Study On Insurable Interest Under The Trade Term Of FOB

As we know,Marine cargo transport has many advantages such as large volume of transportation,low freight cost and strong applicability to the goods.China is a big trading country,and the transportation of marine cargo occupies the majority of export trade.The domestic seller is difficult to quote the freight price in the export trade,and the foreign buyer usually likes to cooperate with the foreign carrier or the freight forwarder,which lead the seller to use the FOB(Free On Board)trade terms to enter into the sales contracts.Using the FOB trade terms to get orders for the seller,but the domestic seller may also face the risk under the trade terms of FOB and the risk should not be underestimated.The insurer usually makes a technical defense that the insured doesn't have insurable interest at the time of loss,and there is no provision of insurable interest in marine insurance in China's legal system.In order to discuss the insurable interest of seller,on the one hand,it seeks to the judgmental criteria of insurable interest in accordance with the characteristics of marine insurance.On the other hand,it hopes that there will be a comprehensive grasp of seller's insurable interest when the loss occurs.And it provides ideas for seller to disperse risks through insurance measures.In order to determine whether the seller has an insurable interest,firstly,because of the time of insurable interest required by law is the time of loss in property insurance,the insurer's defense is also aimed at the occurrence of the loss.Therefore,it will analyze the situations about the seller may suffer losses in various stages,and it could also analyze whether the seller has no insurable interest.Secondly,it will discuss the relationship between insurable interest and the risk bearing,which is suitable for the characteristics of marine insurance,to judge whether the seller has the insurable interest when the loss occurs.It analyzes the loss situations that seller may suffer,in fact,is to analyze what risks seller may face,in this way,how to the seller take some measures of insurance to disperse the risks by analyzing the insurable interest.In this paper,the risk that seller may face is divided by phases of freight transport.The seller's risks consist of the risk of damage and loss of the goods during transit,the risk of liability due to delay in shipment,the risk of liability due to the buyer not be noticed,the risk of damage and loss of goods before shipment,the risk of damage and loss of goods due to seller's no payment in shipping,and the risk of seller's no payment and damage and loss of goods in unloading.The risk of each phase can be summarized as 3 kinds of risks,such as risk of contractual liability,damage and loss of the goods and no payment of the goods.In terms of the liability of the contract,each contract obligation may be transformed into a contractual liability.In this paper,it only analyzes the insurable interest of the several contractual liabilities that the seller of FOB may undertake,and it provides a way to disperse the risk of contractual liability through insurance.It is not only making the insurable interest as a key point,but also considering the risks of seller under the trade term of FOB and how to the seller make measures of insurance to disperse risk.There are five parts in this paper.It will analyze the judgment standard of insurable interest and transfer time of insurable interest in the first part;and it also will analyze the risk in each phase of the insurable interest and how to the seller take some measures of insurance to disperse the risks in last four parts.The principle of legal interest is too narrow,the principle of economic interest is more adaptive in marine insurance.Insurable interest of marine insurance can be determined for parties to the contract by agreeing on the insurable interest which is not forbidden by law and by allocating of responsibility of burden of proof to the insured.The risks which faced by seller under the trade term of FOB may be dispersed by means of personal insurance or assigning buyer's insurance contract.There are some preliminary insights about the risks that might be faced,insurable interest at the time of loss and seller disperses risks by insurance in this paper.It hopes which means to dispersing seller's risks.It puts forward some suggestions and it is hoped that it can play a positive role in the legislation or judicial interpretation of the insurable interest.