Marine Insurance

Marine insurance cover starts right from the moment good/machinery/Raw Material leaves the foreign/Indian manufacturer’s warehouse & remains continuously in force during voyage, inland transit to the factory site/ware house.

NAME OF THE ASSURED:

The name of the party who effects the insurance or on whose behalf insurance is agented should be given. The insured Party can be manufactures, supplier, contractor, sub-contractor or owner of the goods/machinery/raw material. The Policy can be taken jointly by the owner covering interests of all other parties.

SCOPE:

Various types of covers are granted according to the requirement of the client. Mainly they can be classified as under.

TRANSIT RISK: (BASIC COVER)

This insurance covers the risk of Physical loss or damage to the insured’s goods/machinery/raw materials etc. caused by fire, lightning, breakage of bridges, overturning of vehicle, collision with or by the carrying vehicle.

WIDER COVER:

(1) Theft, Pilferage and/or non- delivery (TPND) It should be noted that non delivery refers only to the non- delivery of entire package due to any cause and that short delivery or shortage, meaning the delivery of packages short of their full weight, would not be covered. The Policy may for certain commodities be extended to cover shortage but evidence of actual loss would be necessary.
(2) Fresh Water and/or Rain Water Damage: These risks exist particularly when inland transit is involved before shipment or after discharge and while awaiting shipment or delivery. This cover is sought for cotton shipments piece good, hides, skins and general merchandise.
(3) Hook Damage: Goods may be damaged by hooks used in the process loading and/or unloading. Bagged cargo and carpets, are particularly liable to hook damage.
(4) Oil Damage: This risk generally arise from contact of cargo with oil having leaked from the engines of the steamer Damage by oil taint is very common in the case of food stuffs and other cargo like tobacco and tea.
(5) Damage by Mud: Acid and other Extraneous Substance
(6) Heating: Some cargos like rice, oil, cakes, fishmeal, coal are liable to “Spontaneous” heating due to growth of microorganisms, insects or by straight oxidation.
(7) Sweating: Damage due to condensation of water in the ships holds, as a result of climatic changes or insufficient ventilation is covered under the term “Sweating”. The term also includes damage caused by the sweating for the commodity itself. e.g. groundnuts from the west coasts of Africa which are notorious for their tendency to seat.

LOADING & UNLOADING :-

If loading on the carrying vehicle/wagon at the commencement of the transit is intended to be covered under inland transit (Rail/Road – I.T.C.A.B.C.) it should be mentioned specifically on the face of the policy by charging additional premium if required. Unloading from vehicle/wagon is automatically covered under inland transit clause (Rail/Road – I.T.C.A.B.C/)

WIDER COVERS & EXTENTION OF COVERS :-

For wider cover with Basic cover plus TPND Fresh & rain water damage, Hooks, nails, oil, mud, acids, bursting of bagged cargo including bursting & tearing of bags and extension of cover beyond the period of 7 days not exceeding 8 weeks under transit clause, extra premium should be charged, However, the office in-charge of RO/DO/ Branch or the officer nominated by the in- charge will have the discretionary power depending on merits of each case to suitably reduce or increase the rate taking into account the nature of commodity, packing, mode of transport, claim experience, competitive market and such other underwriting consideration.

ALL RISK COVER :

This is an all embracing term and includes all the extraneous risks mentioned above and also physical loss or damage due to any other risk plus leakage, breakage, country damage.

(1) Leakage :

The risk of leakage depends, largely on the condition of the containers. In new , sound steel drums, the risk of leakage is comparatively less. In wooden barrels, however, there is always a certain amount of leakage and in such cases a trade allowance for customary wastage is usual for which insurer is not liable. The cover against leakage is usually granted subject to an “Excess; that is leakage claims are paid only in excess of a specified percentage of the value of the consignment. On liquids granted the cover against “Leakage and or breakage” is usually in excess of a certain percentage.

(2) Breakage :

Breakage is generally caused by rough handling of goods in transit. The nature of packing is very important while considering the risk of breakage.

(3) Country Damage :

The risk refers to damage by rough handling of goods in transit. The nature of packing is very important while considering the risk of breakage.

DURATION :

Insurance attaches from the time the goods leave the premises for the commencement of transit, and continues during the ordinary course of transit, including customary transshipment, if any.
(1) Until delivery to final warehouse at destination, named in the policy.
(2) In respect of transits by rail only or by rail and road, until expiry of 7 days after arrival of railway wagon at final destination station or in respect of transits by road only, until expiry of 7 days after arrival of vehicle at the destination town whichever shall first occur.
Note : For covering goods sent through courier following conditions to be fulfilled.

1. Courier should have professional legal liability ( public liability ) policy.
2. The cargo owner should not make any contract with courier restriction/reducing/limiting their liability.
3. Carrier Numbered Receipt to be issued giving full details like L.R.
4. Dispatch by Courier/Owner’s vehicle – Co’s Lability 75%

NOTE :

(1) Dispatches should be by vehicle/wagon which is closed or covered with Tarpaulin. If such is not the case 25% loading of premium (ITC ‘B’ Premium Basic ) But nature of commodity is such that dispatch of the same by closed vehicle/closed wagon is not possible, loading is not to be charge.
(2) Liability of the company shall be limits to 75% in case dispatches by private carriers. However in the above circumstances if the Insured pays and additional premium of minimum 25% over & above premium the above warranty shall not apply.

EXCLUSIONS:

1. Willful misconduct of the Insured.
2. Ordinary Leakage/loss in weight or volume ware & Tear.
3. Improper Packing.
4. Delay.
5. Inherent/or nature of subject matter.
6. Cause by war.
7. Cause by resulting from strike, riots, labour disturbances.

COVERAGE OF INLAND TRANSIT CLAUSE (ITC) A-B-C.