Marine Insurance

Compiled by S. M.
Gupta
INTRODUCTION
INSURANCE CONNECTED WITH THE RISKS OF TRANSPORTATION OF GOODS, IS ONE OF THE OLDEST AND MOST IMPORTANT FORMS OF INSURANCE THE VALUE OF GOODS SHIPPED BY THE BUSINESS FIRMS EACH YEAR COST BILLIONS OF RUPEES THESE GOODS ARE EXPOSED TO DAMAGE OR LOSS FROM NUMEROUS PERILS ASSOCIATED WITH TRANSPORTATION THESE GOODS CAN BE PROTECTED BY MARINE INSURANCE CONTRACTS.
Compiled by S. M.Gupta 3
INTRODUCTION
IT IS AN IMPORTANT ELEMENT OF THE GENERAL INSURANCE INDUSTRY IT ESSENTIALLY PROVIDES COVER FOR THE LOSSES SUFFERED DUE TO MARINE PERILS IN INDIA, THE MARINE INSURANCE IS REGULATED BY:
THE INDIAN MARITIME INSURANCE ACT, 1963. WHICH IS BASED ON THE ORIGINAL MARINE INSURANCE ACT, 1906. OF U.K.
HISTORY OF MARINE INSURANCE

MARINE INSURANCE AS WE KNOW IT TODAY, CAN BE DESCRIBED AS MOTHER OF ALL INSURANCES IT IS BELIEVED TO HAVE ORIGINATED IN ENGLAND OWING TO THE FREQUENT MOVEMENT OF SHIPS OVER HIGH SEAS FOR COMMERCE AND TRADE IN INDIA, MARINE INSURANCE HAS BEEN IN VOGUE FOR SEVERAL CENTURIES.

PRIOR TO THE DEVELOPMENT OF MARINE INSURANCE, THE PEOPLE ACROSS THE WORLD, HAD A SYSTEM OF:
POOLING THEIR CONTRIBUTIONS SO THAT IF ANY ONE OF THEM SUFFERS LOSS DURING VOYAGE HE WOULD BE COMPENSATED FROM THE POOL.
TODAY MARINE INSURANCE HAS ASSUMED A VAST DIMENSIONS DUE TO EVER EXPANDING TRADE ACROSS THE GLOBE.

IT INVOLVES LARGE SHIPPING COMPANIES THAT REQUIRE PROTECTION:
NOT ONLY FOR THEIR COSTLY FLEET AGAINST THE PERILS OF THE SEA, BUT ALSO TO THE CARGO BEING CARRIED IN EACH OF THESE SHIPS.
THE VALUE OF EACH SHIP AND THE CARGO CARRIED THEREIN, MAY BE COSTING MILLIONS OF RUPEES TO THE OWNERS.
Worlds biggest Passenger-ship MS Freedom of the Seas 4300 passenger Capacity Inside
Compiled by S. M.Gupta
Worlds biggest Passenger-ship
MARINE INSURANCE MARKET

LLOYDS, A CORPORATE ESTABLISHED IN LONDON, IS THE BIGGEST CENTRE FOR MARINE INSURANCE IN THE WORLD LLOYDS WAS A COFFEE HOUSE FREQUENTED BY THE TRADESMEN, SHIPOWNERS AND OTHERS THE COFFEE HOUSE BECAME THE MEETING GROUND FOR:
BROKERS, INSURERS AND SHIP OWNERS FOR NEGOTIATING THEIR BUSINESS.
LLOYDS COFFEE HOUSE

AT THE COFFEE HOUSE THEY WOULD DISCUSS VARIOUS ASPECTS OF THE SHIPPING BUSINESS INCLUDING CARGO AND SHIP INSURANCE AND:
ULTIMATELY IT STARTED TRANSACTING MARINE INSURANCE IN A BIG WAY.
WHEN THE BRITISH OCEAN LINER TITANIC WHICH SANK IN 1912, DURING HER MAIDEN VOYAGE:
WAS INSURED BY LLOYDS WHO PAID AN INSURANCE CLAIM OF ONE MILLION US $.
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MARINE INSURANCE IN INDIA

