Marine Cargo Insurance Guide

MARINE CARGO/TRANSIT INSURANCE
MARINE CARGO INSURANCE

Oldest form of insurance Important part of commerce and trade, both domestic and international Concerned with inland transits and exports and imports Mode of transit: by road, rail, inland waterways,sea, air, registered post, courier
Marine Insurance Market
London and other major international markets In 1779 the Committee of Lloyds adopted the SG form(shipping & Goods) as their standard policy for both hull and cargo risks Marine Insurance Act 1906 was passed by British Parliament codifying the practice and judicial decisions of maritime law. More companies came into insurance business. In 1884 other companies started Institute of London Underwriters In 1998 ILU merged with the non-marine insurance body known as London International Insurance and Reinsurance Market Association to become the International Underwriting Association of London (IUA) Other markets of Marine Insurance: USA, Norway, France and Germany; Switzerland, Bermuda
Marine Insurance Market
Mutuals and captives

P&I club, Strikes club and Defence club Captive insurer accepts risks from its own company and also buys reinsurance from market
Brokers, risk managers and captive management Lawyers, banks, surveyors and average adjusters Trade associations and market committees Market agreements
Trade
Increase in trade is accompanied by increased demand for marine Insurance and more ships to carry those goods. Domestic Trade- Sale and distribution of goods within the country International Trade- Exports and Imports of goods to/from other countries Parties:
Sellers or exporters Buyers or importers, Intermediaries
Shipping Bill/ Bill of Export is the main document required
Custom clearance for Export
by the Customs Authority for allowing shipment. The following are the documents required for the processing of the Shipping Bill: GR forms (in duplicate) for shipment to all the countries. 4 copies of the packing list mentioning the contents, quantity, gross and net weight of each package. 4 copies of invoices which contains all relevant particulars like number of packages, quantity, unit rate, total f.o.b./ c.i.f. value, correct & full description of goods etc. Contract, L/C, Purchase Order of the overseas buyer. AR4 (both original and duplicate) and invoice. Inspection/ Examination Certificate. Bill of Export: For the goods which are cleared by Land Customs with all
the above documents.
Documents required for export
Letter of credit - this is applied for making payments for imported items, once the
required papers are handed over. A letter of credit mainly says that the importers bank guarantees to pay provided the entire documents specified in it are in order.
Purchase order - It appears like a trade requirement but it may be desirable for
financing. The buyer may need to prove the order to his bank to organize a provisional loan or customs may desire to see the paperwork to make sure the whole thing is legitimate.
Certificates of origin - Various countries have limitations on the introduction of
commodities from certain other countries, and may apply duty to these commodities or ban them altogether. On the other hand, there may be tax benefits on items from specific supply sources. In such cases, an exporter will require to present a Certificate of Origin, which is certified by a designated regulatory authority.
Bill of lading - required shipment document for sea consignments when
commodities are sent by sea route, as proof that the commodities have been sent by the supplier.
Airway bill - Same as bill of lading except that it is a document involved in Air
shipment.
Documents required for export..
Inspection or Quality credential - if the buyer requires an
examination of goods prior to shipment, these are vital documents to making sure the deal is established in accordance to the buyers requirement.
Packing List - The List of all of the cardboard boxes within the container
and the contents within the boxes.
Invoice - The most essential document. Make sure that a complete synopsis
of merchandise is outlined and it is invoiced in the currency of sale.
Others - These are other detailed requirements from country to country.
For instance, Australia has strict quarantine limitations governing the trade of animal and food items. You would need to secure a permit, or subject your items to an inspection or both.
Documents required for imports

- Bill of Entry ( Import declaration) - Signed invoice - Packing List - Bills of lading or bill of lading / airway bill - Completion of the GATT has been filled in declaration - The importer or his customs declaration agent - Approval (when necessary) - Letters of credit / bank draft (when necessary) - Insurance documents - Import license - Trade License (when necessary)
Documents required for imports..
- Laboratory (Department of Chemicals to provide the goods) - Permitted to make tax-free - The right tariff exemption certificate (DEEC) / right to tax refund certificate (DEPB) Original - Catalog, detailed technical specifications, related documents (the goods are machinery and equipment, machinery and equipment to provide spare parts or chemicals) - A single price of machinery and equipment spare parts - Certificate of origin (application of preferential tariff rates to provide) - No commission statement 3. Pre-declaration, customs declarations and green channel changes
Trade..
- Intermediaries
commission agents- sell goods on behalf of the Principal Clearing & Forwarding agents- custom examination & clearance, arranging conveyance, lodge cargo claims Warehouse keeper- storage Shipping agents- shipping documents, arrange insurance, customs clearance, stowing or space in ship Stevedores- contractors appointed by shipping Cos. for loading and unloading of cargo, stowing the cargo inside the ship Banks- provide loan, facilitate trade by issuing LC and exchange of trade documents Carriers, etc.- various carriers involved in the journey
Trade.

Sales of Goods Act 1924 Consensus ad idem in regard to terms of sale between seller and buyer, in the country or when they are in different country Seller and buyer, both have obligations to fulfill the terms and conditions of the sale agreement For better understanding the terms of trade International Chambers of Commerce Brochure- attach such definite meaning to various sale terms used internationally
Marine Insurance Act, 1963
Insurable interest
Every person has an insurable interest who is interested in a marine adventure Legal and equitable relation to the adventure or to any insurable property at risk therein, in consequence of which he is
benefited by its safe arrival or prejudiced by its loss or damage Incur liability as a result of such loss, damage or detention
Insurable interest
Insurable interest must be there at the time of loss or damage. The goods may change many hands during transit. At inception the insured should have reasonable expectation of acquiring such interest The loss to subject goods may be recovered even if the loss took place even before the insurance was concluded provided the insured is not aware of it. Lost or not lost makes the cover retrospective provided good faith has been observed. (Underwriters take precaution by denying cover if the transit has commenced before insurance arrangement; Sec. 64 VB)
Insurable interest.
If insured has no interest at the time of the loss, he cannot acquire it later after he is aware of the loss.
All consignees of goods have a need for insurance from the point at which they acquire insurable interest, and this insurable interest must be present at the time of loss Assignment can be done Before or after the loss A Marine insurance policy/certificate is freely assignable When interest passes due to trade requirement Unless prohibited in the policy, like - Sellers interest clause, duty insurance, SDP, Annual Policy, Increased value, Special Storage Risk Insurance.
The Insurer has the same defense against the assignee as he had against the assignor.
Measure of insurable value.
Measure of insurable value. (1) In insurance on ship, the insurable value is the value, at the commencement of the risk, of the ship, including her outfit, provisions, and stores for the officers and crew, money advanced for seamen's wages, and other disbursements (if any) incurred to make the ship fit for the voyage or adventure contemplated by the policy, plus the charges of insurance upon the whole
Measure of insurable value..
2) In insurance on freight, whether paid in advance or otherwise, the insurable value is the gross amount of the freight at the risk of the assured, plus the charges of insurance:
(3) In insurance on goods or merchandise, the insurable value is the prime cost of the property insured, plus the expenses of and incidental to shipping and the charges of insurance upon the whole Unvalued policies are rare and usually issued on freight
Passing of insurable interest
A seller of goods has an insurable interest in the goods up-to the time that the risk in the goods passes to the buyer, depending upon the incoterm in the sale contract( type of contract) When title pass after the commencement of voyage or transit, the sellers interest ceases Defeasible interest or contingent interestthe kind of interest that may terminate during the currency of the voyage or transit for reasons other than maritime perils
Indemnity
A contract of marine insurance is a contract whereby the insurer undertakes to indemnify the insured, in the manner and to the extent agreed in the contract.. In other words it is not a contract of indemnity ideally, but of an indemnity according to the conventional terms of the bargain. Valued policy: On the basis of The value of the consignment is pre-agreed Unvalued: On the basis of the the value is calculated as per Marine Ins. Act.
Valued policy.
A valued policy is a policy which specifies the agreed value of the subject-matter insured. Subject to the provisions of the Marine Ins. Act, and in the absence of fraud, the value fixed by the policy is, as between the insurer and assured, conclusive of the insurable value of the subject intended to be insured, whether the loss be total or partial.
Unvalued policy.

Unvalued policy. An unvalued policy is a policy which does not specify the value of the subject-matter insured, but subject to the limit of the sum insured, leaves the insurable value to be subsequently ascertained, in the manner hereinbefore explained. (CIF + %) Maximum Liability-To the full extent of the insurable value
Utmost Good Faith

The insured is obligated to disclose to the insurer every material circumstance. A circumstance or fact is material if it would affect either the premium or the decision to accept the risk. The disclosure must be made before the contract is concluded. Failure to properly disclose material facts entitles the insurer to avoid the contract. The contract is not automatically terminated, the insurer must elect to avoid it and must return the premium.
Examples of Material Facts
The ship was missing at the time the risk was placed; That the ship had gone into port for repairs at the commencement of the voyage; the age of the vessel; that the vessel was generally weak and did not have a certificate required under the Act the unfavorable claims history of the insured.
Effect of Trade growth on Marine insurance

More demand for cargo insurance More demand for cargo ships- containerized, refrigerated, RO/RO ships and chemical carriers increased New design of ships like- Bulk liquid tankers; refer tanker to preserve fresh fruits and meat on journeys to overseas markets; bulk carriers to exploit the scales of economy Need for containers increased. Normally a container has a size of 8x8x20 The goods in container are normally packed at the factory of the exporter or container-depot by professionals and only unpacked at importers depot- in between it remains sealed.
Trade International Contract of sale (Inco-terms)

