A: Though I have effected insurance for quite a few times, there is still one thing I am not sure.
B: What is it?
A: What do you think are the main factors that determine the premium rates?
B: First, I think it is the carrying vessel, like its age, classification, ownership and management. And the second is packing.
A: Packing should be seaworthy for strong enough to endure rough handling.
B: In some cases, it is. But not for air freight and container shipment, they tend to require less packing.
A: How about the type of merchandise to be shipped?
B: It must be considered, because some goods are more vulnerable to damage.
A: I guess the distance of transportation and modes of transport also influence the rates.
B: Right. Sometimes, underwriters charge you at a higher premium just because the goods are easily to be damaged or get stolen.
A: Are there close connections between the types of risks and the premium?
B: Yes, the more expensive cover is required, the higher the premium rate is.
A: If the goods to be shipped are glassware, the premium rate against all risks including breakage differs greatly from that excluding it.
B: Last but not least, the volume of cargo. That means a substantial shipment may get more favorable premium.
A: I am clear about the rates now. I really appreciate your help.
B: I'm entirely at your service.