Marinecargo Insurance 1 to 209

7/27/2019 Marinecargo Insurance 1 to 209

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MARINE CARGO/TRANSITINSURANCE


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MARINE CARGO INSURANCEOldest form of insuranceImportant part of commerce and trade, bothdomestic and international

Concerned with inland transits and exports andimportsMode of transit: by road, rail, inland

waterways,sea, air, registered post, courier


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Marine Insurance Market

Mutuals and captivesP&I club, Strikes club and Defence clubCaptive insurer accepts risks from its own company and also buys reinsurance from market

Brokers, risk managers and captive managementLawyers, banks, surveyors and average adjusters

Trade associations and market committees

Market agreements


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TradeIncrease in trade is accompanied by increased

demand for marine Insurance and more ships tocarry those goods.Domestic Trade- Sale and distribution of goods

within the country International Trade- Exports and Imports of goods to/from other countries

Parties:Sellers or exportersBuyers or importers,

Intermediaries


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Custom clearance for ExportShipping Bill/ Bill of Export is the main document requiredby the Customs Authority for allowing shipment. The following are the documents required for the processing of the Shipping Bill:

GR forms (in duplicate) for shipment to all the countries.4 copies of the packing list mentioning the contents, quantity,gross and net weight of each package.

4 copies of invoices which contains all relevant particularslike number of packages, quantity, unit rate, total f.o.b./ c.i.f. value, correct & full description of goods etc.Contract, L/C, Purchase Order of the overseas buyer.

AR4 (both original and duplicate) and invoice.

Inspection/ Examination Certificate.

Bill of Export: For the goods which are cleared by Land Customs with allthe above documents.


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Documents required for export..

Inspection or Quality credential - if the buyer requires anexamination of goods prior to shipment, these are vital documents to making sure the deal is established in accordance to the buyers requirement.

Packing List - The List of all of the cardboard boxes within the containerand the contents within the boxes.

Invoice - The most essential document. Make sure that a complete synopsisof merchandise is outlined and it is invoiced in the currency of sale.

Others - These are other detailed requirements from country to country.For instance, Australia has strict quarantine limitations governing the trade of animal and food items. You would need to secure a permit, or subject youritems to an inspection or both.


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Documents required for imports- Bill of Entry ( Import declaration)

- Signed invoice- Packing List- Bills of lading or bill of lading / airway bill - Completion of the GATT has been filled in

declaration- The importer or his customs declaration agent- Approval (when necessary)- Letters of credit / bank draft (when necessary)- Insurance documents- Import license- Trade License (when necessary)
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Documents required for imports..

- Laboratory (Department of Chemicals to provide the

goods)- Permitted to make tax-free- The right tariff exemption certificate (DEEC) / right

to tax refund certificate (DEPB) Original- Catalog, detailed technical specifications, related

documents (the goods are machinery andequipment, machinery and equipment to providespare parts or chemicals)

- A single price of machinery and equipment spare parts

- Certificate of origin (application of preferential tariff rates to provide)- No commission statement3. Pre-declaration, customs declarations and green

channel changes


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Trade. Sales of Goods Act 1924Consensus ad idem in regard to terms of salebetween seller and buyer, in the country or whenthey are in different country Seller and buyer, both have obligations to fulfillthe terms and conditions of the sale agreementFor better understanding the terms of tradeInternational Chambers of CommerceBrochure- attach such definite meaning to

various sale terms used internationally


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Insurable interestMarine Insurance Act, 1963Every person has an insurable interest whois interested in a marine adventure

Legal and equitable relation to the

adventure or to any insurable property atrisk therein, 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, damage ordetention


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Insurable interest

Insurable interest must be there at the time of lossor damage. The goods may change many handsduring transit.

At inception the insured should have reasonableexpectation of acquiring such interest

The loss to subject goods may be recovered even if the loss took place even before the insurance wasconcluded provided the insured is not aware of it.

Lost or not lost makes the cover retrospective provided good faith has been observed.(Underwriters take precaution by denying coverif the transit has commenced before insurancearrangement; Sec. 64 VB)


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Measure of insurable value.. 2) In insurance on freight, whether paid in advance orotherwise, the insurable value is the gross amount of the freight at the risk of the assured, plus the charges of insurance:

(3) In insurance on goods or merchandise, the insurable value is the prime cost of the property insured, plus theexpenses of and incidental to shipping and the charges

of insurance upon the wholeUnvalued policies are rare and usually issued on freight


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Passing of insurable interest A seller of goods has an insurable interest in the

goods up-to the time that the risk in the goodspasses to the buyer, depending upon theincoterm in the sale contract( type of contract)

When title pass after the commencement of voyage or transit, the sellers interest ceasesDefeasible interest or contingent interest-

the kind of interest that may terminate during the currency of the voyage or transit for reasonsother than maritime perils


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Indemnity A contract of marine insurance is a contract whereby the insurer undertakes to indemnify the insured, in the manner and to the extent agreed in the contract.. In other words it is not a contract of

indemnity ideally, but of an indemnity according to the conventional terms of the bargain.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. Act.


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Utmost Good Faith The insured is obligated to disclose to the insurer every

material circumstance. A circumstance or fact is material if it would affecteither the premium or the decision to accept the risk.

The disclosure must be made before the contract isconcluded.Failure to properly disclose material facts entitles theinsurer to avoid the contract.

The contract is not automatically terminated, theinsurer must elect to avoid it and must return thepremium.


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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 shipDocuments of ownership transferred to the buyer- B/L, Invoice

FREE ON BOARD (FOB): SELLER UPTO LOADING ON BOARDOF SHIP AND BUYER FROM PORT OF LOADING

Seller to place the goods on board of the ship nominated by the buyerDocuments of ownership transferred to the buyer- B/L, Invoice

COST & INSURANCE (C&I): SELLER

Ship is arranged by the buyer and B/L informed to the seller in time forinsuranceSeller to place the goods at place agreed or on board of the ship arranged by the buyer


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INTERNATIONAL CONTRACT OF SALE RESPONSIBILITY OF ARRANGING INSURANCE COST INS & FREIGHT(CIF): SELLER Seller to arrange Transportation of goods from warehouse to final

warehouse- and so insurance

Documents of ownership transferred to the buyer- B/L, Insurance, Invoice

FAS: Seller up-to port and BUYER from the port of commencementSeller to place Goods alongside the vessel arranged by the buyer(not to lift on board)

EX-WORKS: BUYER to arrange Insurance and delivery fromthe warehouse of seller

FREE ON RAILS: SELLER TO PLACE GOODS ON WAGON ANDBUYER IS RESPONSIBLE AFTERWARDS

Insurable interest pass upon the transferownership of the goods in favour of buyer. A contract for the sale of goods performed by sale of the documentsInsurable interest pass when the ownership pass to the buyer on

passing of the documents of title to buyer (goods cease to be in thecontrol of the seller).


