MARINE CARGO/TRANSIT INSURANCE

MARINE CARGO INSURANCE
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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 Lloyd’s 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


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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.Exports and Imports of goods to/from other countries Parties: Sellers or exporters  Buyers or importers.Sale and distribution of goods within the country International Trade.  Intermediaries  . Domestic Trade.

/ c. quantity. The following are the documents required for the processing of the Shipping Bill:  GR forms (in duplicate) for shipment to all the countries.i.  4 copies of invoices which contains all relevant particulars like number of packages. gross and net weight of each package.  4 copies of the packing list mentioning the contents. Shipping Bill/ Bill of Export is the main document required Custom clearance for Export by the Customs Authority for allowing shipment.f. Bill of Export: For the goods which are cleared by Land Customs with all the above documents.o. Purchase Order of the overseas buyer.  . unit rate.  Contract. quantity. L/C.  Inspection/ Examination Certificate.  AR4 (both original and duplicate) and invoice. total f.b. correct & full description of goods etc. value.

Various countries have limitations on the introduction of commodities from certain other countries. which is certified by a designated regulatory authority.Documents required for export  Letter of credit .this is applied for making payments for imported items.  Airway bill .Same as bill of lading except that it is a document involved in Air shipment. and may apply duty to these commodities or ban them altogether. On the other hand. once the required papers are handed over.required shipment document for sea consignments when commodities are sent by sea route.It appears like a trade requirement but it may be desirable for financing. A letter of credit mainly says that the importers bank guarantees to pay provided the entire documents specified in it are in order. an exporter will require to present a Certificate of Origin. as proof that the commodities have been sent by the supplier. .  Bill of lading .  Certificates of origin .  Purchase order . 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. there may be tax benefits on items from specific supply sources. In such cases.

The most essential document.if the buyer requires an examination of goods prior to shipment. For instance. Australia has strict quarantine limitations governing the trade of animal and food items.Documents required for export…..  Inspection or Quality credential .These are other detailed requirements from country to country. You would need to secure a permit.The List of all of the cardboard boxes within the container and the contents within the boxes. or subject your items to an inspection or both. these are vital documents to making sure the deal is established in accordance to the buyer’s requirement.  Packing List .  Invoice . . Make sure that a complete synopsis of merchandise is outlined and it is invoiced in the currency of sale.  Others .

Documents required for imports             .Trade License (when necessary) .Letters of credit / bank draft (when necessary) .Packing List .Completion of the GATT has been filled in declaration .Approval (when necessary) .Bills of lading or bill of lading / airway bill .Signed invoice .The importer or his customs declaration agent .Bill of Entry ( Import declaration) .Insurance documents .Import license .

Certificate of origin (application of preferential tariff rates to provide) .The right tariff exemption certificate (DEEC) / right to tax refund certificate (DEPB) Original .        . related documents (the goods are machinery and equipment. Pre-declaration.Permitted to make tax-free . detailed technical specifications.A single price of machinery and equipment spare parts .No commission statement 3. machinery and equipment to provide spare parts or chemicals) ..Catalog. customs declarations and green channel changes .Documents required for imports……….Laboratory (Department of Chemicals to provide the goods) .

Intermediaries commission agents. arranging conveyance.storage Shipping agents.. for loading and unloading of cargo.provide loan. facilitate trade by issuing LC and exchange of trade documents Carriers.custom examination & clearance. stowing or space in ship Stevedores.shipping documents.       .contractors appointed by shipping Cos.Trade…….. arrange insurance.various carriers involved in the journey   .sell goods on behalf of the Principal Clearing & Forwarding agents. etc. lodge cargo claims Warehouse keeper. customs clearance. stowing the cargo inside the ship Banks.

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.Trade…. in the country or when they are in different country Seller and buyer.     Sales of Goods Act 1924 Consensus ad idem in regard to terms of sale between seller and buyer.attach such definite meaning to various sale terms used internationally .

  Marine Insurance Act. 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. 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. damage or detention   .

64 VB) .Insurable interest……    Insurable interest must be there at the time of loss or damage. 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. (Underwriters take precaution by denying cover if the transit has commenced before insurance arrangement.  ‘Lost or not lost’ makes the cover retrospective provided good faith has been observed. Sec. The goods may change many hands during transit.

SDP. duty insurance.Insurable interest…….Sellers interest clause.  If insured has no interest at the time of the loss.  All consignees of goods have a need for insurance from the point at which they acquire insurable interest. The Insurer has the same defense against the assignee as he had against the assignor. like . 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. Increased value. he cannot acquire it later after he is aware of the loss.    . Annual Policy. Special Storage Risk Insurance.

and stores for the officers and crew.  Measure of insurable value. 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. of the ship. plus the charges of insurance upon the whole . including her outfit.Measure of insurable value. provisions. the insurable value is the value. (1) In insurance on ship. at the commencement of the risk.

 2) In insurance on freight.Measure of insurable value…. plus the charges of insurance:  (3) In insurance on goods or merchandise.. whether paid in advance or otherwise. 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 . the insurable value is the gross amount of the freight at the risk of the assured.

