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Exercise Incoterm 2020

For an insurance claim of $70,000, the resulting payment would be $70,000 - $6000 = $64,000 due to the deductible having a maximum of $6000. For a $20,000 insurance claim, the full amount would be paid out since it is below the $2000 minimum deductible. For goods shipped from South Korea to Sweden with a FOB value of $96,000 and freight of $3,820, the insurance premium at a 0.6% rate would be 0.006 * $96,000 = $576. With an insurance premium of $180, the minimum insurance coverage that needs to be in place is $180 / 0.006 = $30

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122 views1 page

Exercise Incoterm 2020

For an insurance claim of $70,000, the resulting payment would be $70,000 - $6000 = $64,000 due to the deductible having a maximum of $6000. For a $20,000 insurance claim, the full amount would be paid out since it is below the $2000 minimum deductible. For goods shipped from South Korea to Sweden with a FOB value of $96,000 and freight of $3,820, the insurance premium at a 0.6% rate would be 0.006 * $96,000 = $576. With an insurance premium of $180, the minimum insurance coverage that needs to be in place is $180 / 0.006 = $30

Uploaded by

Phúc Hồng
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Exercise 1:

What would the resulting payment be by an insurance claim of $70,000 if a deductible of 8% with a minimum of
$2000 and maximum of $6000? How about the case of an insurance claim value $20000?

Exercise 2:
An exporter from South Korea will ship goods from Busan Port to Gothenburg Port. FOB value of the goods are
96 000 USD and the freight cost between Busan Port to Gothenburg Port is 3 820 USD. Delivery term is CIF
Gothenburg Port, Incoterms 2010.
a) Suppose that the insurance premium rate is 0.6%. Calculate the insurance premium.
b) Suppose that the insurance premium is USD180. What is the minimum insurance coverage should be?

Exercise 3:
The EXW price of a consignment is 15000USD, total delivery costs until goods loaded on board is 700USD, to
main voyage freight costs 2500USD. Suppose that the insurance premium rate is 0.7%. Calculate the insurance
premium.

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