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IMPORT/EXPORT PRACTICE..

BILL OF EXCHANGE- AN UNCONDITIONAL ORDER IN WRITING BY EXPORTER TO THE BUYER TO WHOM IT IS ADDRESSED TO PAY ON DEMAND, OR AT A FIXED OR DETERMINABLE FUTURE DATE

A CERTAIN SUM OF MONEY TO OR TO THE ORDER OFSPECIFIED PERSON OR TO BEARER

THERE ARE THREE PARTIES TO A BILL:

DRAWER- CREDITOR DRAWEE- DEBTOR OF ACCEPTOR PAYEE- WHO RECEIVE PAYMENT (DRAWER OR A BANK NOMINATED)


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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 IMPORTINGCOUNTRY IN FAVOUR OF THE EXPORTER

IT CONTAINS AN UNDERTAKING THAT BILLS OFEXCHANGE DRAWN BY HIM(SELLER) UPON THE IMPORTER UPTO THE AMOUNT SPECIFIED THEREIN WILL BEHONOURED BY IT ON PRESENTATION

THE LETTER OF CREDIT IS PASSED TO THE SELLER OR HISBANKER PERMITTING THE SELLER TO DRAW A BILL OFEXCHANGE PROVIDED THE DOCUMENT OF TITLEPRESCRIBED BY THE BUYER ARE TENDERED/ PRESENTED


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IMPORT/EXPORT PRACTICE..

ON GOODS READY FOR EXPORT, THE EXPORTER HANDSOVER THE DOCUMENTS OF TITLE TO BANK AND GETS THEBILL OF EXCHANGE DRAWN BY HIM ON THE IMPORTER,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 INSURANCEPOLICY IS ALSO REQUIRED BY BANK TO PROTECT ITSINTERESTS IN CASE GOODS ARE LOST/DAMAGED IN

TRANSIT


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MARINE CARGO INSURANCE

MARINE INSURANCE ACT, 1963 ACT PROVIDES THE LEGAL FRAMEWORK OR RULES FOR TRANSACTION OF MARINE INSURANCE-FOR 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:

ITS AN EVIDENCE OF MARINE INSURANCE CONTRACT POLICY FORM CONTAINS DETAIL OF INSURED,CONSIGNMENT, SUM INSURED, INSURED PERILS, ETC.CLAUSES ATTACHED TO IT SPECIFY THE COVERAGE ,CONDITIONS AND EXCLUSIONS- ICC CLAUSES


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Containerization

Stowing of goods in container


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Vizag Harbour


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Mumbai Port
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Vessels in the port


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Vessel in the birth to unload


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Container vessel


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A Port


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Overseas Port


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MARINE STANDARD POLICY Also called specific policyCovers individual shipmentsStamped as per Indian Stamp Act, 1899, stampduty is recoverable from the insured

The policy can be issued to cover any shipment/dispatch by sea, road, rail, post or air. Appropriate clauses shall be attached dependingupon the coverage grantedMinimum premium is Rs. 50/- plus stamp dutyMarine insurance policy shall be issued inaccordance of Marine Insurance Act to beadmitted as an evidence


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MARINE STANDARD POLICY FORM THE FORM CONTAINS THE FOLLOWING PARTICULARS:

NAME OF INSURED: -POLICY NO.:SUM INSURED: -PREMIUM:STAMP DUTY: -CONVEYANCE/STEAMER:

VOYAGE OR JOURNEY: -B/L; LR/GR, RR, AWB NO.:

TYPE OF COVER: AND DATE:CLAUSES ATTACHEDINTEREST/PROPERTY : DESCRIPTION OF THE ITEM WITHPACKING DETAILS :

NAME AND ADDRESS OF SURVEYOR AT DESTINATIONCLAIM SETTLING AGENT:PLACE WHERE CLAIM SHALL BE SETTLED:POLICY ISSUING OFFICE ADDRESS AND DATE:SIGNATURE OF AUTHORISED PERSON:


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OPEN COVER


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OPEN COVER.

THE INSURER UNDERTAKES TO INSURE ALL SHIPMENTSDECLARED BY THE INSURED

THE ASSURED UNDERTAKES TO DECLARE EACH ANDEVERY SHIPMENT WHICH COMES WITHIN THE SCOPE OFOPEN COVER

PREMIUM AND STAMPDUTY PAYABLE AGAINST EACH ANDEVERY SHIPMENT

A MARINE POLICY OR CERTIFICATE OF INSURANCE SHALLISSUED DULLY STAMP DUTY AGINST EACH DISPATCH TO BESENT TO CONSIGNEE AS A PROOF OF INSURANCE

A DEPOSITE PREMIUM , EQUIVALENT TO ONE TO THREEMONTHS TURNOVER SHALL BE ACCEPTED BY INSURER

OPEN COVER


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OPEN COVER.. FOR LEGAL PURPOSE OPEN COVER IS LIKE A COVERNOTE

AND THEREFORE A STAMPED POLICY OR CERTIFICATE ISISSUED AGAINST EACH SHIPMENT

THE ADVANTAGES ARE:

AUTOMATIC AND CONTINUOUS COVER IN REGARD TOCOVERAGE, RATE, TERMS AND CONDITIONS AND NO NEEDFOR ANY NEGOTIATION ON EACH SHIPMENT

ANY INADVERTANT OMMISSION TO INSURE OR DELAY INSHIPMENT 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 OPENCOVER


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O P li


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Open Policy. A Certificate of Insurance is issued against declarations forthe fortnight or month as the case may be.

Since policy is a stamped document, certificates are notstamped.

Open policy is issued for inland transit

At the end of the policy period, the policy is adjusted and premium against the balance unutilized S. I. is refunded

Advantages of Open Policy: Automatic and continuous insurance protection Administrative labour is reducedSaving in stamp duty


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Open Policy.

The insurer can check the records of the insured in regardto dispatches made in terms of the open policy

The policy can be cancelled by either party after giving anotice of 30 days

Location limit at any one location should not exceed aspecified amount mentioned in the open policy conditions

Sellers Contingency Policy


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Sellers Contingency Policy

In almost all exports where credit is allowed by theseller to the buyer and the goods are not exportedon CIF basis, responsibility for the goods passesto the buyer when the goods are loaded on to theoverseas vessel

But ownership does not change until the buyeraccepts the goods and related documents.

Thus if the seller is allowing credit to the buyerand has shipped goods on FOB terms, buyer shallarrange vessel and insurance


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Annual or Sales Turnover Policy


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Annual or Sales Turnover PolicyEligibility criteria

The insured should be an entity as per company act The applicable annual premium to be more than Rs. 1 lac.Previous years balance sheet and accounts for determiningthe sales turnover.Existing client with good relationship and profitability.New client having good reputation and satisfactory claimexperience under marine cargo.