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 .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.

but of an indemnity according to the conventional terms of the bargain. . in the manner and to the extent agreed in the contract…. 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.Indemnity    A contract of marine insurance “is a contract whereby the insurer undertakes to indemnify the insured. In other words it is not a contract of indemnity ideally.”. Act.

Subject to the provisions of the Marine Ins. conclusive of the insurable value of the subject intended to be insured.Valued policy.  A valued policy is a policy which specifies the agreed value of the subject-matter insured. and in the absence of fraud. the value fixed by the policy is. as between the insurer and assured. whether the loss be total or partial. Act. .

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

The contract is not automatically terminated. 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. .Utmost Good Faith      The insured is obligated to disclose to the insurer every material circumstance. the insurer must elect to avoid it and must return the premium. Failure to properly disclose material facts entitles the insurer to avoid the contract.

. that the vessel was generally weak and did not have a certificate required under the Act the unfavorable claims history of the insured.Examples of Material Facts      The ship was missing at the time the risk was placed. the age of the vessel. That the ship had gone into port for repairs at the commencement of the voyage.

Normally a container has a size of 8’x8’x20’ The goods in container are normally packed at the factory of the exporter or container-depot by professionals and only unpacked at importer’s depot.containerized. bulk carriers to exploit the scales of economy Need for containers increased.Bulk liquid tankers. . RO/RO ships and chemical carriers increased New design of ships like. refer tanker to preserve fresh fruits and meat on journeys to overseas markets.in between it remains sealed.Effect of Trade growth on Marine insurance      More demand for cargo insurance More demand for cargo ships. refrigerated.

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) .

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 .B/L.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.

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.B/L.and so insurance Documents of ownership transferred to 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. 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. A TITLE DOCUMENT.COLLATERAL SECURITY. NEGOTIABLE . NEGOTIABLE INVOICE.DESCRIPTION OF ITEM AND PRICE MARINE CARGO POLICY.ACKNOWLEDGMENT OF SHIP ACCEPTED THE GOODS FOR OWNWARD JOURNEY.

WHO RECEIVE PAYMENT (DRAWER OR A BANK NOMINATED) .CREDITOR DRAWEE..IMPORT/EXPORT PRACTICE…. 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.  BILL OF EXCHANGE   AN UNCONDITIONAL ORDER IN WRITING BY EXPORTER TO THE BUYER TO WHOM IT IS ADDRESSED TO PAY ON DEMAND.DEBTOR OF ACCEPTOR PAYEE.

IMPORT/EXPORT PRACTICE…..   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    .

IMPORT/EXPORT PRACTICE….. THE EXPORTER HANDS OVER THE DOCUMENTS OF TITLE TO BANK AND GETS THE BILL OF EXCHANGE DRAWN BY HIM ON THE IMPORTER.  ON GOODS READY FOR EXPORT. 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   .

CONSIGNMENT. 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:    IT’S AN EVIDENCE OF MARINE INSURANCE CONTRACT POLICY FORM CONTAINS DETAIL OF INSURED.MARINE CARGO INSURANCE…… MARINE INSURANCE ACT. CONDITIONS AND EXCLUSIONS. SUM INSURED. INSURED PERILS.ICC CLAUSES . CLAUSES ATTACHED TO IT SPECIFY THE COVERAGE . ETC.

C. quantity: Nature of packing and identification marks: Value/Sum Insured: Basis of valuation: Vessel Name: Voyage./Postal Receipt no. if any……. Via………………. details of the Bank: Description of the goods. : Claim payable at: Signature of Proposer Date: . nature. ICC (Air).. etc. … Type of Insurance Cover required: ICC (A).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. (B). Bill of lading no./RR no. B. Transshipment. Inland Transit Clause A./AWB no. (C)./LR no.From:………… to………….

Containerization  Stowing of goods in container .

Vizag Harbour .

Mumbai Port .

Vessels in the port .

Vessel in the birth to unload .

Container vessel .

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A Port .

High sea handling .

Overseas Port .

whether a policy is issued or not.Covernote  Covernote: When complete details in regard to ship. still it is recognized by the Insurers world around as evidence of marine insurance contract. etc. a contract is concluded when a proposal is accepted by the insured. . As per Marine Insurance Act. 1963. are not available a Temporary document (covernote)as evidence of marine insurance pending issuance of Marine Policy. Reference may be made to proposal or slip and covernote.    Though an unstamped document and not enforceable in the court.

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

AWB NO.: SUM INSURED: -PREMIUM: STAMP DUTY: -CONVEYANCE/STEAMER: VOYAGE OR JOURNEY: -B/L.: 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:      . RR.MARINE STANDARD POLICY FORM THE FORM CONTAINS THE FOLLOWING PARTICULARS:        NAME OF INSURED: -POLICY NO. LR/GR.

CLAUSES. TERMS. WARRANTIES. EXCLUSION ARE AGREED A SCHEDULE OF RATES FOR SENDINGS OF DIFFERENT GOODS TO A RANGE OF DESTINATION IS ATTACHED VOYAGE BY SEA OR AIR.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. 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)       . IS AGREED. RATE.

 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 MONTH’S TURNOVER SHALL BE ACCEPTED BY INSURER .OPEN COVER….

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 . RATE.  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..OPEN COVER….

