Commodity-Material Values (Goods) in Current Turnover Insurance in the Field of Judicial and Business Practice

Abstract

The demand for this type of insurance, such as commodity-material values (goods) in turnover is increasing. This is caused by an increase in the concentration of material resources in warehouses and distribution centers due to the activation of trade through marketplaces and online stores and large cases of loss of goods. Significant losses that may arise from sellers and intermediaries encourage business practices to enter into insurance agreements with special conditions depending on the purpose of insurance. If the purpose of insurance is to protect the property interest of the creditor then such contracts usually provide for a condition on the non-reduced balance of the pledged goods. In the case of concluding an insurance agreement for the purpose of maximum protection of interests (at the upper or middle limit of the value of goods in turnover) judicial and business practice, given the lack of legal regulation of insurance relations, does not currently have unified positions regarding a number of conditions of such agreements: what features of the insured object are necessary and sufficient for its individualization; how to determine the essential condition of the agreement and the insurance amount if the insured value of goods in turnover is variable; and finally what rules should be applied when calculating the insurance indemnity.