Marine Insurance
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Transcript of Marine Insurance
NATURE OF MARINE INSURANCE CONTRACT : NATURE OF MARINE INSURANCE CONTRACT
Section 2 (13) A of the Insurance Act 1938 defines marine insurance as follows:- : Section 2 (13) A of the Insurance Act 1938 defines marine insurance as follows:-
“Marine insurance business” means the business of effecting contract of insurance upon vessels of any description, including cargoes, freights : “Marine insurance business” means the business of effecting contract of insurance upon vessels of any description, including cargoes, freights
and other interests which may be legally insured in or in relation to such vessels, cargoes and freights, goods, wares, merchandise and property of whatever : and other interests which may be legally insured in or in relation to such vessels, cargoes and freights, goods, wares, merchandise and property of whatever
description insured for any transit by land or water or both, and whether or not including warehouse risks or similar risks in addition or as incidental to : description insured for any transit by land or water or both, and whether or not including warehouse risks or similar risks in addition or as incidental to
such transit and includes any other risks customarily included amount the risks insured against in marine insurance policies. : such transit and includes any other risks customarily included amount the risks insured against in marine insurance policies.
The above definition clearly lays down the following classification of the marine insurance. : The above definition clearly lays down the following classification of the marine insurance.
HULL INSURANCE Insurance of vessel and its equipments are included under hull insurance. : HULL INSURANCE Insurance of vessel and its equipments are included under hull insurance.
CARGO INSURANCEThe cargo maybe of any description, for example, wares, merchandise, property, goods and so on. : CARGO INSURANCEThe cargo maybe of any description, for example, wares, merchandise, property, goods and so on.
FREIGHT INSURANCEFreight is to be payable for the carriage of cargoes or if the vessel is chartered, the money to be paid for the use of the vessel. : FREIGHT INSURANCEFreight is to be payable for the carriage of cargoes or if the vessel is chartered, the money to be paid for the use of the vessel.
The carrier is unable to earn freight if the goods or property (called cargoes) are not safely transported. : The carrier is unable to earn freight if the goods or property (called cargoes) are not safely transported.
LIABILITY INSURANCEThe marine insurance policy may include liability hazards such as collision or running down. : LIABILITY INSURANCEThe marine insurance policy may include liability hazards such as collision or running down.
ELEMENTS OF MARINE INSURANCE CONTRACT : ELEMENTS OF MARINE INSURANCE CONTRACT
The marine insurance has the following essential features which are also called fundamental principles of marine insurance. : The marine insurance has the following essential features which are also called fundamental principles of marine insurance.
Features of General ContractInsurable InterestUtmost Good FaithDoctrine of Indemnity : Features of General ContractInsurable InterestUtmost Good FaithDoctrine of Indemnity
SubrogationWarrantiesProximate causeAssignment and nomination of the policyReturn of premium : SubrogationWarrantiesProximate causeAssignment and nomination of the policyReturn of premium
FEATURES OF GENERAL CONTRACT : FEATURES OF GENERAL CONTRACT
PROPOSALThe broker will prepare a slip upon receipt of instructions to insure from ship-owner, merchant or other proposers. Proposal forms, : PROPOSALThe broker will prepare a slip upon receipt of instructions to insure from ship-owner, merchant or other proposers. Proposal forms,
so common in other branches of insurance, are known in the marine insurance and only the ‘slip’ so called ‘the original slip’ is used for the proposal : so common in other branches of insurance, are known in the marine insurance and only the ‘slip’ so called ‘the original slip’ is used for the proposal
The original slip is accompanied with other material information which the broker deems necessary for the purpose. : The original slip is accompanied with other material information which the broker deems necessary for the purpose.
ACCEPTANCEUnderwriters or other insurers or to the Lead of the insures, who initial the slip and the proposal is formally accepted. : ACCEPTANCEUnderwriters or other insurers or to the Lead of the insures, who initial the slip and the proposal is formally accepted.
But the contract can be legally enforced until a policy is issued : But the contract can be legally enforced until a policy is issued
The slip is an evidence that the underwriter has accepted an insurance and that he has agreed subsequently to sign a policy. : The slip is an evidence that the underwriter has accepted an insurance and that he has agreed subsequently to sign a policy.
