In legal terms A contract whereby, for specified consideration, one party undertakes to compensate the other for a loss

relating to a particular subject as a result of the occurrence of designated hazards

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

New building risks: This covers the risk of damage to the hull while it is under construction Yacht Insurance: Insurance of pleasure craft is generally known as "yacht insurance" and includes liability coverage. Smaller vessels, such as yachts and fishing vessels, are typically underwritten on a "binding authority" or "line slip" basis

War risks: Usual Hull insurance does not cover the risks of a vessel sailing into a war zone

Increased Value (IV): Increased Value cover protects the ship-owner against any difference between the insured value of the vessel and the market value of the vessel Overdue insurance: This is a form of insurance now largely obsolete due to advances in communications. The overdue insurance of the Titanic was famously underwritten on the doorstep of Lloyd's Cargo insurance: Cargo insurance is underwritten on the Institute Cargo Clauses, with coverage on an A, B, or C basis, A having the widest cover and C the most restricted. Valuable cargo is known as specie

Risks Covered

Export / Import
Institute Cargo Clauses (A) covering all extraneous perils except War and SRCC risks Institute Cargo Clauses (B) earthquake, volcanic eruption and lightning, Washing overboard Institute Cargo Clauses (C) - Fire or Explosion, Vessel or craft being stranded, grounded, sunk or capsized

Inland
Inland Transit Clause (A) - All extraneous perils except SRCC are covered subject to exclusions. Inland Transit Clause (B) Breakage of bridges, Collision with or by the carrying vehicle, Overturning of the carrying vehicle Inland Transit Clause (C) - Fire, Lightning

Pricing Terms of discounts

Better packing like containers No transshipment in the course of Journey Choice of Good Transporters / Carriers

Rates
Commodity-wise Guide Rates Single Shipment Retail Rate(%) Single Shipment SME(%)

Cotton and Fibers

Readymade Garments and Hosiery Yarn, Wool, Woolstrips, Hessian. Gunnies and coir Products

0.30
0.10

0.10
0.06

Machinery and Machine tools including 0.12 spares and Parts Fireworks, Crackers, Gunpowder, Ammunition, 0.50 Celluloid and Explosives Hay, Grass, Straw, Baggasse etc. Matches (in boxes and cartons) 1.50 0.15

0.05 0.25 0.50 0.12

Papers, Stationery goods, Books, Magazines etc.

0.12

0.04

GENERAL PROCEDURE
Written approval in mail or hard copy Check for details attached Check for customer code, agent code and receipt code Check for adequate premium available in receipt Policy specific places should be mentioned under voyage from and voyage to No policy issuance if consignment already started

TECHNICAL PROCEDURE
Number of units to be mentioned Bills depending upon transit mode must be mentioned Check for invoice number Expected date of voyage Check for stamp duty differences Check for condition clauses Basis of valuation

 Institute cargo clauses o Clause C Fire or explosion, Standing, sinking, overturning o Clause B Earthquake, water damage, lost of package over board o Clause A Covers all risks of damages of B & C Institute War Clause (Cargo) Institute Strike Clause (Cargo) Institute Classification Clause

Cargo ISM Endorsements

Institute Radioactive Contamination (Exclusion: Chemical, Biological) Bio-chemical and Electromagnetic Weapons Exclusion clause

 Can be for export / import / inland depending upon the proposal Meant for single shipments

Specific policy for specific shipments

Value and details pertaining to the voyage including not limited to Bill of lading or Air way bill etc will be specifically declared by the insured Coverage under the policy will expire when the consignment reaches the destination

 Issued for a period of one year All shipments are automatically covered at the agreed rates and terms under the policy until the Sum Insured is exhausted

Open Policy

Subject to declaration by the client for all dispatches made during the policy period on a periodical basis Shipment should be through a First class steamer/liner within 25 years of age in case of transit by sea

 To be given to high Net worth clients

The sum insured would be decided based upon the Annual turnover of the client

Turnover Policy

Provides Transit Insurance coverage on Exports ( CIF / FOB ), Imports + Customs duty, domestic purchase of raw materials, consumables and stores etc, domestic sale of finished goods, any number of inter factory / Inter-depot / to and fro job workers movement , Intermediate storage at job workers / C&F premises, all incidental expenses like Freight, levies etc Instalment facility is available by which the client can enhance the sum insured on a periodical basis say at the beginning of each quarter

Duty Insurance Increased Value Insurance Special Declaration Policy Annual Policy Special Storage Risk Policy (SSRI)

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

This insurance is on increased 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.

It is a form of open policy or floating policy issued to clients 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 crores.

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

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.

The cover under special Storage risk 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.

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.

 Upfront Payment of the entire premium

Payment of extra premium under Open policies

Installment facility available for Turnover policies IMPORTANT POINTS TO NOTE Keep the client informed about the insurance coverage

Inform the BDMs when sum insured becomes low

Marine Losses

Total Loss

Partial Loss

Actual Total Loss

Constructive Total Loss

Particular average loss

General Average Loss

Salvage charges