What is the coverage of FPA?

(1) Total loss or constructive total loss of the whole cargo caused by natural disasters and accidents at sea;

(2) All or part of the losses caused by the stranding, hitting rocks, collision, sinking, collision with drifting ice or other objects, fire or explosion of vehicles;

(three) the loss of all the goods falling into the sea during loading, unloading and transshipment;

(four) the loss of unloading at the port of refuge and the special expenses paid at the port of refuge and the port of midway;

(5) Sacrifice, contribution and salvage expenses in general average;

(5) If there are collision clauses in the contract, the cargo party shall compensate for the loss of the ship;

(7) The reasonable rescue expenses of the insured when the goods within the scope of insurance liability are in danger.

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F. F. P.A. is also called "not particular average". One of the main risks of marine cargo transportation insurance.

The insurer is only responsible for the liability insurance of total loss and partial loss of goods in a specific accident, which is the smallest type of liability insurance in marine cargo transportation.

scope of responsibility

1. Total loss or constructive total loss of the insured goods due to bad weather, lightning, tsunami, earthquake and flood in transit.

2. When the insured claims compensation for the presumed total loss, the damaged goods and their rights shall be entrusted to the insurance company. When the insured goods are transported into or out of a seagoing ship by barge, the goods contained in each barge can be regarded as a whole batch.

Constructive total loss means that the actual total loss of the insured goods is inevitable, or the residual value of the damaged goods. If the sum of the expenses of rescue, sorting, repair and continued transportation exceeds the value of its arrival at the destination, it is regarded as total loss.

2. All or part of the insured goods are lost due to accidents such as stranding, hitting rocks, sinking, collision with other objects in the basin, fire and explosion.

3. As long as the means of transport has run aground, hit rocks, sunk, burned and other accidents, no matter whether it has suffered some losses of the insured goods caused by natural disasters such as bad weather at sea, lightning and tsunami before or after this accident.

4. Total loss or partial loss caused by one or more insured goods falling into the sea during transshipment.

5. All or part of the loss of the insured goods caused by the unloading of the means of transport at the port of refuge due to natural disasters or accidents.

6 due to natural disasters or accidents caused by cargo handling, storage, transportation and need to stop at the port of midway or port of refuge.

7. Sacrifice, contribution and salvage expenses in general average.

8. There is a clause of "Liability for Collision of Ships" in the contract of carriage, according to which the cargo party shall compensate for the loss of the ship.