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Why Marine Cargo Insurance Policy

Marine Insurance Policy

Features and Benefits

  • Business dynamics are always in flux, and the expansion of trade and commerce exposes one to risks associated to the transit of goods. Suitable risk management becomes a requirement for a business to work towards the expansion of its horizons. Designed to take care of risks inherent in the mode of transit, the Marine Cargo Insurance Policy by Liberty General Insurance covers physical loss of or damage to cargo that is under movement via air, road, sea, rail, or a combination of these modes, between any two points.

Marine Cargo Insurance Policy

Goods being transferred over long distances can give rise to a number of contingencies. The sheer distance leaves open a number of possibilities for loss or damage. Better safe than sorry; it is always a good idea to avail the proper insurance policies to decrease the risks. The marine cargo insurance policy by Liberty General Insurance provides coverage for any loss or damage of ships, cargo terminals, or any transport or cargo, through which your goods are being transferred between the point of origin and the final destination.

Transit by Sea / Ocean

The insurance covers available for an ocean or sea voyage are classified as:

  • All Risks: This covers all kinds of loss or damage expenses that are incurred, unless specially excluded in the policy.
  • Basic Risks: This provides cover for loss or damages on a named perils basis. The marine insurance includes a list of perils included under the clause.

A comparative analysis of the various covers available under the Policy:

  • Covered
  • Not Covered

Type of risks

  • Fire or Explosion
  • Vessel being Stranded, Grounded, Sunk or Capsized
  • Overturning or Derailment of Land Conveyance
  • Collision or Contact of vessel with any object other than water
  • Discharge of Cargo at the Port of Distress
  • Earthquake, Volcanic Eruption and Lightning
  • General Average Sacrifice
  • Jettison
  • Washing Overboard
  • Entry of Sea / Lake / River water into the Vessel, Craft, Hold, Conveyance, Container, Liftvan or Place of Storage
  • Total loss of Package Lost Overboard or Dropped whilst Loading onto or Unloading from the Vessel or Craft
  • Rainwater Damage
  • Piracy
  • Deliberate Damage or Destruction by Wrongful Act of any Person or Persons
  • Frustration of Voyage resulting into Extra Charges incurred for Unloading, Storing and Forwarding to Destination
  • Reasonable Charges incurred to avert / minimize Losses and Charges incurred to protect the rights of recovery against carriers
  • Liability under BTBC
  • Other Extraneous Perils
  • Sifting of Cargo
  • Breaking, Crumbling, Crushing, Denting
  • Heating & Sweating
  • Infestation, Mould, Mildew
  • Hook / Sling losses
  • Contact with Mud / Oil / Other cargo
  • Shortage, Theft, Pilferage, Non Delivery / Short Delivery
  • Other Fortuitous losses

ICC(A)

ICC(B)

ICC(C)

The marine cargo insurance covers for air transit are similar to the All Risks Cover of the sea/ocean voyage. They cover physical loss or damage and incurred expenses, apart from those excluded in the policy clauses.

The marine insurance covers that are available for road or rail transport include:

  • All Risks: Covers all kinds of loss or damage expense that is incurred, unless specially excluded in the policy.
  • Basic Risks: This provides cover for loss or damages on a named perils basis. The marine insurance includes a list of perils included under the clause.

A comparative analysis of the various covers available under the Policy:

  • Covered
  • Not Covered

Type of risks

  • Fire or Explosion
  • Vessel being Stranded, Grounded, Sunk or Capsized
  • Overturning or Derailment of Land Conveyance
  • Collision or Contact of vessel with any object other than water
  • Discharge of Cargo at the Port of Distress
  • Earthquake, Volcanic Eruption and Lightning
  • General Average Sacrifice
  • Jettison
  • Washing Overboard
  • Entry of Sea / Lake / River water into the Vessel, Craft, Hold, Conveyance, Container, Liftvan or Place of Storage
  • Total loss of Package Lost Overboard or Dropped whilst Loading onto or Unloading from the Vessel or Craft
  • Rainwater Damage
  • Piracy
  • Deliberate Damage or Destruction by Wrongful Act of any Person or Persons
  • Frustration of Voyage resulting into Extra Charges incurred for Unloading, Storing and Forwarding to Destination
  • Reasonable Charges incurred to avert / minimize Losses and Charges incurred to protect the rights of recovery against carriers
  • Liability under BTBC
  • Other Extraneous Perils
  • Sifting of Cargo
  • Breaking, Crumbling, Crushing, Denting
  • Heating & Sweating
  • Infestation, Mould, Mildew
  • Hook / Sling losses
  • Contact with Mud / Oil / Other cargo
  • Shortage, Theft, Pilferage, Non Delivery / Short Delivery
  • Other Fortuitous losses

