7 min read


Early morning at Ha Long Bay 


Dear Mr. Nguyen,

Gone through your site and was surprised to see the the L/C clarifications  you are providing in the field of Letter of credit to the New Learner  till  L/C Experts asking queries  from all over the world. Very few people we have in the Globe who wants to share their knowledge with others considering every body should win the Race. Your Help and Assistants are so valuable that it is almost impossible to assess.

No doubt you are the GOD FATHER of Letter of Credit. Thx that I got your web site to clarify my L/C doubt.

I have a L/C where I have to arrange Insurance Policy.

My Insurance agent has sent me the draft in which it is written as follows:

1)  Name of Insured as   ABC…….. (Is it correct or it should be Name of Assured.)

2) Name of Applicant as  XYZ……… (Can we mention L/C Applicant Name in the Insurance certificate or we should Not use Applicant Name in the Policy)

3) Instead of Applicant Name can we use “In the order of “in the Insurance policy or Applicant name to avoid totally.

4) L/C Condition says Opening bank name (Applicant bank) should be mentioned in the all Documents. Can we mention Opening Bank Name in the Insurance policy as per L/C clause

5) What is the difference between Insurance policy and Insurance Certificate? Are both same. Which is the appropriate caption to be used?

One last question. Do you have any restrictions for asking question or I can ask as many as I can?


Anand SV



Dear Anand,

Thank you for your encouraging words, but I am not the GOD FATHER of Letter of Credit.

1) Insured or Assured?

You can look up in the dictionary the definition of  the terms “insured” and “assured”, when to use “insured” and when to use “assured”. There are some very clear definitions with examples to illustrate the differences of the two terms.

Notwithstanding different interpretations of the differences between the terms “insured” and “assured”, I see that the terms “the insured” and “the assured” are generally used interchangeably and do believe that insurance policies showing the name of the insured party or that of the assured party are acceptable.

I have in my hand some insurance documents of which some contain the box “the name of insured” and some others “the assured”.

What’s more?  ISBP 745 (International Standard Banking Practice for the Examination of Documents under UCP 600) uses both terms “the assured” and “the insured”. See the following paragraphs quoted from ISBP 745:

“K5) When an insurance document requires a countersignature by the issuer, THE ASSURED or a named entity, it must be countersigned.”

“K21) a. When a credit is silent as to THE INSURED PARTY, an insurance document is not to evidence that claims…”

2) Insurance Applicant or LC Applicant?

If the insurance document contains a box “Applicant”,  it should be understood that it is the insurance applicant, i.e., person applying for the insurance policy, and not the LC applicant.

3) See Answer No. 2

4) You should do so to comply with the LC terms and conditions.

5) Insurance Policy vs Insurance Certificate?

Please find my answer to a question similar to yours:


A specific policy covers a particular shipment or one shipment only, whereas an open policy is issued once by the insurer under the contract to cover many shipments made by the exporter to different importers over a period of time (usually one year). Therefore, the exporter holding an open policy can not send that sole policy to all the importers. Instead, he will issue an insurance certificate to each shipment and that insurance certificate will bear the open policy number.

Please note that if the LC requires an insurance certificate, an insurance policy presented is acceptable, but if the LC requires an insurance policy, an insurance certificate presented is not acceptable unless the LC provides that an insurance certificate issued under an open policy is acceptable.


Please also visit here: http://nhducdng.wordpress.com/tag/insurance-policy-vs-insurance-certificate/

Last but not least,  in order to receive my answer earlier, you should ask one or two questions at once.