Rate of premium etc. voyage from –to. mode of transport. 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    Open Policy/ Floating Policy: A stamped document Sum Insured: Estimated Annual Turnover Details of cargo or goods to covered. Limit per sending. basis of valuation.

Open Policy….  For increase in S I additional premium at rate agreed is paid Fresh policy if sum insured is exhausted Declarations are made. to Insurer and S I is reduced accordingly Details of dispatch: GR/RR no.. Date Description of goods Qty/wt Amount Balance    . giving details of dispatches made during the fortnight or month as agreed.

I. certificates are not stamped.  A Certificate of Insurance is issued against declarations for the fortnight or month as the case may be. the policy is adjusted and premium against the balance unutilized S.  Since policy is a stamped document. Open policy is issued for inland transit At the end of the policy period.Open Policy……. 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   .

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.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. buyer shall arrange vessel and insurance  .

To cover such risks of exporters.Sellers Contingency Policy…….     . 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. Sellers contingency policy is permitted even in FOB sale. If the buyer disowns the goods and liability of loss then the seller is again at risk.  In case of any contingency the buyer is supposed to take delivery and seek claim from its insurer.

There must be other insurance business with the Insurance Co. New client having good reputation and satisfactory claim experience under marine cargo. i.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. Previous years’ balance sheet and accounts for determining the sales turnover. 1 lac.e. Existing client with good relationship and profitability. Stand alone cover is to be discouraged A limit per bottom and per location is to be declared . Property insurance.

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 or Sales Turnover Policy……  The following are covered under this policy: Imports + Customs Duty (Actual orDeemed) + Domestic purchase of raw materials.

if any..       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. Premium adjustment to be done only downwards. 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. The payment of Premium may be allowed to be accepted on the basis of provisional value of quarterly sales turnover. . to be covered only after inspection by the suitable Surveyors and goods being found in satisfactory conditions. which may be further increased before expiry of the respective quarter.Annual Turnover Policy…. Tail end risks. No capital goods (plant & machinery) to be covered No over dimensional cargo to be covered. in view of the provisions of section 64 VB.

000 whichever is higher. If insurer cancel then prorated premium. if required subject to availability of balance sum insured (Sales Turnover). refund is subject to retention of 10% premium or Rs.       In case of cancellation by insured.10. The Certificates of Insurance for Imports and Exports shipments may be issued.Annual Turnover Policy…. . The vessel not to exceed 25 yrs and no overage extra to be charged up to 25 years of age of the vessel.. 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. Strictly as per the list of Association of Approved Classification Societies. For war/strike risk cancellation a notice period of 7 days The cargo to be carried per vessels.

Facility for payment of premium on half-yearly / quarterly basis.. Seamless cover with all movement of goods automatically covered.Annual Turnover Policy….     Advantages of a sales Turnover policy – Sizeable saving in premium which is charged only on your sales turnover. 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.  .

    . 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. 2 Crores or above. Sum insured shall be on the basis of the previous year’s turnover.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.

Minimum premium chargeable is Rs.Special Declaration Policy……. forming part of the contract. the claims may be settled with such consignee on the request of Insured. The policy can be cancelled with a notice of 30 days. except the name of the bank or financial institution whose financial interest may be protected.5000 in case of SDP  . The policy shall not be issued in joint names. The policy shall expire premature if the sum insured is exhausted. transits and turnover shall be submitted by the insured.  A proposal form giving details of goods. However where the interest in the goods has passed on to the consignee.  A SDP is not negotiable or transferable. 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.

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  Internal transfer of goods.

commission agents or Freight Forwarders. Policy shall not be issued in the joint names of more than one company.  Policy cannot be issued to Transport operators/contractors. Clearing & Forwarding agents..Annual Policy…. 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….four times or 2% of percentage of Estimated Turnover  More than 500 km: Single carrying limit..twice or 1% of percentage of Estimated Turnover  Over 80Km upto 500km: Single carrying limit.six times or 3% of percentage of Estimated Turnover Whichever is more.    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. Average condition shall apply if at the time of loss the value of the subject matter is found more than the SI .

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. leakage. pilferage.Annual Policy…. non-delivery. breakage..  Coverage: Basic cover is granted with loading for extraneous perils like theft.   .

f) + a chosen percentage. freight. including invoice cost. insurance. customs duty.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. comprising marine.Marine Cum Erection INSURANCE…        Project value to include landed costs of imported machinery equipments. if applicable A comprehensive Marine-cum-Erection Policy. generally 10 to 15 % Could include add-ons like War & SRCC Could be subject to warranties . forwarding charges up to site.i. storage and erection risks as a package is issued Two separate policies. handling charges.

A higher rate of premium is charged taking into account the storage periods and multi transits enroute. Subsequent transits are considered separate. . Irrespective of the number of transits the cover stays operative. Storage periods which may or may not include some processing can also be covered. 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. allocation or re-distribution.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. Multi-transit policies ensure continuous cover even in case of such exigencies.

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        .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.

Increased Value Insurance       When the market price of an imported item at destination is more than CIF and Duty value. terms and conditions shall be same as that of CIF policy The claim in this case is paid 75% of actual loss suffered . 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.

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 .