THERE IS EVIDENCE THAT THE MARINE INSURANCE WAS PRESENT IN SOME FORM OR THE OTHER IN INDIA SINCE A VERY LONG TIME. IN EARLIER DAYS TRAVELERS BY SEA WERE PARTICULARLY AFRAID OF:
LOSING THEIR VESSELS AND MERCHANDISE BECAUSE OF: PIRACY ON THE OPEN SEAS.
SUBJECT MATTER OF MARINE INSURANCE

THE INSURANCE IN THE CURRENT SCENARIO, HOWEVER IS, MUCH MORE THEN, WHAT WAS ENVISAGED EARLIER IT IS NOW REQUIRED TO PROTECT THE INTEREST OF:
THE OWNER OF THE SHIP OWNER OF THE CARGO THE PERSON INTERESTED IN FREIGHT FOR LIABILITIES AND IN RESPECT OF FINES IMPOSED FOR VARIOUS REASONS.
SUBJECT MATTER OF MARINE INSURANCE

IN CASE THE SHIP CARRYING THE CARGO SINKS:
THE SHIP WILL BE LOST ALONG WITH:
THE CARGO THE INCOME THAT THE CARGO WOULD HAVE GENERATED WOULD ALSO BE LOST IT MAY ALSO DAMAGE THIRD PARTY PROPERTY THIRD PARTY INJURIES OR DEATH.
CLASSIFICATION OF MARINE INSURANCE

BASED ON THE FACTS STATED EARLIER, MARINE INSURANCE CAN BE CLASSIFIED INTO FOUR BROADER CATEGORIES I.E:
HULL INSURANCE CARGO INSURANCE FREIGHT INSURANCE AND LIABILITY INSURANCE
HOWEVER OUR ENDEAVOUR WOULD BE LIMITED TO DISCUSSING THE MARINE CARGO INSURANCE ONLY.
Types of Hull
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CARGO INSURANCE
CARGO REFERS TO:
THE GOODS AND COMMODITIES CARRIED DURING TRANSIT BY:
RAIL, ROAD, SEA OR AIR FROM ONE PLACE TO ANOTHER.
THE CARGO TRANSPORTED BY SEA IS SUBJECT TO MANIFOLD RISKS SUCH AS:

LOSS OR DAMAGE AT THE PORT AND LOSS OR DAMAGE DURING THE VOYAGE. Compiled by S. M.Gupta
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WORLDS BIGGEST CARGO LINERS
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CARGO INSURANCE
MARINE CARGO INSURANCE PROVIDES THE INSURANCE COVER IN RESPECT OF:
LOSS OF OR DAMAGE TO CARGO DURING TRANSIT BY:
RAIL, ROAD, SEA OR AIR.
THUS MARINE CARGO INSURANCE COVERS THE FOLLOWING:

EXPORT AND IMPORT SHIPMENTS BY OCEAN TRANSSHIPMENTS SHIPMENT BY INLAND VESSELS CONSIGNMENTS SENT BY RAIL, ROAD, AIR & ARTICLES SENT BY POST.
WORLDS BIGGEST PLANE AIRBUS A380 - 555 Passengers
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CARGO INSURANCE
MARINE CARGO INSURANCE COVERS THE SHIPPER OF THE GOODS, IF THE GOODS ARE DAMAGED OR LOST DURING TRANSIT THE CARGO POLICY COVERS THE RISKS ASSOCIATED WITH THE TRANSSHIPMENT OF GOODS THE POLICY COULD BE ISSUED TO COVER A SINGLE SHIPMENT OR IF REGULAR SHIPMENTS ARE MADE:
AN OPEN POLICY CAN BE ISSUED WHICH INSURES THE GOODS/ CARGO AUTOMATICALLY WHENEVER A SHIPMENT IS MADE.
DEFINITION OF MARINE INSURANCE

MARINE INSURANCE IS A CONTRACT UNDER WHICH THE INSURER UNDERTAKES TO INDEMNIFY THE INSURED: IN THE MANNER AND TO THE EXTENT THEREBY AGREED AGAINST MARINE LOSSES, INCIDENTAL TO MARINE ADVENTURES. IT MAY BE DEFINED AS A FORM OF INSURANCE COVERING LOSS OR DAMAGE TO:
VESSELS OR TO CARGO DURING Compiled by S. M.Gupta TRANSPORTATION.
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FEATURES OF MARINE INSURANCE