FOB C&F (CFR) CIF Ex-works FCA FAS CIP DAF DES DEQ DDU DDP
Free on Board Cost and Freight Cost Insurance and Freight From seller premises Free to Carrier at named place (multimodal transport) Free Alongside of ship Carriage & Insurance paid (CIF) Delivery at Front (at border of nation) Delivery Ex Ship ( destination) Delivery Ex. Quay (destination) Delivery Duty Unpaid (final port) Delivery Duty Paid (duty paid at final Port)
INTERNATIONAL CONTRACT OF SALE
RESPONSIBILITY OF ARRANGING INSURANCE
COST & FREIGHT(C&F): BUYER at his own country
Seller to arrange ship and place the goods on board of the ship Documents of ownership transferred to the buyer- B/L, Invoice
FREE ON BOARD (FOB): SELLER UPTO LOADING ON BOARD OF SHIP AND BUYER FROM PORT OF LOADING

Seller to place the goods on board of the ship nominated by the buyer Documents of ownership transferred to the buyer- B/L, Invoice
COST & INSURANCE (C&I): SELLER
Ship is arranged by the buyer and B/L informed to the seller in time for insurance
Seller to place the goods at place agreed or on board of the ship arranged by the buyer
INTERNATIONAL CONTRACT OF SALE RESPONSIBILITY OF ARRANGING INSURANCE
COST INS & FREIGHT(CIF): SELLER Seller to arrange Transportation of goods from warehouse to final warehouse- and so insurance
Documents of ownership transferred to the buyer- B/L, Insurance, Invoice
FAS: Seller up-to port and BUYER from the port of commencement
Seller to place Goods alongside the vessel arranged by the buyer(not to lift on board)
EX-WORKS: BUYER to arrange Insurance and delivery from
the warehouse of seller
FREE ON RAILS: SELLER TO PLACE GOODS ON WAGON AND BUYER IS RESPONSIBLE AFTERWARDS
Insurable interest pass upon the transfer ownership of the goods in favour of buyer.
A contract for the sale of goods performed by sale of the documents Insurable interest pass when the ownership pass to the buyer on passing of the documents of title to buyer (goods cease to be in the control of the seller).
IMPORT/EXPORT PRACTICE
SALE AGAINST CASH PAYMENT CREDIT SALE FINANCED BY A BANK BANK FINANCES ON THE BASIS OF
BILL OF LADING- ACKNOWLEDGMENT OF SHIP ACCEPTED THE GOODS FOR OWNWARD JOURNEY, A TITLE DOCUMENT, NEGOTIABLE INVOICE- DESCRIPTION OF ITEM AND PRICE MARINE CARGO POLICY- COLLATERAL SECURITY, NEGOTIABLE
IMPORT/EXPORT PRACTICE..
BILL OF EXCHANGE
AN UNCONDITIONAL ORDER IN WRITING BY EXPORTER TO THE BUYER TO WHOM IT IS ADDRESSED TO PAY ON DEMAND, OR AT A FIXED OR DETERMINABLE FUTURE DATE A CERTAIN SUM OF MONEY TO OR TO THE ORDER OF SPECIFIED PERSON OR TO BEARER
THERE ARE THREE PARTIES TO A BILL:

DRAWER- CREDITOR DRAWEE- DEBTOR OF ACCEPTOR PAYEE- WHO RECEIVE PAYMENT (DRAWER OR A BANK NOMINATED)
LETTER OF CREDIT:
EXPORTER TO DEMAND FROM IMPORTER TO OPERN A LETTER OF CREDIT IN FAVOUR OF THE EXPORTER THIS LETTER IS ISSUED BY A BANK IN THE IMPORTING COUNTRY IN FAVOUR OF THE EXPORTER IT CONTAINS AN UNDERTAKING THAT BILLS OF EXCHANGE DRAWN BY HIM(SELLER) UPON THE IMPORTER UPTO THE AMOUNT SPECIFIED THEREIN WILL BE HONOURED BY IT ON PRESENTATION THE LETTER OF CREDIT IS PASSED TO THE SELLER OR HIS BANKER PERMITTING THE SELLER TO DRAW A BILL OF EXCHANGE PROVIDED THE DOCUMENT OF TITLE PRESCRIBED BY THE BUYER ARE TENDERED/ PRESENTED
ON GOODS READY FOR EXPORT, THE EXPORTER HANDS OVER THE DOCUMENTS OF TITLE TO BANK AND GETS THE BILL OF EXCHANGE DRAWN BY HIM ON THE IMPORTER, DISCOUNTED WITH THE BANK GOODS ON SALE/EXPORT ARE TREATED AS SECURITY BY THE BANK FOR ADVANCING THE MONEY AN ADDITIONAL SECURITY IN THE FORM OF INSURANCE POLICY IS ALSO REQUIRED BY BANK TO PROTECT ITS INTERESTS IN CASE GOODS ARE LOST/DAMAGED IN TRANSIT
MARINE CARGO INSURANCE MARINE INSURANCE ACT, 1963

ACT PROVIDES THE LEGAL FRAMEWORK OR RULES FOR TRANSACTION OF MARINE INSURANCEFOR BOTH CARGO AND HULL ACT DEALS WITH PRINCIPLES OF MARINE INSURANCE BASIS OF VALUATION UNDER THE POLICY BASIS OF SETTLEMENT OF LOSSES, ETC.
MARINE POLICIES:

ITS AN EVIDENCE OF MARINE INSURANCE CONTRACT POLICY FORM CONTAINS DETAIL OF INSURED, CONSIGNMENT, SUM INSURED, INSURED PERILS, ETC. CLAUSES ATTACHED TO IT SPECIFY THE COVERAGE , CONDITIONS AND EXCLUSIONS- ICC CLAUSES
Marine Insurance Documents

Marine Declaration Form
Details of subject matter are provided by the insured as per the declaration form:
Name and address of the proposer and his business: Whether any bank is interested in the goods, details of the Bank: Description of the goods, nature, quantity: Nature of packing and identification marks: Value/Sum Insured: Basis of valuation: Vessel Name: Voyage- From: to. Via. Transshipment, if any.. Bill of lading no./AWB no./RR no./LR no./Postal Receipt no. Type of Insurance Cover required: ICC (A), (B), (C); ICC (Air); Inland Transit Clause A, B, C, etc. : Claim payable at: Signature of Proposer Date:
Containerization
Stowing of goods in container
Vizag Harbour
Mumbai Port
Vessels in the port
Vessel in the birth to unload
Container vessel
A Port
High sea handling
Overseas Port
Covernote
Covernote: When complete details in regard to ship, etc. are not available a Temporary document (covernote)as evidence of marine insurance pending issuance of Marine Policy. As per Marine Insurance Act, 1963, a contract is concluded when a proposal is accepted by the insured, whether a policy is issued or not. Reference may be made to proposal or slip and covernote.
Though an unstamped document and not enforceable in the court, still it is recognized by the Insurers world around as evidence of marine insurance contract.
MARINE STANDARD POLICY

Also called specific policy Covers individual shipments Stamped as per Indian Stamp Act, 1899, stamp duty is recoverable from the insured The policy can be issued to cover any shipment/ dispatch by sea, road, rail, post or air. Appropriate clauses shall be attached depending upon the coverage granted Minimum premium is Rs. 50/- plus stamp duty Marine insurance policy shall be issued in accordance of Marine Insurance Act to be admitted as an evidence
MARINE STANDARD POLICY FORM

THE FORM CONTAINS THE FOLLOWING PARTICULARS:

NAME OF INSURED: -POLICY NO.: SUM INSURED: -PREMIUM: STAMP DUTY: -CONVEYANCE/STEAMER: VOYAGE OR JOURNEY: -B/L; LR/GR, RR, AWB NO.: TYPE OF COVER: AND DATE: CLAUSES ATTACHED INTEREST/PROPERTY : DESCRIPTION OF THE ITEM WITH PACKING DETAILS : NAME AND ADDRESS OF SURVEYOR AT DESTINATION CLAIM SETTLING AGENT: PLACE WHERE CLAIM SHALL BE SETTLED: POLICY ISSUING OFFICE ADDRESS AND DATE: SIGNATURE OF AUTHORISED PERSON:
OPEN COVER

OPEN COVER: FOR REGULAR SHIPMENTS AN AGREEMENT OF INSURANCE TO GOVERN THE INSURANCE COVERAGE OF FUTURE TRANSITS OR SHIPMENTS COVERAGE LIKE ICC-A OR B ETC. IS AGREED, RATE, TERMS, WARRANTIES, CLAUSES, EXCLUSION ARE AGREED A SCHEDULE OF RATES FOR SENDINGS OF DIFFERENT GOODS TO A RANGE OF DESTINATION IS ATTACHED VOYAGE BY SEA OR AIR, TRANSHIPMENT IF ANY IS AGREED BASIS OF VALUATION OF GOODS IS THERE BUT NO SUM INSURED SPECIFIED IN THE OPEN COVER LIMIT PER BOTTOM (SENDING) AND LIMIT PER LOCATION ( ACCUMULATION OF RISK)
OPEN COVER.
THE INSURER UNDERTAKES TO INSURE ALL SHIPMENTS DECLARED BY THE INSURED
THE ASSURED UNDERTAKES TO DECLARE EACH AND EVERY SHIPMENT WHICH COMES WITHIN THE SCOPE OF OPEN COVER
PREMIUM AND STAMPDUTY PAYABLE AGAINST EACH AND EVERY SHIPMENT A MARINE POLICY OR CERTIFICATE OF INSURANCE SHALL ISSUED DULLY STAMP DUTY AGINST EACH DISPATCH TO BE SENT TO CONSIGNEE AS A PROOF OF INSURANCE
A DEPOSITE PREMIUM, EQUIVALENT TO ONE TO THREE MONTHS TURNOVER SHALL BE ACCEPTED BY INSURER
OPEN COVER..
FOR LEGAL PURPOSE OPEN COVER IS LIKE A COVERNOTE AND THEREFORE A STAMPED POLICY OR CERTIFICATE IS ISSUED AGAINST EACH SHIPMENT THE ADVANTAGES ARE:
AUTOMATIC AND CONTINUOUS COVER IN REGARD TO COVERAGE, RATE, TERMS AND CONDITIONS AND NO NEED FOR ANY NEGOTIATION ON EACH SHIPMENT
ANY INADVERTANT OMMISSION TO INSURE OR DELAY IN SHIPMENT ADVICE IS IGNORED BY THE INSURER PROVIDED THERE IS SUFFICIENT DEPOSIT
SINCE THE RATE IS AGREED AT INCEPTION AND IT HELPS THE INSURED TO KNOW THE COST OF INSURANCE
THE INSURER CAN CHECK THE RECORDS OF THE ASSURED ABOUT THE SHIPMENTS COMING UNDER TERMS OF OPEN COVER
OPEN POLICY

