Institute Frozen Food Clause And All Risk Insurance
Posted: Wed Dec 04, 2013 1:08 pm
I am writting to seek your help for the case that I am facing:
An irrevocable letter of credit stipulates:
F45A: Frozen raw HLSO Vanamei, IQF, Frozen count. Vietnam origin.
F46A: Full set of Insurance Certificate/Policy issued for 110 percent of invoice value covering all risks
The insurance policy presented cover “Institute frozen food clauses (A) (1.1.1986) (Excluding frozen meat)
Issuing bank refuse the documents citing the discrepancy “All risks missing in insurance docs”
I don’t agree with the issuing bank. As per ISBP745 paragraph K18, an insurance document covering Institute Cargo Clauses (A) satisfies a condition in a credit calling for an “all risks” clause or notation. In the insurance doc presented, the clauses “Institute frozen food clauses A” have similar meaning with “Institute Cargo Clause A”. Therefore, there is no discrepancy.
.
Could you please share your opinion?
Thuyvan
An irrevocable letter of credit stipulates:
F45A: Frozen raw HLSO Vanamei, IQF, Frozen count. Vietnam origin.
F46A: Full set of Insurance Certificate/Policy issued for 110 percent of invoice value covering all risks
The insurance policy presented cover “Institute frozen food clauses (A) (1.1.1986) (Excluding frozen meat)
Issuing bank refuse the documents citing the discrepancy “All risks missing in insurance docs”
I don’t agree with the issuing bank. As per ISBP745 paragraph K18, an insurance document covering Institute Cargo Clauses (A) satisfies a condition in a credit calling for an “all risks” clause or notation. In the insurance doc presented, the clauses “Institute frozen food clauses A” have similar meaning with “Institute Cargo Clause A”. Therefore, there is no discrepancy.
.
Could you please share your opinion?
Thuyvan