According to different situations, the handling methods and calculation methods of import and export cargo transportation insurance are also different.

In the import and export cargo transportation insurance, the insured has two main methods: one by one and the signing of an open contract.

Case-by-case insurance means that each specific batch of goods is purchased separately, which is suitable for frequent transactions but small quantities of goods, and the premium is calculated according to the value of the goods and the mode of transportation of each transaction.

Open cover general insurance contract refers to a long-term insurance contract signed by the insured and the insurance company, covering multiple shipments of goods over a period of time. This method is suitable for large and frequent transactions, and can simplify the insurance operation process and reduce the procedure cost.

In export cargo Insurance, the amount of insurance and the premium are usually calculated on the basis of the CIF price of the goods (Cost, Insurance, Freight, cost and freight). The insurance company will use this price to determine the amount of insurance and the premium.

Insurance amount = CIF price × 110% (insurance premium)

Insurance premium = CIF price × 110% × Premium rate

Among them, the insurance rate is determined by the insurance company according to the nature of the goods and the degree of risk.

For imported goods insurance, depending on the terms of the transaction of the goods, the calculation method of the insurance amount and premium is also different.

For goods sold On FOB (Free On Board, FOB) :

Insurance amount = FOB price × (1 + average freight rate + average insurance rate)

Premium = Amount insured × Average premium rate

for C& F Price (Cost and Freight) Goods sold:

Insurance amount = C& F Price x (1 + average premium rate)

Premium = Amount insured × Average premium rate

Average freight rates and average insurance rates are based on insurance company regulations and they reflect the general cost of transporting goods.