ICC(A)

ICC(B)

ICC(C)

Extensions

There are some Institute & Non Institute clauses that can be attached to the marine insurance policy to further the scope of coverage. With some additional premium or agreement for a higher deductible, you can avail extra extensions on offer:

  • Air Freight Replacement Clause
  • Concealed Damage Clause
  • Loading and Unloading Clause
  • Duty Insurance Clause
  • War and Strike perils as per the relevant Institute Clauses
  • FOB Clause

Frequently Asked Questions

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What is Marine Cargo Insurance?

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This insurance protects cargo/goods which may be exposed to marine hazards or perils during movement by Land, Air or Sea from one location to another.

Who can take the policy

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Exporters, Importers, Manufacturers, Traders, Merchant Exporters, Contractors of Project.
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 from overseas Port to final destination in India. Whereas in CIF contracts the seller is responsible for insurance from his own premises to that of the destination country or place as indicated in the Invoice along with the charges.

What are the kinds of Marine Cargo Policy

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Marine Specific Transit: Ccovers one shipment at a time from a named place to a named destination. Cover ceases on delivery of goods to named destination.
Marine Open Policy: Marine Open Policy is an annual arrangement between the insured and the insurer to provide coverage to all the shipments/transits on pre arranged terms and conditions. The facility helps the insured to cover all the shipments/transits on an automatic basis. Periodical declarations as agreed are required to be submitted. Maintenance of adequate balance premium at all times during the currency of the policy is requried to satisfy the statutory provisions.

Marine Sales Turnover Policy: It’s a wider form of Marine Open Policy. The biggest advantage of a Sales Turnover policy is the client is required to give declaration only on the Sales Turnover on a periodical basis as agreed at the time of inception of Policy. STOP provides all the traditional cover under an Open Policy plus Inter-factory/ inter-depot/ to and fro movements for job works and reasonable intermediate storage.

Type of Marine Cargo coverage:

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Coverage is as per Institute Cargo Clauses for Export and Import shipments. These clauses are articulated by Institute of London Underwriters and are common across the world. Such as
Institute Cargo Clauses (C): Coverage is on named perils basis and is applicable for shipments by Sea.

Institute Cargo Clauses (B): Coverage is on named perils basis but wider than Institute Cargo Clauses (C) and is applicable for shipments by Sea.

Institute Cargo Clauses (A): Coverage is on All risk basis and applicable for shipments by Sea.

Institute Cargo Clause (Air): Coverage is on All risk basis and applicable for shipments by Air.

Coverage for domestic transits (all mode of conveyance) within India is as per Inland Transit Clauses such as

Inland Transit Clause (A): Coverage is on All risk basis

Inland Transit Clause (B): Coverage is on named perils basis.

What is Certificate of Insurance

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It is a document giving the full details of each and every shipment and is treated as an important document in finalizing the export/import documentation process. Certificate of insurance shall be subject to the terms and conditions of the open policy. Every marine customer is given an user id and password for generating certificates of insurance. If there are many users in the organization we can offer more than one user id and password. Certificate issuance facility is available for Exports, Imports and Domestic Movements as the case may be.

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How to select the Sum Insured

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The sum insured or value of the policy would depend upon various factors such as the type of contract, Policy type, Voyage Type, etc. Usually, in addition to the contract value 10% is added to take care of incidental cost.

How do I record any changes in the policy?

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What is third party liability insurance? Is it covered in this policy?

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

What is third party liability insurance? Is it covered in this policy?

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

Why Commercial Insurance

Listen to Our Customers

The Client has highly appreciated the inputs and report from Mr. Sudhanshu.
Its because of him we were able to convince the client to move to Liberty along with local sales support.​

Rohit Kapoor

We find the report is very exhaustive in bringing out the risk exposures and the works the client has to carry out for risk elimination. Surely the client will be benefited by the suggestions you have put forth.​

Gurudutt

The contents of your newsletter are quite interesting and informative.

This will help in creating awareness in the industry about the loss prevention and good maintenance.

Thanks for the good work you are doing.​

M.Rajaram

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Reg Office: 10th floor, Tower A, Peninsula Business Park, Ganpat Rao Kadam Marg, Lower Parel, Mumbai - 400013

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