125% or less the stamp duty shall be 10 paise For other than sea voyage50 paise when the SI is Rs. 1500 or part thereof But when rate is 0.Stamp duty      Sea voyage: 10 paise for every Rs. 1/-when the SI is over Rs.5000 .5000 or less Rs.

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.

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

Institute Cargo Clauses……

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

Institute Cargo Clauses……

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

Risks Covered Loss or damage to cargo caused by: n Fire or explosion  Vessel or craft being stranded.1. grounded.ICC-C COVER. other than water  Discharge of cargo at port of distress  General Average sacrifice  Jettison to lighten the vessel to remain afloat  In addition. Salvage charges incurred to avoid losses. sunk or capsized  Overturning or derailment of land conveyance  Collision or contact of vessel craft or conveyance with any external objects. liability under ‘both to blame’ clause payable . General Average.

are also covered  Spontaneous combustion.with fire other damages due to heating.g.  Fire.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. .Important perils….. leather.Risks Covered.due to inherent vice or nature of commodity is not covered. e.with explosion goods are crushed or damaged in the range of explosion. coal  General Average. smoke or by water to extinguish the fire are also covered  Explosion.

 Washing overboard. such jettison would be a GA sacrifice.( cargo and ship belongs to same party)  When ship and cargo belong to different owners. ICC-A.Important perils……  overboard at time peril to save the adventure from total loss. Simply lost overboard due ship rolls in heavy weather is not covered.Risks Covered. if the goods are washed away.Loss of insured package during loading and unloading. covered in ICC.A and B.Due to heavy tides in heavy weather.Cargo or other property thrown . B covers this type of loss Jettison. transshipment or discharge of cargo.  Sling loss.

Risks Covered. . But this do not cover loss/damage resulting from movement of cargo in the ship’s hold during heavy weather nor will it cover jolting inside a wagon or truck during rail/road transit.Important perils……  Loss or damage due to Collision or contact of vessel. craft or conveyance with any external object other than water.

freight and ship  Insurer has a liability for this contribution in regard to s/m covered by it due to perils insured against.2.  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.5.cargo. General Average Clause  all the parties in the common adventure.  Such a contribution is payable as in case of GA by insurer.  In case of under-insurance the contribution is reduced to the extent of under-insurance.6 and 7 are applicable General average fund is created by the contribution of .  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.  Exclusion clauses 4.

neglect or default of the master. Under the Carriage of Goods by Sea Act. . pilot or servants of the carrier. 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.3.Both to Blame Collision Clause     In a collision the two ships are at fault equally or in different ratio.neither the carrier nor the ship shall be responsible for loss/damage to cargo arising or resulting from act.

. in turn. claims against the carrying vessel in proportion to its share of blame for the collision. claims in full from the non-carrying vessel. in US laws.Both to Blame Collision Clause…. therefore. whose owner. 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  .  The cargo owner.

Both to blame collision clause           Two cargo vessels A and B collide Responsibility for blame. the insurer accepts this liability of $24000 being 60% of the loss and reimburses the insured.$ 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. . when two vessels collide. the cargo owner is entitled to claim from either vessel IN FULL.A is 60% and B is 40% Cargo owner of vessel A suffer damage of Rs. The net liability of Insurer of Cargo owner of vessel A comes to $24000 Under U S Laws. unless a clause in his contract of affreightment prohibits from recovering from the cargo carrying vessel.

contract of carriage Shipowner.Carriers Liftvan deleted from clauses Headings in the clauses now precede the wording .Changes in ICC clauses          Words changed in ICC 2009 UnderwriterInsurer Goods .Subject matter insured Servants Employees Except(ed) Excluded Contract of Affreightment.

EXCLUSIONS.5 Loss damage or expenses (proximately) caused by Delay.4 Inherent vice or nature of the s/m Any loss proximately caused by rats or vermin 4.1 Willful misconduct of assured. ordinary loss in weight or volume. even though the delay be caused by a risk insured against .Sec.2 Ordinary leakage or breakage. 55 of Marine Insurance Act. 1963      4. ordinary wear and tear of the s/m insured 4. except misconduct or negligence of the master or crew 4.

packing     4.EXCLUSIONS….3 Insufficiency or unsuitability of packing or preparation of the subject matter insured. 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 . 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 .

5 Loss or expense proximately caused by delay.5 Exclusions……delay   4. 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.

or in the ordinary course of business should be aware.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. 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. the assured are aware.

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.4. .   Loss damage or expense directly or indirectly caused by or arising from the use of any weapon of war.7weapon of war….

at the time the s/m insured is loaded therein. Unseaworthiness and unfitness Exclusion clause    5.1. 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 the s/m is loaded therein 5.2 Unfitness of vessel craft conveyance container or liftvan for the safe carriage of s/m insured. In no case shall this insurance cover loss damage or expenses arising from 5. where the Assured or their servants are privy to such unseaworthiness or unfitness.5. at the time loading .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.

.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 .Unseaworthiness and unfitness Exclusion clause….assignee .2 Exclusion 5.    5.1.

