makes a presentation to Export Electronics for both inbound and outbound air and ocean
freight.
Included in the presentation is a scenario of what would happen if they used the services of
Gotta Go for the air export, including cargo insurance cover under Gotta Go's open policy (refer
to the Guidelines).
Answer the following questions.
1. What type of insurance coverage would Gotta Go recommend to Export Electronics under
its open policy?
A
B
с
2. Calculate the insurance premium Gotta Go would have charged them for this air freight
shipment. (CIF + 10% x Premium) Calculate the following:
What is the CIF value?
What is the valuation?
What is the premium?
3. Given that the claim is supported properly, what amount would the insurance company
pay to Export Electronics? Explain your answer.
4. What suggestions would Gotta Go make to Export Electronics to improve their
competitiveness and risk management on imports?
5. List some benefits Export Electronics would achieve if the CIFFA forwarder provided
insurance cover on imports and exports.
Fig: 1