Insurance policy

[cristiand969]

Dear all,
may I have your opinion on the following matters on an insurance policy:
1. a) Insurer: ABC company (benef)
b) Assignee: To the order of XYZ Bank
Now my first question: is it mandatory for this insurance policy to be endorsed by insurer and secondly , what if the insurer was not stated and policy shows only beneficiary: To the order of XYZ Bank (should it be endorsed).
2. The goods incorporated in the credit are: FIRE DUMPERS. All docs show accordingly but this insurance policy shows as : AIR CONDITIONERS EQUIPMENT. As english is not my native language can be interpreted this as a synonym for a general description or is it in conflict.
Thanks

[Judith]

Case 1
(I presume that in 1. a, you mean “Insured” -and not insurer?!)

Para 180 of ISBP:

If a credit is silent as to the insured party, an insurance document evidencing that claims are payable to the order of the shipper or beneficiary would not be acceptable unless endorsed. An insurance document should be issued or endorsed so that the right to receive payment under it passes upon, or prior to, the release of the documents.

As per my understanding, the “insured” is the party who has the right to claim the benefit under the policy while an “assignee” is a person to whom all or certain contractual rights are transferred.

In my view, marking the assignee as “to the order of the issuing bank” is not the same thing as endorsing it. Endorsement indicates a complete transfer of rights while an assignment depends on the terms of the assignment. In assignment we do not know if an assignee has the right to claim funds or can they only receive funds etc. Also, having an assignee as “to the order of…” is again a subject of discussion; can an assignee further endorse the policy?!

So, in the first case, I would probably treat it as a discrepancy.

In the second case, if the assured party is “to the order of XYZ Bank”, in my opinion, it does not require endorsement as per Para 180.

Case 2
I do not think that native English speakers will consider “AIR CONDITIONERS EQUIPMENT“ as a synonym for FIRE DUMPERS either!

I’ve not really heard of “fire dumpers”. I think the product may be “Fire dAmpers” which is actually part of AC equipment designed to prevent smoke from through the ventilation vents to other parts of the building. However, this is certainly not “general knowledge” (I googled it!) and can be quoted as a discrepancy.

Hope this helps.

[shahriar]

dear cristian,
is ABC company is the insurer or insured? so far i understand, insurer is the insurance company while insured is the applicant of the policy. again so far i know, there is no requirement for the insured to be the beneficiary of the policy. just imagine a life insurance. the insured can not be the beneficiary.
i would bring ISBP in reference

If a credit is silent as to the insured party, an insurance document evidencing that claims are payable to the order of the shipper or beneficiary would not be acceptable unless endorsed

to me here the claim are payable are equivalent to assignee. so if the name of issuing bank is as assignee, i see no requirement for further endorsement.

not sure about the 2nd question. im not a english native either. :lol: . would consider discrepant anyway though. data conflict

[cristiand969]

Dear Judith and Shahriar,
Thanks for your time in answering my questions.
have a nice day!