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Chapter 7 Insurance DocumentsOwing to long distance transportation, goods under international trade could be damaged by various accidents. Additionally, by loading and warehousing there are also some risks. In order to be indemnified in event of damage, seller or buyer, depending on the trade terms, effects insurance prior to the shipment. Insurance documents are ones, issued by insurance companies, indicating the type and amount of insurance coverage in force on a particular shipment. Used to assure the consignee that insurance is provided to cover loss of or damage to cargo while in transit.Section 1 Risks categoriesI. Risks : Perils and Extraneous risksII. Loss : total loss partial loss1. Total Loss : Actual loss and Constructive loss2. Partial Loss : General Average particular averageIII. Expenses: 1. Sue and labor exoense 2. Salvage expenses 3. Continuation expenses 4. Evaluation expensesRisks Risks can be divided into general perils and extraneous risks.(1) general perils: it means natural calamities and fortuitous accidents which are caused by the forces resulting from the changes of nature, e.g. vile weather, thunderstorm and lightning, tsunami, earthquake, flood, etc. The action of ordinary winds and waves is not taken as natural calamities. (2) extraneous risks: are risks that are beyond the coverage of the Marine risks mainly including general extraneous risks and special extraneous risks. General extraneous risks They include theft or pilferage, contamination, breakage, sweating and heating, taint of odor, rusting, fresh or rain water damage, short delivery and non-delivery, shortage in weight, clashing, etc.Special extraneous risks They refer to war, warlike operations, hostile acts, armed conflicts or piracy capture, seizure, arrest, restraint or detainment.Losses Losses sustained by the insured because of the risks listed above come from not only the loss of the goods or damage to the goods, but also from the expenses to the goods the insured su
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