Marine Insurance Policy
Marine Insurance Policy
Marine Insurance policy covers the risk of Physical loss or damage to the insured goods caused by Fire, Lighting, Breakage of bridges, Collision with or by the Carrying Vehicle, Overturning of the carrying vehicle and Derailment or accidents of light nature of the carrying Railway Wagon/Vehicle.
Non-delivery of the entire Consignment/Packets.
Theft and pilferage.
The loss attributable due to willful misconduct of the assured, Ordinary Leakage, Ordinary Loss Weight or Volume, Ordinary Wear and Tear.
Insufficient or Unsuitability of packaging or preparation. “Packing” includes storage in a container / Lift Van but only when such storage is carried out prior to attachment of insurance by the assured or their servants.
The exclusion is aimed at a circumstance when the assured has control or should have control of the storage, such as prior to transit or when carried out by the assured or his servants.
Proximately caused by delay even though delay be caused by a risk insured against or caused by Inherent vice or nature of the subject matter insured.
- Insurance attaches from the time of goods leave the premises for the commencement of the transit, and continues during the ordinary course of transit, including customary transshipment If any. Until delivery to the final warehouse at a destination, named in the policy.
- In respect of transits by rail only or by rail and road, until the expiry of 7 days after the arrival of a vehicle at the destination town, whichever shall first occur.
LOADING AND UNLOADING: Cover under wider cover policy.
NAME OF THE ASSURED: The name of the party who effects the insurance or on whose behalf the insurance is effected should be given. The insured party can be manufactures, Suppliers, Contractors, Sub Contractors or owner of the goods/machinery/raw material. The policy can be taken jointly by the owner covering the interests of all other parties.
CHANGE OF VOYAGE CLAUSE: Where, after attachment of this Insurance, the destination is changed by the Assured, held covered at a premium and on conditions to be arranged subject to prompt notice being given to the Underwriters.
CONSTRUCTIVE TOTAL LOSS CLAUSE: No Claim for Constructive Total Loss shall be recoverable hereunder unless the subject matter Insured is reasonably abandoned either on account of its actual total loss appearing to the unavoidable or because the cost of recovering, reconditioning and forwarding subject matter to the destination to which it is Insured would exceed its value on arrival.
COURIER: For covering goods sent through courier following conditions to be fulfilled.
- Dispatch by courier / Owner’s vehicle – Company’s liability will be 75 % only.
- Courier should have professional legal liability (Public Liability) policy.
- Cargo owner should not make any contract with the courier restricting/reducing/limiting their liability.
- Courier Numbered Receipt to be issued giving full details like Lorry Receipt (L.R).
OPEN POLICY :
Clients having a substantial turnover and a large number of dispatches require continuous insurance cover. An Open Policy is issued for an amount representing the insured’s estimated Annual Turnover in respect of a series of consignment, which may be declared against the Open Policy with the result that the sum insured will gradually diminish by the amount of each declaration until it is finally exhausted.
It is customary to issue an Open Policy for Insurance of goods dispatched within the country by rail/road/air –Freight/registered post. The cover under an Open policy ceases on expiry of one year from the date of its issue or exhaustion of Sum Insured whichever occurs first. If Sum Insured is likely to be exhausted prior to the expiry of a policy, it may be increased by issuing an extra endorsement by charging an additional premium. Open Policy is issued on Standard policy form subject to applicable tariff rates and clauses.
LIMIT PER CONSIGNMENT:
- The limit per consignment is to be decided at the inception of the policy. So all so limit per location should also be decided and notified in the policy.
- Declaration: It is a condition of this insurance that Assured is bound and will be declared each and every dispatch coming under the scope of the open policy without any exception within 24 hours or as may be agreed by the Insurer on a monthly/quarterly basis.
- The basis of valuation: Invoice cost of goods + the Freight for which the Insured is liable and the cost of Insurance + 10 % incidental charges (C.I.F.+ 10%)
ANNUAL DECLARATION POLICY:
The expression “ANNUAL TURNOVER” shall mean the total insured value of the goods in transit and covered under the policy, which, by agreement may including all incoming and outgoing consignment. Each transit including inter- depot transfers, dispatches to the distribution center or processing center shall be treated as separate transit and the value of the goods must be taken into account for the purpose of Annual Declaration under the policy.
The Sum insured should represent the Turnover of estimated dispatches including inter- depot movements if any during the policy period. FOB (Export) shipment can also be included in the Sum Insured.
- TURNOVER: Turnover means a total insured value of the goods in transit which include all incoming and outgoing consignments, comprising capital goods, raw materials, Stores, finished and semi-finished products, transit including inter – depot transfers.
- SUM INSURED: The Sum insured shall not be less than the actual turnover under the previous policy. In exceptional circumstances policy may be issued for a Sum Insured less than the actual turnover of the preceding policy period, for reasons to be recorded.
- BASIS OF VALUATION: CIF + 10% (Unless otherwise agreed by).
- ADJUSTMENT OF POLICY: The policy shall be finally adjusted after the expiry of the policy, on receipt of Certified ANNUAL TURNOVER submitted to the insurance company.
DUTY AND INCREASED VALUE POLICY PROVISION:
A cover may be granted only on goods imported to India. The insurance shall be granted only if there exists insurance on CIF value of cargo itself and against the same risk as the basic cargo insurance and only on the basis of a signed proposal form. If cargo is imported on CIF basis, because of an unavoidable contractual obligation to insured Abroad, insurance on “INCREASED VALUE ” and “ DUTY “may be granted on terms and condition wider than Overseas CIF insurance.
The insurance should be granted only to the party in whose favor the import license has been issued/officially endorsed. In respect of imports by State Trading Corporation of India and/ or any other Government body under their own import licenses and allotment is made to various parties on “High Seas Sale Basis”, such allottees may be considered as actual holders of the license, provided, an allotment letter or certificate from S.T.C of India or Government body concerned is produced as proof.
No Insurance on “Increase value” or “Duty” shall be granted after the arrival of carrying ship at the destination port. This, however, shall not apply where such insurance has been granted under open covers.
“Increased Value “ and “ Duty” insurance policy may also be issued in favor of “Actual Users”, who purchase from recognized Export Houses under the Export Promotion Scheme, provided an allotment letter/certificate from a recognized from an Export House is produced as proof. Alternatively, the policy issued in favor of the Export House from which the goods have been purchased and can be assigned in favor of “Actual Users”.