Marine Sales Turnover Policy
This policy is suitable for entities with huge sales turnover. This is a highly customizable policy depending on the insured’s business requirements. It is an Open Policy in the real sense of the term. Sales Turnover Policy is a flexible Marine Cargo Insurance Policy which covers the insurable Risks associated with the transit of goods. This policy has the unparallel advantage of covering not just the entire sales turnover of the company but can be extended to cover the purchases, imports, exports, inter-depot movements, movements related to Job work, transit from the factory to warehouse, warehouse to dealerships & from dealerships to customers, movement of capital items, etc. Varied terms are incorporated for varied transits in a single policy and instead of getting issued a certificate for each overseas shipment or declaring each and every inland shipments o a monthly basis, the insured declares his total sales turnover on a quarterly basis and the premium is adjusted accordingly.
Estimated sales for the year are taken as the sum insured for the policy and separate PBL/PBL could be agreed for various transits. PBL is the maximum value of goods which is agreed to be transported at once. In other words, this is the maximum liability of the insurer for a particular consignment. In addition to this, a Per Location Limit (PLL) is also agreed which is for the accumulation of goods at one place during the course of transit. PLL is usually twice the PBL.
Terms of various transits could also vary as per the nature of transit like Inland movements are insured as per the Inland Transit Clauses (ITC) and Overseas Shipments are insured as per the International Cargo Clauses (ICC). Sales could be covered on All Risk Basis & Sales returns could be insured on Basic Risk only.
This policy not just reduces the administrative costs and time involved in keeping track of various policies for various transits but also very cost-effective.
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.
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Marine Sales Turnover Policy Features:
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Marine Sales Turnover Policy Claim:
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