Open Policy/ Floating Policy: A stamped document Sum Insured: Estimated Annual Turnover Details of cargo or goods to covered, mode of transport, voyage from to, basis of valuation, Limit per sending, Rate of premium etc. are mentioned on the policy All the shipments coming under the scope are covered to the extent sum insured is available Policy can be issued for an amount to take care of shipments for 03 months or so at the commencement and can be increased subsequently but before the sum insured is exhausted Policy is issued for 12 months but lapses if the sum insured is exhausted
Open Policy..
For increase in S I additional premium at rate agreed is paid Fresh policy if sum insured is exhausted Declarations are made, giving details of dispatches made during the fortnight or month as agreed, to Insurer and S I is reduced accordingly Details of dispatch:
GR/RR no. Date Description of goods Qty/wt Amount Balance
Open Policy.
A Certificate of Insurance is issued against declarations for the fortnight or month as the case may be.
Since policy is a stamped document, certificates are not stamped.

Open policy is issued for inland transit At the end of the policy period, the policy is adjusted and premium against the balance unutilized S. I. is refunded Advantages of Open Policy: Automatic and continuous insurance protection Administrative labour is reduced Saving in stamp duty
Open Policy.
The insurer can check the records of the insured in regard to dispatches made in terms of the open policy The policy can be cancelled by either party after giving a notice of 30 days Location limit at any one location should not exceed a specified amount mentioned in the open policy conditions
Sellers Contingency Policy
In almost all exports where credit is allowed by the seller to the buyer and the goods are not exported on CIF basis, responsibility for the goods passes to the buyer when the goods are loaded on to the overseas vessel
But ownership does not change until the buyer accepts the goods and related documents.
Thus if the seller is allowing credit to the buyer and has shipped goods on FOB terms, buyer shall arrange vessel and insurance
Sellers Contingency Policy.
In case of any contingency the buyer is supposed to take delivery and seek claim from its insurer.
If the buyer disowns the goods and liability of loss then the seller is again at risk. To cover such risks of exporters, Sellers contingency policy is permitted even in FOB sale. The policy is not assignable and claims shall be settled INR A confirmation shall be required that buyer has not taken delivery of goods and documents of title as well as not claimed from its insurer.
Annual or Sales Turnover Policy

Eligibility criteria The insured should be an entity as per company act The applicable annual premium to be more than Rs. 1 lac. Previous years balance sheet and accounts for determining the sales turnover. Existing client with good relationship and profitability. New client having good reputation and satisfactory claim experience under marine cargo. There must be other insurance business with the Insurance Co. i.e. Property insurance; Stand alone cover is to be discouraged A limit per bottom and per location is to be declared
Annual or Sales Turnover Policy
The following are covered under this policy:

Imports + Customs Duty (Actual orDeemed) + Domestic purchase of raw materials, consumables & stores + Any number of inter-factory / inter-depot / to & fro jobwork movements + Exports (FOB/CIF) + Domestic sales of finished goods Temporary storage of finished goods Temporary storage cover at intermediate locations like job workers / C & F premises etc.
Annual Turnover Policy..
Due care to be taken while deciding the premium rate, keeping in view the inherent fact that the premium rate is based on annual sales turnover figures. No capital goods (plant & machinery) to be covered No over dimensional cargo to be covered. Tail end risks, if any, to be covered only after inspection by the suitable Surveyors and goods being found in satisfactory conditions. Premium adjustment to be done only downwards, in view of the provisions of section 64 VB. The payment of Premium may be allowed to be accepted on the basis of provisional value of quarterly sales turnover, which may be further increased before expiry of the respective quarter. If entire premium is accepted in advance for the Annual Sales Turnover (provisional) even though the quarterly sales figure must be declared by the Insured.
In case of cancellation by insured, refund is subject to retention of 10% premium or Rs.10,000 whichever is higher. If insurer cancel then prorated premium. For war/strike risk cancellation a notice period of 7 days The cargo to be carried per vessels. Strictly as per the list of Association of Approved Classification Societies. The vessel not to exceed 25 yrs and no overage extra to be charged up to 25 years of age of the vessel. The Certificates of Insurance for Imports and Exports shipments may be issued, if required subject to availability of balance sum insured (Sales Turnover). Insured should have IT system in place to show the information of Sales figures (Export/Indigenous) ay may point of time and the Insurers reserve their rights to such system.
Advantages of a sales Turnover policy

Sizeable saving in premium which is charged only on your sales turnover. Seamless cover with all movement of goods automatically covered. No hassles of submitting periodical declaration of movements to the insurer. Only monthly sales figures needs to be submitted. Premium on full annual sales turnover need not be paid in advance. Facility for payment of premium on half-yearly / quarterly basis.
Special Declaration Policy

This is basically an open policy of 12 months duration such policies are issued to Concerns having estimated annual turnover of Rs. 2 Crores or above. Sum insured shall be on the basis of the previous years turnover. All transits upto the sum insured are covered without any exception Total value of goods in transit are required to be declared at least once in a quarter in the form of a certified statement. Mid-term increase in Sum Insured is also permissible twice during a year. Since the Insurer get a sizable premium at the inception, they grant cash discount (called turnover discount) ranging from 20% to 50% on the premium.
Special Declaration Policy.
A SDP is not negotiable or transferable. However where the interest in the

goods has passed on to the consignee, the claims may be settled with such consignee on the request of Insured.
A proposal form giving details of goods, transits and turnover shall be

submitted by the insured, forming part of the contract. The policy shall not be issued in joint names, except the name of the bank or financial institution whose financial interest may be protected. The policy shall expire premature if the sum insured is exhausted. Then an open policy without any discount can be issued The basis of valuation is to be mentioned on the policy- CIF +10%
Final premium is adjusted (downward only) on the basis of actual annual turnover of goods covered.
The policy can be cancelled with a notice of 30 days. Minimum premium chargeable is Rs.5000 in case of SDP
Annual Policy
Internal transfer of goods, specified depots/process units to other specified depots/units owned or hired by insured
Goods belonging to insured only or held in trust and are not sold Goods can be transferred on consignment basis to a dealers premises
Period 12 months Policy is not assignable or transferable
Annual Policy..
Policy cannot be issued to Transport operators/contractors, Clearing & Forwarding agents, commission agents or Freight Forwarders. Policy shall not be issued in the joint names of more than one company. A proposal shall be filled in by the insured and shall become a part of policy or contract
Policy is subject to appropriate inland transit clauses
Annual Policy..
Sum insured: Aggregate maximum estimated value on rail/road at any one time for specified transits Transits are as per distance of the specified transit: 80Km or less: Single carrying limit- twice or 1% of percentage of Estimated Turnover Over 80Km upto 500km: Single carrying limit- four times or 2% of percentage of Estimated Turnover More than 500 km: Single carrying limit- six times or 3% of percentage of Estimated Turnover Whichever is more. Average condition shall apply if at the time of loss the value of the subject matter is found more than the SI
Annual Policy..
Coverage: Basic cover is granted with loading for extraneous perils like theft, pilferage, non-delivery, breakage, leakage, rainwater/fresh water damage and or All risks Premium rate applicable is 30 times that of normal rate
Reinstatement of Sum insured shall be from the time of the happening of an event giving rise to a valid claim on prorate basis Basis of valuation: Prime cost plus incidental expenses and insurance charge Cancellation of policy with a notice of 30 days.
Marine Cum Erection INSURANCE
Project value to include landed costs of imported machinery equipments, including invoice cost, freight, insurance, handling charges, forwarding charges up to site, customs duty, if applicable A comprehensive Marine-cum-Erection Policy, comprising marine, storage and erection risks as a package is issued Two separate policies- one for Marine and the other fore Storage cum erection insurance are issued and attached together Marine transits could be one time (single) or multiple transits (open/declaration) Cost + insurance + freight (c.i.f) + a chosen percentage, generally 10 to 15 % Could include add-ons like War & SRCC Could be subject to warranties
Multi-transit/Stock throughout policies
A Marine Policy terminates if during the transit the goods come into the control of the assured for storage other than in ordinary course of transit, allocation or re-distribution. Subsequent transits are considered separate. Multi-transit policies ensure continuous cover even in case of such exigencies. It fulfills the requirement of traders who have to send the goods for further job work/fabrication at the intermediate points enroute till final destination. Irrespective of the number of transits the cover stays operative. Storage periods which may or may not include some processing can also be covered. A higher rate of premium is charged taking into account the storage periods and multi transits enroute.
Duty Insurance- Imports
This policy is issued for the custom duty charged at the destination port/airport but before the goods arrive in Indian port or airport
The policy is subject to same clauses and conditions as the insurance on cargo policy (CIF policy) Normally the rate of premium charged for duty insurance is 75% that of CIF policy Claims in regard to duty are payable on the goods damaged after landing in the country, excluding total loss of whole or part of cargo prior to duty becoming payable Duty policy is Indemnity policy and not valued policy but is issued on provisional basis and adjusted on paying actual duty Lost or not lost provision shall not apply in duty policy In the event of a claim the assured shall give a notice of loss or damage to the insurer to arrange survey/assessment A claim on Customs shall also be lodged immediately and within stipulated time period for refund of duty on damaged goods
Increased Value Insurance
When the market price of an imported item at destination is more than CIF and Duty value, an Increased value policy is issued for that increase in value Increased value insurance cannot be granted 100% of CIF value of cargo This is not a valued policy but actual increase policy The increased market value is to be established by the assured as notified by appropriate authority in the country The rate, terms and conditions shall be same as that of CIF policy The claim in this case is paid 75% of actual loss suffered
Endorsement
A memorandum attached or issued on policy to record alterations in the contract. Change in the SI Inclusion of name of Bank who financed the transaction Change of voyage Addition or deletion of risks covered Extension of delivery period after 60 days in sea or 30 days in air
Stamp duty

