal of capital invested in international business, and this also doubles the importance of international insurance. International transport insurance is one of the most important and has several different categories. Each type of international insurance has its own terms and conditions, all of which are incorporated into the terms of the insurance contract between the insurer and the insurer.
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