Uncategorized WHETHER THE INSURANCE CERTIFICATE MUST BE ENDORSED… By Mr Old Man Posted on April 16, 2014 1 min read 1 0 6,439 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION Dear Mr. Old Man, LC states: Field 50 (Applicant): SHANTOU GARMENTS CO LTD Field 59 (Beneficiary): CAVICO Field 46 (Documents required): Insurance policy/certificate in assignable form blank endorsed… A Certificate of Cargo Insurance presented shows: NAME OF ASSURED: SHANTOU GARMENTS CO LTD No endorsement is made. Can we raise the discrepancy “insurance certificate not endorsed’”? Thank you in advance. Best regards, DDD ————– ANSWER Hi, According to English Marine Insurance Act 1906 marine insurance policies are assignable unless expressly prohibited. They are assigned by endorsement or in some other customary manner. It is normally expected that the assured would endorse the insurance certificate in blank to comply with the LC requirement. However, the assured in your specific case is the LC applicant, i.e., SHANTOU GARMENTS CO LTD. You cannot raise the discrepancy “insurance certificate not endorsed”. The applicant can endorse the insurance certificate once taking up the documents and in case he needs to pass the beneficial interest in the insurance certificate to another party, e.g., subsequent buyer. Kind regards, Mr. Old Man
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?