IT IS BASED ON UTMOST GOOD FAITH I.E. BOTH THE INSURED AND THE INSURERS MUST DISCLOSE:
EVERYTHING WHICH IS IN THEIR KNOWLEDGE AND CAN AFFECT THE CONTRACT OF INSURANCE.
IT IS A CONTRACT OF INDEMNITY:
THE INSURED IS ENTITLED TO RECOVER ONLY THE ACTUAL AMOUNT OF LOSS FROM THE INSURER.
INSURABLE INTEREST
INSURABLE INTEREST IN THE SUBJECT MATTER INSURED MUST EXIST AT THE TIME OF THE LOSS
IT NEED NOT EXIST WHEN THE INSURANCE POLICY WAS TAKEN
UNDER MARINE INSURANCE, THE FOLLOWING PERSONS WOULD DEEMED TO HAVE INSURABLE INTEREST:
INSURABLE INTEREST
THE OWNER OF THE SHIP THE OWNER OF THE CARGO A CREDITOR WHO HAS ADVANCED MONEY ON THE SECURITY OF THE SHIP OR CARGO THE MORTGAGOR AND MORTGAGEE THE MASTER AND CREW OF THE SHIP HAVE INSURABLE INTEREST IN RESPECT OF:
THEIR WAGES AND
IN CASE OF ADVANCE FREIGHT:

THE PERSON ADVANCING THE FREIGHT HAS AN INSURABLE INTEREST IF SUCH FREIGHT IS NOT REPAYABLE IN CASE OF LOSS.
WARRANTIES
A WARRANTY IS A PROMISE BY THE ASSURED TO THE UNDERWRITER THAT SOMETHING SHALL OR SHALL NOT BE DONE OR CERTAIN OF AFFAIRS DOES OR DOES NOT ARISE A WARRANTY MUST BE AND LITERALLY COMPLIED WITH, AS OTHERWISE THE INSURER MAY AVOID ALL LIABILITY, FROM THE DATE OF BREACH WARRANTY IS IN EFFECT A SAFETY VALVE OF THE INSURERS.
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TYPES OF WARRANTIES
WARRANTIES ARE OF TWO TYPES I.E.
EXPRESS WARRANTY AND IMPLIED WARRANTY.
AS EXPLAINED EARLIER, BOTH OF THESE WARRANTIES ARE TO BE LITERALLY COMPLIED WITH, BY THE INSURED THE EXAMPLES OF THESE WARRANTIES ARE..
EXPRESSED WARRANTIES
EXPRESSED WARRANTIES: THESE ARE APPEARING IN THE POLICY ITSELF AND NEEDS TO BE COMPLIED WITH. FOR EXAMPLE:
WARRANTED PACKED IN NEW GUNNY BAGS WARRANTED NEW DRUMS WARRANTED PROFESSIONALLY PACKED WARRANTED SAILING WITHIN SEVEN DAYS WARRANTED SHIPPED UNDER DECK WARRANTED SURVEYED BEFORE SHIPPING ETC.
IMPLIED WARRANTIES
IMPLIED WARRANTIES: THESE ARE NOT EXPRESSED BUT IMPLIED AND ARE THEREFORE TERMED IMPLIED WARRANTIES. FOR EXAMPLE:
SEAWORTHINESS OF THE VESSEL AT THE COMMENCEMENT OF THE VOYAGE AND LEGALITY OF THE ADVENTURE.
IN THE VOYAGE POLICY ON GOODS, THERE IS NO IMPLIED WARRANTY THAT THE GOODS INSURED ARE SEAWORTHY.
SUBROGATION/ CONTRIBUTION
THE TERMS SUBROGATION AND CONTRIBUTION ARE COROLLARY TO THE PRINCIPLE OF INDEMNITY. THEY APPLIES TO POLICIES, WHICH ARE CONTRACTS OF INDEMNITY THE PURPOSE OF BOTH OF THESE ARE, TO ENSURE THAT THE ASSURED SHALL NOT MAKE PROFIT OUT OF A LOSS, EITHER WHOLLY OR PARTLY, FROM ANOTHER SOURCE.
MEASUREMENT OF SUBROGATION
THERE IS A DISTINCTION BETWEEN SUBROGATION RIGHTS UNDER TOTAL LOSS CASES AND PARTIAL LOSS CASES. UNDER TOTAL LOSS, THE INSURER IS ENTITLED TO TAKE OVER WHAT EVER MAY REMAIN OF THE SUBJECT MATTER, AFTER PAYMENT, WHEREAS IN CASE OF PARTIAL LOSS, SUBROGATION IS TO THE EXTENT OF LOSS PAID, EXCESS RECOVERY IF ANY, IS TO BE DISBURSED TO THE INSURED.
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PROXIMATE CAUSE
PROXIMATE CAUSE : IS THE ACTIVE, EFFICIENT CAUSE THAT SETS IN MOTION A TRAIN OF EVENTS WHICH BRINGS ABOUT A RESULT, WITHOUT THE INTERVENTION OF ANY FORCE STARTING AND WORKING ACTIVELY FROM A NEW AND INDEPENDENT SOURCE. INSURERS ARE LIABLE ONLY, IF AN INSURED PERIL IS THE PROXIMATE CAUSE OF THE LOSS.
MEANING OF MARINE PERILS

