Page 80 - Export and Trade

tailored insurance in New Zealand gives you more control or exported. The previous year’s activity can sometimes
RYHU \RXU LQVXUDQFH EHQH¿WV SUHPLXPV DQG LQVXUHU be used as a starting point.
Insurance purchased in New Zealand by New Zealand • The ‘Limit of Liability’ relates to the maximum amount
traders will generally be paid in New Zealand dollars, which of goods on any one ship, aircraft or truck and is the
KHOSVWRDOOHYLDWH FXUUHQF\ÀXFWXDWLRQULVNV $OVR ZKHQ maximum amount the insurer will pay in the event of a
your insurer calculates your insurance premium, it will be claim.
assessed based on your own previous claims history rather ‡ 7KH µH[WHQW RI LQVXUDQFH FRYHU¶ ,QVXULQJ VSHFL¿HG ULVNV
than the claims history of other traders from whom you can generally be done more cheaply than if you had an
purchase goods. ‘all-risks’ policy.
A customised annual insurance cover is likely to have • The ‘basis of valuation’ is a pre-agreed valuation method
greaterbreadthofcoverthanthatpurchasedfroman shouldgoodsbelostordamaged,usuallycalculatedby
overseas trading partner as part of an international sale. the cost of goods plus ten percent.
Your own comprehensive Marine Cargo policy can cover you • Your past insurance history – whether you have had any
forunforeseencostssuchasthecostsofpreparingaclaim claims in the past, what the claims were for, how much
DQGH[SHGLWLQJH[SHQVHV ORVVRISUR¿WV GDPDJHRUGHOD\ wasclaimedandwhetheryouhaveeverbeendeclinedby
RIVKLSPHQW 7KHVHEHQH¿WVDUHXQOLNHO\WREHLQFOXGHGRU an insurer.
VSHFL¿HG LQ D VDOHV LQYRLFH RU µ/HWWHU RI &UHGLW¶ VSHFL¿FDWLRQ • ‘Terms of Sale’ are internationally recognised terms,
–intheeventoflossyouareunlikelytobecoveredforthe GH¿QHG E\ WKH ,QWHUQDWLRQDO &KDPEHU RI &RPPHUFH ,&&
EHQH¿WV DERYH DQG WKLV PD\ FRPSURPLVH WKH UHYHQXH IURP which set out the rights and responsibilities of exporters
your traded goods. DQG LPSRUWHUV DQG DUH GH¿QHG LQ GHWDLO LQ ,&& ERRNOHW
460. These terms are important for your broker and
Onshore or offshore insurance insurer to know, as risks and responsibility for goods
MarineCargoinsurancecanbeboughtthroughlocal changes along the transit route.
brokershereinNewZealand,asmostrisksmaybecatered Example: An exporter of New Zealand-made designer
forbyNewZealandmarineinsurers.Forthoserisksthat furniture transports goods to Europe on a FOB (free on
cannot be catered for, large international companies often ERDUG EDVLV )2% PHDQV WKDW DQ\ GDPDJH WR WKH IXUQLWXUH
have networks of colleagues in other jurisdictions that can is the responsibility of the buyer once on board the ship.
DVVLVW LQ ¿QGLQJ DQ LQVXUDQFH VROXWLRQ However, under the Terms of Sale, the actual ownership of
New Zealand based insurance professionals are more the furniture does not transfer to the buyer until payment is
likely to be familiar with your product lines and the received. To cover all bases, as well as having local transit
potential risks of transportation and can therefore advise cover to see the furniture safely on board, the exporter
onriskmitigation andlosspreventionmeasures.Local secures seller’s interest contingency cover. This is just in
knowledgeandexperiencemeansthatyourinsurerand case the furniture arrives damaged and is not acceptable to
broker will be able to resolve claims swiftly and optimally the buyer, thus protecting the exporter until the buyer has
shouldalossarise.Quickandsuccessfulclaimsresolution paid the invoice.
is an important part of service delivery for all traders and
invaluable to those businesses that wish to retain and build Insurance payment
theirreputationinoverseasmarkets. Premiums are calculated based on a combination of the
value of the shipment, the risks associated with the method
What to tell your insurer of transportation, distance, route and the claims history of
Your broker and insurer need certain information to write the insured. Premium payments have a reasonable level
thebestpolicyforyou. Thereforethefollowinginformation RI ÀH[LELOLW\ DQG PD\ EH SDLG DV DQQXDO DQQXDO DGMXVWDEOH
is generally required: quarterly or by monthly declaration.
• The destinations you trade with, including where goods )RU DQ DQQXDO SUHPLXP WKH LQVXUHU FKDUJHV D ÀDW UDWH
will be shipped to and from and details of any trans- for an estimated value of imports or exports over the
shipments. period. For an annual adjustable premium, the insurer will
•Afulldescriptionofthegoodsandhowtheywillbe charge a deposit premium, usually calculated on the basis
protectedintransit.Thismayincludeadescriptionof of estimated turnover values. At the end of the insurance
thepackagingandwhetherornotthegoodswillbe period, the actual amounts are calculated and, if required,
containerised. adjustments can be made to the premium based on the
• The estimated ‘annual sale value’ of the goods imported DFWXDO EHQH¿WV HQWLWOHG WR WKH SROLF\KROGHU

78 NZ Export & Trade Handbook 2018