There are two types coverage available under Marine Portfolio: All Risks Policy: All Risks physical

loss or damage to the subject matter from any external cause except those specifically excluded under the General Exclusion Clause of the Policy. Named Perils Policy or Basic Policy: The Policy only covers physical loss or damage to the cargo from any external cause against specified perils named in the Policy. What is the different classification of the transportation? Transportation of goods can be broadly classified into three categories:

Inland Transport Import Export

The types of policies issued to cover these transits are: 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 any calculated amount and premium paid has to be paid in advance. As each consignment is dispatched, a declaration giving details of the dispatch including GR/RR No. is to be sent to the insurer and the sum insured gets reduced by the amount of the declared dispatch. 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 dispatched.

Open Declaration Policy - For covering inland transit of goods. 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.

Multi-transit Policy - For covering multiple transits of the same consignment including intermediate storage. For e.g. covering goods from raw material supplier's warehouse to final distributors 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.

What are the add on covers available under the policy?

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.

Export /Import policies can be extended to cover War and /or SRCC perils on payment of an additional premium. Who can take the Smart Marine 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. Can I cover the incidental cost under the policy? Yes, addition to the contract value 10/15% is added to take care of incidental cost.

Marine Insurance
Marine Insurance covers the loss or damage of ships, cargo, terminals, and any transport or cargo by which property is transferred, acquired, or held between the points of origin and final destination. Broad Categories of Marine Insurance

Marine Cargo: Any loss or damage to goods in transit by rail, sea, road, air or post.

Marine Hull: Any loss or damage to ships tankers bulk carriers smaller vessels fishing boats and sailing vessels.

Marine Cargo The policy covers loss/damage to the property insured due to:

Fire or explosion; stranding sinking etc. Overturning derailment (of land conveyance) Collision Discharge of cargo at port of distress Jettison General average sacrifice salvage charges Earthquake lightning Washing overboard Sea lake river water Total loss of package lost overboard or dropped in loading or unloading. War and SRCC is specifically covered

Types of Marine Cargo Insurance Policies Open Cover

Open cover is usually issued for import/export. The open cover is a contract affected for a period of 12 months whereby the insurance company agrees to provide insurance cover to all shipments coming within the scope of the open cover. Open cover is not a policy. It is an unstamped agreement. As and when shipments are declared specific policies are issued as evidence of the contract and on collection of premium.

Open Policy

This policy is issued for transit of goods within India. Policy is valid for one year and all transits during the policy period and declared are automatically covered by the insurance company subject to the availability of the overall sum insured It is a stamped document. In this case specific policies are not issued for each consignment. Premium can be collected in advance for the entire estimated value during the policy period. Stamp duty is collected in advance along with premium for dispatches to be declared periodically.

Specific Voyage Policy

This policy is valid for a single voyage or transit. The policy will be issued before the voyage starts. The coverage will cease immediately on completion of the voyage. The specific voyage policy must show complete details of the risk. It should contain particulars of conveyance/Vessel name/ Bill of Lading or Way bill and date sum insured terms and conditions of cover voyage cargo description etc like all other marine policies.

Annual Policy

This policy may be issued to cover goods in transit by road or rail or sea from specified depots or processing units owned or hired by the insured. The goods covered must belong to or held in trust by the insured. These policies can not be issued to transport operators clearing forwarding and commission agents or freight forwarders or in joint names.. They can not be assigned or transferred. For such policies the sum insured should not be less than Rs. 5000/-.