Sea voyage: 10 paise for every Rs. 1500 or part thereof But when rate is 0.125% or less the stamp duty shall be 10 paise For other than sea voyage50 paise when the SI is Rs.5000 or less Rs. 1/-when the SI is over Rs.5000
TYPES OF INS. COVER

BY SEA: As per Institute Cargo Clauses-C (ICC-C)

Institute Cargo Clauses-B (ICC-B)

Institute Cargo Clauses-A (ICC-A)
TYPES OF INS. COVER

BY ROAD/RAIL:As per Inland Transit (Rail or Road) Clause-B Inland Transit (Rail or Road) Clause-A
BY AIR: As per Institute Cargo Clauses (Air) (excluding sending by post)
TYPES OF INS. COVER
ADDITIONAL COVERS-As per Institute War Clauses (Cargo) Institute Strikes Clauses (Cargo) Institute War Clauses (Air Cargo) Institute Strikes Clauses (Air Cargo ) Institute War Clauses ( sending by post) Strikes, Riots & Civil commotion (SRCC) clause (inland transit & not in conjunction with ocean voyage)
Institute Cargo Clauses
Risks Covered Risk clause General Average Clause Both to Blame Clause Exclusions General Exclusion Clause Unseaworthines and Unfitness Exclusion clause
War Exclusion Clause Strikes Exclusion Clause
Duration
Transit Clause Termination of Contract of Carriage Clause Change of Voyage Clause
Termination of Contract of Carriage Clause Change of Voyage Clause Claims

Insurable Interest Clause Forwarding Charges Clause Constructive Total Loss Clause Increased Value Clause
Benefit of Insurance
Not to Inure Clause
Minimising Losses

Duty of the Assured Clause Waiver Clause
Avoidance of Delay
Reasonable Dispatch Clause
Law and Practice
English Law and Practice Clause
ICC-C COVER- 1. Risks Covered

Loss or damage to cargo caused by: n Fire or explosion Vessel or craft being stranded, grounded, sunk or capsized Overturning or derailment of land conveyance Collision or contact of vessel craft or conveyance with any external objects, other than water Discharge of cargo at port of distress General Average sacrifice Jettison to lighten the vessel to remain afloat In addition, General Average, Salvage charges incurred to avoid losses, liability under both to blame clause payable
Risks Covered- Important perils.
Fire- with fire other damages due to heating, smoke or by

water to extinguish the fire are also covered
Explosion- with explosion goods are crushed or damaged

in the range of explosion, are also covered
Spontaneous combustion- due to inherent vice or
nature of commodity is not covered, e.g., leather, coal
General Average- A Sacrifice or expenditure incurred
voluntarily and reasonably at a time of peril for the purpose of preserving the property imperiled in the common adventure.
Risks Covered- Important perils
overboard at time peril to save the adventure from total loss.( cargo and ship belongs to same party) When ship and cargo belong to different owners, such jettison would be a GA sacrifice. Washing overboard- Due to heavy tides in heavy weather, if the goods are washed away, covered in ICC- A and B. Simply lost overboard due ship rolls in heavy weather is not covered. Sling loss- Loss of insured package during loading and unloading, transshipment or discharge of cargo. ICC-A, B covers this type of loss
Jettison- Cargo or other property thrown
Risks Covered- Important perils
Loss or damage due to Collision or contact of vessel, craft or conveyance with any external object other than water. But this do not cover loss/damage resulting from movement of cargo in the ships hold during heavy weather nor will it cover jolting inside a wagon or truck during rail/road transit.
2. General Average Clause
all the parties in the common adventure- cargo, freight and ship Insurer has a liability for this contribution in regard to s/m covered by it due to perils insured against. In case of under-insurance the contribution is reduced to the extent of under-insurance. Salvage charges incurred in preventing a loss by an independent party due to perils insured against may be recovered as a loss by those perils. The party or parties who benefit out of salving act must contribute towards such salvage charges in proportion value of saved interest to total value of all the saved interests. Such a contribution is payable as in case of GA by insurer. Exclusion clauses 4,5,6 and 7 are applicable
General average fund is created by the contribution of
3.Both to Blame Collision Clause

In a collision the two ships are at fault equally or in different ratio. Under the law in US the cargo owner is entitled to claim from either vessel in full unless the contract of affreightment (B/L) is contrary The Bill of lading invariably exclude such collision liability in respect of cargo the vessel carries. Under the Carriage of Goods by Sea Act- neither the carrier nor the ship shall be responsible for loss/damage to cargo arising or resulting from act, neglect or default of the master, pilot or servants of the carrier.
Both to Blame Collision Clause..
The cargo owner, therefore, in US laws, claims in full from the non-carrying vessel, whose owner, in turn, claims against the carrying vessel in proportion to its share of blame for the collision. The result is Both to Blame Collision Clause by which the cargo owner agrees to indemnify the ship-owner for that proportion of the cargo losses
Both to blame collision clause

Two cargo vessels A and B collide Responsibility for blame- A is 60% and B is 40% Cargo owner of vessel A suffer damage of Rs.$ 40000 Cargo owner of vessel A claims from his insurer under ICC and his recovery rights against vessel B are subrogated to Insurer The insurer of cargo owner of vessel A peruse recovery of $40000 from vessel B Vessel B could proceed recovery of 60% against vessel A and recovers $24000 But the vessel A is not responsible for this loss as per contract of carriage and therefore proceed to recover this amount $24000 from the cargo owner As per clause 3 of ICC, the insurer accepts this liability of $24000 being 60% of the loss and reimburses the insured. The net liability of Insurer of Cargo owner of vessel A comes to $24000 Under U S Laws, when two vessels collide, the cargo owner is entitled to claim from either vessel IN FULL, unless a clause in his contract of affreightment prohibits from recovering from the cargo carrying vessel.
Changes in ICC clauses
Words changed in ICC 2009 UnderwriterInsurer Goods - Subject matter insured Servants Employees Except(ed) Excluded Contract of Affreightment- contract of carriage Shipowner- Carriers Liftvan deleted from clauses Headings in the clauses now precede the wording
EXCLUSIONS- Sec. 55 of Marine Insurance Act, 1963

4.1 Willful misconduct of assured, except misconduct or negligence of the master or crew 4.2 Ordinary leakage or breakage, ordinary loss in weight or volume, ordinary wear and tear of the s/m insured 4.4 Inherent vice or nature of the s/m Any loss proximately caused by rats or vermin 4.5 Loss damage or expenses (proximately) caused by Delay, even though the delay be caused by a risk insured against
EXCLUSIONS.packing
4.3 Insufficiency or unsuitability of packing or preparation of the subject matter insured, to withstand the ordinary incidents of the insured transit where such packing or preparation is carried out by assured or their employees or prior to attachment of insurance . Packing shall include stowage in the container when stowage is done by insured or servants The employees shall not include independent contractors This exclusion shall apply when:

The packing or preparation is carried out by the Assured or their employees or The packing or preparation is carried out prior to attachment of the risk
4.5 Exclusionsdelay
4.5 Loss or expense proximately caused by delay, even though the delay is caused by a risk insured against (except expenses payable under clause 2 above) In new clause the work proximately has been deleted and thus the scope of exclusion has widened
Delay can aggravate the loss Delay can be related to financial losses
4.6 Insolvency or financial default of the owners managers charterers or operators of the vessel
Where at the time of loading of the S/m insured on board the vessel, the assured are aware, or in the ordinary course of business should be aware, that such insolvency or financial default could prevent the normal prosecution of the voyage This exclusion shall not apply where the contract of insurance has been assigned to party claiming hereunder who has bought or agreed to buy the s/m insured in good faith under a binding contract The change is more assured friendly
4.7weapon of war.
Loss damage or expense directly or indirectly caused by or arising from the use of any weapon of war, employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter The scope of this exclusion has been widened , like terrorist attack using bombs or other weapon of war.
5. Unseaworthiness and unfitness Exclusion clause

5. In no case shall this insurance cover loss damage or expenses arising from 5.1.1 Unseaworthiness of vessel or craft or Unfitness of vessel or craft for the safe carriage of the s/m insured where the assured are privy to such unseaworthiness or unfitness, at the time the s/m is loaded therein 5.1.2 Unfitness of vessel craft conveyance container or liftvan for the safe carriage of s/m insured, where the Assured or their servants are privy to such unseaworthiness or unfitness, at the time the s/m insured is loaded therein. Unfitness of container or conveyance for the safe carriage of s/m insured where loading therein or thereon is carried out prior to attachment of this insurance or by the assured or their employees and they are privy to such unfitness, at the time loading
Unseaworthiness and unfitness Exclusion clause..
5.2 Exclusion 5.1.1 above shall not apply where the contract of insurance is assigned to the party claiming hereunder who has bought or agreed to buy the s/m insured in good faith under a binding contract The insurers waive any breach of the implied warranty of seaworthiness/fitness of the ship to carry the s/m insured to destination The exclusion shall apply when:
The assured is privy to (aware of) unseaworthiness/ unfitness or vessel or craft at the time of loading The container or conveyance is unfit for the safe carriage of the goods and Loading is carried out prior to attachment or Loading is carried out by assured or their employees and they are privy to that unfitness
But protects the innocent party - assignee
EXCLUSIONS war exclusion clause
6. In no case shall this insurance cover loss damage or expense caused by War civil war revolution rebellion insurrection, or civil strife arising there-from or any hostile act by or against a belligerent power Capture seizure arrest restraint or detainment and consequences thereof Derelict mines torpedoes bombs or other derelict weapons of war
7 Strike exclusion clause

7 In no case shall this insurance cover loss damage or expenses Caused by Strikers, locked-out workmen or persons taking part in labour disturbances, riots and civil commotions; Resulting from Strikes, lock-outs labour disturbances, riots and civil commotions Cause by (any terrorist or any person acting from a political motive) any act of terrorism being an act of any person acting on behalf of, or in connection with, any organisation which carries out activities directed towards the overthrowing or influencing, by force or violence, of any government whether or not legally constituted Caused by any person acting from a political, ideological or religious motive
Insurance attaches from time goods leave the warehouse (subject matter insured is first moved in the warehouse or at the place of storage (at a place named in the contract of insurance) for the purpose of the immediate loading into or onto the carrying vehicle or other conveyance) for commencement of transit, * Continues during ordinary course of transit, And, terminates on completion of unloading, either on completion of unloading at final warehouse or place of storage at destination on completion of unloading to any other warehouse prior to or at the destination elected for storage/allocation/distribution or When the assured or their employees elect to use any carrying vehicle or other conveyance or any container for storage other than in the ordinary course of transit or ** on expiry of 60 days after discharge at final port of discharge Whichever shall first occur *The new clause covers loss/damage on loading/unloading; **Terminates when the carrying vehicle or other conveyance or any container is used for storage other than in the ordinary course of transit
8 Duration clause
Duration Clause extended..