There must be other insurance business with the InsuranceCo. i.e. Property insurance;

Stand alone cover is to be discouraged A limit per bottom and per location is to be declared


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Annual Turnover Policy


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Annual Turnover Policy..

Due care to be taken while deciding the premium rate,keeping in view the inherent fact that the premium rate isbased on annual sales turnover figures.No capital goods (plant & machinery) to be coveredNo over dimensional cargo to be covered.

Tail end risks, if any, to be covered only after inspection bythe suitable Surveyors and goods being found insatisfactory conditions.Premium adjustment to be done only downwards , in view of the provisions of section 64 VB.

The payment of Premium may be allowed to be acceptedon the basis of provisional value of quarterly sales turnover ,

which may be further increased before expiry of therespective quarter. If entire premium is accepted inadvance for the Annual Sales Turnover (provisional) eventhough the quarterly sales figure must be declared by theInsured.

Annual Turnover Policy


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Annual Turnover Policy.. In case of cancellation by insured, refund is subject toretention of 10% premium or Rs.10,000 whichever is higher.If insurer cancel then prorated premium.For war/strike risk cancellation a notice period of 7 days

The cargo to be carried per vessels. Strictly as per the list of Association of Approved Classification Societies. The vessel not to exceed 25 yrs and no overage extra to becharged up to 25 years of age of the vessel.

The Certificates of Insurance for Imports and Exportsshipments may be issued, if required subject to availabilityof balance sum insured (Sales Turnover).Insured should have IT system in place to show theinformation of Sales figures (Export/Indigenous) ay may

point of time and the Insurers reserve their rights to suchsystem.

Annual Turnover Policy..


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Advantages of a sales Turnover policy

Sizeable saving in premium which is charged only on yoursales turnover.Seamless cover with all movement of goods automaticallycovered.

No hassles of submitting periodical declaration of movements to the insurer. Only monthly sales figures needsto be submitted.Premium on full annual sales turnover need not be paid inadvance. Facility for payment of premium on half-yearly /

quarterly basis.


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Special Declaration Policy


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Special Declaration Policy.

A SDP is not negotiable or transferable. However where the interest in thegoods has passed on to the consignee, the claims may be settled with suchconsignee on the request of Insured.

A proposal form giving details of goods, transits and turnover shall besubmitted by the insured, forming part of the contract.

The policy shall not be issued in joint names , except the name of the bank or financial institution whose financial interest may be protected.

The policy shall expire premature if the sum insured is exhausted. Then anopen 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 annualturnover of goods covered.

The policy can be cancelled with a notice of 30 days. Minimum premiumchargeable is Rs.5000 in case of SDP


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Annual Policy


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Annual Policy.. Policy cannot be issued to Transport operators/contractors, Clearing & Forwarding agents, commission agents orFreight Forwarders.

Policy shall not be issued in the joint names of more thanone company.

A proposal shall be filled in by the insured and shallbecome a part of policy or contract

Policy is subject to appropriate inland transit clauses


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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 thanin ordinary course of transit, allocation or re-distribution.Subsequent transits are considered separate.Multi-transit policies ensure continuous cover even in caseof such exigencies.It fulfills the requirement of traders who have to send thegoods for further job work/fabrication at the intermediate

points enroute till final destination.Irrespective of the number of transits the cover staysoperative.Storage periods which may or may not include some

processing can also be covered. A higher rate of premium is charged taking into accountthe storage periods and multi transits enroute.

Duty Insurance- Imports


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y p 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, 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 theinsurer to arrange survey/assessment

A claim on Customs shall also be lodged immediately and within stipulatedtime period for refund of duty on damaged goods


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Endorsement


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Endorsement

A memorandum attached or issued on policy to recordalterations in the contract.Change in the SIInclusion of name of Bank who financed the transactionChange of voyage

Addition or deletion of risks coveredExtension of delivery period after 60 days in sea or 30 daysin air


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TYPES OF INS. COVER

BY SEA: As perInstitute Cargo Clauses-C (ICC-C)

Institute Cargo Clauses-B (ICC-B)

Institute Cargo Clauses-A (ICC-A)


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TYPES OF INS. COVER

BY ROAD/RAIL:As perInland Transit (Rail or Road) Clause-BInland Transit (Rail or Road) Clause-A

BY AIR: As per

Institute Cargo Clauses (Air) (excluding sending by post)


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Institute Cargo Clauses


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Duration Transit Clause Termination of Contract of Carriage ClauseChange of Voyage Clause

Termination of Contract of Carriage Clause

Change of Voyage Clause

ClaimsInsurable Interest ClauseForwarding Charges ClauseConstructive Total Loss ClauseIncreased Value Clause



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Benefit of InsuranceNot to Inure Clause

Minimising LossesDuty of the Assured Clause

Waiver Clause

Avoidance of DelayReasonable Dispatch Clause

Law and PracticeEnglish Law and Practice Clause

ICC-C COVER- 1 Risks Covered


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ICC C COVER 1. Risks CoveredLoss or damage to cargo caused by:n

Fire or explosion Vessel or craft being stranded, grounded, sunk orcapsizedOverturning or derailment of land conveyance

Collision or contact of vessel craft or conveyance with any external objects, other than waterDischarge of cargo at port of distressGeneral Average sacrifice

Jettison to lighten the vessel to remain afloatIn addition, General Average, Salvage chargesincurred to avoid losses, liability under both toblame clause payable

Risks Covered- Important perils.


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Risks Covered Important perils.

Fire- with fire other damages due to heating, smoke or by water to extinguish the fire are also covered

Explosion- with explosion goods are crushed or damagedin the range of explosion, are also covered

Spontaneous combustion- due to inherent vice ornature of commodity is not covered, e.g., leather, coal

General Average- A Sacrifice or expenditure incurred voluntarily and reasonably at a time of peril for the purposeof preserving the property imperiled in the commonadventure.


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3.Both to Blame Collision Clause


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3.Both to Blame Collision ClauseIn a collision the two ships are at fault equally or in

different ratio.Under the law in US the cargo owner is entitled toclaim from either vessel in full unless the contractof affreightment (B/L) is contrary

The Bill of lading invariably exclude such collisionliability in respect of cargo the vessel carries.Under the Carriage of Goods by Sea Act- neither

the carrier nor the ship shall be responsible forloss/damage to cargo arising or resulting from act,neglect or default of the master, pilot or servants of the carrier.