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 .EXCLUSIONS… war exclusion clause…     6.

ideological or religious motive . lock-outs labour disturbances. or in connection with. of any government whether or not legally constituted Caused by any person acting from a political. locked-out workmen or persons taking part in labour disturbances. Resulting from Strikes. riots and civil commotions. by force or violence. 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. any organisation which carries out activities directed towards the overthrowing or influencing.7 Strike exclusion clause      7 In no case shall this insurance cover loss damage or expenses Caused by Strikers.

terminates on completion of unloading. * Continues during ordinary course of transit. **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 . And.       • • • 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. 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.

prior to termination of this insurance. the goods are forwarded to a destination other than the mentioned. forced discharge.2 Change of destination..3 Deviation / discharge and reshipment The insurance shall remain in force during delay beyond the control of the assured. 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. any deviation. other than insured – If goods insured on completion of unloading at final port of destination. reshipment or transshipment and during any variation of the adventure arising from the exercise of liberty granted to carriers under the contract of carriage .Duration Clause extended….     8.

or Unless otherwise specially agreed. either Until the s/m insured is sold and delivered at such port or place.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.9. until expiry of 60 days……. 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. until terminated in accordance with the provisions of clause 8 . contract of carriage is terminated at a port or place other than the destination named therein. subject an additional premium if required by the insurers. Termination of contract of carriage      If the circumstances are beyond the control of the assured.

1 After attachment of this insurance. this insurance shall attach at commencement of such transit . 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. it must be notified promptly to insurers for rates and terms to be agreed.10. Change of voyage   10. Should a loss occur prior to such agreement being obtained. if the destination is changed by the assured.

 11 Claims. 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. in unloading.ICC Clauses…. storing and forwarding the s/m to the destination insured .. the underwriter shall pay for the extra charges reasonably incurred at a port of distress or place.Insurable interest To recover under this insurance.

 ICC clauses…… 13 Constructive total loss  The s/m should be abandoned. 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  . either On account of its actual total loss appearing to be un-avaoidable or  Because the cost of recovering.

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 15.15. Not to inure clause   15.2 Insurance shall not extend to or otherwise benefit the carrier or other bailee .

their employees and agents to take measures for averting or minimising a loss recoverable under policy .this insurance is subject to English law and practice . 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. The clause is supplementary to the contract or in addition to agreed value or SI.ICC clauses… 16 Minimising Losses: Duty of Assured clause  It is the duty of assured. All right against carriers.Assured saving.a condition that the assured shall act with reasonable dispatch 19 Law and Practice. bailees or other third parties are preserved and exercised (Sue and labour clause)    17 Waiver.

hold. lake or river water into vessel. craft. .ICC-B COVER-Loss or damage to cargo caused by:       All the risks of ICC-C. volcanic eruption Lightning Washing overboard Entry of sea. lift-van or place of storage Total loss of any package lost overboard or dropped whilst loading to or unloading from vessel or craft. container. and Earthquake. conveyance.

ICC-A COVER IS FOR… ‘ALL RISKS’ against ‘maritime’ or transit perils subject to exclusions .

. pilferage. Bursting/ tearing of bags. 108 . 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….Extraneous Risks (Covered in ICC A):           ICC C and ICC-B can be extended to cover risks : Theft.

 .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 .

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  • . And.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.

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  • . (now loading/unloading is covered) Continues during ordinary course of transit.DURATION-AIR TRANSITS       Insurance attaches from time goods first moved in warehouse/place of storage for loading purpose for the commencement of transit. And.

And. Continues during ordinary course of transit.DURATION-INLAND TRANSITS       • Insurance attaches from time goods leave warehouse for commencement of transit. terminates either on delivery at final warehouse or for transits by rail only or rail & road. until expiry of 7 days after arrival of vehicle at final destination town Whichever shall first occur 114 . until expiry of 7 days after arrival of rail wagon at final destination railway station or for transits by road only.

civil war. charges reasonably and properly incurred to avert or minimise an insured loss and to preserve and pursue recovery rights. arrest. 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. rebellion. restraint.1 above.2 Capture. and the consequence thereof or any attempt thereat that is war-like only 1. torpedoes.3 Derelict (meaning abandoned or drifting) mines. seizure. Risks Covered: Loss or damage caused by1.1 War. detainment arising from risks covered under 1. revolution.      Exclusion in ICC clause is deleted. are also covered Institute War Clause (cargo)   . insurrection or civil strife or any hostile act by or against a belligerent power 1.

whether they are floating or submerged . the cover continues during transshipment but subject to 15 days from the arrival of the ship at transshipment port However. which ever is earlier If the goods are transshipped.Institute War Clause (cargo)…. the war cover reattaches on loading of the goods onto the on-going vessel Transit to and from vessel when goods are in craft.       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.. cover can be extended to cover the risks of mines and derelict torpedoes only.

  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 War Clause (cargo)….

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)    . locked-out workmen or persons taking part in labour disturbances. riots and civil commotions.Institute Strike Clause (cargo)      Exclusion in ICC is deleted. Risks covered: Loss or damage caused byStrikers.

