WHO IS ELIGIBLE TO ENDORSE THE INSURANCE POLICY?

QUESTION

Hi, Mr. Old Man!

I have a question to discuss.

I found an insurance policy that indicates the assured to be ABC CO. LTD. on behalf of XYZ CO. LTD

How to endorse the insurance policy?

Thanks for your attention.

Kevin

——

ANSWER

Hi

In my humble opinion:

ABC Co., Ltd is eligible to endorse the insurance policy as it is authorized to be the assured party on behalf of XYC Co., Ltd on the insurance policy. If the insurance policy is a document required by the LC, ABC Co., Ltd should endorse the insurance policy to comply with the LC requirements.

XYC Co., Ltd is also eligible to endorse the insurance policy as it does not lose the right to act on its own even if it has authorized ABC Co., Ltd to act as the assured party on its behalf.

It is noted that this situation may occur when the buyer, who buys FOB, CNF or Ex-work price, asks the seller to buy insurance on behalf of the buyer. The buyer will repay the seller the insurance premium later.

Best regards.

Mr. Old Man