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Ch i ICC l


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Changes in ICC clauses

Words changed in ICC 2009Underwriter- InsurerGoods - Subject matter insured

Servants - EmployeesExcept(ed) - ExcludedContract of Affreightment- contract of carriageShipowner- CarriersLiftvan deleted from clausesHeadings in the clauses now precede the wording

EXCLUSIONS- Sec. 55 of Marine Insurance


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Act, 1963

4.1 Willful misconduct of assured, exceptmisconduct or negligence of the master or crew 4.2 Ordinary leakage or breakage, ordinary loss in

weight or volume, ordinary wear and tear of the

s/m insured4.4 Inherent vice or nature of the s/m Any loss proximately caused by rats or vermin4.5 Loss damage or expenses (proximately)caused by Delay, even though the delay be causedby a risk insured against


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4.6 Insolvency or financial default of the owners


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ymanagers charterers or operators of the vessel

Where at the time of loading of the S/m insured onboard the vessel, the assured are aware , or in theordinary course of business should be aware, thatsuch insolvency or financial default could preventthe normal prosecution of the voyage

This exclusion shall not apply where the contractof insurance has been assigned to party claiminghereunder who has bought or agreed to buy thes/m insured in good faith under a binding contract

The change is more assured friendly


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Unseaworthiness and unfitness Exclusion clause..


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5.2 Exclusion 5.1.1 above shall not apply where the contractof insurance is assigned to the party claiming hereunder

who has bought or agreed to buy the s/m insured in goodfaith under a binding contract The insurers waive any breach of the implied warranty of seaworthiness/fitness of the ship to carry the s/m insuredto 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 thegoods andLoading is carried out prior to attachment orLoading is carried out by assured or their employees and they are

privy to that unfitnessBut protects the innocent party - assignee

EXCLUSIONS war exclusion clause


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6. In no case shall this insurance cover loss damage or

expense caused by War civil war revolution rebellion insurrection, or civil strifearising there-from or any hostile act by or against abelligerent power

Capture seizure arrest restraint or detainment andconsequences thereof Derelict mines torpedoes bombs or other derelict weaponsof war

7 St ik l i l


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7 Strike exclusion clause

7 In no case shall this insurance cover loss damage orexpensesCaused by Strikers, locked-out workmen or persons taking

part in labour disturbances, riots and civil commotions;Resulting from Strikes, lock-outs labour disturbances, riotsand civil commotionsCause by (any terrorist or any person acting from a politicalmotive) any act of terrorism being an act of any personacting on behalf of, or in connection with, any organisation

which carries out activities directed towards the

overthrowing or influencing, by force or violence, of anygovernment whether or not legally constitutedCaused by any person acting from a political, ideological orreligious motive

8 Duration clause


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Insurance attaches from time goods leave the warehouse (subjectmatter 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 otherconveyance) for commencement of transit, *Continues during ordinary course of transit,

And, terminates on completion of unloading, eitheron completion of unloading at final warehouse or place of storage atdestinationon completion of unloading to any other warehouse prior to or at thedestination elected for storage/allocation/distribution or

When the assured or their employees elect to use any carrying vehicleor other conveyance or any container for storage other than in theordinary 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; **Terminates when the carrying vehicle or other conveyance or any

container is used for storage other than in the ordinary course of transit

Duration Clause extended..


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8.2 Change of destination, other than insured If goods insured on completion of unloading at final port of

destination, prior to termination of this insurance, thegoods are forwarded to a destination other than thementioned, this insurance shall not extend beyond the time the s/m insured is first moved for the purpose of thecommencement of transit to such other destination8.3 Deviation / discharge and reshipment -

The insurance shall remain in force during delay beyondthe control of the assured , any deviation, forced discharge,reshipment or transshipment and during any variation of

the adventure arising from the exercise of liberty granted tocarriers under the contract of carriage


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10. Change of voyage


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g y g

10.1 After attachment of this insurance, if thedestination is changed by the assured, it must benotified promptly to insurers for rates and terms tobe agreed. Should a loss occur prior to suchagreement being obtained, cover may be providedonly if cover available as per prevailing markettermsBut if ship sails to other destination without

knowledge of assured or his employees, thisinsurance shall attach at commencement of suchtransit


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ICC clauses


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16 Minimising Losses: Duty of Assured clause-It is the duty of assured, their employees and agents to

take measures for averting or minimising a lossrecoverable under policy . The clause is supplementaryto the contract or in addition to agreed value or SI.

All right against carriers, bailees or other third partiesare preserved and exercised (Sue and labour clause)

17 Waiver- Assured saving, protecting orrecovering the s/m shall not be considered as a

waiver or acceptance of abandonment orotherwise prejudice to the rights of either party18 Avoidance of delay- a condition that the assuredshall act with reasonable dispatch19 Law and Practice- this insurance is subject to

English law and practice


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Extraneous Risks (Covered in ICC A):ICC C d ICC B b d d i k


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ICC C and ICC-B can be extended to cover risks : Theft, pilferage, non-deliveryFresh/rainwater damageHook damageSling loss

Damage by mud/oil/acid/any extraneoussubstance heating Damage due to heating :dry out ands/m becomes brittle (stowage and ventilation)

Sweating Leakage & breakage.. Bursting/ tearing of bags.

INLAND TRANSIT-B COVER


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CLAUSE B COVERS : Physical Loss or damage causedby:FireLightningBreakage of bridgesCollision/accident to carrying vehicle

Overturning of carrying vehicleDerailments

CLAUSE C COVERS : This cover includes physical loss ordamage suffered due to risks / perils such as

Fire risk Lightning.

OTHER COVERS


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OTHER COVERS

Inland transit-A cover

Sendings by air

Sendings by Regd. Post

ARE ALL ALL RISKS COVERS


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DURATION-OCEAN TRANSITSInsurance attaches from time goods first moved in


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Insurance attaches from time goods first moved in warehouse/place of storage for loading purpose for thecommencement of transit. (now loading/unloading iscovered)Continues during ordinary course of transit,

And, terminates eitheron completion of unloading at final warehouse or

on completion of unloading to any other warehouse forstorage/allocation/distribution or When the assured or their employees elect to use anycarrying vehicle or other conveyance or any containerfor storage other than in the ordinary course of transit or

on expiry of 60 days after completion of unloading atfinal port of discharge

Whichever shall first occur

DURATION-AIR TRANSITSInsurance attaches from time goods first moved in


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g warehouse/place of storage for loading purpose for thecommencement of transit. (now loading/unloading iscovered)Continues during ordinary course of transit,

And, terminates eitheron completion of unloading at final warehouse oron completion of unloading to any other warehouse forstorage/allocation/distribution or

When the assured or their employees elect to use anycarrying vehicle or other conveyance or any containerfor storage other than in the ordinary course of transit or

on expiry of 30 days after completion of unloading atfinal airport of discharge

Whichever shall first occur


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Institute War Clause (cargo).. D i f h C


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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 orUntil 15 days from the midnight of the day of arrival of the

vessel at destination port, which ever is earlierIf the goods are transshipped, the cover continues duringtransshipment but subject to 15 days from the arrival of theship at transshipment portHowever, the war cover reattaches on loading of the goodsonto the on-going vessel

Transit to and from vessel when goods are in craft, covercan be extended to cover the risks of mines and derelicttorpedoes only, whether they are floating or submerged

Institute War Clause (cargo)


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Institute War Clause (cargo)..