Kind regards,

Mr. Old Man

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  1. Tan

    July 25, 2016 at 7:03 pm


    Customer presented insurance policy and makes me confused about the signature, whether it complies with UCP 600

    Insurance policy quotes:
    + this policy is issued by MARSH by special delegation of the underwriters of this policy, for account of ABC company, placed with FIRST CLASS UNDERWRITERS, each and every underwriters being liable for his own respective share
    + In signature area: it shows ‘by special delegation of underwriting companies the leading underwriter ( The seal show – HDI GLOBAL SE)
    + In countersignature (required for validity of the docs): Countersigned on behalf of the assurer: just a symbol without indicating name of assurer

    Our question is that:
    1. Whether the signature meets the requirement?
    2. What is the role of FIRST CLASS UNDERWRITERS and MARSH
    3. The insurance policy is co-insured and the leading insurance company is HDI GLOBAL
    4. Countersignature is enough when not showing the name of assured next to the countersignature sign (the assured is already mentioned in above insurance policy)

    Sorry for questioning too much, we know you are so busy




    • mroldman

      July 26, 2016 at 9:37 am

      1. It’s ok as per ISBP 745 para. K7. Where the cover is provided by more than one insurer, it may be signed by an insurer for or on behalf of all co-insurers.
      2. Underwriters (first class or non first class) are co-insurers. Marsh is a global leader in insurance broking and risk management. The insurance document is signed by the leading underwriter – HDI Global SE. So, I don’t care about the role of MARSH as this is just a pre-printed information.
      3. Yes.
      4. Yes if the assured’s name is identified somewhere on the insurance documents (I guess you mean the assured and not the insurer).
      Kind regards,
      Mr. Old Man
      P/s: It is not easy to give an exact answer without seeing the insurance document


  2. Tan

    July 26, 2016 at 4:45 pm

    Thanks for your reply, sorry because we can not upload the insurance policy for your view.
    Actually this insurance policy has letter head of MARSH. UCP600 requires insurance policy is issued and signed by an insurance company, an underwriter, agent or proxy. In this case, Marsh – as mentioned – issued the insurance policy, while another underwriter signed. So i think that we must identify the role of MARSH here to confirm whether the insurance policy is issued by insurance company/an underwriter or not. Our team discussed and thought MARSH is an insurance company, HDI is underwriter. is it right?

    Moreover ‘by special delegation of underwriting companies the leading underwriter can be understood as on behalf of underwritter?




    • mroldman

      July 27, 2016 at 9:46 am

      I agree that MARSH is an insurance company and HDI is the leading underwriter.


  3. Anna

    October 24, 2016 at 5:09 pm

    Em chào anh,
    Em có một ca khó, mong anh khai sáng giúp ạ.
    L/C yêu cầu chứng từ bảo hiểm .
    Bộ chứng từ về có những dữ liệu sau:
    – ngày giao hàng 25/9
    – chứng từ bảo hiểm xuata trình đúng loại LC yêu cầu. Nhưng ngày phát hành bảo hiểm là 21/9. Và trên bảo hiểm lại có một câu như sau: “warranted no known or reported losses as at 29/9/2016 if shipment date is earlier than 29/9/2016”
    Ngân hàng em đang bắt lỗi bộ chưngs từ vì có câu trên trong khi ngày giao hàng là 25/9/2016 (như tham khảo công ty bảo hiểm thì câu đó có nghĩa là những tổn thất xảy ra trước ngày 29/9/2016 sẽ không đươcj bảo hiểm)
    Tuy nhiên trong nội bộ bên em vẫn có ý kiến trái chiều.

    Kính nhờ anh giúp em với trường hợp này ạ. Em xin chân thành cảm ơn anh.


    • mroldman

      October 24, 2016 at 5:37 pm

      WNKORL là thuật ngữ áp dụng trong thị trường tái bảo hiểm. Khi nhà tái bảo hiểm được yêu cầu ghi lùi ngày hợp đồng bảo hiểm, công ty bảo hiểm được yêu cầu ký một cam kết trong đơn tái báo hiểm bảo đảm rằng không có tổn thất nào được báo cáo hay được biết tại thời điểm yêu cầu tái bảo hiểm nhằm bảo vệ nhà tái bảo hiểm không phải bảo hiểm cho những tổn thất được biết đã xảy ra trước đó.
      Không sành cái này lắm nhưng theo Mr. Old Man vẫn có thể chấp nhận bảo hiểm này vì nếu tổn thất xảy ra, người được bảo hiểm đòi tiền công ty bảo hiểm chứ không đòi tiền nhà tái bảo hiểm.


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