What Is Marine Insurance or MARINE CARGO INSURANCE?
In a way the word ‘marine’ is a misnomer because marine cargo insurance relates to insurance of cargoes while they are being transported (with incidental storage) not only by water (sea/river) but also when they are being transported by air, road/rail, post parcel, courier or any combination of the above.
Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport by which the property is transferred, acquired, or held between the points of origin and the final destination.
Information needed to issue a Marine Caro Policy
- A copy of Invoice
- A copy of Packing List or details of packages like number of packages, total net wt., total gross wt., type of packing, contents of packages
- INCO Term
- A copy of GST Certificate
- A copy of PAN Card or a Copy of Certificate of Incorporation
WHAT IS OPEN MARINE INSURANCE?
Marine Open Declaration Policy enables you to insure all your goods in transit or shipment during the year under a single policy. This policy is of a huge advantage for exporters, importers and logistic companies, for multiple transits during the year and a single insurance policy can cover loss or damage of the cargo for multiple transit.
Marine Open Declaration policy are of three types, covering movement of goods from one place to another.
- Within the country (Inland)
- From one Country to another Country (Export/ Import)
Highlights
1) The policy provides automatic and continuous insurance cover to a regular Exporter / Importer.
2) Trader's dealing with regular domestic despatches are also benefited by the open policy.
3) The premium under the open policy should be paid in advance on projected Sum Insured.
4) The projected sum insured should be at least 4 (four) times of the Single carrying Limit / Per Bottom Limit.
5) As per the terms of the policy, Insured is bound to declare each and every shipment without any exceptions.
6) The adjustment of premium and sum insured are done based on the submission of each declaration.
7) The Sum Insured under the open policy can be enhanced 4 (four) times in a year.
8) Omissions or incorrect declarations may be rectified even after the loss or arrival provided such omissions or errors were genuine.
9) Refund of premium on unadjusted Sum Insured is allowed to the insured after expiry of the policy.
WHAT RISKS DOES MARINE INSURANCE COVER?
All Risk as per ICC (A) / ITC (A) Basic Cover as per ICC (B) / ITC (B) – damage due to accident of carrying truck/conveyance & Fire during the course of journey. Rate of premium depends on the proposed Terms of Cover viz. Basic Cover would be cheaper than All Risks cover. The following risks are covered on paying additional premium.
1) War & SRCC (Import & Export)
2) SRCC (Inland Transit)
3) Theft, pilferage & Non-delivery (TPND) in case of Basic Cover only
4) Additional storage cover before delivery of cargo at the final destination.
For more details regarding coverage, please refer to the clauses.
EXCLUSIONS: WHAT RISKS MARINE INSURANCE DOES NOT COVER?
Applicable to all policies.
1) Willful misconduct of the assured
2) Ordinary leakage in case of liquid cargo
3) Ordinary loss in weight
4) Ordinary wear & tear
5) Improper packing
6) Inherent vice
7) Insolvency of carrier
8) Deliberate damages
9) Nuclear weapons
10) Rats and vermin.
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