Exclusions are same as in ICC clauses and theadditional clause is-Frustration clause- Any claim based upon loss of

or frustration of the voyage or adventure The insurance covers only physical loss or damage tothe cargo and does not guarantee the completion of

the voyage

Institute Strike Clause (cargo)


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Exclusion in ICC is deleted.Risks covered:Loss or damage caused by-Strikers, locked-out workmen or persons taking part inlabour disturbances, riots and civil commotions;

Any terrorist or any person acting from a political motive

General Average and Salvage charges incurred to avoid lossfrom a risk coveredCharges reasonably and properly incurred to avert or

minimise an insured loss and to preserve and pursuerecovery rightsDuration/transit clause is same as in ICC clauses (60 days)

Institute Strike Clause (cargo)2009l f d h b d d b


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loss of or damage to the subject-matter insured caused by1.1 strikers, locked-out workmen, or persons taking part in

labour disturbances, riots or civil commotions1.2 any act of terrorism being an act of any person acting onbehalf of, or in connection with, any organisation whichcarries out activities directed towards the overthrowing orinfluencing, by force or violence, of any government

whether or not legally constituted1.3 any person acting from a political, ideological orreligious motive.

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.

Two additional exclusions help to make this clear.3.7 loss damage or expense arising from the absence shortage or withholding of labour of any description whatsoever resulting from anystrike, lockout, labour disturbance, riot or civil commotion3.8 any claim based upon loss of or frustration of the voyage oradventure


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New -Strike Riot & Civil Commotions (Inland)

loss of or damage to the subject-matter insured


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g jcaused by1.1 strikers, locked-out workmen, or persons taking

part in labour disturbances, riots or civilcommotions1.2 any act of terrorism being an act of any personacting on behalf of, or in connection with, anyorganisation which carries out activities directedtowards the overthrowing or influencing, by forceor violence, of any government whether or notlegally constituted

1.3 any person acting from a political, ideologicalor religious motive.Duration/transit clause is same as in Inland

Transit clauses (07 days)

Salvage charges

Salvage operation is an act or activity undertaken by a third


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party to assist a vessel or any other property in danger innavigable waters or in any other watersElements of salvage:

Property must be in danger by a peril or imperiledServices must be voluntary by third party

Condition reward on no cure, no pay basis Either paid by salvage award or by contract

The agreement covers salvage operations prior to and after thesalvage agreement is signed. The reward should be reasonable

The agreement terminates when the property is taken to a placeof safety Mostly the salvors are private companies having ready fleets of powerful tugs, fire fighting equipments, pumps, etc.


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GA contribution

A merchants cargo jettisoned valued at $ 400 000


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A merchant s cargo jettisoned valued at $ 400,000 Other cargo belonged to B- $200,000;C-$ 300,000 andFreight- $ 100,000;

vessel- $1,000,000

Interest Contributor Value Contribution Vessel $ 1000,000 20% $ 200,000Sacrificed cargo $ 400,000 20% $ 80,000Cargo B $ 200,000 20% $ 40,000Cargo C $ 300,000 20% $ 60,000Freight $ 100,000 20% $ 20,000

Total $ 2,000,000 20% $ 400,000


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Miscellaneous Clauses and

warranties


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Institute Replacement clause- machinery


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p y

In the event of a claim for loss or damagerecoverable hereunder, the company only to

pay the cost of repairing, or if necessary,

replacing the damaged part or parts, butsuch cost in no case to exceed the insured value of the parts so damaged (includingcharges for forwarding, refitting and duty if any)

Label clause


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Applicable to canned and bottled goods to

be identified by consumersCost of new labels and re-labeling labourcharges

Another exclusion can be Warranted freefrom all claims in consequence of labelsbeing washed off or damaged

Warranted excluding the risks of rejection byGovt. authorities

Pair and Set clause


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Companys Liability shall not exceed the value of any particular part or parts whichmay be lost or damaged without reference to

any special value which such article mayhave as part or parts of such pair or set, normore than a proportionate part of theinsured value of the pair or set

Cutting Clause


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g

Applicable to pipes or similar items of length

Warranted that the damaged portionshould be cut off and the balance utilized


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Garbling clause


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g

Applicable to tobacco, coffee beans or grain.Garble means to sift, to cleanse, to separatesound from the whole, which got mixed with

some other material The insurer shall pay the cost of garbling

Theft, pilferage and non-delivery


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, p g y

Applicable when the coverage is extended tocargos covered under ICC C or B In consideration of an additional premium,

it is hereby agreed that this insurance coversloss of or damage to the subject-matterinsured caused by theft or pilferage, or bynon-delivery of an entire package, subject

always to the exclusions contained in thisinsurance

Trade ClausesInstitute Commodity Trades Clauses- A,B,C (Similar to ICC-A B C ) d f i f di i lik


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A,B,C ) are used for insurance of commodities like:Cocoa, Coffee, Cotton, Fats and Oil in containers, Hides,Skins & Leather, Metals, Oil seeds, Sugar, Tea

Institute Coal Clauses (ICCB with inherent vice)Institute Jute Clauses (ICCB- cover starts after putting the cargoon board and 60 days period reduced to 30)Institute Natural Rubber Clauses (ICCB with TPND & waterdamages are covered; 60 days period reduced to 30)

Timber Trade Federation Clauses (ICCB with TPND & MD)

Institute Bulk Oil Clauses (ICCB with leakage from pipes whileloading unloading transshipment and contamination due tonegligence of master or crew; or by bad weather)Institute Frozen Food or Meat Clauses (ICC A or C; 24 hrs. BD)


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UNDERWRITING AND

RATING OFMARINE INSURANCE

What is good in insuring?


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The affect of insuring the goods is that theelement of risk of loss is transferred fromowner of the goods to the insurer. Being free from the threat of loss, theproducers and traders are able to concentrateon their business activities. Thus marine insurance acts as a partner whostands behind the owners of goods in the event

of a loss and Allows them to concentrate on their mainbusiness fearlessly.