ISSUE OF POLICYHaving effected the insurance, the broker will now send his client a cover note advising the terms and conditions : ISSUE OF POLICYHaving effected the insurance, the broker will now send his client a cover note advising the terms and conditions
on which the insurance has been placed. The broker’s cover note is merely an insurance memorandum and naturally has no value in enforcing the contract with the underwrites. : on which the insurance has been placed. The broker’s cover note is merely an insurance memorandum and naturally has no value in enforcing the contract with the underwrites.
INSURABLE INTERESTAn insured person will have insurable interest in the subject matter where he stands in any legal or equitable relation : INSURABLE INTERESTAn insured person will have insurable interest in the subject matter where he stands in any legal or equitable relation
to the subject matter in a such a way that may benefit by the safety or due arrival of insurable property or may be prejudiced by its loss, : to the subject matter in a such a way that may benefit by the safety or due arrival of insurable property or may be prejudiced by its loss,
or by damage thereto or by the detention thereof or may incur liability in respect thereof. Since marine insurance is frequently effected before the commercial transaction : or by damage thereto or by the detention thereof or may incur liability in respect thereof. Since marine insurance is frequently effected before the commercial transaction
to which the apply are formally completed it is not essential for the assured to have an insurable interest at the time of effecting insurance, : to which the apply are formally completed it is not essential for the assured to have an insurable interest at the time of effecting insurance,
though he should have an expectation of acquiring such an interest. If he fails to acquire insurable interest in due course, he does not become entitled to indemnification. : though he should have an expectation of acquiring such an interest. If he fails to acquire insurable interest in due course, he does not become entitled to indemnification.
. Since the ownership and other interest of the subject matter often change from hands to hands, the requirement of the insurable interest to be present only at the time of loss makes a marine insurance policy freely assignable. : . Since the ownership and other interest of the subject matter often change from hands to hands, the requirement of the insurable interest to be present only at the time of loss makes a marine insurance policy freely assignable.
EXCEPTIONSThere are two exceptions of the rule in marine insurance. : EXCEPTIONSThere are two exceptions of the rule in marine insurance.
LOST OR NOT LOSTA person can also purchase policy in the subject-matter in which it was known whether the matters were lost not lost : LOST OR NOT LOSTA person can also purchase policy in the subject-matter in which it was known whether the matters were lost not lost
In such cues the assured and the under writer are ignorant about the safety or otherwise of the goods and complete reliance was placed on the principle of Good Faith. : In such cues the assured and the under writer are ignorant about the safety or otherwise of the goods and complete reliance was placed on the principle of Good Faith.
The policy terminated if anyone of the two parties was aware of the fact of loss. In this case, therefore, the insurable interest may not be present at the time of contract because the subject-matter would have been lost. : The policy terminated if anyone of the two parties was aware of the fact of loss. In this case, therefore, the insurable interest may not be present at the time of contract because the subject-matter would have been lost.
P.P.I. POLICIESP.P.I. ( Policy Proof of Interest), i.e. interest proof policies.The insurable interest marine insurance can be of the following forms: : P.P.I. POLICIESP.P.I. ( Policy Proof of Interest), i.e. interest proof policies.The insurable interest marine insurance can be of the following forms:
1.ACCORDING TO OWNERSHIPThe owner has insurable interest up to the full value of the subject-matter. The owners are of different types according to the subject-matter. : 1.ACCORDING TO OWNERSHIPThe owner has insurable interest up to the full value of the subject-matter. The owners are of different types according to the subject-matter.
IN CASE OF SHIPSThe ship-owner or any person who has purchased it on character-basis can insure the ship up to its full price. : IN CASE OF SHIPSThe ship-owner or any person who has purchased it on character-basis can insure the ship up to its full price.
IN CASE OF CARGOThe cargo-owner can purchase policy up to the full price of the cargo. If he has paid the freight in advance, he can take the policy for the full price of the goods plus amount of freight plus expense of insurance. : IN CASE OF CARGOThe cargo-owner can purchase policy up to the full price of the cargo. If he has paid the freight in advance, he can take the policy for the full price of the goods plus amount of freight plus expense of insurance.
IN CASE OF FREIGHTThe receiver of the freight can insure up to the amount of freight to be received by him. : IN CASE OF FREIGHTThe receiver of the freight can insure up to the amount of freight to be received by him.
