Domestic logistics liability insurance How to handle?

In fact, PICC's effort to develop the logistics insurance market was not a wishful thinking on the part of the insurance company, but due to the strong desire of the logistics enterprises themselves.

In recent years, due to the booming development of the logistics industry, the traditional logistics rapidly to the modern logistics transmutation. Compared with the traditional freight forwarding, freight forwarding business, the essential difference between modern logistics is that it not only provides warehousing and transportation services, but also provides other value-added services, such as consolidation, inventory management, distribution services, labeling trademarks, order fulfillment, delivery, classification, and processing and packaging, etc., and more importantly, the modern logistics to help customers in accordance with the business strategy to plan logistics. Its business characteristics and requirements are determined by the risk of its traditional freight transport compared to the inevitable increase. From production to sales of the entire chain of view, packaging, transportation, warehousing, distribution of each link is not full of goods damage, theft, loss of risk, the loss often makes the logistics business is subject to huge risk pressure. And the traditional freight insurance and property insurance due to the logistics process can not be realized seamless link, and thus the logistics industry is increasingly separated.

So, COSCO, Shanghai Express and other domestic logistics enterprises have said that from the perspective of enterprise risk management, logistics enterprises urgently need a professional insurance for its share of the transportation liability in the logistics operation process, and hope that as soon as possible for long-distance, short-distance, fixed area and other different situations of the more detailed insurance model for the enterprise to solve the worries.

In many factors, PICC finally launched a series of products specifically for logistics insurance in July 2004, as the first logistics insurance products launched in the domestic insurance market, not only to the logistics enterprises to bring a surprise, but also to the logistics industry as a whole was invigorated.

The logistics insurance launched by PICC at that time mainly included two aspects, one is logistics liability insurance and the other is logistics cargo insurance. Among them, the logistics cargo insurance was developed for first-party and second-party logistics methods, and the insured objects were manufacturers or sellers of logistics goods. Adopting an annual insurance approach, it integrates the liabilities of traditional cargo insurance and property insurance, and covers the losses and related expenses caused by natural disasters or accidents during the transportation, storage, processing and packaging, and distribution of logistics goods. The loss of logistics goods caused by theft, unavailability of pickup or failure of refrigerated machinery operates as an additional insured operation.

Logistics liability insurance is designed specifically for third-party logistics, which is an annual insurance product that covers the loss of logistics goods in the process of operating logistics business for which the insured should be liable according to law. In fact, it is the transportation of the carrier's liability and warehousing, distribution and processing of the process of custodian and processor's liability together, and introduced a series of supporting additional insurance.

According to PICC, the emergence of logistics insurance series products will put all the risks that the enterprises could not fully insure under the insurance protection and realize seamless management. That is, a policy package for the whole year, in order to meet the needs of the overall logistics process in a comprehensive manner, from loading and unloading, transportation, warehousing, processing, packaging to the final distribution, to provide a full range of protection for the enterprise. The delay, omission or under-insurance caused by the underwriting method of one cargo per vote in the past when enterprises insured freight insurance can be avoided.

(ii)

With the market outlook looking promising, in August 2004, the Shenzhen branch of the People's Insurance Company of China (PIC) ushered in its first customer, Shenzhen Xinke Anda Logistic Protection Co. The cooperation between the two had once attracted widespread attention in the industry. However, more than a year has passed, the project has still not been reported to the China Insurance Regulatory Commission for approval, and the cooperation itself is still a framework agreement, with no substantial progress so far.

Shenzhen Xinke Anda sources revealed that the cooperation with PICC is actually still the traditional meaning of the model, more reflected in the company's convenience to customers through the unified handling of insurance. That is, the company for 80% of the customers insured cargo insurance, by the owner of the insurance premiums, the company is just on behalf of the customer to do these things, after the accident by the company to provide relevant documents, on behalf of the customer to go to the insurance company for the payment of compensation and other business. In addition, the company will be on the third-party liability insurance for each business, the transportation company will be on the vehicle insurance. However, this kind of cooperation has actually been with the real meaning of logistics liability insurance is far away.

PICC's explanation for this is that the newly launched logistics insurance belongs to two systems, cargo insurance is a kind of property insurance, the policyholder and the beneficiary is the owner of the goods; while logistics insurance is a kind of liability insurance, the policyholder and the beneficiary is a logistics enterprise; cargo insurance is the goods themselves, while logistics insurance is to bear the responsibility of the carrier.

Out of risk control considerations, PICC claimed that third-party logistics enterprises are of mixed quality, corporate credit is not guaranteed, the insurance company is not likely to bear the risks caused by their mismanagement. Only those with standardized management and truly modernized logistics enterprises can be insured.

When the reporter asked what belongs to the "standardized management, the real modern logistics enterprises", PICC's answer is the national A-class logistics enterprises. But logistics liability insurance is, in fact, including the South Logistics and other 5A logistics enterprises have not become logistics liability insurance coverage customers. The reporter pretended to A-class logistics enterprises in the name of the information requested ultimately only got a logistics cargo insurance terms only.

This shows that, although the launch of logistics cargo insurance and logistics liability insurance, but PICC is obviously more keen to develop the former market, because the former for the management of production-oriented enterprises more standardized. Logistics liability insurance, in the initial stage has long been dead in the womb.

Meng Yuqun, legal adviser of Sinotrans Group, pointed out that the delay in normal operation is related to the increased risk of modern logistics industry. Modern logistics contract is a relationship between more than one, the business is a one-to-one relationship, the logistics process is a "dangerous voyage", the complexity of the link in the human risk factors are too many. In particular, the cost of logistics is low, value-added services, supply chain factors, quality is difficult to control, operational risk. Especially in the case of uneven quality of logistics enterprises, the insurance company is difficult to control the level of logistics insurance claims, business is prone to losses.

PICC also said that, whether in terms of corporate credit, or from the legal environment analysis, there is neither an independent "Logistics Law" norms, nor unified related laws and regulations. The unstandardized management of the industry and the unsoundness of the regulations make it difficult to clarify the wording of the insurance clauses and the definition of responsibility. Insurance must be based on the existence of a large number of homogeneous risks as a prerequisite, large and small logistics enterprises of good and bad, undoubtedly increasing the difficulty of insurance product development and design.

(3)

Insurance companies complained that the poor management level of logistics companies, the occurrence of many risks leading to its unprofitable; logistics companies complained that the insurance company's insurance premiums are too high, the responsibility is too narrow. The views of the two are difficult to unify the logistics liability insurance is the root of the problem.

In this regard, PICC lawyer Qi Yanming believes that the enterprise's complaints stem from the unclear positioning of the insurance function. From the perspective of risk planning, insurance is only a stopgap measure to address the symptoms but not the root cause. Risk is an objective phenomenon, insurance can spread the loss of the insured when the risk occurs, but can not stop the risk from the source. Only through effective management can we minimize the probability of man-made risks. Qi Yanming hopes that logistics enterprises through the management of the approach to deal with risk, that is, first through effective management to reduce the probability of risk, so that the type of risk into the risk of the smallest, and then through the way to avoid the risk of self-retention.

And Meng Yuqun believes that logistics liability insurance to really play its role in risk avoidance, the need for insurance companies to further change the concept of familiar with the business of logistics enterprises, to grasp the creditworthiness of the insured, so as to correctly recognize the potential risks of the logistics link, rather than exaggerating the risk, without analysis of the scope of coverage will be narrowed. He hoped that the insurance company to correctly analyze and assess the potential value of the logistics market, only with the logistics enterprises hand in hand **** into China's logistics liability insurance market to cultivate, in order to achieve a win-win situation and the purpose of a virtuous cycle.