8.2 Change of destination, other than insured If goods insured on completion of unloading at final port of destination, prior to termination of this insurance, the goods are forwarded to a destination other than the mentioned, this insurance shall not extend beyond the time the s/m insured is first moved for the purpose of the commencement of transit to such other destination 8.3 Deviation / discharge and reshipment The insurance shall remain in force during delay beyond the control of the assured, any deviation, forced discharge, reshipment or transshipment and during any variation of the adventure arising from the exercise of liberty granted to carriers under the contract of carriage
9. Termination of contract of carriage
If the circumstances are beyond the control of the assured, contract of carriage is terminated at a port or place other than the destination named therein; or The transit is otherwise terminated before unloading of the s/m insured as provided for in clause 8 Then the insurance shall also terminate unless A Prompt notice is given to insurers and continuation of cover is requested when this insurance shall remain in force, subject an additional premium if required by the insurers, either Until the s/m insured is sold and delivered at such port or place, or Unless otherwise specially agreed, until expiry of 60 days,or If the s/m insured is forwarded within 60 days to the destination named in the contract of insurance or to any other destination, until terminated in accordance with the provisions of clause 8
10. Change of voyage
10.1 After attachment of this insurance, if the destination is changed by the assured, it must be notified promptly to insurers for rates and terms to be agreed. Should a loss occur prior to such agreement being obtained, cover may be provided only if cover available as per prevailing market terms But if ship sails to other destination without knowledge of assured or his employees, this insurance shall attach at commencement of such transit
ICC Clauses..
11 Claims- Insurable interest

To recover under this insurance, the insured should have insurable interest at the time of loss The assured shall be entitled for loss suffered before the contract of insurance if assured were not aware of the loss
12 Forwarding charges clause
On operation of a peril, the underwriter shall pay for the extra charges reasonably incurred at a port of distress or place, in unloading, storing and forwarding the s/m to the destination insured
ICC clauses 13 Constructive total loss
The s/m should be abandoned, either On account of its actual total loss appearing to be un-avaoidable or Because the cost of recovering, reconditioning and forwarding the s/m to destination would exceed its value on arrival The increased value insurance policy covering a loss shall bear such proportion as the sum insured herein bears to such total amount insured
14 Increase value clause
15. Not to inure clause
15.1 This insurance covers the assured which includes the person claiming indemnity either as the person by or on whose behalf the contract of insurance was effected or as an assignee 15.2 Insurance shall not extend to or otherwise benefit the carrier or other bailee
ICC clauses
16 Minimising Losses: Duty of Assured clause
It is the duty of assured, their employees and agents to take measures for averting or minimising a loss recoverable under policy . The clause is supplementary to the contract or in addition to agreed value or SI. All right against carriers, bailees or other third parties are preserved and exercised (Sue and labour clause)
17 Waiver- Assured saving, protecting or recovering the s/m shall not be considered as a waiver or acceptance of abandonment or otherwise prejudice to the rights of either party 18 Avoidance of delay- a condition that the assured shall act with reasonable dispatch 19 Law and Practice- this insurance is subject to English law and practice
ICC-B COVER-Loss or damage to cargo caused by:

All the risks of ICC-C, and Earthquake, volcanic eruption Lightning Washing overboard Entry of sea, lake or river water into vessel, craft, hold, conveyance, container, lift-van or place of storage Total loss of any package lost overboard or dropped whilst loading to or unloading from vessel or craft.
ICC-A COVER IS FOR

ALL RISKS
against maritime or transit perils subject to exclusions
Extraneous Risks (Covered in ICC A):

ICC C and ICC-B can be extended to cover risks : Theft, pilferage, non-delivery Fresh/rainwater damage Hook damage Sling loss Damage by mud/oil/acid/any extraneous substance heating Damage due to heating :dry out and s/m becomes brittle (stowage and ventilation) Sweating Leakage & breakage.. Bursting/ tearing of bags.
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INLAND TRANSIT-B COVER

CLAUSE B COVERS: Physical Loss or damage caused by: Fire Lightning Breakage of bridges Collision/accident to carrying vehicle Overturning of carrying vehicle Derailments CLAUSE C COVERS: This cover includes physical loss or damage suffered due to risks / perils such as Fire risk Lightning.
OTHER COVERS
Inland transit-A cover Sendings by air Sendings by Regd. Post
ARE ALL ALL RISKS COVERS
DURATION OF COVER
WAREHOUSE TO WAREHOUSE
DURATION-OCEAN TRANSITS
Insurance attaches from time goods first moved in warehouse/place of storage for loading purpose for the commencement of transit. (now loading/unloading is covered) Continues during ordinary course of transit, And, terminates either on completion of unloading at final warehouse or on completion of unloading to any other warehouse for storage/allocation/distribution or When the assured or their employees elect to use any carrying vehicle or other conveyance or any container for storage other than in the ordinary course of transit or on expiry of 60 days after completion of unloading at final port of discharge Whichever shall first occur
DURATION-AIR TRANSITS
Insurance attaches from time goods first moved in warehouse/place of storage for loading purpose for the commencement of transit. (now loading/unloading is covered) Continues during ordinary course of transit, And, terminates either on completion of unloading at final warehouse or on completion of unloading to any other warehouse for storage/allocation/distribution or When the assured or their employees elect to use any carrying vehicle or other conveyance or any container for storage other than in the ordinary course of transit or on expiry of 30 days after completion of unloading at final airport of discharge Whichever shall first occur
DURATION-INLAND TRANSITS

Insurance attaches from time goods leave warehouse for commencement of transit, Continues during ordinary course of transit, And, terminates either on delivery at final warehouse or for transits by rail only or rail & road, until expiry of 7 days after arrival of rail wagon at final destination railway station or for transits by road only, until expiry of 7 days after arrival of vehicle at final destination town Whichever shall first occur
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Exclusion in ICC clause is deleted. Risks Covered: Loss or damage caused by1.1 War, civil war, revolution, rebellion, insurrection or civil strife or any hostile act by or against a belligerent power 1.2 Capture, seizure, arrest, restraint, detainment arising from risks covered under 1.1 above, and the consequence thereof or any attempt thereat that is war-like only 1.3 Derelict (meaning abandoned or drifting) mines, torpedoes, bombs or other derelict weapons of war
General Average and salvage charges incurred to avoid a loss from a risk covered Under Duty of the Assured Clause, charges reasonably and properly incurred to avert or minimise an insured loss and to preserve and pursue recovery rights, are also covered
Institute War Clause (cargo)
Institute War Clause (cargo)..

Duration of the Cover: The cover is waterborne and therefore does not attach until the goods are loaded on the overseas vessel and terminates when the goods are discharged from the overseas vessel or Until 15 days from the midnight of the day of arrival of the vessel at destination port, which ever is earlier If the goods are transshipped, the cover continues during transshipment but subject to 15 days from the arrival of the ship at transshipment port However, the war cover reattaches on loading of the goods onto the on-going vessel Transit to and from vessel when goods are in craft, cover can be extended to cover the risks of mines and derelict torpedoes only, whether they are floating or submerged
Institute War Clause (cargo)..
Exclusions are same as in ICC clauses and the additional clause isFrustration clause- Any claim based upon loss of or frustration of the voyage or adventure
The insurance covers only physical loss or damage to the cargo and does not guarantee the completion of the voyage
Institute Strike Clause (cargo)

Exclusion in ICC is deleted. Risks covered: Loss or damage caused byStrikers, locked-out workmen or persons taking part in labour disturbances, riots and civil commotions; Any terrorist or any person acting from a political motive General Average and Salvage charges incurred to avoid loss from a risk covered Charges reasonably and properly incurred to avert or minimise an insured loss and to preserve and pursue recovery rights Duration/transit clause is same as in ICC clauses (60 days)
Institute Strike Clause (cargo)2009

loss of or damage to the subject-matter insured caused by 1.1 strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions 1.2 any act of terrorism being an act of any person acting on behalf of, or in connection with, any organisation which carries out activities directed towards the overthrowing or influencing, by force or violence, of any government whether or not legally constituted 1.3 any person acting from a political, ideological or religious motive.
As noted in connection with Clause 7 of ICC (A) these clauses only cover physical damage arising from the specified perils and not losses arising from delay or interruption of the transit. Two additional exclusions help to make this clear.
3.7 loss damage or expense arising from the absence shortage or withholding of labour of any description whatsoever resulting from any strike, lockout, labour disturbance, riot or civil commotion 3.8 any claim based upon loss of or frustration of the voyage or adventure
Strike Riot & Civil Commotions- Inland transit

