Marine Specific Insurance Policy
A Marine Specific Insurance Policy is transit insurance policy that covers the possible financial loss of goods transported from a place to another place via Road/ Rail/ Air/ Sea/ Courier, etc.
The transportation of goods could be
- Inland – within India
- Import – from anywhere in world to anywhere in India
- Export – from anywhere in India to anywhere in world
A Marine Specific Insurance Policy is required when the goods transported are not covered in an existing Marine Policy. Any party which has insurable interest in the policy can buy it.
Duration of Marine Specific Insurance Policy is the time involved in transporting goods from a place to another as declared by proposer.
The Coverage in Marine Specific Insurance Policy will depend upon the clauses under which the policy is issued.
Export/Import – When exporting or importing goods the Institute Cargo Clause A, B, or C of Institute of London Underwriters is applicable.
ICC (A) is all risk cover. ICC (B) is broader cover excluding Malicious Damage, Theft/ Pilferage & War Risks. ICC (C) covers all risks covered in ICC (B) except for Loss overboard during loading or discharge, Washing overboard, seawater entering ship, river water entering ship.
Inland – Goods transported to anyplace within India by Rail/ Road are subjected to Institute Transit Clause A, B, C.
ITC (A) is an all risk coverage barring exclusions. ITC (B) covers loss from fire, lightning, breakage of bridges, derailment, accident, etc. barring exclusions. ITC (C) covers loss due to fire and lightning only.
For the purpose of calculating Sum Insured the proposer must keep in mind the invoice value, freight cost and the incidental expenses.
For inland voyage the Sum Insured should be Invoice Value + 10%.
For overseas voyage the Sum Insurance should be Invoice Value + Freight + 10% or Invoice Value + Insurance Cost + Freight Cost + 10%.
The Add-on covers available in Marine Specific Insurance Policy are as follows.
Inland cover – Strike, Riot and Civil Commotion (SRCC)
Import/Export – Strike, Riot and Civil Commotion (SRCC), War, Duty and increased value (imports only).
Following exclusions are applicable in Marine Specific Insurance Policy.
- Strike, Riot and Civil Commotion
- Wilful misconduct
- Inherent vice
- Wear and tear
- Delay in delivery
- Insolvency/ Bankruptcy of buyer
- Ordinary leakage
- Improper packaging
Following steps are to be followed in Marine Specific Insurance Policy.
- Policyholder must inform the insurance company as soon as the loss of goods comes to its knowledge.
- Policyholder should try to minimize loss.
- Policyholder should co-operate with the surveyor in assessment of actual loss.
- Insurance company would provide the list of documents required to substantiate the claim amount the quantum of loss.
- Upon receiving above information and physical inspection of loss surveyor submits its report to insurance company.
- Insurance company then settles the claim.