Marine Insurance Policy
Marine Cargo Insurance Policy:
All goods are exposed to various risks during transit from one place to other. This policy takes care of loss or damage to the goods (consignments) in transit.
- Mode of Transit: All modes of transit viz. by road, rail, air, sea, courier and the like where goods are carried by a carrier under contract are covered under this policy.
- Goods carried by own vehicles can also be covered subject to certain conditions
- Since goods can be sent or received from anywhere in the world, this product assumes an international character
- The INCO Terms will be the basis for arranging insurance. For example, if the goods are sold on FOB terms, the buyer would be responsible for taking insurance
- In view of its international nature, the coverages, terms, conditions, processes and limitations are as per the internationally accepted standard forms. These forms are called Institute Clauses formulated by Institute of London Under writers, an internationally recognized industry body.
- There are two broad categories of cover:
1. All risks cover covering all perils of physical loss or damage
2. Basic cover covering a few named perils like fire, explosion, accident to carrying vehicle, perils of the sea, General Average etc.,
- Who can insure:
Any person dealing with sale and purchase of goods, export and import of goods like buyers, sellers, exporters, importers, traders who are responsible for safety of goods during transit till reaching the destination can avail of this policy.
- In tune with the nature of business viz. sales and purchases, this policy is easily transferrable along with the goods. For instance, if the imported goods are sold before reaching the destination, the policy also can be assigned to the buyer without the original policy holder approaching the insurance company for transfer of policy.
- Whoever holds the original policy document along with other documents of title to the goods will be the beneficiary of the policy and recover claims if any under the policy irrespective of who has taken the policy
- Duration of cover:
The duration of cover is from the time the goods are ready for transit till the same are discharged at the destination subject to terms and conditions based on the specific requirement of the transaction.
- Though marine transit policy is always for the period of transit, arrangement for automatic cover for all the consignments sent/received during a year can be covered without having to approach the insurer before dispatch of each consignment. This arrangement is called Open cover and Open policy
- The policy can be further customized as Sales Turnover Policy (STOP) covering all the transits related to business.
Marine Hull Insurance Policy:
- This policy is for covering various water borne carrying vessels like ocean going ships, barges, tugs, boats, fishing boats, fishing trawlers, dredging vessels, bulk carriers, tankers etc
- What is covered:
Any loss or damage to the body of the vessel (Hull) and Machinery due to perils of the sea like collision, capsizing, stranding, grounding, General Average, fire, explosion, breakdown of the machinery and the like.
- The collision liability arising from damage to other vessel and cargo thereon is also covered under this policy
- The coverages, conditions, processes, limitations etc, under this policy also are as per internationally accepted standard clauses known as Institute Time clauses formulated by Institute of London Underwriters, an internationally recognized industry body.
- Who can insure:
All owners, charterers, operators, Financiers who ever has any financial stake in the vessel can insure
- Duration of cover:
Marine Hull policy can be given either on annual basis or for the particular voyage covering the entire period of the voyage. However, annual covers are more common