INSURABLE INTEREST IN RE-INSURANCEThe underwriter under a contract of marine insurance has an insurable interest in his risk, and may re-insure in respect of it. : INSURABLE INTEREST IN RE-INSURANCEThe underwriter under a contract of marine insurance has an insurable interest in his risk, and may re-insure in respect of it.
3. INSURABLE INTEREST IN OTHER CASESIn this case all those underwriters are included who have insurable interest in the salary and own liabilities. : 3. INSURABLE INTEREST IN OTHER CASESIn this case all those underwriters are included who have insurable interest in the salary and own liabilities.
. For example, the master or any member of the crew of a ship has insurable interest in respect of his wages. The lender of money on bottomry or respondentia has insurable interest in respect of the loan. : . For example, the master or any member of the crew of a ship has insurable interest in respect of his wages. The lender of money on bottomry or respondentia has insurable interest in respect of the loan.
UTMOST GOOD FAITH : UTMOST GOOD FAITH
The doctrine of caveat emptor (let the buyer beware) applies to commercial contracts, but insurance contracts are based upon the legal principle of uberrimae fides (utmost good faith). : The doctrine of caveat emptor (let the buyer beware) applies to commercial contracts, but insurance contracts are based upon the legal principle of uberrimae fides (utmost good faith).
But the duty of disclosure of material facts rests highly on the insured because he is aware of the material common in other branches of insurance are not used in the marine insurance. : But the duty of disclosure of material facts rests highly on the insured because he is aware of the material common in other branches of insurance are not used in the marine insurance.
DOCTRINE OF INDEMNITY : DOCTRINE OF INDEMNITY
The contract of marine insurance is of indemnity. Under no circumstances an insured is allowed to make a profit out of a claim. : The contract of marine insurance is of indemnity. Under no circumstances an insured is allowed to make a profit out of a claim.
EXCEPTIONSThere are two exceptions of the doctrine of indemnity in marine insurance. : EXCEPTIONSThere are two exceptions of the doctrine of indemnity in marine insurance.
PROFITS ALLOWEDActually the doctrine says that the market price of the loss should be indemnified and no profit should be permitted, but in marine insurance a certain profit margin is also permitted. : PROFITS ALLOWEDActually the doctrine says that the market price of the loss should be indemnified and no profit should be permitted, but in marine insurance a certain profit margin is also permitted.
INSURED VALUEThe doctrine of indemnity is based on the insurable value whereas the marine insurance is mostly based on insured value. The purpose of the valuation is to predetermine the worth of insured. :
INSURED VALUEThe doctrine of indemnity is based on the insurable value whereas the marine insurance is mostly based on insured value. The purpose of the valuation is to predetermine the worth of insured.
WARRANTIESA Warranty is that by which the assured undertakes that some particular thing shall of shall be fulfilled or whereby he affirms or negatives the existence of a particular state of facts. : WARRANTIESA Warranty is that by which the assured undertakes that some particular thing shall of shall be fulfilled or whereby he affirms or negatives the existence of a particular state of facts.
SEAWORTHINESS OF SHIPThe warranty implies that the ship should be seaworthy at the commencement of the voyage, or if the voyage is carries out in stages at the commencement of each stage. : SEAWORTHINESS OF SHIPThe warranty implies that the ship should be seaworthy at the commencement of the voyage, or if the voyage is carries out in stages at the commencement of each stage.
LEGALITY OF VENTUREThis Warranty implies that the adventure insured shall be lawful and that so far as the assured can control the matter it shall be carried out in the lawful manager of the country : LEGALITY OF VENTUREThis Warranty implies that the adventure insured shall be lawful and that so far as the assured can control the matter it shall be carried out in the lawful manager of the country
OTHER IMPLIED WARRANTIESThere are other warranties which must be complied in marine insurance. : OTHER IMPLIED WARRANTIESThere are other warranties which must be complied in marine insurance.
NO CHANGE IN VOYAGEWhen the destination of voyage is changed intentionally after the beginning of the risk, this is called change in voyage. : NO CHANGE IN VOYAGEWhen the destination of voyage is changed intentionally after the beginning of the risk, this is called change in voyage.
