Marine Specific Policy
Also known as a single voyage policy. It is suitable for entities where need to insure the cargo/shipment arise occasionally. This policy offers indemnification against loss or damage to cargo during a Specified Transit only. The cover could be customized as per the requirement & nature of cargo, on the agreed premium. It could be issued for inland (sales/purchase) as well as overseas (export/import) shipments.
Depending upon the nature of cargo, packing details, destination, and other factors, All Risk, Basic Risk or Named Risk covers are given by the insurers. Based on Incoterms in the sales contracts, either seller or buyer could purchase this policy. The cover will cease to exist once the insured cargo either reaches its destination or responsibility of seller ends as per invoice Incoterms.
Sum insured in this policy is the full invoice value with a mark-up option of up to 10% for incidental expenses. Generally, the entire consignment is shipped at once in a single-vehicle, but depending upon the nature of cargo and type of transit, the part shipment could also be allowed by insurers.
Each time a shipment is being transported, Insured needs to obtain fresh terms from the insurer which is not cost-effective and also time-consuming. So this type of Marine (cargo) insurance is only suitable in cases where either volume of shipment is very low in terms of ensuring responsibility or any special requirement is there.
Coverage: There are basically 3 types of covers offered by insurers in marine (cargo) insurance policies, which are briefed below.
International Cargo Clause (ICC) A, B, and C – for Overseas Shipments
Inland Transit Clause (ITC) A, B, and C – for Inland Shipments
1-ICC / ITC - A - This is a form of All Risk insurance which is governed by exclusions, rather than coverage. So this cover offers indemnification against loss or damage to the subject whilst goods are in transit by every peril which has not been excluded in the policy. Some of the common exclusions in this cover are mentioned in
2-ICC / ITC - B - This cover is also known as Basic Cover in which only some named perils are covered. This cover offers indemnification against loss of or damage to the subject-matter insured, reasonably attributable to below perils.
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Fire or Explosion
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Vessel or craft being stranded grounded sunk or capsized
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Overturning or derailment of land conveyance
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Collision or contact of vessel craft or conveyance with any external object other than water
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Discharge of cargo at a port of distress - Earthquake, Volcanic Eruption or Lightning
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General Average Sacrifice
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Jettison or Washing Overboard
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The entry of Sea, Lake or River Water into the vessel, craft hold conveyance, container, lift van or place of storage,
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Total loss of any package lost overboard or dropped whilst loading on to, or unloading from, vessel or craft.
3-ICC / ITC - C - This cover offers indemnification against loss or damage to the subject whilst goods are in transit due to only a few named perils as mentioned below.
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Fire or Explosion
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Vessel or craft being stranded, grounded, sunk or capsized - Overturning or derailment of land conveyance
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Collision or contact of vessel craft or conveyance with any external object other than water
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Discharge of cargo at a port of distress
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General Average Sacrifice - Jettison
GENERAL EXCLUSIONS
General Exclusions Loss which are attributable to below reasons are excluded from the scope of marine (cargo) insurance policies
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Willful misconduct of assured
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Ordinary leakage/spillage port shortages , ordinary losses in weight or volume or ordinary wear and tear
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Insufficiency or unsuitability of packing or preparation of the subject matter insured.
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Inherent vice or nature of the subject matter insured.
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Delay
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Insolvency/financial default of carriers
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War, Strike, Riot and Civil Commotion
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Deliberate damage to or deliberate destruction of the subject matter insured
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Losses arising from nuclear weapons Losses arising from Moisture & ordinary trade losses
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Losses Due to overloading, Unsuitability of carrying conveyance and unseaworthyness of vessel
MAJOR EXTENSIONS AVALIABLE
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For Inland Transit: Strike, Riot and Civil Commotion
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For Overseas Transit: War, Strike, Riot and Civil Commotion Duty and Increased Value Insurance (for Imports only)
Why is Marine Insurance Important?
Marine insurance is a safe haven for shipping companies because it helps to reduce the financial loss due to possible loss of cargo. Marine insurance is very important because through marine insurance, ship owners and transporters can be sure of claiming damages especially considering the mode of transportation used.
Is Marine Insurance Mandatory?
Is marine insurance mandatory? Marine insurance is mandatory for all ship and yacht owners to obtain, especially where the vessel is to be used for commercial or transportation purposes and where it will be carrying passengers, workers, or cargo across international waters.
Coming Soon!!
- Marine Sales Turnover Policy Features:
Coming Soon!!
- Marine Specific Policy Claim:
ComingSoon!!