MARITIME PERILS UNDER LAW IS DEFINED AS:
THE FORTUITOUS (AN ELEMENT OF CHANCE OR ILL LUCK) ACCIDENTS OR CASUALTIES OF THE SEA WITHOUT THE WILLFUL INTERVENTION OF HUMAN AGENCY THE PERILS ARE INCIDENTAL TO THE SEA JOURNEY AND THAT ARISES IN CONSEQUENCE OF THE SEA JOURNEY.
INSURED PERILS
SOME OF THE INSURED PERILS ARE:
FIRE, EXPLOSION BREAKAGE ACCIDENT DERAILMENT OF CONVEYANCE THEFT PILFERAGE NON-DELIVERY JETTISON..
Wilhelm Gustloff SINKING, the biggest Maritime disaster in the history. About 9,400 persons were killed in this disaster in 1945.
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INSURED PERILS
COLLISION OF ONE SHIP WITH ANOTHER SHIP/ AGAINST ROCKS BURNING AND SINKING OF THE SHIP SPOILAGE OF CARGO FROM SEA WATER, MUTINY, PIRACY OR WILLFUL DESTRUCTION OF THE SHIP AND CARGO BY:
THE MASTER (CAPTAIN) OF THE SHIP OR THE CREW.
Typical Marine Loss of Hull
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UNINSURED PERILS
SOME OF THE UNINSURED PERILS ARE:
ORDINARY LEAKAGE, ORDINARY LOSS IN VOLUME OR WEIGHTS OR ORDINARY WEAR & TEAR OF THE SUBJECT-MATTER INSURED LOSS OR DAMAGE CAUSED BY INSUFFICIENCY OR UNSUITABILITY OF PACKING INHERENT VICE..
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UNINSURED PERILS
DAMAGES CAUSED WITHOUT THE INTERVENTION OF ANY EXTERNAL CAUSE WILLFUL MISCONDUCT OF THE ASSURED LOSS OR DAMAGE ARISING OUT OF INSOLVENCY OR FINANCIAL DEFAULT OF THE OWNERS OR OPERATORS OF THE VESSEL LOSS, DAMAGE OR EXPENSE ARISING OUT FROM THE USE OF ANY WEAPON OF WAR EMPLOYING:
ATOMIC OR NUCLEAR FISSION/ FUSION OR OTHER LIKE Compiled by S. M.Gupta RADIOACTIVE REACTION/ FORCE.
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TYPES OF MARINE POLICY

MARINE POLICIES ARE KNOWN BY DIFFERENT NAMES, ACCORDING TO THE MANNER OF THEIR EXECUTION, OR THE RISK THEY COVER SUCH AS:
VOYAGE POLICY TIME POLICY MIXED POLICIES VALUED POLICIES UNVALUED POLICIES OPEN POLICY FLOATING POLICY.
INLAND TRANSIT/ IMPORT & EXPORT

