Marine Insurance

Companies are engaged in transporting their goods to different locations, both within the country and internationally, via various modes of transport such as by air, by road & by sea. The goods transported face various risks due to which they might be damaged or destroyed. In case of such damage or destruction, the company faces huge losses. Here is where a marine insurance policy proves useful against losses suffered if the goods or the vessels are damaged in the course of transportation. The policy can be bought by businesses which dispatch their goods to different locations via sea, ship owners, transporters and so on.

Classification

Based on Voyage

Single Transit Policy

When insured needs insurance for a specific voyage or single transit, then single transit or specific transit policy is issued.

This policy is useful for traders whose orders are inconsistent. Small size exporters also use single transit policies

Open Policy

When insured is having multiple orders throughout the year, it is very time consuming and costly affair to arrange single transit policy for each and every transit. In such a scenario, he can take open policy.

Open policy is a contract effected for a period of 12 months, whereby the insurance company agrees to provide insurance cover to all shipments coming within the scope of an open cover

Based on Trade

Import

This policy is issued to Insured in India who imports cargo from anywhere in world to Insured’s premised in India.

Export

This policy is issued to Insured in India who exports cargo from his premises in India to consignee residing in foreign country.

Inland

In case of Inland policy, the transit is within India.

All above policies can be further classified as Open Policy or Single transit Policy

Sales Turnover Policy

Rate is charged on estimated turnover & adjusted on actual turnover at the end of year Single policy covers all movements of transit outside factory premises viz.Indigenous purchase, sales, Imports, Exports, Job works movement and inter-depot movementsNo hassles of submitting monthly declarations Reduces operational cost of monitoring separate policies and providing declarations.

Project Cargo Insurance

Issued in conjunction with project related policiesCovers indigenous and import transits of project cargo till project site in anywhere in India/worldPolicy period for marine cargo would be same as that of project insurance policy .

Based on Coverage

Export and Import Policies are governed by Institute Cargo ClausesThese clauses have been designed by the Institute of London Underwriters. The various clauses are as below:Institute Cargo Clauses (C) – ICC (C)Institute Cargo Clauses (B) – ICC (B)Institute Cargo Clauses (A) – ICC (A) also called as All risk Policy Institute War Clauses (Cargo)Institute Strike Clauses (Cargo)ICC ‘A’ Clause offers all risk cover subject to only named exclusions which are mostly uninsurable.ICC ‘C’ & ICC ‘B’ Clauses are “Named Peril” policy where scope of cover is limited.ICC A, ICC B and ICC C clauses are used where mode of transit is sea .

Common Causes of Loss:

• Accident

• Breakage/Damage

• Water Damage

• Hijacking

• Shortage

• Non-Delivery/Short Delivery

• Mishandling by transporter

Offerings for Faster Claim Settlement

• Single window approach

• Robust & secure IT interfaces with interconnected branches

• Arrangement of waiver of documents from Insurer

• Coordination with Surveyor/Insurer/Branches will be done by our representative only

• Insured can access and check the Claim status online 24 X 7

Duties of Insured

Take open delivery if consignment is received in damaged conditionNotice of loss to the nearest OfficeCooperate with surveyor for assessing the loss Protect rights of recovery from the carrier for consignment received in damaged condition Lodge monetary claims on carriers under registered A/D within 6 months from date of LR/RR for rail/road carriage7 days for air cargo from date of delivery 3 days from GLD for ship consignment Submit the required documents Preserve the salvage.

Do's

• Arrange prompt delivery

• Arrange prompt and complete documentation

• Select a carrier offering adequate protection, clean storage, modern cargo handling equipment and fair claims policy

• Use Well constructed packaging

• Use International Handling symbols

• Consolidate small packages into simple load units

• Provide Waterproof linings / Pack for toughness

• Check shipping documents to ensure No

Dont's

• Insufficient preparation of cargoes

• Descriptive labelling, display of Trade marks

• Over-packing of a container beyond its permitted capacity

• Selecting a carrier based on cheap freight alone.

• Allowing your cargo to be exposed unduly at any location

For More details visit us on www.palminsurance.in