case study about insurance

yangkenn · Post by **yangkenn** » Sat Apr 10, 2010 6:27 pm

LC required insurance document to be issued to order of XYZ Bank Ltd, the presented insurance policy without endorsement showed:
Assured: ABC Exporting Co Ltd
To order of XYZ Bank Ltd

Is it acceptable?

edilee · Post by **edilee** » Sun Apr 11, 2010 12:35 am

document required to be issued to order of XYZ Bank Ltd, and presented insurance policy to order of XYZ Bank Ltd

it is acceptable

Negotiator · Post by **Negotiator** » Tue Apr 13, 2010 8:18 pm

Dear yangkenn,

I guess you are referring to ICC Official Opinion TA688 case.

(Q)
Case 6 where the L/C required the insurance document to be issued to order of XYZ Bank Ltd
The presented insurance policy without endorsement showed:
Assured: ABC Exporting Co Ltd
To order of XYZ Bank Ltd
Our opinion: This is also acceptable because the insurance policy was issued as required by the L/C.

(A)
Case 6: We disagree with your opinion. The insurance document requires endorsement by ABC Exporting Co. Ltd. The addition of "To order of XYZ Bank Ltd" does not change the fact that the assured is stated to be ABC Exporting Co. Ltd.

I believe that your case is not acceptable in this respect.

Thanks and regards.
Lee