IT CAN THEREFORE BE CONCLUDED THAT BESIDES OTHERS, THE MARINE INSURANCE REFERS BROADLY TO:
TRANSPORTATION RISK INVOLVING:
MARINE HULL AND MARINE CARGO.
FURTHER, RISK ASSOCIATED WITH THE MARINE INSURANCE, AT DIFFERENT STAGES, WOULD BE DURING:
INLAND TRANSIT OR IMPORT AND EXPORT.
COMMERCE/ TRADE
MARINE INSURANCE IS MOST SIGNIFICANT INSURANCE IN:
OVERSEAS COMMERCE AND DOMESTIC TRADE.
IT PROVIDES INSURANCE PROTECTION AGAINST:

FORTUITOUS LOSSES LIKE:
ACCIDENT, FIRE, THEFT, BURGLARY AND ALSO NATURAL VAGARIES:
WHILST THE GOODS ARE IN TRANSIT AND.
MODE OF TRANSPORTATION
THE GOODS MAY BE IN TRANSIT BY:
RAIL ROAD AIR AND SEA.
IT PROVIDES SECURITY FOR:

VENTURING THE CAPITAL MORE FREELY, BY ALL CONCERNED AND EXPANDS THEIR AREA OF OPERATION.
Worlds biggest truck Midnight Rider Tractor Trailer Limousine
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IMPORT AND EXPORT

FOR IMPORT & EXPORT
INSTITUTE CARGO CLAUSES (ICC A, B OR C) ARE USED. THESE CLAUSES ARE FRAMED BY:
INSTITUTE OF LONDON UNDERWRITERS MOST OF THE COUNTRIES OF THE WORLD INCLUDING INDIA, ARE USING THESE CLAUSES.
THE COVERAGE & THE EXCLUSIONS ARE EXPLAINED BY WAY OF INSTITUTE CARGO CLAUSES ATTACHED TO THE POLICIES. Compiled by S. M.Gupta
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INLAND TRANSIT
FOR TRANSPORTATION WITHIN THE COUNTRY, THE CLAUSES USED ARE:
INLAND TRANSIT CLAUSES (ITC A, B OD C) WHICH ARE PREPARED BY:
TARIFF ADVISORY COMMITTEE, ARE ATTACHED TO THE POLICY AND
THE COVERAGE/ EXCLUSIONS ARE EXPLAINED BY WAY OF INLAND TRANSIT CLAUSES ATTACHED TO THE POLICIES.Compiled by S. M.Gupta
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MOVEMENT OF CARGO
ONCE THE GOODS MOVES OUT FROM THE WAREHOUSE OF THE SELLER TO THE WAREHOUSE OF THE BUYER THEY ARE NO LONGER IN THE CUSTODY OF THE SELLER OR THE BUYER THE GOODS ARE ENTIRELY IN THE HANDS OF OPERATORS OF THE SHIP AND THEREFORE LARGELY DEPENDENT UPON:
FITNESS & SEA WORTHINESS OF THE SHIP COMPETENCE OF ALL CONCERNED (CREW MEMBERS ETC.) FOR SAFETY AND SOUND DELIVERY.
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THE VOYAGE OR TRANSIT

THE MARINE POLICIES ARE GENERALLY KNOWN AS WAREHOUSE TO WAREHOUSE, THEREFORE EACH AND EVERY STAGE OF TRANSIT IS IMPORTANT FOR PROPER UNDERWRITING I.E.
CONDITIONS AT THE PORT OF ORIGIN/ DISCHARGE DISTANCE INVOLVED DIRECT OR BROKEN (INVOLVING TRANSSHIPMENTS) PORTS OR LOCATIONS INVOLVED..
THE VOYAGE OR TRANSIT

LOADING/ UNLOADING AND OTHER FACILITIES THEREON PAST EXPERIENCES AT THOSE PORTS GENERAL CONDITIONS THERE I.E. OVER BUSY OR NORMAL WEATHER CONDITIONS CARGO STORED ON-DECK/ UNDER DECK CURRENT WORLD EVENTS I.E.
POLITICAL TENSION CIVIL WARS LABOUR DISTURBANCES ETC. ETC.
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SPECIFIC VOYAGE POLICY