Two additional exclusions help to make this clear. of any government whether or not legally constituted 1.    3. riots or civil commotions 1.7 loss damage or expense arising from the absence shortage or withholding of labour of any description whatsoever resulting from any strike.8 any claim based upon loss of or frustration of the voyage or adventure . or persons taking part in labour disturbances. locked-out workmen. or in connection with.2 any act of terrorism being an act of any person acting on behalf of.Institute Strike Clause (cargo)2009      loss of or damage to the subject-matter insured caused by 1. any organisation which carries out activities directed towards the overthrowing or influencing. lockout. ideological or religious motive. labour disturbance.3 any person acting from a political. riot or civil commotion 3.1 strikers. by force or violence. 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.

riots and civil commotions.Inland transit      Risks covered: Loss or damage caused byStrikers.Strike Riot & Civil Commotions. locked-out workmen or persons taking part in labour disturbances. Any terrorist or any person acting from a political motive Duration/transit clause is same as in Inland Transit clauses (07 days) .

ideological or religious motive. by force or violence. or in connection with. riots or civil commotions 1.     New -Strike Riot & Civil Commotions (Inland) loss of or damage to the subject-matter insured caused by 1. of any government whether or not legally constituted 1. Duration/transit clause is same as in Inland Transit clauses (07 days) .2 any act of terrorism being an act of any person acting on behalf of.1 strikers. any organisation which carries out activities directed towards the overthrowing or influencing.3 any person acting from a political. locked-out workmen. or persons taking part in labour disturbances.

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. . 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. pumps. etc.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. fire fighting equipments.

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 .

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 . who offload the goods in another ship and tow the vessel of the reef and then reload the goods.    GA sacrifice: A ship carrying a cargo belonging to a number of different merchants strands on a reef. All expenses and reward to salvors. 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.

000 $ 80.000 $ 40.000 .000 $ 2.000 Interest Contributor Value Contribution Vessel Sacrificed cargo Cargo B Cargo C Freight Total $ 1000.$ 100.$1.000 20% 20% 20% 20% 20% $ 200.000.         A merchant’s cargo jettisoned valued at $ 400.000 GA contribution    20% $ 400.000. C-$ 300.000 $ 300.000 Other cargo belonged to B.000 $ 60.000 $ 100. vessel.000.000 and Freight.000.000 $ 400.000 $ 200.000 $ 20.$200.

Miscellaneous Clauses and warranties .

hook. acid and other extraneous substances. fresh water and rain water damage. mud. pilferage and/or non-delivery. heating and sweating and damages by other cargo .with ICC ‘B’  Including the risk of theft.Comprehensive Clause. oils.

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. the company only to pay the cost of repairing.Institute Replacement clause.machinery  ‘In the event of a claim for loss or damage recoverable hereunder. or if necessary. 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

‘Company’s 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

it is hereby agreed that this insurance covers loss of or damage to the subject-matter insured caused by theft or pilferage. pilferage and non-delivery   Applicable when the coverage is extended to cargos covered under ICC ‘C’ or ‘B’ ‘ In consideration of an additional premium. subject always to the exclusions contained in this insurance’ . or by non-delivery of an entire package.Theft.

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. Fats and Oil in containers. Tea Institute Coal Clauses (ICCB with inherent vice) Institute Jute Clauses (ICCB. Hides. Sugar.Trade Clauses        Institute Commodity Trades Clauses. 24 hrs. or by bad weather) Institute Frozen Food or Meat Clauses (ICC A or C. 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.B. Coffee. BD) . Cotton.C (Similar to ICCA.C ) are used for insurance of commodities like:  Cocoa. Oil seeds. Metals.A. Skins & Leather.B.

UNDERWRITING AND RATING OF MARINE INSURANCE .

•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. the producers and traders are able to concentrate on their business activities. .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.

5 bn tonnes of cargo is transported by sea every year. iron ore and grain   Rest are other processed or manufactured products which are of higher value but less in weight . 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.Trade by Sea   Some 5.

etc. 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 . 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.To decide about the Acceptance of a         insurance business at a rate depending upon the features of the risk and the terms. Basis of valuation needed to be ascertained Deductibles may be used to avoid small and frequent losses in future.RATING & UNDERWRITING  Underwriting.like packing of rice in double gunny bags.

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.RATING & UNDERWRITING……    Specie. ordinary wear and tear  Inherent vice or nature of subject matter  Insufficient or unsuitable packing or preparation  . banknotes or bearer bonds. paintings. bullion.items of value.

liquid. drums or barrels. Standard packing combat every level of rough handling. climatic and environmental hazard . 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. loose packing.Hazardous.in bales or bags. in container. cardboard cartons or in bulk. fragile item/precious item Packing in detail. cases or bundles. non-hazardous. solid.Material Information for Rating & Underwriting       Proposal form is not necessary. crates. etc.

Rail/Road.. Airlines. AWB.   Value of the interest (s/m) to be insured with breakup – CIF+10% plus duty. Voyage and Mode of Transit:      Journey from… and to .ICC A or B or C or ITC A or B . extraneous perils with basic cover . consignment Note. via. Mode of conveyance to be used. or it may be a combination of two or more Name of vessel... B/L. 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.RATING & UNDERWRITING…. etc.by rail/road/sea or by air.