Trade by SeaS 5 5 b t f i t t d b


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Some 5.5 bn tonnes of cargo is transported by

sea every year, which 98% of all cargotransported internationally.Over 80% of the cargo consists of raw material

50% of which is oil, the largest producers are Saudi Arabia and other gulf countries27% is coal, iron ore and grain

Rest are other processed or manufacturedproducts which are of higher value but less in

weight


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RATING & UNDERWRITING

Specie- items of value, paintings, bullion,


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p , p g , ,banknotes or bearer bonds, precious stones andartifacts are high value and easily portable andare often excluded from cargo coverSpecial cover to be devised for such itemsInevitable losses:

Ordinary leakage, ordinary loss in weight or volume,ordinary wear and tear

Inherent vice or nature of subject matterInsufficient or unsuitable packing or preparation


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RATING & UNDERWRITING.. Value of the interest (s/m) to be insured with


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breakup CIF+10% plus duty, etc.

Voyage and Mode of Transit: Journey from and to .. via.. Mode of conveyance to be used- by rail/road/sea orby air; or it may be a combination of two or more

Name of vessel, B/L; Airlines, AWB; Rail/Road,consignment Note; Postal receiptIf transshipment requiredIs it entire transit or a tail end risk details of oceancoverage

Cover Required: The risks required to be insuredagainst- ICC A or B or C or ITC A or B ; extraneous

perils with basic cover

Excess, deductible, retention, co-insurance,and franchise


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An excess is the amount payable by the insured and isusually expressed as the first amount falling due, up to aceiling, in the event of a loss. It may be expressed in eithermonetary or percentage terms. An excess is typically usedto discourage moral hazard and to remove small claims,

which are disproportionately expensive to handle.

The equivalent term to 'excess' in marine insurance is'deductible' or 'retention'.

A co-insurance, is an excess expressed as a proportion of the risk and so of a claim, e.g. 5%, and applied to the

entirety of a claim. A franchise is a deductible below which nothing is payableand beyond which the entire amount of the sum insured is

payable.
http://en.wikipedia.org/wiki/Moral_hazardhttp://en.wikipedia.org/wiki/Moral_hazard


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Seaworthiness of vessel..


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Marine rates/policy agreed to, apply only to

cargo carried by vessels:1. Mechanically self propelled vessels2. Vessels of steel construction3. Vessels adhering to Instt. Classification

clause

Seaworthiness of vessel


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Reasonably fit to

withstand ordinary perils at seaMust not beoverloadedCargo on board/hold

properly stowed

Officers/staff are

properly qualifiedEquipment/machineryin good repaired

Equipped to carry particular cargo in particular sea/route

Seaworthiness of vessel Exclusion clause 4 6 of ICC can be deleted


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Exclusion clause 4.6 of ICC can be deleted

In no case shall this insurance cover loss,damage or expense arising from insolvency orfinancial default of the owners, managers,charterers or operators of the vessel, if the

assured are aware of or should be aware of..Convincing proof of the physical viability of the vessel

Check on Vessel Flag, Financial Viability,Background of Vessel Operators, etc

Seaworthiness of vessel..


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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


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Lloyds Register American Bureau of ShippingBureau Veritas

China ClassificationSocietyGermanischer Lloyd

Korean Register of ShippingMaritime Register of Shipping

Nippon Kaiji KyokaiNorske VeritasRegistro Italiano

Indian Register of Shipping

Conditions to classification approval1. Vessel is not bulk/combination carrier


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2. Vessel is not a mineral oil tanker3.

Vessel is not over 15 years of age4. Vessel is over 15 years of age but less than 25 years of agebut has regular pattern of trading on advertised schedule(liner vessel)

5. Vessel undergoes inspection at the time of registration to

ensure compliance of highest standards set byclassification society in regard to vessel, its plant &machinery, qualified & trained crew members, safety andupkeep

6. Vessel is subject to subsequent periodical inspections toensure its maintenance and necessary technicalsafeguards

Non-classification Additional Premium @ 0.10%

Under-tonnage of Vessel

Addi i l i i h bl


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Additional premium is chargeable as per

Indian Vessels below 450 GT 0.75%Foreign Vessels below 1000 GT 0.50%

Foreign Vessels below 450 GT - 0.75% Tonnage is a measure of the size or cargo carrying capacity of aship

GT- Gross volume of the ship inside (GRT)NT- Its capacity to carry the cargo (NRT)

Overage of Vessel
http://en.wikipedia.org/wiki/Cargohttp://en.wikipedia.org/wiki/Shiphttp://en.wikipedia.org/wiki/Shiphttp://en.wikipedia.org/wiki/Cargo


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Overage extra premium is charged in case of 1. War built vessels (1940-45)2. Vessels over 15 years of age3. Mineral oil tankers over 20 years of age4. Liners over 25 years of age5. Vessel flying flag of convenience

Types of vesselsGeneral Cargo Vessels Lighter aboard ship


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Liner vessels

Tramp vesselsDry bulk CarriersLiquid bulk Carriers

Crude carriers or TankersCombination bulk carriers- dry as well asliquidContainer vessels

(LASH) - containers on

bargeRoll on Roll off (Ro Ro ships)

Passenger vesselSundry vesselsCoastal vesselFishing vessels

DredgersBargesLaunches

Voyage or transit The transit from warehouse to warehouse,


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,including incidental land transits from country of origin to final destination

Cover starts from the time/period the loading onthe carrier for commencement of transit.

Transit to a container terminal for stuffing into acontainer would be considered as part of the

overseas transit

Voyage or transit..

Well now find out-


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Goods in the warehouse or in open awaiting

customs formalities, inspection and shipment.Condition at the port and handling facilities in thecountry of origin or that of destination is relevant-country damage if coverage starts from portLoading/unloading at commencing port ordestination port on or from the ship by/to directquayside/birth platform transfers or

will loading/unloading be done throughbarges/lighters, which means increased handling

Stowing in the container/shipIs the voyage involve Transshipment- additionalhandling , storage, loading at the transshipment

port and details of the other ship/vessel

Voyage or transit.. Cli t i th f t


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Climate or monsoon in the course of voyage to

which the ship shall sail through. The bigger theship the smoother the voyageIs cargo shipped on deck or under deck orcontainerized . Deck cargo unless containerized is

exposed to weather and washing overboard. Ship-owner has no liability for deck cargoStorage facilities at destination port , in shed or inopen, security, delay in customs etc. are relevant.

Nature of interior land transit , rail/roadconditions, political tensions, law and ordersituation, etc.

Nature of CargoDifferent commodities or products are susceptible to


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p pdifferent perils. Therefore, it is necessary to identify the

nature of the product The packing has to be accordingly strengthened The insurance coverage is also accordingly designed ICC- A, B, C but the assured is more interested in All risks cover.