UNDER THIS POLICY, THE SUBJECT MATTER IS INSURED AGAINST THE RISK OF A PARTICULAR VOYAGE I.E.
FROM THE WAREHOUSE OF THE CONSIGNER TO THE WAREHOUSE OF THE CONSIGNEE, FOR EXAMPLE:
WAREHOUSE OF CONSIGNER AT MUMBAI TO WAREHOUSE OF THE CONSIGNEE AT NEW YORK. THEREFORE:
THE RISK COMMENCES FROM THE DEPARTURE OF GOODS FROM THE WAREHOUSE NAMED IN THE POLICY AND TERMINATES ON ARRIVAL AT THE WAREHOUSE NAMED IN THE POLICY.

THIS POLICY COVERS THE SUBJECT MATTER IRRESPECTIVE OF THE TIME FACTOR THIS POLICY IS NOT SUITABLE FOR HULL INSURANCE AS:
A SHIP USUALLY DOES NOT OPERATE OVER A PARTICULAR ROUTE OR VOYAGE.
THE POLICY IS USED MOSTLY IN CASE OF CARGO INSURANCE.


TO SUM UP, THIS POLICY IS ISSUED FOR:
A SPECIFIC VOYAGE (ONE PLACE TO ANOTHER) PERIOD OF INSURANCE NOT VERY SIGNIFICANT HERE AND IS:
SUITABLE FOR CLIENTS HAVING LIMITED NUMBER OF SENDINGS AND
EXPIRES ON COMPLETION OF THE VOYAGE.
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OPEN POLICY
AN OPEN POLICY IS ALSO KNOWN AS FLOATING POLICY IT IS ISSUED FOR A PERIOD OF TWELVE MONTHS AND ALL CONSIGNMENTS SENT DURING THE PERIOD ARE COVERED BY THE INSURERS THIS POLICY IS SUITABLE FOR BIG COMPANIES THAT HAVE REGULAR SHIPMENTS IT SAVES THEM THE TEDIOUS AND EXPENSIVE PROCESS OF ACQUIRING AN INSURANCE POLICY FOR EACH SHIPMENT.
OPEN POLICY
THE RATES ARE FIXED IN ADVANCE THE ASSURED HAS TO DECLARE THE NATURE OF EACH SHIPMENT AND THE COVER IS PROVIDED TO ALL THE SHIPMENTS THE ASSURED NEEDS TO DEPOSIT A PREMIUM FOR:
THE ESTIMATED VALUE OF THE CONSIGNMENT DURING THE POLICY PERIOD.
DECLARATION
EACH CONSIGNMENT NEEDS TO BE DECLARED ON EACH DECLARATION
THE SUM INSURED GETS REDUCED
OPEN POLICY IS ISSUED FOR AGGREGATE VALUE OF:

ANTICIPATED SHIPMENT DURING THE PERIOD OF INSURANCE.
SUM INSURED SHALL NOT BE LESS THAN:

SPECIFIED PERCENTAGE OF ANNUAL TURNOVER AND DEPENDING ON THE DISTANCE INVOLVED.
PREMIUM
AS AND WHEN THE CONSIGNMENTS ARE SENT, THE DECLARATIONS ARE GIVEN TO THE INSURERS THE SUM INSURED IS ADJUSTED ACCORDINGLY IF THE PREMIUM IS EXHAUSTED DURING THE YEAR ADDITIONAL PREMIUM IS CHARGED ON:
THE RATES ALREADY AGREED UPON FALLING WHICH:
THE POLICY STANDS TERMINATED.
CERTIFICATE/ POLICY
A CERTIFICATE IS ISSUED AGAINST EACH DECLARATION THE CERTIFICATE OF INSURANCE IS:
UNSTAMPED WHILST THE POLICY IS STAMPED.
CLAUSES FOR COVERAGE I.E. ITC A, B OR C, ARE ATTACHED TO THE POLICY.