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

classified. . to load/unload cargo. age. classification. Normal tonnage.which do not follow a fixed schedule but carry the cargo when and wherever available. seaworthy and fit to carry out the journey. Cargo by this kind of vessel is not good risk and verification of such ship is necessary. ownership. etc Vessel should be first class.vessel follow scheduled route and ports.RATING & UNDERWRITING….3000 GRT to 15000GRT Still if such business is accepted then additional premium is charged (guideline from London Market) Liner vessel. Shipment by old vessel or of less-tonnage is not good. Name of Vessel   It is important to find out the details of ship. tonnage. is advertised Tramp vessel. Heavy/extra premium should be charged in such a case.

apply only to cargo carried by vessels: 1. Mechanically self propelled vessels 2. Marine rates/policy agreed to.. Vessels of steel construction 3. Classification clause .Seaworthiness of vessel…. Vessels adhering to Instt.

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. Financial Viability.   Convincing proof of the physical viability of the vessel Check on Vessel Flag.6 of ICC can be deleted  In no case shall this insurance cover loss. etc . damage or expense arising from insolvency or financial default of the owners. managers. charterers or operators of the vessel. Background of Vessel Operators. if the assured are aware of or should be aware of.

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 .

5. safety and upkeep Vessel is subject to subsequent periodical inspections to ensure its maintenance and necessary technical safeguards Non-classification Additional Premium @ 0. 3. 4. 6. 2. qualified & trained crew members.Conditions to classification approval 1.10% . 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.

Its capacity to carry the cargo (NRT)   .Gross volume of the ship inside (GRT) NT.75% Tonnage is a measure of the size or cargo carrying capacity of a ship GT.Under-tonnage of Vessel Additional premium is chargeable as per     Indian Vessels below 450 GT – 0.50% Foreign Vessels below 450 GT .0.75% Foreign Vessels below 1000 GT – 0.

Mineral oil tankers over 20 years of age 4. Vessels over 15 years of age 3. Vessel flying flag of convenience . Liners over 25 years of age 5. War built vessels (1940-45) 2.Overage of Vessel Overage extra premium is charged in case of 1.

containers on barge Roll on –Roll off (Ro Ro ships) Passenger vessel Sundry vessels   Coastal vessel Fishing vessels    Dredgers Barges Launches .dry as well as liquid Container vessels   Lighter aboard ship (LASH) .Types of vessels  General Cargo Vessels    Liner vessels Tramp vessels       Dry bulk Carriers Liquid bulk Carriers Crude carriers or Tankers Combination bulk carriers.

Transit to a container terminal for stuffing into a container would be considered as part of the overseas transit   . 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.Voyage or transit  The transit from warehouse to warehouse.

Voyage or transit……. 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. storage. loading at the transshipment port and details of the other ship/vessel .       Well now find outGoods in the warehouse or in open awaiting customs formalities.. which means increased handling Stowing in the container/ship Is the voyage involve Transshipment.additional handling . inspection and shipment.

Voyage or transit…. . are relevant. delay in customs etc. Shipowner has no liability for deck cargo Storage facilities at destination port . law and order situation. rail/road conditions. political tensions. in shed or in open. Nature of interior land transit. Deck cargo unless containerized is exposed to weather and washing overboard.. The bigger the ship the smoother the voyage Is cargo shipped on deck or under deck or containerized. security. etc.     Climate or monsoon in the course of voyage to which the ship shall sail through.

loss weight or wear and tear. hides and skins.g. leakage. grains. . Similarly ordinary losses. self heating are not covered. aromatic products. e. C but the assured is more interested in All risks cover.. chemicals. fruits. Loss due to inevitable transit risks or inherent vice. sulphur. B. fertilizers. e. cloves.g. or cotton bales. spirit.Nature of Cargo      Different commodities or products are susceptible to different perils. sugar. spontaneous combustion are not covered unless specifically covered by charging extra premium. garlic. Therefore. etc. etc. tobacco. spices. jute. 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. vegetables.

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

requires ventilation Water/dampness. bacterial damage due to salt water Water/heat. mildew. moisture. contamination Brittle. spontaneous combustion.cutting clause Fire. insects. bursting of bags. CO2. mould.Nature of Cargo. discolouration . chipping. water Mould growth and decay.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.

etc)-   Flour in gunny or cloth bagsRice in bags  Sugar in bags Fish in cold storage  Heating. taintingrequires ventilation Sweating.requires ventilation heating. sweating. moisture.requires ventilation Imbibes moisture from atmosphere. water.various commodities…. maize. infestation.  Grain (wheat. water. humiditydryness and ventilation Deterioration if not fresh on packing .

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

rust. etc Other commodities :Details available in ‘Lloyd’s Survey Handbook’ . breakage of brittle or glass parts. scrap :Rust. moisture Machinery in cases :Deshaping of the case. breakage of electronic parts Motor vehicle parts :Rust due to water or moisture.various commodities….     Iron rods. strips. water. piercing of radiator.

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. etc. dragging and lifting by handling aids like forks. heavy items towards the bottom while lighter ones on top Inadequate lashing Compression pressures due to high stacks . Improper stowage –Cargo needs to be stowed in the ship in an orderly fashion e. 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..g.

temperature/climate/humidity changes Theft and pilferage. pitching. pressures. . etc. impacts and vibrations during rail/road transit Rolling.       Dropping during manual handling improper slinging Jolts. swaying and yaw motions on the seas Rain water/sea water entry Ship Sweat. cargo sweat.Packing…. jerks. surging.