Loss due to inevitable transit risks or inherent vice,spontaneous combustion are not covered unless specificallycovered by charging extra premium, e.g., fruits, vegetables,grains, tobacco, jute, or cotton bales, etc.Similarly ordinary losses , leakage, loss weight or wear and

tear, self heating are not covered, e.g. chemicals, spirit,sugar, sulphur, aromatic products, hides and skins, garlic,spices, cloves, fertilizers, etc.

Nature of Cargo.. Know other damages also, like-


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Fragile items susceptible to breakage and leakage when collide with other cargo;Caustic soda, nitrates, salt and sugar damaged

when coming in contact with any liquid;

Naphtha, alcohol, kerosene, paints, turpentine, etc. when coming in friction with other cargo and aspark thereof.

An underwriter should have knowledge of the individual characteristics of goods/commodities and their susceptibility todifferent perils like the above

Nature of Cargo- various commoditiesItem: Susceptible to:

C t M i t CO2 b ti g f


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Cement Moisture, CO2, bursting of bags, contamination

Asbestos Cement Brittle, chipping- cutting clause

Cotton in bales Fire, spontaneous combustion, water

Cotton goods (bales/cases)- Mould growth anddecay- requires ventilation

Carpets in bales or bundles Water/dampness,moisture, insects, mildew, bacterial damage due to salt water

Jute fibre or cloth in bales Water/heat, mould,discolouration

various commodities. Grain (wheat, maize, etc)- Heating, sweating, water,


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Grain (wheat, maize, etc) Heating, sweating, water, infestation- requires

ventilationFlour in gunny or cloth bags- heating, water, tainting-

requires ventilationRice in bags Sweating, moisture,-

requires ventilationSugar in bags Imbibes moisture fromatmosphere, humidity-dryness and ventilation

Fish in cold storage Deterioration if notfresh on packing

various commodities. Tea packed in aluminum foil- Water, moisture


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Chemicals in powder, : moisture, evaporation liquid or granules -reaction, loss of weight packed in bags or drums

Crude Oil : contamination, water

Paints in drums : Leakage, Sea water, putrification, evaporationSoap in coated paper : Loss of weight due to

drying/evaporation,heat, water

Newsprint in rolls : Sling loss, hook damage, water, oil

various commodities. Iron rods strips scrap :Rust water moisture


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Iron rods, strips, scrap :Rust, water, moisture

Machinery in cases :Deshaping of the case,rust, breakage of electronic parts

Motor vehicle parts :Rust due to water or

moisture, breakage of brittle or glass parts, piercing of radiator, etc

Other commodities :Details available in

Lloyds Survey Handbook

Packing- safety of cargo

Packing of cargo plays an important role in loss prevention and e nsure safety of the goods so that


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p y gthey reach destination in sound condition.Packing should be such that it withstand thenormal hazards of transit:

Internal movement of goods inside the container duringlifting and lowering of packages

Pushing, dragging and lifting by handling aids likeforks, etc.Improper stowage Cargo needs to be stowed in theship in an orderly fashion e.g., heavy items towards thebottom while lighter ones on top

Inadequate lashingCompression pressures due to high stacks

Packing. Dropping during manual handling improper slinging


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Jolts, jerks, pressures, impacts and vibrations duringrail/road transitRolling, pitching, surging, swaying and yaw motions onthe seasRain water/sea water entry

Ship Sweat, cargo sweat, temperature/climate/humiditychanges Theft and pilferage, etc.


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Packing Packing fragile parts separately- Fragile


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components of goods should be packed separately

to protects against shock and impacts dependingupon the degree of fragility. E.g., a control paneland its electrical measuring instruments, electroniccomponents, etc. may be packed separatelyRestraining the movement of contents within a

package may need additional bracing

Reinforcement- Strapping, correct jointing andfastening methods add to the strength to meet theheavy demands of transit rigours.

Packing Vibrations- Vibrations may damage or loosen


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screws, parts of machinery items, causeloosening of electrical contacts and theconsequent sparking or leakage of current,seriously impair electronic items.Use of cushioning materials, cardboard spacer orfillers, proper nut-bolts are required for impactprotection

Packing Compression- In the ship, while staking cargo 4-5 tiersand other bulk cargo to a height of about 5 to 6 meters the


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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 failureof 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 orstrutting embraces the strength of the packages to

withstand compressive forces.In case of fibre-board boxes, rigidity to guard can beobtained through selection of narrower flutes and largenumber 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


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g gfall is a common risk in inland transit due to poorlycovered storage, leaking railway carriages, poorconditions of tarpaulinsIn sea transit Due to storms, hurricanes,monsoons, etc saltwater of sea and sweating of ship following changes in climate during thetransit caused damages to cargo

Water damage can be controlled by prov8iding amoisture barrier like polyethylene film, moralizedfilm, etc. between the product and package.

Premium RatePremium Rate depends on factors like


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Nature of cargo,Packing,Scope of cover,

Sum insured, limit per sending/locationMode of conveyance, type of vesselDestination and routes,

Moral hazardPast claims experience- as per type of cargo


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Packages Corrugated Fibre-board Boxes/Cartons- These are


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greasonably strong, light in weight and mosteconomical.Good for inland and air transits but may not be

suitable for sea transits. Increase in moisturecontent of Corrugated fibre makes it weak.

The suitability of fibre-board for the commodityshould be ascertained first from the point of view of pilferage, handling and transportation hazardssuch as compression, puncture and moistureabsorption

Water resistant adhesive tape should be used forsealing the seams and contact area between flapsIt can be reinforced with tension straps

Hull


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Ship building


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Picture of storage under deck


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Tug boats


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Barges


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Trawler
http://www.google.co.in/imgres?imgurl=http://www.edinphoto.org.uk/0_a/0_around_edinburgh_-_granton_harbour_trawlers_granton_merlin.jpg&imgrefurl=http://www.edinphoto.org.uk/0_a/0_around_edinburgh_-_granton_harbour_trawlers_granton_merlin.htm&h=394&w=640&sz=57&tbnid=GCcdlrbXJx-VeM:&tbnh=84&tbnw=137&prev=/images%3Fq%3DPics%2Bof%2Btrawlers&hl=en&usg=__f6qsaGkDVR-myiYl9ygC87YqwT0=&ei=ktPrSteOBZW3lAeoyMH_BA&sa=X&oi=image_result&resnum=4&ct=image&ved=0CBMQ9QEwAw


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cardboad
http://www.google.co.in/imgres?imgurl=http://www.edinphoto.org.uk/0_a/0_around_edinburgh_-_granton_harbour_trawlers_granton_merlin.jpg&imgrefurl=http://www.edinphoto.org.uk/0_a/0_around_edinburgh_-_granton_harbour_trawlers_granton_merlin.htm&h=394&w=640&sz=57&tbnid=GCcdlrbXJx-VeM:&tbnh=84&tbnw=137&prev=/images%3Fq%3DPics%2Bof%2Btrawlers&hl=en&usg=__f6qsaGkDVR-myiYl9ygC87YqwT0=&ei=ktPrSteOBZW3lAeoyMH_BA&sa=X&oi=image_result&resnum=4&ct=image&ved=0CBMQ9QEwAw