INCREASE IN SUM INSURED

THE SUM INSURED UNDER THE OPEN POLICY CAN BE INCREASED:
BEFORE THE POLICY IS EXHAUSTED OR AFTER THE PREMIUM PAID IS EXHAUSTED.
BALANCE PREMIUM IF ANY UNDER THE POLICY IS REFUNDED TO THE INSURED OPEN POLICIES ARE GENERALLY ISSUED FOR INLAND TRANSIT.
ADVANTAGES
ADVANTAGES OF OPEN POLICY:
AUTOMATIC AND CONTINUOUS INSURANCE PROTECTION SAVING IN ADMINISTRATIVE EXPENSES SAVING IN STAMP DUTY VIS A VIS:
SPECIFIC POLICIES BEING ISSUED FOR EACH AND EVERY DECLARATION AND STAMP DUTY IS CHARGED EVERY TIME.
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OPEN COVER
OPEN COVER GIVES THE INSURED AN AUTOMATIC AND CONTINUOUS INSURANCE PROTECTION SO THAT THERE IS NO RISK OF:
ANY SHIPMENT REMAINING UNINSURED/ UNCOVERED EVEN THROUGH AN OVERSIGHT.
THE RATES AND TERMS AND CONDITIONS ARE AGREED IN ADVANCE OPEN COVER IS VALID FOR ONE YEAR.
OPEN COVER
IT IS OBLIGATORY ON THE PART OF THE INSURED TO DECLARE:
EACH AND EVERY SHIPMENT WITHOUT FAIL AND
NO ATTEMPT SHOULD BE MADE TO:

WITHHOLD ANY DECLARATION TO SAVE PREMIUM.
AN OPEN COVER IS NOT A POLICY BUT IS AN AGREEMENT BINDING IN HONOUR. THE INSURER WOULD INSURE ALL SHIPMENTS AND THE INSURED SIMILARLY BOUND TO DECLARE EACH SHIPMENT.
OPEN COVER
AS PER THE PROVISIONS OF THE INSURANCE ACT, THE PREMIUM FOR THE RISKS HAS TO BE PAID IN ADVANCE AND THEREFORE:
THE PREMIUM IS REQUIRED TO BE PAID ON EACH AND EVERY DECLARATION.
OPEN COVER IS SUITABLE FOR PERSONS ENGAGED IN:

REGULAR IMPORTS AND EXPORTS AND SEPARATE POLICY IS ISSUED FOR EACH SHIPMENT. Compiled by S. M.Gupta
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DUTY INSURANCE
THIS INSURANCE IS ON INCREASED VALUE OF CARGO, BY REASON OF PAYMENT OF CUSTOM DUTY AT DESTINATION IT IS SUBJECT TO SAME CLAUSES AND CONDITIONS AS THE INSURANCE OF CARGO AND PAYS THE SAME PERCENTAGE OF LOSS AS MAY BE PAID THEREON, HOWEVER:
EXCLUDING CLAIM IN RESPECT OF:
TOTAL LOSS OF WHOLE OR PART OF CARGO PRIOR TO DUTY BECOMING PAYABLE.
INCREASED VALUE INSURANCE

THIS INSURANCE IS ON INCREASE VALUE BY REASON OF MARKET VALUE OF THE GOODS AT DESTINATION ON THE DATE OF LANDING IS HIGHER THAN THE VALUE OF CARGO INSURED THE TERMS AND CONDITIONS ARE SAME AS THAT OF THE ORIGINAL POLICY, HOWEVER:
THE INSURERS PAYS 75% OF THE VALUE & THE ASSURED HAS TO BEAR 25% OF THE CLAIM AMOUNT.
SPECIAL DECLARATION POLICY

