Date of Insurance Document

M.A.Chowdhury · Post by **M.A.Chowdhury** » Sat Oct 23, 2010 5:18 pm

Dear Frndz,

-LC issue date is 01.06.2010
-Shipment date is 15.08.2010
-Presentation date is 30.08.2010
...
Documents presented on 28.08.2010
Insurance document date is 20.08.2010 and also effective from 20.08.2010.
...
Sub Article 14(i) allows the document but Sub Article 28(e) prohibits. What should we follow?

Rgds,

Monir

loststudent · Post by **loststudent** » Sun Oct 24, 2010 11:16 am

I am no LC expert, but I'm of the view that the insurance should be effective at least on or even before the date of shipment. This makes sense from a risk point of view, because should something happen during shipment (before insurance is effective), there will be much debate as to whose liability it is.

Awaiting the view of an LC expert.

Thanks.

nayanrshah · Post by **nayanrshah** » Sun Oct 24, 2010 4:49 pm

Hi,

You have to follow Sub Article 28(e) "the insurance document that the cover is effective from a date not later than the date of shipment."

Rgds,
nayan

lukman.hakim · Post by **lukman.hakim** » Wed Oct 27, 2010 1:40 pm

im sorry, but I think you have a wrong understanding regarding those article
art. 14(i) clearly explain that any docs presented to bank may dated before LC is issue but any docs presented must not dated after the date of presentation, example, you come to the bank on 30 aug 2010 with docs dated 5 sept 2010,
simply because, how can possible to have docs issued in future value, it may contain fraud

I believe your case is not related to 14.(i) in any way

your case

M.A.Chowdhury wrote:
-Shipment date is 15.08.2010
-Presentation date is 30.08.2010
...
Documents presented on 28.08.2010
Insurance document date is 20.08.2010 and also effective from 20.08.2010.
...

art.28(e) stating that, insurance must not be dated after the shipment date, it simply because we want the insurance company to cover the goods just at the time the goods is in the hand of carrier.
but art.28(e) also stated that "unless it appears from the insurance document that the cover is effective from a date not later than the date of shipment."
meaning that although the insurance dated 20.08.2010 it can be satisfied by minimum two ways (follow your case)
1.by appearance of another date: in the body of insurance certificate, there is a date stating "the insurance covered/effective since 15.08.2010
2.by an action: in the body of insurance, there is a clause, "warehouse to warehouse/ the goods covered from seller's warehouse to buyer's warehouse" it is meaning that the goods is already being insured since it comes out the seller warehouse untill the buyer warehouse...no matter when or the date is

so back to your case, please see in the body of docs, it may small printed, is there any of those two condition I mentioned? if not, then is discrept, since the goods are insured after it is shipped

hope it is clarify your question

picant · Post by **picant** » Wed Oct 27, 2010 6:54 pm

Hi Pals,

IMHO, the insurance has an effective date, so the goods are covered from that date on. I think that the Transit clause is applicable but limited to 10 days before the insurance document issuing date. So is the insurance company that cannot state that cover is effective from a date not more than 10 days.
Document is discrepant.

Other comments appreciated
Ciao

iLC · Post by **iLC** » Sat Oct 30, 2010 8:32 pm

picant wrote:Hi Pals,

IMHO, the insurance has an effective date, so the goods are covered from that date on. I think that the Transit clause is applicable but limited to 10 days before the insurance document issuing date. So is the insurance company that cannot state that cover is effective from a date not more than 10 days.
Document is discrepant.

Other comments appreciated
Ciao

dear picant, could you please advise me some reference about the 10 days issue?

picant · Post by **picant** » Mon Nov 01, 2010 3:51 pm

Hi Pals,

about 10 days; this is not a question ruled by the UCP, but recently I observed that the insurance certificate for goods shipped on the 1st of september, issued on the 15th september was effective from the 6th september, causing a discrepancy, also if it bearing the transit clause or from warehose to warehouse clause.
I thought it was a rule of the insurance company to follow this practice: certificate of insurance could be issued only covering shipment not earlier than 10 days.
I tried to ask insurance companies but withou success.
For istance, new ILU clause protect cargo on eventual stay or stoppage on board of the vehicle before leaving for a period not more than 3 days.
I repeat it is not an UCP question but an Export manager issue.

Other comments appreciated

Ciao

mia vervacke · Post by **mia vervacke** » Wed Nov 03, 2010 3:12 am

about 10 days; this is not a question ruled by the UCP, but recently I observed that the insurance certificate for goods shipped on the 1st of september, issued on the 15th september was effective from the 6th september, causing a discrepancy, also if it bearing the transit clause or from warehose to warehouse clause.

1) Please note that the warehouse to warehouse clause has been discussed in Document 470/TA709. This document is only a draft and has not been accepted yet by the Banking Commission.

Document 470/TA709: CONCLUSION

An insurance document that is dated later than the date of shipment, but clearly indicates that coverage has been effected on a warehouse to warehouse basis is acceptable

2) Same document also refers to official opinion R234 (issue 2).

The so-called 'transit clause' indeed covers the goods uninterruptedly, from end-to-end until the final point of destination, not later than 60 days after being unloaded from the carryng ship.

What should be considered as a transit clause? Can you give me an example of the transit clause?