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Packages

Crates- A crate is essentially a wooden framework


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Crates A crate is essentially a wooden framework

to house the equipment, it affords good protectionto heavy items from shocks and impacts. It can beopen or fully coveredReinforcement can be done by Diagonal bracing,

corner strengthening, interior lining with waterproof material can be installed.It facilitates handling and storage of awkwardshaped items also

It enables sheathing to render the contentsinaccessible

Crates


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Packages

Bags/ paper bags- cement, flour, coffee, chemical


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in granules or powder form in multiply paper bags, polythene line bags, Hessian, jute bags, etc.Stowed in tiers or crosstiers and one on top of another. A bag rests on half portion of two bags inthe lower tier to avoid collapsingCare should be taken in stowing bags of goodsmeant for human consumption with other goodsStrength of the bag depends upon the commodity

and tranist for which it shall be used.


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Packages Drums- Metal drums, paper reels, are usually


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Drums Metal drums, paper reels, are usually

stowed horizontally with special frames at baseto retain themSteel sheets Coils in upper tier is resting in

the hollows formed by the tier below.Cylinders are strong metal containerscontaining gasses like ammonia, oxygen, etc

under pressure.

Drums, paper reels, steel sheet


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Packages


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Pallets- Packages fastened to a platform andproper secured to it throughout transit.


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Pallets


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container


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Packages


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Bales- 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, paper wrapping and then jute orHessian cloth wrapping

UNDERWRITER- RATING & UNDERWRITING.

Underwriter has to decide about the Coverage tobe granted- whether All Risks or limited cover .


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All risk is a wide cover as compared to basic coverand/or with additional covers. Differential ratingshall be applied

The social and economic condition of destination

country also guide the coverage to be given andrate to be charged Whether any warranty is to be agreed with proposer and incorporated in the policy- like

packing of rice in double gunny bags, etc.Deductibles may be used to avoid small andfrequent losses in future.

Ship in dry dock


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Traditional Box- packing


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Tray packing


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Warranties Warranted excluding breakage, chipping, denting andscratchingWarranted excluding mould and mildew


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Warranted excluding mould and mildew Warranted excluding sweating, heating and fresh waterdamage

Warranted excluding natural loss in weight and/or tradeshortage

Warranted excluding the risks of rejection by Govt. AuthoritiesExcluding shortage from sound bags/packages unlessshortage is caused by an insured peril (bagged cargo)

Warranted shipped under deck. On deck cargo heldcovered at terms and rate to be agreed

Warranted that the vessel belongs to a classification societyor extra premium @...shall be charged by the Company

Warranties.. Warranted that the vessel not to exceed 25 yrs or overageextra premium @ shall be charged by the Company


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Warranted that the goods shall be carried in covered wagon/lorry Warranted that the goods carrying vehicle is covered by thetarpaulin

Warranted the good shall be containerized

Warranted that the goods shall be packed in Warranted that the insurance is subject to afranchise/excess of 1% of entire consignment valuedeclared for insurance

The liability of the company shall be limited to 75% of theassessed loss where the GR is issued by a Private carrierlimiting the liability of the carriers

INSTITUTE RADIOACTIVE CONTAMINATIONEXCLUSION CLAUSE

This clause shall be paramount and shall override anything containedin this insurance inconsistent therewith.

1. In no case shall this insurance cover loss, damage, liability or


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, g , y

expense directly or indirectly caused by, contributed to by orarising from: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,1.2 The radioactive, toxic, explosive or other hazardous orcontaminating properties of any nuclear installation, reactor orother nuclear assembly or

Nuclear component thereof,1.3 Any weapon of war employing atomic or nuclear fissionand/or fusion or other like reaction or radioactive force ormatter.

CARGO ISM ENDORSEMENT

ISM- International Safety Management Code for the SafeOperation of Ships and for Pollution Prevention, which, among otherthings requires vessel owners to obtain a safety management certification for


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things, requires vessel owners to obtain a safety management certification foreach vessel they manage.In no case shall this insurance cover loss, damage or expense where thesubject 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, at the time of loading of the subject matter insured onboard the vessel, the Assured were aware, 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.b) Or that a current Document of Compliance was not held by her owners oroperatorsas required under the SOLAS Convention 1974 as amended.

This exclusion shall not apply where this insurance has been assigned to theparty claiming hereunder who has bought or agreed to buy the subject matterinsured in good faith under a binding contract.

COMPUTER MILLENNIUM CLAUSE (CARGO)In no case shall this insurance cover any loss, damage, expense or liability of

whatever nature which might otherwise be recoverable under this insurance arising out of or in


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any way

connected with, whether directly or indirectly, the use or operation of any computer, computersystem, computer software, programme or process or any electronic system

where any such

loss, damage, expense or liability arises, whether directly or indirectly, as aconsequence of (i)the date change to the year 2000 or any other date change and/or (ii) any change ormodification of or to any such computer, computer system, computersoftware, programme orprocess or any electronic system in relation to any such date change.

TERMINATION OF TRANSIT CLAUSE(TERRORISM)

This clause shall be paramount and shall override anything containedin this insurance inconsistent therewith


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in this insurance inconsistent therewith.1 Notwithstanding any provision to the contrary contained in this Policy orthe Clauses referred to therein, it is agreed that in so far as this Policy coversloss of or damage to the subject-matter insured caused by any terrorist or any person acting from a political motive, such cover is conditional upon thesubject matter insured being in the ordinary course of transit and, in any event, SHALL TERMINATE: either 1.1 As per the transit clauses contained within the Policy,or

1.2 on delivery to the Consignees or other final warehouse or place of storageat the destination named herein,

TERMINATION OF TRANSIT CLAUSE (TERRORISM)

1.3 on delivery to any other warehouse or place of storage, whether prior toor at the destination named herein, which the Assured elect to use either forstorage other than in the ordinary course of transit or for allocation or


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distribution, or 1.4 in respect of marine transits, on the expiry of 60 days after completion of discharge overside of the goods hereby insured from the oversea vessel at thefinal port of discharge,1.5 in respect of air transits, on the expiry of 30 days after unloading the

subject-matter insured from the aircraft at the final place of discharge, whichever shall first occur. 2 If this Policy or the Clauses referred to therein specifically provide cover forinland or other further transits following on from storage, or termination asprovided for above, cover will re-attach, and continues during the ordinary

Marinecargo Insurance 1 to 209

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Transcript of Marinecargo Insurance 1 to 209