Marine cargo insurance covers the risks of loss, damage, expense and liability to your goods during transportation as cargo from one place to another place. For example, from a factory located inland to the seaport and then across the seas to the address of the buyer of your goods abroad.
The process of transportation includes airfreight, ocean freight and overland carriage. The marine cargo insurance is to indemnify the cargo owners and/or the financiers such as banks against financial loss arising as a result of physical loss, damage, expenses incurred or liability from the transportation process.
Loss can arise from the perils of the sea such as rough weather, sinking, the ports or as a result of overturning, collision of and/or theft from overland transports.
Just about every enterprise that imports or exports raw materials or sells finished products abroad needs ocean cargo insurance. These include:• Manufacturers
The ocean cargo policy automatically covers goods shipped by water or air, depending on the terms of sale, from the warehouse at the point of shipment to the warehouse at the point of destination, including all intermediate transit by rail or truck.
While All Risks coverage is available, the basic ocean cargo policy covers perils of the sea such as stranding, sinking, fire and collision, as well as perils on the sea including heavy weather and theft.
Yes. Advise us the Name of the Bank and it will be incorporated in line policy or certificate to suit your requirements. We can also incorporate any reasonable special wordings required under the Letter of Credit.
Generally, the Invoice value plus the cost of freight and a reasonable profit margin and duty as appropriate.
Cover commences front the time the goods leave the premises and terminates upon delivery of goods, to the final destination or 60 days after discharge from the vessel for Sea Cargo and 30 days after landing for Air Cargo, whichever shall occur first.
Provide us with proforma invoice and a copy of letter of credit know as form 'M'.
Based on the needs of trade and industry, the following types of policies are issued:• Voyage policy
The voyage policy is issued to cover up a specific transit from a particular point to another. The cover ceases upon the carrier reaching the town of destination. In all the policies, the scope of cover can be:
• Basic cover : described in ICC-C clause.
It is a memorandum of agreement by which the insured will set out the terms of cover and rates of premium for one-year transaction of Marine dispatches. The open cover is not a Policy and it is not negotiable. A Certificate of insurance is issued for each declaration duly stamped for appropriate value and the Certificate will be negotiable.
But for the Marine insurance policies, the trade industry and commerce would not have developed to the present levels of turnovers anywhere in the world. A manufacturer can export their produce with confidence as their dispatches have the support of Marine insurance policies, and they can also discount their bills with local Bankers without waiting for the bills being paid by the overseas importers after they receive the goods which may take months by ocean transit. Marine Insurance Policy is one of the important documents besides Invoice and Bill of Lading.
There is no tariff rate of premium and the insurers can charge any rate depending upon the nature of goods, the mode of transshipment, type of package, the voyage route and the past claims experience.
When loss/damage arises in respect of cargo, the consignee has to inform the Marine Department by letter and obtain a survey before the damaged cargo is removed from the Port. Thereafter, the consignee submits his claim with the damage survey report, policy or certificate of insurance, bill of lading, invoices, delivery order and other documents. For export cargo, the consignee obtains the survey report from the surveyor nominated in the policy and follows up by handing over all documents to the Claims. When packages are short landed or short delivered, the consignee should submit their claim against the parties responsible and obtain liability letters. The underwriters' liability depends upon the stance taken by them.