IT IS A FORM OF OPEN POLICY OR FLOATING POLICY ISSUED TO CLIENT WHO HAVE A LARGE TURNOVER AND FREQUENT DISPATCHES OF GOODS ANY WHERE WITHIN THE COUNTRY BY:
RAIL, ROAD OR INLAND WATERWAYS.
THE POLICY IS ISSUED TO THE CLIENTS, WHOSE ESTIMATED ANNUAL DISPATCHES ARE FOR AT LEAST 2 CRS.
ANNUAL POLICY
ANNUAL POLICY UNDER THE MARINE DEPARTMENT IS ISSUED FOR:
12 MONTHS TO COVER GOODS BELONGING TO:
THE ASSURED OR HELD IN TRUST BY THE ASSURED BUT:
NOT UNDER CONTRACT OF SALE OR PURCHASE PROVIDED..
ANNUAL POLICY
SUCH GOODS ARE IN TRANSIT BY RAIL OR ROAD FROM:
SPECIFIED DEPOTS/ PROCESSING UNITS TO OTHER SPECIFIED DEPOTS/ PROCESSING UNITS, HOWEVER:
THE DEPOTS/ PROCESSING UNITS MUST BE OWNED OR HIRED BY THE ASSURED.
THE POLICY IS NOT ASSIGNABLE OR TRANSFERABLE.
SPECIAL STORAGE RISK POLICY (SSRI)

THE COVER UNDER SPECIAL STORAGE RISK POLICY POLICY TAKES INTO CONSIDERATION:
THE REQUIREMENT OF THE CONSIGNER OF THE GOODS FOR INSURANCE TO PROTECT HIS GOODS DURING STORAGE AT:
RAILWAY YARD OR CARRIER PREMISES.
SPECIAL STORAGE RISK POLICY (SSRI)

PENDING CLEARANCE BY THE CONSIGNEES ON TERMINATION OF COVER (7 DAYS) UNDER OPEN POLICY OR SPECIAL DECLARATION POLICY (SDP), HOWEVER:
THE COVER IS GRANTED IN CONJUNCTION WITH OPEN POLICY OR SDP COVERING TRANSIT OF GOODS BY RAIL OR ROAD.
KINDS OF MARINE LOSSES

DIFFERENT TYPES OF MARINE LOSSES
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ANY QUESTIONS?
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Compiled by S. M.

HISTORY OF MARINE INSURANCE

HISTORY OF MARINE INSURANCE

HISTORY OF MARINE INSURANCE

Worlds biggest Passenger-ship

MARINE INSURANCE MARKET

LLOYDS COFFEE HOUSE

MARINE INSURANCE IN INDIA

SUBJECT MATTER OF MARINE INSURANCE

SUBJECT MATTER OF MARINE INSURANCE

CLASSIFICATION OF MARINE INSURANCE

THE CARGO TRANSPORTED BY SEA IS SUBJECT TO MANIFOLD RISKS SUCH AS:

WORLDS BIGGEST CARGO LINERS

THUS MARINE CARGO INSURANCE COVERS THE FOLLOWING:

WORLDS BIGGEST PLANE AIRBUS A380 - 555 Passengers

DEFINITION OF MARINE INSURANCE

FEATURES OF MARINE INSURANCE

IN CASE OF ADVANCE FREIGHT:

MEANING OF MARINE PERILS

Typical Marine Loss of Hull

TYPES OF MARINE POLICY

INLAND TRANSIT/ IMPORT & EXPORT

IT PROVIDES INSURANCE PROTECTION AGAINST:

IT PROVIDES SECURITY FOR:

Worlds biggest truck Midnight Rider Tractor Trailer Limousine

IMPORT AND EXPORT

THE VOYAGE OR TRANSIT

THE VOYAGE OR TRANSIT

SPECIFIC VOYAGE POLICY

SPECIFIC VOYAGE POLICY

THE POLICY IS USED MOSTLY IN CASE OF CARGO INSURANCE.

SPECIFIC VOYAGE POLICY

OPEN POLICY IS ISSUED FOR AGGREGATE VALUE OF:

SUM INSURED SHALL NOT BE LESS THAN:

CLAUSES FOR COVERAGE I.E. ITC A, B OR C, ARE ATTACHED TO THE POLICY.

INCREASE IN SUM INSURED

NO ATTEMPT SHOULD BE MADE TO:

OPEN COVER IS SUITABLE FOR PERSONS ENGAGED IN:

INCREASED VALUE INSURANCE

SPECIAL DECLARATION POLICY

SPECIAL STORAGE RISK POLICY (SSRI)

SPECIAL STORAGE RISK POLICY (SSRI)

KINDS OF MARINE LOSSES

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