PROXIMATE CAUSEAccording to Marine Insurance Act, ‘ Subject to the provisions of the Act and unless the policy otherwise provides the insurer is liable for any loss : PROXIMATE CAUSEAccording to Marine Insurance Act, ‘ Subject to the provisions of the Act and unless the policy otherwise provides the insurer is liable for any loss
proximately caused by a peril insured against, but subject to as aforesaid he is not liable for any loss which is not proximately caused by a peril insured against : proximately caused by a peril insured against, but subject to as aforesaid he is not liable for any loss which is not proximately caused by a peril insured against
The insurer is not liable for any attributable to the willful misconduct of the assured, but unless the policy otherwise provides, he is liable for any loss proximately caused by a peril insured against. : The insurer is not liable for any attributable to the willful misconduct of the assured, but unless the policy otherwise provides, he is liable for any loss proximately caused by a peril insured against.
The insurer will not be liable for any loss caused by delay unless otherwise provided. : The insurer will not be liable for any loss caused by delay unless otherwise provided.
The insurer is not liable for ordinary wear and tear, ordinary leakage and breakage, inherent vice or nature of subject matter insured, or for any loss proximately caused by rats or vermin, or for any injury to machinery not proximately caused by maritime perils. : The insurer is not liable for ordinary wear and tear, ordinary leakage and breakage, inherent vice or nature of subject matter insured, or for any loss proximately caused by rats or vermin, or for any injury to machinery not proximately caused by maritime perils.
NATURE OF INSURANCE OF FIRE INSURANCEDEFINATION AND NATUREFire insurance is a device to compensate for the loss consequent upon destruction by fire. : NATURE OF INSURANCE OF FIRE INSURANCEDEFINATION AND NATUREFire insurance is a device to compensate for the loss consequent upon destruction by fire.
FUNCTIONSThe system of fire insurance cannot save the society from the economic loss to the community to the extent of the property lost by fire, : FUNCTIONSThe system of fire insurance cannot save the society from the economic loss to the community to the extent of the property lost by fire,
but it compensates someone and this saves him from a ruinous loss, at the cost of group of some others. : but it compensates someone and this saves him from a ruinous loss, at the cost of group of some others.
CAUSES OF FIREFire waste is the result of two types of hazard viz., ‘physical’ and ‘moral’. : CAUSES OF FIREFire waste is the result of two types of hazard viz., ‘physical’ and ‘moral’.
PHYSICAL HAZARD: It refers to the inherent risk of fire in the property which may occur due to inflammable nature, construction, artificial lighting and heating, lack of extinguishing apparatus use of the property etc. : PHYSICAL HAZARD: It refers to the inherent risk of fire in the property which may occur due to inflammable nature, construction, artificial lighting and heating, lack of extinguishing apparatus use of the property etc.
MORAL HAZARD: The moral hazard depends upon the man as physical hazard depends on the property. The property may be set on fire by the owner or by any person with his willingness, carelessness and lack of sense of duty may also increase the fire waste : MORAL HAZARD: The moral hazard depends upon the man as physical hazard depends on the property. The property may be set on fire by the owner or by any person with his willingness, carelessness and lack of sense of duty may also increase the fire waste
Sometimes, when market price is going down the owner can willingly set fire on the property and gain from the payment of insurance money. Thus, where the property was destroyed with the willingness of the property owner, moral hazard exists. : Sometimes, when market price is going down the owner can willingly set fire on the property and gain from the payment of insurance money. Thus, where the property was destroyed with the willingness of the property owner, moral hazard exists.
PREVENTION OF LESSInsurance is meant for indemnification of loss and not for prevention of loss although every reasonable step can be taken to eliminate it or minimize it through the agencies engaged in prevention of loss. : PREVENTION OF LESSInsurance is meant for indemnification of loss and not for prevention of loss although every reasonable step can be taken to eliminate it or minimize it through the agencies engaged in prevention of loss.
INDEMINIFICATION OR CURATIVE EFFORTS: The insurance provides protection by indemnifying the financial loss suffered by insured person which occurred beyond the control of insured and insurer. : INDEMINIFICATION OR CURATIVE EFFORTS: The insurance provides protection by indemnifying the financial loss suffered by insured person which occurred beyond the control of insured and insurer.