Thermocole boxes.Packing……     There are various rules and regulations in regard to export worthy packing. etc. paddy straw. cork. marking and labeling for safety and health reasons. are used as cushioning material . Corrugated fibre-board strips. etc.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 boxes. Cushioning. wood wool. paper shredding. foam. rubber. Strong outer container. jerks and jolts of the journey.to withstand the impacts. wooden boxes.

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.

Sum insured. Moral hazard Past claims experience.Premium Rate   Premium Rate depends on factors like Nature of cargo. Packing. Scope of cover. type of vessel Destination and routes.as per type of cargo        . limit per sending/location Mode of conveyance.

limited cover or All risks Economic and social climate in country of origin or that of consignee.RATING & UNDERWRITING……    Rating: Marine Insurance Business is now detariffed Insurers’ past experience in different risks is important guide for rating a risk. A containerised dispatch of cargo is a better risk. Rate shall also depend upon the type of Cover required. 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. Some times political climate is also relevant Rating of large risks is influenced by reinsurance arrangement     .

Packages       Wooden boxes/cases.It’s a strong packing and should be made of seasoned lumber without moisture. breakage and crushing Goods can be fixed or screwed in it allowing the jpackage to be turned on its sides or upside down . 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.

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Good for inland and air transits but may not be suitable for sea transits.Packages……      Corrugated Fibre-board Boxes/Cartons. 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. Increase in moisture content of Corrugated fibre makes it weak. 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 . light in weight and most economical.These are reasonably strong.

Hull .

Ship building

Marine Vessel

Picture of storage under deck

Tug boats

Barges .

Trawler .

cardboad .

it affords good protection to heavy items from shocks and impacts. It facilitates handling and storage of awkward shaped items also It enables sheathing to render the contents inaccessible . It can be open or fully covered Reinforcement can be done by Diagonal bracing.A crate is essentially a wooden framework to house the equipment. interior lining with waterproof material can be installed. corner strengthening.Packages……     Crates.

Crates .

coffee. .cement. etc. polythene line bags. chemical in granules or powder form in multiply paper bags. Hessian. Stowed in tiers or crosstiers and one on top of another. flour. 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.Packages……     Bags/ paper bags. jute bags.

Bags .

paper reels.Packages……    Drums. Cylinders are strong metal containers containing gasses like ammonia. oxygen. . etc under pressure.Metal drums. 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.

Drums. paper reels. steel sheet .

Packages fastened to a platform and proper secured to it throughout transit. .Packages……  Pallets.

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 .

paper wrapping and then jute or Hessian cloth wrapping .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.Packages……   Bales.

Deductibles may be used to avoid small and frequent losses in future.    Underwriter has to decide about the Coverage to be granted.whether All Risks or limited cover. .UNDERWRITER  RATING & UNDERWRITING…. 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. etc. All risk is a wide cover as compared to basic cover and/or with additional covers.like packing of rice in double gunny bags.

Ship in dry dock .

Traditional Box.packing .

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Tray packing .

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 Plywood packing Corrugated box .

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

       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 .Warranties…..

contributed to by or arising from: 1. explosive or other hazardous or contaminating properties of any nuclear installation. toxic. 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. reactor or other nuclear assembly or Nuclear component thereof. .INSTITUTE RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE  This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith. In no case shall this insurance cover loss. damage.2 The radioactive. liability or expense directly or indirectly caused by.3 Any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter. 1.

International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention. the Assured were aware. requires vessel owners to obtain a safety management certification for each vessel they manage. among other things.CARGO ISM ENDORSEMENT  ISM.      . 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. In no case shall this insurance cover loss. 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. 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. at the time of loading of the subject matter insured on board the vessel. 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. which.

expense or liability of whatever nature which might otherwise be recoverable under this insurance arising out of or in any way connected with. 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. programme or process or any electronic system where any such loss.COMPUTER MILLENNIUM CLAUSE (CARGO)   In no case shall this insurance cover any loss. computer software. expense or liability arises. . whether directly or indirectly. whether directly or indirectly. programme or process or any electronic system in relation to any such date change. computer system. the use or operation of  any computer. computer software. computer      system. damage. damage.

1 Notwithstanding any provision to the contrary contained in this Policy or the Clauses referred to therein. such cover is conditional upon the subject matter insured being in the ordinary course of transit and.1 As per the transit clauses contained within the Policy. SHALL TERMINATE: either 1. . in any event.TERMINATION OF TRANSIT CLAUSE (TERRORISM)       This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith. 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.2 on delivery to the Consignee’s or other final warehouse or place of storage at the destination named herein. or 1.

5 in respect of air transits. 3 This clause is subject to English law and practice.3 on delivery to any other warehouse or place of storage. on the expiry of 30 days after unloading the subject-matter insured from the aircraft at the final place of discharge. which the Assured elect to use either for storage other than in the ordinary course of transit or for allocation or distribution. 2 If this Policy or the Clauses referred to therein specifically provide cover for inland or other further transits following on from storage. whichever shall first occur. . 1. and continues during the ordinary course of that transit terminating again in accordance with clause 1. cover will re-attach.4 in respect of marine transits. or 1.TERMINATION OF TRANSIT CLAUSE (TERRORISM)………       1. or termination as provided for above. 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. whether prior to or at the destination named herein.

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