Risks covered: Loss or damage caused byStrikers, locked-out workmen or persons taking part in labour disturbances, riots and civil commotions; Any terrorist or any person acting from a political motive Duration/transit clause is same as in Inland Transit clauses (07 days)
New -Strike Riot & Civil Commotions (Inland) loss of or damage to the subject-matter insured caused by 1.1 strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions 1.2 any act of terrorism being an act of any person acting on behalf of, or in connection with, any organisation which carries out activities directed towards the overthrowing or influencing, by force or violence, of any government whether or not legally constituted 1.3 any person acting from a political, ideological or religious motive. Duration/transit clause is same as in Inland Transit clauses (07 days)
Salvage charges
Salvage operation is an act or activity undertaken by a third party to assist a vessel or any other property in danger in navigable waters or in any other waters Elements of salvage: Property must be in danger by a peril or imperiled Services must be voluntary by third party Condition reward on no cure, no pay basis Either paid by salvage award or by contract The agreement covers salvage operations prior to and after the salvage agreement is signed. The reward should be reasonable The agreement terminates when the property is taken to a place of safety Mostly the salvors are private companies having ready fleets of powerful tugs, fire fighting equipments, pumps, etc.
General Average
The concept of was developed by ancient Greeks for allocation of certain types of losses between the vessel and cargo interests Standard rules were developed in 19th century called York-Antwerp Rules 1950,1974 or 1994 (and latest being 2004- yet to be adopted) Elements of GA:

An extraordinary sacrifice or expenditure Intentionally and reasonably made or incurred For the common safety of the maritime adventure
The property must be in danger by a peril or imperiled This liability of the vessel and cargo to contribute to GA is covered by insurance
GA sacrifice: A ship carrying a cargo belonging to a number of different merchants strands on a reef. To refloat the vessel the master orders that some of the cargo be jettisoned. Alternatively the captain would have used engine which would have put to damage/loss due to strain of load GA expenditure: The captain taking assistance of a salvor, who offload the goods in another ship and tow the vessel of the reef and then reload the goods. All expenses and reward to salvors. Cost of putting into a port of refuge to restow cargo where cargo has shifted in heavy weather and had put the vessel and cargo in peril.
Examples of GA
A merchants cargo jettisoned valued at $ 400,000 Other cargo belonged to B- $200,000; C-$ 300,000 and Freight- $ 100,000; vessel- $1,000,000 Interest Contributor Value Contribution
Vessel Sacrificed cargo Cargo B Cargo C Freight Total $ 1000,000 $ 400,000 $ 200,000 $ 300,000 $ 100,000 $ 2,000,000 20% 20% 20% 20% 20% $ 200,000 $ 80,000 $ 40,000 $ 60,000 $ 20,000
GA contribution
20% $ 400,000
Miscellaneous Clauses and warranties
Comprehensive Clause- with ICC B
Including the risk of theft, pilferage and/or non-delivery, fresh water and rain water damage, hook, oils, mud, acid and other extraneous substances, heating and sweating and damages by other cargo
Institute Replacement clause- machinery
In the event of a claim for loss or damage recoverable hereunder, the company only to pay the cost of repairing, or if necessary, replacing the damaged part or parts, but such cost in no case to exceed the insured value of the parts so damaged (including charges for forwarding, refitting and duty if any)
Label clause
Applicable to canned and bottled goods to be identified by consumers Cost of new labels and re-labeling labour charges Another exclusion can be Warranted free from all claims in consequence of labels being washed off or damaged Warranted excluding the risks of rejection by Govt. authorities
Pair and Set clause
Companys Liability shall not exceed the value of any particular part or parts which may be lost or damaged without reference to any special value which such article may have as part or parts of such pair or set, nor more than a proportionate part of the insured value of the pair or set
Cutting Clause
Applicable to pipes or similar items of length Warranted that the damaged portion should be cut off and the balance utilized
Pickings Clause
Applicable to Cotton, wool and similar fibrous items whipped in bales. Country damages makes the bales damaged on the surface outwardly. By picking out the damaged fibres, the remainder of the bale may be considered as sound Insurer shall pay cost of picking and the cost of re-baling of sound and damaged material
Garbling clause
Applicable to tobacco, coffee beans or grain. Garble means to sift, to cleanse, to separate sound from the whole, which got mixed with some other material The insurer shall pay the cost of garbling
Theft, pilferage and non-delivery

Applicable when the coverage is extended to cargos covered under ICC C or B In consideration of an additional premium, it is hereby agreed that this insurance covers loss of or damage to the subject-matter insured caused by theft or pilferage, or by non-delivery of an entire package, subject always to the exclusions contained in this insurance
Trade Clauses
Institute Commodity Trades Clauses- A,B,C (Similar to ICCA,B,C ) are used for insurance of commodities like: Cocoa, Coffee, Cotton, Fats and Oil in containers, Hides, Skins & Leather, Metals, Oil seeds, Sugar, Tea Institute Coal Clauses (ICCB with inherent vice) Institute Jute Clauses (ICCB- cover starts after putting the cargo on board and 60 days period reduced to 30) Institute Natural Rubber Clauses (ICCB with TPND & water damages are covered; 60 days period reduced to 30) Timber Trade Federation Clauses (ICCB with TPND & MD) Institute Bulk Oil Clauses (ICCB with leakage from pipes while loading unloading transshipment and contamination due to negligence of master or crew; or by bad weather) Institute Frozen Food or Meat Clauses (ICC A or C; 24 hrs. BD)
UNDERWRITING AND RATING OF MARINE INSURANCE
What is good in insuring?

The affect of insuring the goods is that the element of risk of loss is transferred from owner of the goods to the insurer. Being free from the threat of loss, the producers and traders are able to concentrate on their business activities. Thus marine insurance acts as a partner who stands behind the owners of goods in the event of a loss and Allows them to concentrate on their main business fearlessly.
Trade by Sea
Some 5.5 bn tonnes of cargo is transported by sea every year, which 98% of all cargo transported internationally. Over 80% of the cargo consists of raw material
50% of which is oil, the largest producers are Saudi Arabia and other gulf countries 27% is coal, iron ore and grain
Rest are other processed or manufactured products which are of higher value but less in weight
RATING & UNDERWRITING
Underwriting- To decide about the Acceptance of a
insurance business at a rate depending upon the features of the risk and the terms, conditions of coverage required for It is the essence of the underwriting to accept insurable risks and not those where the loss is inevitable Appropriate Coverage clause to be applied in view of the cover agree and as per the nature of the commodity Whether any warranty is to be agreed with proposer and incorporated in the policy- like packing of rice in double gunny bags, etc. Basis of valuation needed to be ascertained Deductibles may be used to avoid small and frequent losses in future. Warranty in regard to vessel or carrier may be incorporated Coverage to transit may be restricted from port to port Basic Coverage may be extended to provide extended cover
Specie- items of value, paintings, bullion, banknotes or bearer bonds, precious stones and artifacts are high value and easily portable and are often excluded from cargo cover Special cover to be devised for such items Inevitable losses:
Ordinary leakage, ordinary loss in weight or volume, ordinary wear and tear Inherent vice or nature of subject matter Insufficient or unsuitable packing or preparation
Material Information for Rating & Underwriting
Proposal form is not necessary, a letter proposing for insurance policy or a declaration form is submitted with following information: Name of proposer/consignor/Insured Full description of goods to be insured Nature of commodity to be insured- Hazardous, non-hazardous, solid, liquid, fragile item/precious item Packing in detail- in bales or bags, cases or bundles, crates, drums or barrels, loose packing, cardboard cartons or in bulk, in container, etc. Standard packing combat every level of rough handling, climatic and environmental hazard
RATING & UNDERWRITING..
Value of the interest (s/m) to be insured with breakup CIF+10% plus duty, etc. Voyage and Mode of Transit:
Journey from and to .. via.. Mode of conveyance to be used- by rail/road/sea or by air; or it may be a combination of two or more Name of vessel, B/L; Airlines, AWB; Rail/Road, consignment Note; Postal receipt If transshipment required Is it entire transit or a tail end risk details of ocean coverage
Cover Required: The risks required to be insured

against- ICC A or B or C or ITC A or B ; extraneous perils with basic cover
Excess, deductible, retention, co-insurance, and franchise
An excess is the amount payable by the insured and is usually expressed as the first amount falling due, up to a ceiling, in the event of a loss. It may be expressed in either monetary or percentage terms. An excess is typically used to discourage moral hazard and to remove small claims, which are disproportionately expensive to handle. The equivalent term to 'excess' in marine insurance is 'deductible' or 'retention'. A co-insurance, is an excess expressed as a proportion of the risk and so of a claim, e.g. 5%, and applied to the entirety of a claim. A franchise is a deductible below which nothing is payable and beyond which the entire amount of the sum insured is payable.
RATING & UNDERWRITING.

