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Marine Insurance

Marine Insurance covers the loss or damage of ships, cargo, terminals, and any transport or cargo by which property is transferred, acquired, or held between the points of origin and final destination.

Broad Categories of Marine Insurance

  • Marine Cargo: Any loss or damage to goods in transit by rail, sea, road, air or post.
  • Marine Hull: Any loss or damage to ships tankers bulk carriers smaller vessels fishing boats and sailing vessels.

Marine Cargo

The policy covers loss/damage to the property insured due to:

  • Fire or explosion; stranding sinking etc.
  • Overturning derailment (of land conveyance)
  • Collision
  • Discharge of cargo at port of distress
  • Jettison
  • General average sacrifice salvage charges
  • Earthquake lightning
  • Washing overboard
  • Sea lake river water
  • Total loss of package lost overboard or dropped in loading or unloading.
  • War and SRCC is specifically covered

Types of Marine Cargo Insurance Policies

Open Cover

  • Open cover is usually issued for import/export. The open cover is a contract affected for a period of 12 months whereby the insurance company agrees to provide insurance cover to all shipments coming within the scope of the open cover. Open cover is not a policy. It is an unstamped agreement. As and when shipments are declared specific policies are issued as evidence of the contract and on collection of premium.

Open Policy

  • This policy is issued for transit of goods within India. Policy is valid for one year and all transits during the policy period and declared are automatically covered by the insurance company subject to the availability of the overall sum insured
  • It is a stamped document. In this case specific policies are not issued for each consignment. Premium can be collected in advance for the entire estimated value during the policy period. Stamp duty is collected in advance along with premium for dispatches to be declared periodically.

Specific Voyage Policy

  • This policy is valid for a single voyage or transit. The policy will be issued before the voyage starts. The coverage will cease immediately on completion of the voyage.
  • The specific voyage policy must show complete details of the risk. It should contain particulars of conveyance/Vessel name/ Bill of Lading or Way bill and date sum insured terms and conditions of cover voyage cargo description etc like all other marine policies.

Annual Policy

  • This policy may be issued to cover goods in transit by road or rail or sea from specified depots or processing units owned or hired by the insured. The goods covered must belong to or held in trust by the insured.
  • These policies can not be issued to transport operators clearing forwarding and commission agents or freight forwarders or in joint names.. They can not be assigned or transferred. For such policies the sum insured should not be less than Rs. 5000/-.

Marine Hull

The policy covers loss/damage to the property insured due to:

  • Fire or explosion; stranding sinking etc.
  • Overturning derailment (of land conveyance).
  • Collision.
  • General average sacrifices salvage charges.

The policy does not pay any loss/damage caused by attributable to due to:

  • Deliberate damage/destruction of the vessel by wrongful act of any person
  • Use of any weapon of war employing atomic / nuclear fission and or fusion
  • Insolvency or financial default of the vessel owner / operators / chatterers.
  • War / civil war � Strike Riot or Civil Commotion.
  • Any terrorist or person/s acting with political motive.

Types of Marine Hull Insurance Policies

  • Ocean Going Vessels
  • Coastal Vessels
  • Inland Vessels
  • Port Crafts
  • Ship Building
  • Sailing Vessels
  • Charter’s Liability Fishing Trawlers, etc.

Other Marine Policies available

  • Special Declaration Policy: This is an inland policy issued to clients with annual turnover exceeding Rs.2 cores. Under this cover individual dispatches’ declaration is not required and a quarterly declaration of value of goods transported suffices.
  • Multi Transit Policy: This policy covers multiple transits of material including processing and incidental storage from material procurement stage to delivery of finished product for a single value.
  • Increased Value Insurance: This policy covers the increased value of cargo, if the market value of the goods at the destination port, on the date of landing is higher than the CIF + Duty value of cargo.
  • Duty Insurance: This policy covers loss of custom duty value suffered on imported consignments damaged after payment of duty.
  • Advance Loss of Profit /Delayed start up policy: Covers loss anticipated on account of delay in commencement of a project caused by damage to key machines and key components on account of operation of insured perils.
  • Sellers’ Contingency Policy: This policy covers the interest of the seller against the contingency of non payment of the value of a consignment by the buyer on account of its condition having changed due to damage etc. before retirement of documents.