PREVENTIVE EFFORTS: Fire insurers stimulate the installation of protective device and better types of construction through granting credit. They help in installation of fire-fighting apparatus, water supply and engineering services. : PREVENTIVE EFFORTS: Fire insurers stimulate the installation of protective device and better types of construction through granting credit. They help in installation of fire-fighting apparatus, water supply and engineering services.
REINSURANCEReinsurance is an arrangement whereby an original insurer who has insured a risk again with another insurer, that is to say, reinsures a part of the risk in order to diminish his own liability. : REINSURANCEReinsurance is an arrangement whereby an original insurer who has insured a risk again with another insurer, that is to say, reinsures a part of the risk in order to diminish his own liability.
Insurance is a contract between the insurer and the original insured. Reinsurance is a contract between the reinsured (the insurer) and the reinsurer. : Insurance is a contract between the insurer and the original insured. Reinsurance is a contract between the reinsured (the insurer) and the reinsurer.
REINSURANCEReinsurance is the transfer of insurance business from one insurer to another. : REINSURANCEReinsurance is the transfer of insurance business from one insurer to another.
The insurer transferring the business is called the ‘Principal’ or ceding or original office and the office to which the business is transferred is called for ‘reinsurer or guaranteeing office’ : The insurer transferring the business is called the ‘Principal’ or ceding or original office and the office to which the business is transferred is called for ‘reinsurer or guaranteeing office’
ADVANTAGE OF REINSURANCEReinsurance makes it possible to accept each risk for the very amount desired by the proposer and to transfer the excess above the ‘retention limit’ to another insurer. : ADVANTAGE OF REINSURANCEReinsurance makes it possible to accept each risk for the very amount desired by the proposer and to transfer the excess above the ‘retention limit’ to another insurer.
1. Compiled by S. M.Gupta 2
2. 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
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. Compiled by S. M.Gupta 4
4. 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. Compiled by S.
M.Gupta 5
5. HISTORY OF MARINE INSURANCE 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. Compiled by S. M.Gupta 6
6. HISTORY OF MARINE INSURANCE 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. Compiled by
S. M.Gupta 7
7. World’s biggest Passenger-ship ‘MS Freedom of the Seas’ 4300 passenger Capacity Inside Compiled by
S. M.Gupta 8
8. World’s biggest Passenger-ship Compiled by S. M.Gupta 9
9. MARINE INSURANCE MARKET LLOYD’S, A CORPORATE ESTABLISHED IN LONDON, IS THE
BIGGEST CENTRE FOR MARINE INSURANCE IN THE WORLD LLOYD’S WAS A COFFEE HOUSE
FREQUENTED BY THE TRADESMEN, SHIP- OWNERS AND OTHERS THE COFFEE HOUSE BECAME
THE MEETING GROUND FOR: BROKERS, INSURERS AND SHIP OWNERS FOR NEGOTIATING THEIR
BUSINESS. Compiled by S. M.Gupta 10
10. LLOYD’S 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 LLOYD’S WHO
PAID AN INSURANCE CLAIM OF ONE MILLION US $. Compiled by S. M.Gupta 11
11. Compiled by S. M.Gupta 12
12. 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. Compiled by S. M.Gupta 13
13. 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. Compiled by S. M.Gupta 14
14. 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. Compiled by S. M.Gupta 15
15. 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. Compiled by S.
M.Gupta 16
16. Types of ‘Hull’ Compiled by S. M.Gupta 17
17. 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 18
18. WORLD’S BIGGEST CARGO LINERS Compiled by S. M.Gupta 19
19. 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. Compiled by S. M.Gupta 20
20. WORLD’S BIGGEST PLANE ‘AIRBUS A380’ - 555 Passengers Compiled by S. M.Gupta 21
21. 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.
Compiled by S. M.Gupta 22
22. 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 23 TRANSPORTATION.
23. FEATURES OF MARINE INSURANCE IT IS BASED ON ‘UTMOST GOOD FAITH’ I.E. BOTH THE
INSURED AND THE INSURER’S 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.
Compiled by S. M.Gupta 24
24. 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’: Compiled by S. M.Gupta 25
25. 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. Compiled by S.
M.Gupta 26
26. 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 INSURER’S. Compiled by S. M.Gupta 27
27. 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…..