Name of Vessel
It is important to find out the details of ship, age, tonnage, classification, ownership, etc Vessel should be first class, classified, seaworthy and fit to carry out the journey. Shipment by old vessel or of less-tonnage is not good. Normal tonnage- 3000 GRT to 15000GRT Still if such business is accepted then additional premium is charged (guideline from London Market) Liner vessel- vessel follow scheduled route and ports, to load/unload cargo, is advertised Tramp vessel- which do not follow a fixed schedule but carry the cargo when and wherever available. Cargo by this kind of vessel is not good risk and verification of such ship is necessary. Heavy/extra premium should be charged in such a case.
Seaworthiness of vessel..
Marine rates/policy agreed to, apply only to cargo carried by vessels: 1. Mechanically self propelled vessels 2. Vessels of steel construction 3. Vessels adhering to Instt. Classification clause
Seaworthiness of vessel
Reasonably fit to withstand ordinary perils at sea Must not be overloaded Cargo on board/hold properly stowed
Officers/staff are properly qualified Equipment/machinery in good repaired Equipped to carry particular cargo in particular sea/route
Seaworthiness of vessel
Exclusion clause 4.6 of ICC can be deleted
In no case shall this insurance cover loss, damage or expense arising from insolvency or financial default of the owners, managers, charterers or operators of the vessel, if the assured are aware of or should be aware of..
Convincing proof of the physical viability of the vessel Check on Vessel Flag, Financial Viability, Background of Vessel Operators, etc
Seaworthiness of vessel..
Check the Vessel Classification
Tonnage of vessel Age of Vessel
Classification of Vessels
Vessel has to be classified by any of the following classification societies

Lloyds Register American Bureau of Shipping Bureau Veritas China Classification Society Germanischer Lloyd
Korean Register of Shipping Maritime Register of Shipping Nippon Kaiji Kyokai Norske Veritas Registro Italiano Indian Register of Shipping
Conditions to classification approval

1. 2. 3. 4.
5.
6.
Vessel is not bulk/combination carrier Vessel is not a mineral oil tanker Vessel is not over 15 years of age Vessel is over 15 years of age but less than 25 years of age but has regular pattern of trading on advertised schedule (liner vessel) Vessel undergoes inspection at the time of registration to ensure compliance of highest standards set by classification society in regard to vessel, its plant & machinery, qualified & trained crew members, safety and upkeep Vessel is subject to subsequent periodical inspections to ensure its maintenance and necessary technical safeguards
Non-classification Additional Premium @ 0.10%
Under-tonnage of Vessel
Additional premium is chargeable as per

Indian Vessels below 450 GT 0.75% Foreign Vessels below 1000 GT 0.50% Foreign Vessels below 450 GT - 0.75%
Tonnage is a measure of the size or cargo carrying capacity of a ship GT- Gross volume of the ship inside (GRT) NT- Its capacity to carry the cargo (NRT)
Overage of Vessel
Overage extra premium is charged in case of 1. War built vessels (1940-45) 2. Vessels over 15 years of age 3. Mineral oil tankers over 20 years of age 4. Liners over 25 years of age 5. Vessel flying flag of convenience
Types of vessels
General Cargo Vessels

Liner vessels Tramp vessels
Dry bulk Carriers Liquid bulk Carriers Crude carriers or Tankers Combination bulk carriers- dry as well as liquid Container vessels
Lighter aboard ship (LASH) - containers on barge Roll on Roll off (Ro Ro ships) Passenger vessel Sundry vessels

Coastal vessel Fishing vessels
Dredgers Barges Launches
Voyage or transit
The transit from warehouse to warehouse, including incidental land transits from country of origin to final destination Cover starts from the time/period the loading on the carrier for commencement of transit. Transit to a container terminal for stuffing into a container would be considered as part of the overseas transit
Voyage or transit..

Well now find outGoods in the warehouse or in open awaiting customs formalities, inspection and shipment. Condition at the port and handling facilities in the country of origin or that of destination is relevantcountry damage if coverage starts from port Loading/unloading at commencing port or destination port on or from the ship by/to direct quayside/birth platform transfers or will loading/unloading be done through barges/lighters, which means increased handling Stowing in the container/ship Is the voyage involve Transshipment- additional handling , storage, loading at the transshipment port and details of the other ship/vessel
Voyage or transit..
Climate or monsoon in the course of voyage to which the ship shall sail through. The bigger the ship the smoother the voyage Is cargo shipped on deck or under deck or containerized. Deck cargo unless containerized is exposed to weather and washing overboard. Shipowner has no liability for deck cargo Storage facilities at destination port , in shed or in open, security, delay in customs etc. are relevant. Nature of interior land transit, rail/road conditions, political tensions, law and order situation, etc.
Nature of Cargo
Different commodities or products are susceptible to different perils. Therefore, it is necessary to identify the nature of the product The packing has to be accordingly strengthened The insurance coverage is also accordingly designed ICCA, B, C but the assured is more interested in All risks cover. Loss due to inevitable transit risks or inherent vice, spontaneous combustion are not covered unless specifically covered by charging extra premium, e.g., fruits, vegetables, grains, tobacco, jute, or cotton bales, etc. Similarly ordinary losses, leakage, loss weight or wear and tear, self heating are not covered, e.g. chemicals, spirit, sugar, sulphur, aromatic products, hides and skins, garlic, spices, cloves, fertilizers, etc.
Nature of Cargo..

Know other damages also, likeFragile items susceptible to breakage and leakage when collide with other cargo; Caustic soda, nitrates, salt and sugar damaged when coming in contact with any liquid; Naphtha, alcohol, kerosene, paints, turpentine, etc. when coming in friction with other cargo and a spark thereof.
An underwriter should have knowledge of the individual characteristics of goods/ commodities and their susceptibility to different perils like the above
Nature of Cargo- various commodities

Item: Cement Asbestos Cement Cotton in bales Cotton goods (bales/cases)Carpets in bales or bundles
Jute fibre or cloth in bales
Susceptible to: Moisture, CO2, bursting of bags, contamination Brittle, chipping- cutting clause Fire, spontaneous combustion, water Mould growth and decay- requires ventilation Water/dampness, moisture, insects, mildew, bacterial damage due to salt water Water/heat, mould, discolouration
various commodities.
Grain (wheat, maize, etc)-
Flour in gunny or cloth bagsRice in bags
Sugar in bags
Fish in cold storage
Heating, sweating, water, infestation- requires ventilation heating, water, taintingrequires ventilation Sweating, moisture,requires ventilation Imbibes moisture from atmosphere, humiditydryness and ventilation Deterioration if not fresh on packing

Tea packed in aluminum foilChemicals in powder, : liquid or granules packed in bags or drums Crude Oil Paints in drums : :
Water, moisture moisture, evaporation -reaction, loss of weight contamination, water Leakage, Sea water, putrification, evaporation Loss of weight due to drying/evaporation, heat, water Sling loss, hook damage, water, oil
Soap in coated paper :
Newsprint in rolls

Iron rods, strips, scrap :Rust, water, moisture Machinery in cases :Deshaping of the case, rust, breakage of electronic parts Motor vehicle parts :Rust due to water or moisture, breakage of brittle or glass parts, piercing of radiator, etc Other commodities :Details available in Lloyds Survey Handbook
Packing- safety of cargo
Packing of cargo plays an important role in loss prevention and ensure safety of the goods so that they reach destination in sound condition. Packing should be such that it withstand the normal hazards of transit:

Internal movement of goods inside the container during lifting and lowering of packages Pushing, dragging and lifting by handling aids like forks, etc. Improper stowage Cargo needs to be stowed in the ship in an orderly fashion e.g., heavy items towards the bottom while lighter ones on top Inadequate lashing Compression pressures due to high stacks
Packing.

Dropping during manual handling improper slinging Jolts, jerks, pressures, impacts and vibrations during rail/road transit Rolling, pitching, surging, swaying and yaw motions on the seas Rain water/sea water entry Ship Sweat, cargo sweat, temperature/climate/humidity changes Theft and pilferage, etc.
Packing
There are various rules and regulations in regard to export worthy packing, marking and labeling for safety and health reasons. Strong outer container- to withstand the impacts, jerks and jolts of the journey. Thermocole boxes, corrugated fibre-board boxes, wooden boxes, etc. Cushioning- the goods inside the container should not strike with walls of container or with each other proper cushioning is done to absorb the impact and minimise the movement. Corrugated fibre-board strips, paper shredding, wood wool, paddy straw, cork, rubber, foam, etc. are used as cushioning material
Packing
Packing fragile parts separately- Fragile components of goods should be packed separately to protects against shock and impacts depending upon the degree of fragility. E.g., a control panel and its electrical measuring instruments, electronic components, etc. may be packed separately Restraining the movement of contents within a package may need additional bracing Reinforcement- Strapping, correct jointing and fastening methods add to the strength to meet the heavy demands of transit rigours.
Packing
Vibrations- Vibrations may damage or loosen screws, parts of machinery items, cause loosening of electrical contacts and the consequent sparking or leakage of current, seriously impair electronic items. Use of cushioning materials, cardboard spacer or fillers, proper nut-bolts are required for impact protection
Packing
Compression- In the ship, while staking cargo 4-5 tiers
and other bulk cargo to a height of about 5 to 6 meters, the pressure on cargo in lowest tier shall be maximum. Compression damage occurs usually in the form of failure of bottom packages and the goods may get crushed, broken, bend or otherwise deform. The container used should of adequate rigidity. In case of wooden boxes and crates, diagonal bracing or strutting embraces the strength of the packages to withstand compressive forces. In case of fibre-board boxes, rigidity to guard can be obtained through selection of narrower flutes and large number of plies. For drugs, chemicals the container should design ed to be waterproof and leak proof
Packing
Water Damage: Fresh water damage due to rain fall is a common risk in inland transit due to poorly covered storage, leaking railway carriages, poor conditions of tarpaulins In sea transit Due to storms, hurricanes, monsoons, etc saltwater of sea and sweating of ship following changes in climate during the transit caused damages to cargo Water damage can be controlled by prov8iding a moisture barrier like polyethylene film, moralized film, etc. between the product and package.
Premium Rate
Premium Rate depends on factors like

Nature of cargo, Packing, Scope of cover, Sum insured, limit per sending/location Mode of conveyance, type of vessel Destination and routes, Moral hazard Past claims experience- as per type of cargo
Rating: Marine Insurance Business is now detariffed

