China PICC logistics cargo insurance clause

1) In fact, PICC P&C launched the logistics insurance market at that time, which was not the wishful thinking of the insurance company, but the strong desire of the logistics company itself.

In recent years, due to the vigorous development of logistics industry, traditional logistics has rapidly evolved into modern logistics. Compared with the traditional freight forwarding business, the essential difference of modern logistics is that it not only provides warehousing and transportation services, but also provides other value-added services, such as container transportation, inventory management, distribution services, labeling, order fulfillment, delivery, classification, processing and packaging. More importantly, modern logistics helps customers plan logistics according to business strategy. Its business characteristics and requirements determine that its risk will increase greatly compared with traditional freight transportation. From production to sales, every link of packaging, transportation, warehousing and distribution is full of risks of damage, theft and loss of goods, and losses often make logistics enterprises bear great risk pressure. However, the traditional freight insurance and property insurance are increasingly divorced from the logistics industry because they can't realize the seamless link of logistics process.

Therefore, some large domestic logistics enterprises, such as COSCO and Shanghai Express, have expressed that from the perspective of enterprise risk management, logistics enterprises urgently need a professional insurance to share their transportation responsibilities in the process of logistics operation, hoping that a more detailed insurance model for different situations such as long distance, short distance and fixed area will appear as soon as possible to solve their worries.

Driven by many factors, PICC P&C finally launched a series of products specifically for logistics insurance in July 2004. As the first logistics insurance product launched in the domestic insurance market, PICC P&C not only brought surprises to logistics enterprises, but also inspired the whole logistics industry.

The logistics insurance introduced by PICC P&C at that time mainly includes two aspects, one is logistics liability insurance, and the other is logistics cargo insurance. Among them, logistics cargo insurance is developed for the logistics mode of Party A and Party B, and the insurance object is the manufacturer or seller of logistics goods. Annual insurance is adopted to cover the losses and related expenses caused by natural disasters or accidents during the transportation, storage, processing, packaging and distribution of logistics goods by integrating the responsibilities of traditional freight insurance and property insurance. Loss of logistics goods caused by theft, failure to pick up goods or failure of refrigeration machinery shall be operated as additional risks.

Logistics liability insurance is specially designed for the third-party logistics mode, and it is also an annual insurance product, which covers the loss of logistics goods that the insured should compensate according to law in the process of operating logistics business. In fact, it combines the carrier's responsibility in transportation with the responsibility of the custodian and processor in the process of warehousing, distribution and processing, and opens up a series of supplementary risks.

According to PICC P&C Insurance, the emergence of a series of logistics insurance products has put all the untenable risks of enterprises under insurance protection and achieved seamless management. That is, a policy package meets the needs of the overall logistics process in the form of comprehensive insurance throughout the year, from loading and unloading, transportation, warehousing, processing, packaging to final distribution, providing enterprises with full protection. In the past, enterprises insured freight insurance, which avoided the delay, omission or insufficient insurance caused by one-vote-one-cargo underwriting.

(2)

In August 2004, China People's Insurance Company Shenzhen Branch welcomed its first customer-Shenzhen Xinke Anda Logistics Support Co., Ltd. ... The cooperation between them once attracted widespread attention in the industry. However, more than a year has passed, and the project has not yet been reported to the CIRC for approval. The cooperation itself is still a framework agreement, and there has been no substantial progress so far.

According to people who believe in koanda, the cooperation with PICC is actually a traditional model, which is more reflected in the convenience of customers to apply for insurance through the company. That is, the company insures cargo insurance for 80% of its customers, and the owner pays the insurance premium. The company only does these things on behalf of its customers. After the accident, the company provides relevant documents and goes to the insurance company to handle claims and other businesses on behalf of customers. In addition, the company will insure third-party liability insurance for each business, and the transportation company will insure vehicle insurance. But this kind of cooperation is actually far from the real logistics liability insurance.

The explanation of PICC P&C insurance is that the new logistics insurance and the previous freight insurance completely belong to two systems. Cargo insurance is a kind of property insurance, and both the insured and the beneficiary are shippers. Logistics insurance belongs to liability insurance, and both the insured and the beneficiary are logistics enterprises; Freight insurance covers the goods themselves, while logistics insurance bears the carrier's responsibility.

For the sake of risk control, PICC P&C claims that the third-party logistics enterprises are mixed, and the credit of enterprises can not be guaranteed, so it is impossible for insurance companies to bear the risks caused by their poor management. Only those modern logistics enterprises with truly standardized management can become underwriting targets.

When the reporter asked who are "standardized management and truly modern logistics enterprises", PICC P&C replied that they are national A-level logistics enterprises. But logistics liability insurance is, in fact, 5A-level logistics enterprises including Southern Logistics have not become underwriting customers of logistics liability insurance. In the end, the reporter only got a logistics cargo insurance clause under the guise of an A-level logistics enterprise.

It can be seen that although logistics cargo insurance and logistics liability insurance are launched at the same time, PICC P&C insurance is obviously more keen to open up the market of the former, because the management of the production enterprises targeted by the former is more standardized. And logistics liability insurance, in the initial stage has long been stillborn.

Meng Yuqun, legal adviser of Sinotrans Group, pointed out that the delay of normal operation is related to the increased risk of modern logistics industry. The contract of modern logistics is a one-to-many relationship, the business is a one-to-one relationship, the process of logistics is a "dangerous voyage", and there are too many human risk factors in complex and changeable links. In particular, the logistics cost is low, there are many value-added services, there are many supply chain factors, the quality is difficult to control, and the business risk is great. Especially in the case of uneven logistics quality of enterprises, it is difficult for insurance companies to control the compensation level of logistics insurance, and their business is prone to losses.

PICC P&C also said that China has neither an independent logistics law nor unified relevant laws and regulations, both in terms of corporate credit and legal environment. Irregular industry management and imperfect laws and regulations make it difficult to define the wording of insurance clauses and responsibilities. Insurance must be based on the existence of a large number of homogeneous risks, and large and small logistics enterprises are mixed, which undoubtedly increases the difficulty of insurance product development and design.

(3)

Insurance companies complain that logistics companies are unprofitable because of poor management and many risks; Logistics companies complain that the insurance rate is too high and the liability is too narrow. It is difficult to unify their opinions, which is the fundamental crux of logistics liability insurance.

In this regard, Qi Yanming, a lawyer of China People's Insurance Company, believes that the complaints of enterprises stem from the unclear positioning of insurance functions. From the perspective of risk planning, insurance is only a stopgap measure. Risk is an objective phenomenon. Insurance can disperse the loss of the insured when the risk occurs, but it can't stop the risk from the source. Only through effective management can the probability of man-made risks be minimized. Qi Yanming hopes that logistics enterprises can deal with risks through management and retention, that is, first, reduce the probability of risks through effective management, so that the types of risks can be transformed into minimum risks, and then avoid risks through retention.

However, Meng Yuqun believes that in order to truly play its role of avoiding risks, insurance companies need to further change their concepts, be familiar with the business of logistics enterprises, and master the credit of the insured, so as to correctly understand the potential risks in logistics links, instead of blindly exaggerating risks and narrowing the scope of insurance coverage without analysis. He hoped that insurance companies would correctly analyze and evaluate the potential value of the logistics market. Only by working hand in hand with logistics enterprises to cultivate the logistics liability insurance market in China can we achieve a win-win situation and a virtuous circle.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.