Compiled by S. M.Gupta 28
28. 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. Compiled by S. M.Gupta 29
29. 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. Compiled by S. M.Gupta 30
30. 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. Compiled by S. M.Gupta 31
31. 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. Compiled by S. M.Gupta 32
32. 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.
INSURER’S ARE LIABLE ONLY, IF AN INSURED PERIL IS THE ‘PROXIMATE CAUSE’ OF THE LOSS.
Compiled by S. M.Gupta 33
33. 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. Compiled by S. M.Gupta 34
34. INSURED PERILS SOME OF THE INSURED PERILS ARE: FIRE, EXPLOSION BREAKAGE ACCIDENT
DERAILMENT OF CONVEYANCE THEFT PILFERAGE NON-DELIVERY JETTISON….. Compiled by S.
M.Gupta 35
35. ‘Wilhelm Gustloff’ SINKING, the biggest Maritime disaster in the history. About 9,400 persons were killed
in this disaster in 1945. Compiled by S. M.Gupta 36
36. 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.
Compiled by S. M.Gupta 37
37. Typical Marine Loss of Hull Compiled by S. M.Gupta 38
38. 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…..
Compiled by S. M.Gupta 39
39. 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 40 RADIOACTIVE REACTION/
FORCE.
40. 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. Compiled by S. M.Gupta 41
41. 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. Compiled
by S. M.Gupta 42
42. 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…. Compiled by S. M.Gupta 43
43. 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. Compiled by S. M.Gupta 44
44. World’s biggest truck ‘Midnight Rider Tractor Trailer Limousine’ Compiled by S. M.Gupta 45
45. 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 46
46. 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 47
47. Compiled by S. M.Gupta 48
48. Compiled by S. M.Gupta 49
49. 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.
Compiled by S. M.Gupta 50
50. 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 TRANS- SHIPMENTS) PORTS OR LOCATIONS INVOLVED…..
Compiled by S. M.Gupta 51
51. 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. Compiled by S. M.Gupta 52
52. Compiled by S. M.Gupta 53
53. 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. Compiled by S. M.Gupta 54
54. SPECIFIC VOYAGE 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’. Compiled by S. M.Gupta 55
55. SPECIFIC VOYAGE POLICY 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 SENDING’S AND EXPIRES ON COMPLETION
OF THE VOYAGE. Compiled by S. M.Gupta 56
56. Compiled by S. M.Gupta 57
57. 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 INSURER’S 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. Compiled by S. M.Gupta 58
58. 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. Compiled by S. M.Gupta 59
59. 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. Compiled by S. M.Gupta 60
60. PREMIUM AS AND WHEN THE CONSIGNMENTS ARE SENT, THE DECLARATIONS ARE GIVEN TO
THE INSURER’S 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. Compiled by S. M.Gupta 61
61. 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. Compiled by S. M.Gupta 62
62. 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’. Compiled by S. M.Gupta 63
63. 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. Compiled by S. M.Gupta 64
64. Compiled by S. M.Gupta 65
65. 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. Compiled by S.
M.Gupta 66
66. 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. Compiled by S. M.Gupta 67
67. 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.S.
M.Gupta Compiled by 68
68. Compiled by S. M.Gupta 69
69. Compiled by S. M.Gupta 70
70. Compiled by S. M.Gupta 71
71. Compiled by S. M.Gupta 72
72. 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. Compiled by S. M.Gupta 73
73. 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 INSURER’S PAYS 75% OF THE VALUE & THE ASSURED HAS TO BEAR 25%
OF THE CLAIM AMOUNT. Compiled by S. M.Gupta 74
74. 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. Compiled by S.
M.Gupta 75
75. 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….. Compiled by S. M.Gupta 76
76. 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. Compiled by S. M.Gupta 77
77. 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. Compiled by S. M.Gupta 78
78. 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. Compiled by S. M.Gupta 79
79. KINDS OF MARINE LOSSES DIFFERENT TYPES OF MARINE LOSSES Compiled by S. M.Gupta 80
80. Compiled by S. M.Gupta 81
81. Compiled by S. M.Gupta 82
82. Compiled by S. M.Gupta 83
83. THANKS ANY QUESTIONS? Compiled by S. M.Gupta 84