Jump to content

Blog PiAnt

  • entries
    12
  • comments
    0
  • views
    1048

Shipping your stuff back home advice (Part 1)


PiAnt

344 views

 Share

If you've been living in Thailand for more than just a brief time, you will, no doubt, have accumulated some items, which you may wish to take back home with you, if and when you leave.

In doing so, there are many companies which specialise in repatriation of personal effects, and they'll do everything for you including packing all your goods, loading them into shipping containers and preparing all the export documents on your behalf, even arranging insurance to protect your goods during shipment (or at least compensate you should something get lost or damaged).

It might be helpful, however, if you knew a little bit about marine insurance beforehand.

Indemnity and Utmost Good Faith

Firstly, a contract of Marine Insurance is a contract of indemnity, which basically means that you are entitled, in the event of loss, damage or expense which is recoverable under the policy, to be placed in the position you were in before you sustained the loss, damage or expense. No more.

Secondly, a contract of Marine Insurance is based on the principle of uberrima fides, or Utmost Good Faith. This means that any and all information pertaining to the risk, which would affect the decision of a prudent insurer's acceptance of the risk or in calculation of a premium, must be disclosed (except that which an insurer would be expected to be aware of in the course of his business). However, he really only knows what you tell him, and he trusts you, as you do him.

What the two principles above mean to you is that you must declare the value of the goods correctly. If, for instance, you say things are worth more than they actually are, and in the event of damage you claim for the goods, and the true value is discovered, the contract can be voided by the insurer, or any settlement would be based on the proportion of the actual value to the stated value i.e., you double the price of a sofa and claim under the policy for repairs in the sum of $100 for a tear sustained during transit, the insurer could reject the claim because you weren't entirely forthcoming, or, certainly, he would reduce any settlement by 50%.

Similarly, if you undervalue an item in order to reduce the insurance premium, the same principle applies and the insurer is liable only for his proportion of the loss, damage or expense i.e., you half the price of the sofa, claim again for $100, and the insurer will only pay 50% if he doesn't void the policy.

I would point out that, should you have any particularly valuable items (works of art, antiques expensive jewellery etc), you should obtain valuations from reputable experts and include these separately in any negotiations with marine cargo insurers/brokers. No huge claim for your one-off antique sofa will be entertained by insurers unless accompanied by a valuation, and then only if they were made aware of its exceptional value prior to accepting the risk.

Another point to bear in mind under the principle of indemnity is new for old. Generally speaking, if you buy something new, over time, its value will depreciate. If you base your insurance contract on the new value, then unless you have specifically requested a new for old clause in the policy, a deduction, based on the price paid less a percentage for each year, will be applied i.e., your sofa, which cost $1000 and is 10 years old may incur a deduction of, perhaps 50% or more for total loss or destruction (not for the $100 repair). For obvious reasons new for old doesn't apply to goods bought second hand.

insurance-claim-form.jpg

Duty of the Assured

Under the contract of insurance, the Assured have certain responsibilities which must be adhered to if the insurer isn't to void the contract. Such responsibilities are, usually, highlighted or written in red ink on the contract to ensure you don't overlook them. Basically, your main responsibility is to ensure you take action to secure your rights to claim for any loss, damage or expense incurred under the contract of carriage i.e., against the freight forwarder, carrier, or other responsible party.

In the unfortunate event that, upon delivery of your goods, damage is found to have been sustained to some or all of them, you should, under no circumstances, endorse a clean receipt. Thoroughly check all your items and only endorse a clean receipt if you are sure no damage has been sustained. Should you discover some damage later and have endorsed a clean receipt, insurers will very likely reject any claim based on your endorsement of a clean receipt upon delivery.

The reasons behind this are important. Although you have effected an insurance policy to indemnify you against any loss, damage or expense during the transit, such does not release any party responsible for the damage from their liabilities. Should it be found that the loss, damage or expense was (for whatever reason), not recoverable under the policy, then you would claim against such responsible party, just as you would had you not effected an insurance policy in the first place (acting as a prudent uninsured).

Should the policy cover your loss, damage or expense, your prompt action in claiming against the responsible party enables insurers to recoup some or all of their settlement with you, through their rights of subrogation. Subrogation means that, if they pay you for your loss, they obtain all the rights you had to claim against a responsible party. Whether they actually manage to recoup their loss is immaterial, but they will certainly be much more willing to pay you for your loss knowing there's a good chance they'll get it back later.

insurance.jpg

Proximate Cause

Many of the terms and conditions associated with policies of marine insurance are similar to those found in other types of insurance, and one of the most important, specifically when dealing with a claim, is the rule of Proximate Cause. In instances of loss or damage, there are, usually, many events in a chain which lead to the loss or damage, each of which can be said to have played a part in the final outcome, but, for the purposes of settlement (or otherwise), of a claim under a policy of insurance, the chain of events must be traced back to the Proximate (or overriding) cause. A simple example might be goods destroyed by fire, started deliberately. Obviously, the actual damage was caused by fire, but the proximate cause was arson.

The importance of the Proximate Cause of loss, damage or expense can be seen when a claim is submitted, the cause of which is, perhaps, not as obvious as might appear.

 Share

0 Comments


Recommended Comments

If you've been living in Thailand for more than just a brief time, you will, no doubt, have accumulated some items, which you may wish to take back home with you, if and when you leave.

In doing so, there are many companies which specialise in repatriation of personal effects, and they'll do everything for you including packing all your goods, loading them into shipping containers and preparing all the export documents on your behalf, even arranging insurance to protect your goods during shipment (or at least compensate you should something get lost or damaged).

It might be helpful, however, if you knew a little bit about marine insurance beforehand.

