Sales Turnover Policy

Sales Turnover Policy is a flexible Marine Cargo Insurance Policy which covers the insurable Risks associated with the transit of goods by the seller. 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, returns, loading, unloading, intermittent storage, movement of goods from factory to depots or warehouses, warehouses to dealership, dealership to customer, etc. This is a highly customizable policy depending on customer’s business requirement.

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Any entity whether it’s a manufacturer, importer, exporter, etc. involved in purchase and sales of goods with a Sales Turnover of above 10Crore must have Sales Turnover Policy. By buying Sales Turnover Policy the entity will not have to buy specific marine insurance cover for the movement of its goods. The premium of Sales Turnover Policy is also very competitive when compared to Marine Specific Insurance cover. Entity need not declare each and every leg of goods movement but instead needs to file a Sales Declaration on monthly/quarterly basis for the same.

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Sales Turnover Policy has many advantages for sellers/manufacturers of goods/tangible products.

  1. This policy covers Sales, Purchases & returns in a single policy.
  2. Premium in Sales Turnover Policy is very competitive.
  3. Premium can be paid quarterly/ half-yearly/ yearly.
  4. There is no need to declare each and every shipment. Monthly/Quarterly declarations are acceptable in this.
  5. Loading, Unloading, Intermittent storage of goods can be covered in this.
  6. Import and Export of goods are also covered in this.
  7. Policy covers value of goods, freight, etc.

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Though a Sales Turnover Policy has the facility of covering Sales, purchases and returns of the goods but the Sum Insured in this policy is taken as Expected Sales Turnover of policy.

An ideal way to get fully compensated is to get the Inland or within India sales covered at Invoice Value + 10% and for the Export Sales the basis of valuation should be Invoice Value + Freight + 10%.

For example if the Expected Inland Sales Turnover for next 12 months is INR20 Crore then the Sum Insured should be INR20 Crore + 10% that’s INR22 Crore.
To know more about the benefits of the policy please contact us now.

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Normally the excess applicable in Sales Turnover Policy is 0.5% of consignment value or INR10,000 whichever is less.

Please note that the Excess may vary from company to company.

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

  1. SRCC – Strike, riot and civil commotion (including terrorist act)
  2. 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.

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The following steps should be taken in event of a loss or damage to goods insured :

Take immediate steps to minimise loss.

  1. Inform nearest office of the insurance company or claim settling agent mentioned on the policy.
  2. In case of damage to goods whilst on ship or port , arrange for joint ship survey or port survey.
  3. Lodge monetary claim with carrier within stipulated time period.
  4. Submit duly assigned insurance policy/certificate along with the original invoice and other documents required to substantiate the claim such as :
    & #8226; Bill of Lading / AWB/GR
    & #8226; Packing list
    & #8226; Copies of correspondence exchanged with carriers.
    & #8226; Copy of notice served on carriers along with acknowledgment/receipt.
    & #8226; Shortage/Damage Certificate issued by carriers.

Survey fees is to be paid to the surveyor appointed by the insurance company. This fees will be reimbursed along with the claim if the claim is otherwise admissible.

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