Insurers past experience in different risks is important guide for rating a risk. Each and every risk has different features and evaluation of the anatomy of the risk and the stresses & strains of the transit are necessary to rate it Rate should commensurate to the degree of hazard in the risk (physical and moral) and kind of packing used. A containerised dispatch of cargo is a better risk. Rate shall also depend upon the type of Cover required, limited cover or All risks Economic and social climate in country of origin or that of consignee. Some times political climate is also relevant Rating of large risks is influenced by reinsurance arrangement
Packages
Wooden boxes/cases- Its a strong packing and should
be made of seasoned lumber without moisture. Suitable for overseas shipment of commodities of moderate weight Ability to support superimposed loads and to withstand compression forces Ability to contain difficult loads with undue distortion or failure Afford good protection to contents, from puncture, breakage and crushing Goods can be fixed or screwed in it allowing the jpackage to be turned on its sides or upside down
Packages
Corrugated Fibre-board Boxes/Cartons- These are reasonably strong, light in weight and most economical. Good for inland and air transits but may not be suitable for sea transits. Increase in moisture content of Corrugated fibre makes it weak. The suitability of fibre-board for the commodity should be ascertained first from the point of view of pilferage, handling and transportation hazards such as compression, puncture and moisture absorption Water resistant adhesive tape should be used for sealing the seams and contact area between flaps It can be reinforced with tension straps
Hull
Ship building
Marine Vessel
Picture of storage under deck
Tug boats
Barges
Trawler
cardboad
Packages
Crates- A crate is essentially a wooden framework to house the equipment, it affords good protection to heavy items from shocks and impacts. It can be open or fully covered Reinforcement can be done by Diagonal bracing, corner strengthening, interior lining with waterproof material can be installed. It facilitates handling and storage of awkward shaped items also It enables sheathing to render the contents inaccessible
Crates
Packages
Bags/ paper bags- cement, flour, coffee, chemical in granules or powder form in multiply paper bags, polythene line bags, Hessian, jute bags, etc. Stowed in tiers or crosstiers and one on top of another. A bag rests on half portion of two bags in the lower tier to avoid collapsing Care should be taken in stowing bags of goods meant for human consumption with other goods Strength of the bag depends upon the commodity and tranist for which it shall be used.
Bags
Packages
Drums- Metal drums, paper reels, are usually stowed horizontally with special frames at base to retain them Steel sheets Coils in upper tier is resting in the hollows formed by the tier below. Cylinders are strong metal containers containing gasses like ammonia, oxygen, etc under pressure.
Drums, paper reels, steel sheet
Packages
Pallets- Packages fastened to a platform and proper secured to it throughout transit.
Pallets
Pallets
Packages
Containers are widely in use for cargo transportation in
the world over. It is constructed of strong lightweight metal Provision is made to use hook or clamps to lift a container Special gantry type devices are used at ports to handle containers instead of jib cranes Specially designed container ships are used to carry cargo in containers Goods/cargo is shipped full container load (FCL) belonging to one owner/consignee on door delivery basis, or Goods/cargo is shipped less than a container load (LCL) belonging to various owners/consignees FCL is a better risk from underwriter point of view Dimensions of container are of standard sizes 8 or 8.5 feet high by 8 ft. wide and 10 or 20 or 30 or 40 ft. long
container
Packages
Bales- Pressed bales for cotton and wool can withstand the hazards of transit except hook damage or country damage due to moisture or water and pilferage. Better to have inner wrap by waterproof polythene, paper wrapping and then jute or Hessian cloth wrapping
UNDERWRITER
RATING & UNDERWRITING.
Underwriter has to decide about the Coverage to be granted- whether All Risks or limited cover. All risk is a wide cover as compared to basic cover and/or with additional covers. Differential rating shall be applied The social and economic condition of destination country also guide the coverage to be given and rate to be charged Whether any warranty is to be agreed with proposer and incorporated in the policy- like packing of rice in double gunny bags, etc. Deductibles may be used to avoid small and frequent losses in future.
Ship in dry dock
Traditional Box- packing
Tray packing
Plywood packing
Corrugated box
Warranties

Warranted excluding breakage, chipping, denting and scratching Warranted excluding mould and mildew Warranted excluding sweating, heating and fresh water damage Warranted excluding natural loss in weight and/or trade shortage Warranted excluding the risks of rejection by Govt. Authorities Excluding shortage from sound bags/packages unless shortage is caused by an insured peril (bagged cargo) Warranted shipped under deck. On deck cargo held covered at terms and rate to be agreed Warranted that the vessel belongs to a classification society or extra premium @...shall be charged by the Company
Warranties..

Warranted that the vessel not to exceed 25 yrs or overage extra premium @ shall be charged by the Company Warranted that the goods shall be carried in covered wagon/lorry Warranted that the goods carrying vehicle is covered by the tarpaulin Warranted the good shall be containerized Warranted that the goods shall be packed in Warranted that the insurance is subject to a franchise/excess of 1% of entire consignment value declared for insurance The liability of the company shall be limited to 75% of the assessed loss where the GR is issued by a Private carrier limiting the liability of the carriers
INSTITUTE RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE
This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith.
1. In no case shall this insurance cover loss, damage, liability or expense directly or indirectly caused by, contributed to by or arising from: 1.1 Ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel, 1.2 The radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or Nuclear component thereof, 1.3 Any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.
CARGO ISM ENDORSEMENT
ISM- International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention, which, among other
things, requires vessel owners to obtain a safety management certification for each vessel they manage. In no case shall this insurance cover loss, damage or expense where the subject matter insured is carried by a vessel that is not ISM Code certified or whose owners or operators do not hold an ISM Code Document of Compliance when, at the time of loading of the subject matter insured on board the vessel, the Assured were aware, or in the ordinary course of business should have been aware: a) Either that such vessel was not certified in accordance with the ISM Code. b) Or that a current Document of Compliance was not held by her owners or operators as required under the SOLAS Convention 1974 as amended. This exclusion shall not apply where this insurance has been assigned to the party claiming hereunder who has bought or agreed to buy the subject matter insured in good faith under a binding contract.
COMPUTER MILLENNIUM CLAUSE (CARGO)
In no case shall this insurance cover any loss, damage, expense or liability of whatever nature which might otherwise be recoverable under this insurance arising out of or in any way
connected with, whether directly or indirectly, the use or operation of
any computer, computer
system, computer software, programme or process or any electronic system where any such loss, damage, expense or liability arises, whether directly or indirectly, as a consequence of (i) the date change to the year 2000 or any other date change and/or (ii) any change or modification of or to any such computer, computer system, computer software, programme or process or any electronic system in relation to any such date change.
TERMINATION OF TRANSIT CLAUSE (TERRORISM)
This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith. 1 Notwithstanding any provision to the contrary contained in this Policy or the Clauses referred to therein, it is agreed that in so far as this Policy covers loss of or damage to the subject-matter insured caused by any terrorist or any person acting from a political motive, such cover is conditional upon the subject matter insured being in the ordinary course of transit and, in any event, SHALL TERMINATE: either 1.1 As per the transit clauses contained within the Policy, or 1.2 on delivery to the Consignees or other final warehouse or place of storage at the destination named herein,
TERMINATION OF TRANSIT CLAUSE (TERRORISM)
1.3 on delivery to any other warehouse or place of storage, whether prior to or at the destination named herein, which the Assured elect to use either for storage other than in the ordinary course of transit or for allocation or distribution, or 1.4 in respect of marine transits, on the expiry of 60 days after completion of discharge overside of the goods hereby insured from the oversea vessel at the final port of discharge, 1.5 in respect of air transits, on the expiry of 30 days after unloading the subject-matter insured from the aircraft at the final place of discharge, whichever shall first occur. 2 If this Policy or the Clauses referred to therein specifically provide cover for inland or other further transits following on from storage, or termination as provided for above, cover will re-attach, and continues during the ordinary course of that transit terminating again in accordance with clause 1. 3 This clause is subject to English law and practice.

Marine Cargo Insurance Guide

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MARINE CARGO/TRANSIT INSURANCE

MARINE CARGO INSURANCE

Marine Insurance Market

Marine Insurance Market

Mutuals and captives

Shipping Bill/ Bill of Export is the main document required

Custom clearance for Export

Documents required for export

Certificates of origin - Various countries have limitations on the introduction of

Bill of lading - required shipment document for sea consignments when

Documents required for export..

Inspection or Quality credential - if the buyer requires an

Others - These are other detailed requirements from country to country.

Documents required for imports

Documents required for imports..

Marine Insurance Act, 1963

Measure of insurable value.

Measure of insurable value..

Passing of insurable interest

Utmost Good Faith

Examples of Material Facts

Effect of Trade growth on Marine insurance

Trade International Contract of sale (Inco-terms)

INTERNATIONAL CONTRACT OF SALE

RESPONSIBILITY OF ARRANGING INSURANCE

COST & FREIGHT(C&F): BUYER at his own country

COST & INSURANCE (C&I): SELLER

INTERNATIONAL CONTRACT OF SALE RESPONSIBILITY OF ARRANGING INSURANCE

EX-WORKS: BUYER to arrange Insurance and delivery from

the warehouse of seller

THERE ARE THREE PARTIES TO A BILL:

MARINE CARGO INSURANCE MARINE INSURANCE ACT, 1963

Marine Insurance Documents

Stowing of goods in container

Vessels in the port

Vessel in the birth to unload

High sea handling

MARINE STANDARD POLICY

MARINE STANDARD POLICY FORM

THE INSURER UNDERTAKES TO INSURE ALL SHIPMENTS DECLARED BY THE INSURED

Since policy is a stamped document, certificates are not stamped.

Sellers Contingency Policy

Sellers Contingency Policy.

Annual or Sales Turnover Policy

Annual or Sales Turnover Policy

The following are covered under this policy:

Annual Turnover Policy..

Annual Turnover Policy..

Annual Turnover Policy..

Advantages of a sales Turnover policy

Special Declaration Policy

Special Declaration Policy.

A SDP is not negotiable or transferable. However where the interest in the

A proposal form giving details of goods, transits and turnover shall be

Policy is subject to appropriate inland transit clauses

Marine Cum Erection INSURANCE

Multi-transit/Stock throughout policies

Duty Insurance- Imports

Increased Value Insurance

TYPES OF INS. COVER

Institute Cargo Clauses-B (ICC-B)

TYPES OF INS. COVER