Indemnity and Utmost Good Faith

Firstly, a contract of Marine Insurance is a contract of indemnity, which basically means that you are entitled, in the event of loss, damage or expense which is recoverable under the policy, to be placed in the position you were in before you sustained the loss, damage or expense. No more.

Secondly, a contract of Marine Insurance is based on the principle of uberrima fides, or Utmost Good Faith. This means that any and all information pertaining to the risk, which would affect the decision of a prudent insurer's acceptance of the risk or in calculation of a premium, must be disclosed (except that which an insurer would be expected to be aware of in the course of his business). However, he really only knows what you tell him, and he trusts you, as you do him.

What the two principles above mean to you is that you must declare the value of the goods correctly. If, for instance, you say things are worth more than they actually are, and in the event of damage you claim for the goods, and the true value is discovered, the contract can be voided by the insurer, or any settlement would be based on the proportion of the actual value to the stated value i.e., you double the price of a sofa and claim under the policy for repairs in the sum of $100 for a tear sustained during transit, the insurer could reject the claim because you weren't entirely forthcoming, or, certainly, he would reduce any settlement by 50%.

Similarly, if you undervalue an item in order to reduce the insurance premium, the same principle applies and the insurer is liable only for his proportion of the loss, damage or expense i.e., you half the price of the sofa, claim again for $100, and the insurer will only pay 50% if he doesn't void the policy.

I would point out that, should you have any particularly valuable items (works of art, antiques expensive jewellery etc), you should obtain valuations from reputable experts and include these separately in any negotiations with marine cargo insurers/brokers. No huge claim for your one-off antique sofa will be entertained by insurers unless accompanied by a valuation, and then only if they were made aware of its exceptional value prior to accepting the risk.

Another point to bear in mind under the principle of indemnity is new for old. Generally speaking, if you buy something new, over time, its value will depreciate. If you base your insurance contract on the new value, then unless you have specifically requested a new for old clause in the policy, a deduction, based on the price paid less a percentage for each year, will be applied i.e., your sofa, which cost $1000 and is 10 years old may incur a deduction of, perhaps 50% or more for total loss or destruction (not for the $100 repair). For obvious reasons new for old doesn't apply to goods bought second hand.

insurance-claim-form.jpg

Duty of the Assured

Under the contract of insurance, the Assured have certain responsibilities which must be adhered to if the insurer isn't to void the contract. Such responsibilities are, usually, highlighted or written in red ink on the contract to ensure you don't overlook them. Basically, your main responsibility is to ensure you take action to secure your rights to claim for any loss, damage or expense incurred under the contract of carriage i.e., against the freight forwarder, carrier, or other responsible party.

In the unfortunate event that, upon delivery of your goods, damage is found to have been sustained to some or all of them, you should, under no circumstances, endorse a clean receipt. Thoroughly check all your items and only endorse a clean receipt if you are sure no damage has been sustained. Should you discover some damage later and have endorsed a clean receipt, insurers will very likely reject any claim based on your endorsement of a clean receipt upon delivery.

The reasons behind this are important. Although you have effected an insurance policy to indemnify you against any loss, damage or expense during the transit, such does not release any party responsible for the damage from their liabilities. Should it be found that the loss, damage or expense was (for whatever reason), not recoverable under the policy, then you would claim against such responsible party, just as you would had you not effected an insurance policy in the first place (acting as a prudent uninsured).

Should the policy cover your loss, damage or expense, your prompt action in claiming against the responsible party enables insurers to recoup some or all of their settlement with you, through their rights of subrogation. Subrogation means that, if they pay you for your loss, they obtain all the rights you had to claim against a responsible party. Whether they actually manage to recoup their loss is immaterial, but they will certainly be much more willing to pay you for your loss knowing there's a good chance they'll get it back later.

insurance.jpg

Proximate Cause

Many of the terms and conditions associated with policies of marine insurance are similar to those found in other types of insurance, and one of the most important, specifically when dealing with a claim, is the rule of Proximate Cause. In instances of loss or damage, there are, usually, many events in a chain which lead to the loss or damage, each of which can be said to have played a part in the final outcome, but, for the purposes of settlement (or otherwise), of a claim under a policy of insurance, the chain of events must be traced back to the Proximate (or overriding) cause. A simple example might be goods destroyed by fire, started deliberately. Obviously, the actual damage was caused by fire, but the proximate cause was arson.

The importance of the Proximate Cause of loss, damage or expense can be seen when a claim is submitted, the cause of which is, perhaps, not as obvious as might appear.

Link to comment

The freight charges would depend on weight and destination. A carton of clothes to Europe, say, might be between several tens of dollars to hundreds whereas a full container of stuff might be thousands. Someone here might be able to give a specific figure.

For insurance, the insured value of Goods is normally based on the invoice value plus a percentage (usually 10%), to cover the costs of insurance and freight.

Link to comment

I assume that the freight fees will be pretty much cost the same from The States to Thailand. I want to ship non valuable stuffs,saying, clothes .On the other hand, I am consider to pay extra fee for additional luggages ranging 100$ to 150$ per 50 pounds when I will fly back . I am researching which way I will pay less since I want to buy more electronic devices, clothes and many more things that it wont be taxed and 50% less pricey comparing when buying in Thailand. Thanks PiAnt for an ideas.

Link to comment

Very interesting post. I believe insurance is kind of useless for internationl shipping, as it is generally a small % of the invoice value (generally underevaluated). A successfull shipment starts with a good packing and protection of the goods.

I'm working in a freight forwarder / shipping company in Thailand (Bangkok) and we are used to work with small exporters as well as big companies. If you need to know the costs of shipping project you have, you can fill our quote form at www.anthom-shipping.com/freight-quote and we will send you a competitive quote within 24h. Have a good day.

Link to comment
Guest
Add a comment...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...