Marine Insurance

MARINE INSURANCE

Marine InsuranceThis is the oldest branch of insurance divided into:

Marine cargo(goods)

Marine hull

MARINE INSURANCE IS GOVERNED BY AN ACT – THE MARINE INSURANCE ACT

1963

WHO EFFECTS THE INSURANCE?

The insurance is taken by the buyer/seller as per the terms of the

contract.

If the contract is on C.I.F basis, seller is taking the insurance. In all other

cases the buyer is taking the insurance.

Exporters can take a cover if the contract is

F.O.B and c & f

In special circumstances a sellers contingency

insurance cover will help the exporter, in such

cases the covr will end at the destination port

Insurance cover is an important documents for the bankers in the export

/ import business.

INSTITUTE CARGO CLAUSES

Marine insurance clauses(terms and

conditions) drafted by lloyds london which is applicable all over the

world

In marine export/import policies, the institute

cargo clause (icc) is used

ICC(A) clause cover the goods for “all riks” of loss

or damage due to accidental damages

exluding the following

EXCLUSIONS

Loss caused by willful

misconduct of the insured

Ordinary loss in weight or volume,

ordinary wear and tear Loss by

inherent wise(perishable

goods)

Loss/damage due to inadequate

packing

War/strike/terrorism/ malicious

damages . However, these

risks can be covered on additional premium

Loss arising from insolvency

or financial default of

owners/operators

ADDITIONAL COVER

War and SRCC cover can be

added along with the all risk cover

on extra premium

MARINE COVER

Marine cover give protection to cargo during transit by road/rail, sea and air.

Marine cargo export cover is universal.

DURATION OF MARINE COVER

The insurance commences from the time the goods dispatched from the

warehouse at the place named in the policy, till delivery at the final

destination/on expiry of 60 days after discharge from the vessel at the final

port of discharge in case of ships. For air cargo it is 30 days.

MAJOR REQUIREMENTS

Invoice value Voyage from to

PREMIUM

Premium has to be paid before the commencement

of risk.

Regular exporters can take open cover policy, which will cover the risk for the entire year, if adequate deposit of

premium is held with the insurance company

The Premium rate is in

percentage only

Eg:0.15 % of the total

value. Sum insured can be

10% more than C.I.F valueIe,CIF+10%

There is no service tax on in insurance

premium for export policies.

But import policies attract 14% service tax on insurance premium

Thank youAIMS Insurance Broking Pvt. Ltd.19/458, IInd Floor, Global PlazaPoothole P.O., Thrissur- 04Phone: 0487-2386364/2389703Email:[email protected]: www. aimsinsurance.in