Responsibilities and Practices of Qingdao Freight Forwarding Company

Liability insurance is a commercial insurance in which the beneficiary causes damage to a third party due to fault or tort, and the liability assumed by the beneficiary in accordance with the regulations is the commercial insurance base price. From the perspective of the base price of insurance, the base price of liability insurance is the legal liability of the beneficiary for compensation for losses incurred by the beneficiary due to carelessness, carelessness, etc., resulting in other people’s assets and personal injury, which is covered by liability insurance.

Insurance generally takes the establishment of the compensation limit as the large compensation amount, and the beneficiary is responsible for the part of the excess. Such characteristics lead to the lack of commercial insurance. Once the risk arises, it will only be borne by itself, and the damage will be great. Freight forwarding liability insurance can socialize this type of financial risk, greatly reducing risk obligations, and a capitalist country where the freight forwarding business process is improved.

Qingdao Freight Forwarder

The liability insurance of international freight forwarders is widely used. In capitalist countries, liability insurance is basically a prerequisite for entering the freight forwarding manufacturing industry. China's underwriting has no results, and only passively chooses overseas auto insurance. Due to the lack of liability insurance, freight forwarders in our country have poor ability to solve financial risks and are disadvantaged in competition with similar foreign markets.

1. The risk of freight forwarders

Real identity risk. According to the different business scopes of freight forwarders and the necessity of specific business processes, in addition to the real identity of the carrier’s agent, Qingdao Freight Company may also have the real identity of the contract shipper or the NVOCC. Different real identities bear different legal basis, and the risks encountered are also different.

Such complicated real identities have caused the risk of freight forwarding to increase sharply. Therefore, the risk of real identity is the main risk of freight forwarding, and the risk of job duties has not been fulfilled. Freight forwarders must perform their job duties in accordance with the provisions of the agent contract, but because the work responsibilities of freight forwarders are complicated and fragmented, they involve several stages such as hauling and booking, customs brokerage, transportation in inland areas, port distribution, and shipment transportation.

It is very possible that due to carelessness or unskilled business processes, they are unable to fulfill their duties and surpass the risk of agent management authority. In the practice of business process, freight forwarding so that the goods can be shipped immediately sometimes has to adopt countermeasures based on specific circumstances, such as reviewing various bills, advance transportation fees, willingness to cargo armor, changing the transportation time, and transferring the bill of lading immediately Recipients, etc.

Some of this kind of personal behavior is likely to be ignorant of the carrier, and some are likely to obtain the carrier’s acquiescence or verbal willingness in advance, but once a problem arises, the carrier will hide from others because there is no direct evidence to confirm the carrier. If the freight forwarder is authorized, the freight forwarder is usually assessed as being responsible for crossing the management authority of the agent.

2. The scope of insurance of freight forwarder liability insurance

Integrating the requirements of the freight forwarding manufacturing industry and the liability insurance status of various countries in the world, freight forwarding liability insurance can be divided into two types: freight forwarding principal (basic) liability insurance and sole operator (billing order) liability insurance. The former is the basic liability insurance for the theme activities of freight forwarders, as the basis for bearing financial risks, while the latter is in actual business operations.

The type of liability insurance that underwrites the business process of freight transportation is the basis for reducing the risk of operational theme activities. The freight forwarder website domain name underwrites the principal (basic) liability insurance every year when filing, and covers the individual operator (billing note) liability insurance every year when applying for the filing of the bill of lading. In capitalist countries, auto insurance will present a systematic insurance business of freight forwarding liability insurance.

Freight forwarding liability insurance is also familiar and accepted by many forwarders. In some European countries, a special international freight forwarding agency liability insurance system called SVS and AREX is implemented. In some capitalist countries, the International Freight Forwarding Agency Research Association has established a group insurance system to present liability insurance to its VIP member institutions. In our country, there are still very big vacancies at this level.

At this stage, there is only one insurance that presents technical and professional freight forwarding liability insurance: the Foreign-funded Mutual Agency Freight Protection and Indemnity Research Association (TTClub). TTClub has a rich and varied experience in liability insurance in the transportation manufacturing industry. At this stage, it has insured more than 3,500 international freight forwarders, non-vessel carriers or modern logistics operators all over the world.