Suspendisse interdum consectetur libero id. Fermentum leo vel orci porta non. Euismod viverra nibh cras pulvinar suspen.

Get In Touch

Email insurance@suvidhainsurance.com
Phone +91 89103 20845
Location 174, Chittaranjan Avenue, 5th Floor, Kolkata-700 007

Marine Transit Insurance

Home Marine Transit Insurance

Marine Transit Insurance

Highlights:
This policy covers goods, freight and other interests against loss or damage to goods whilst being transported by rail, road, sea and/or air.
Different policies are available depending on the type of coverage required ranging from an ALL RISK cover to a restricted FIRE RISK ONLY cover.
This policy is freely assignable and is basically an agreed value policy.
Scope:

Transportation of goods can be broadly classified into three categories:

Inland Transport
Import & Export
For Inland Transit
Specific Policy - For covering a specific single transit
Open Policy -For covering transit of regular consignments over the same route .The policy can be taken for an amount equivalent to three months despatches and premium paid in advance. As each consignment is despatched, a declaration giving details of the despatch including GR/RR No. is to be sent to the insurer and the sum insured gets reduced by the amount of the declared despatch. The sum insured can be increased any number of times during the policy period of one year; but care should be taken to ensure that adequate sum insured is available to cover the consignment to be despatched.
Special Declaration Policy - For covering inland transit of goods wherein the value of goods transported during one year exceeds Rs.2 crores. Although the premium for the estimated annual turnover [i.e. the estimated value of goods likely to be transported during the year] has to be paid in advance, attractive discounts in premium are available.
Multi-transit Policy - For covering multiple transits of the same consignment including intermediate storage and processing. For e.g. covering goods from raw material supplier's warehouse to final distributor’s godown of final product.
For Import/Export
Specific Policy - For covering a specific import/export consignment.
Open cover - This policy which is issued for a policy period of one year indicates the rates, terms and conditions agreed upon by the insured and insurer to cover the consignments to be imported or exported. A declaration is to be made to the insurance company as and when a consignment is to be sent along with the premium at the agreed rate. The insurance co. will then issue a certificate covering the declared consignment.
Custom duty cover - This policy covers loss of custom duty paid in case goods arrive in damaged condition. This policy can be taken even if the overseas transit has been covered by an insurance company abroad, but it has to be taken before the goods arrive in India.
Add-on Covers:

Inland transit policies can be extended to cover the following perils on payment of additional premium:

SRCC - Strike, riot and civil commotion (including terrorist act)
FOB - Where the inland transit is required to be extended to cover the goods till they are loaded on board the vessel, this extension can be taken.
Custom duty cover - This policy covers loss of custom duty paid in case goods arrive in damaged condition. This policy can be taken even if the overseas transit has been covered by an insurance company abroad, but it has to be taken before the goods arrive in India.

Export /Import policies can be extended to cover War and /or SRCC perils on payment of an additional premium.

Who can take the policy

The contract of sale would determine who buys the policy. The most common contracts are :

FOB (Free on Board)
C & F (Cost & Freight)
CIF (Cost, Insurance & Freight)

In FOB AND C&F contracts, the buyer is responsible for insurance. Whereas in CIF contracts the seller is responsible for insurance from his own premises to that of the purchaser.

How to select the sum insured

The sum insured or value of the policy would depend upon the type of contract. Usually, in addition to the contract value 10% is added to take care of incidental cost.

Extent of Cover Provided

The main coverage provided to cargo are A B & C.

Clauses C.

This provides the most restricted coverage and subject to the listed exclusions (which we shall examine later) covers loss or damage to the subject matter insured reasonably attributable to

Fire or Explosion
Standing, Grounding, Sinking or Capsizing
Overturning or Derailment
Collision or contact of vessel craft or conveyance with any external objects other than water.
Discharge of cargo at point of distress. The insurance also covers loss or damage to the subject matter insured caused by
General Average
Jettison

To sum up, the C clauses provide major casualty coverage during the land or sea transit and tend to be used for cargoes that are not easily damaged e.g. scrap steel, coal etc.

Clause B

this is the next step up which includes all cover under C and also loss of or damage to the subject matter insured reasonably attributable to :

Earthquake, volcanic eruption or lightning and
Water damage by entry of sea/river water ( excluding rainwater)
Total loss of package lost overboard
Total loss of package dropped during loading and unloading.

These are significant additional coverages. Wet damage from sea, lake or river water and accidents in loading and discharge are covered, but there is no coverage for theft, shortage and non-delivery.


Clause A

this option is the widest of all three and is generally summed up as All Risks of loss or damage to the subject matter insured This words All Risks have been the subject of careful examination in legal cases over the years and should be understood, in the context of the A Clause to cover fortuitous loss but not loss that occurs inevitably.

Cover includes everything under both B & C and also

Breakage
Scratching, Chipping, Denting & Bruising
Theft
Malicious Damage
Non Delivery
All water damage including rain damage.