Marine Insurance Policy

Various clauses can be added on depending upon the nature of the goods being carried. The Institute Cargo Clauses comprise a range of covers from the most comprehensive ones such as (A) Clauses to the basic minimum protection available termed (C) Clauses.

Additional cover can also be provided for the following:

• Loading and Unloading
• Customs duty
• Removal of debris

This is an agreed value policy. Normally, the insurance is taken for CIF +10%.

The insurance rate depends on a variety of factors such as the nature of the cargo, scope of cover, packing, mode of conveyance, distance and past claims experience.

If you're at fault in an accident, liability covers damages you cause. That could mean damage to other vehicles, property (mailbox, street sign, house, etc.), or even other drivers'/passengers' injuries. Plus, liability covers you if someone sues you over an accident.

This policy covers all the marine sendings of a client in a 12 month policy period where the voyage involved is import or export.

These policies are issued to firms that require coverage for a specific voyage. It is suitable for those firms who seldom require marine cargo policies in the course of their trade.

These policies are issued on a "from and to" basis and the cover commences once the goods leave the place of origin named in the policy and terminates on delivery at the place of destination.

Sometimes these policies are also issued in terms of duration of the voyage, in which case the cover commences on the date and time specified for the same in the policy. Inland specific transit will exclude terrorism.

HDFC ERGO has the facility which provides any time marine certificate issuance facility to clients/ intermediary. This facility is provided free of cost and can be availed by anyone who Buys open marine cover or policy from HDFC ERGO.

Customs duties form a major part of the cost of imported goods. Once the goods land at the port of destination custom, duty becomes payable.

In case the goods are damaged during the transit from the port to the importer's warehouse, the CIF value is not sufficient to represent the actual value of the goods since the custom duties should have already been paid.

This additional element of cost can be covered by a duty Insurance Policy. Claims under a duty policy are only payable if the claim is otherwise admissible in the marine cargo policy covering the goods.

In almost all export transactions where credit is allowed by the seller to the Buyer and the goods are not exported on CIF basis, responsibility for the goods passes to the Buyer when the goods are loabed on to the overseas vessel. but ownership does not change until the Buyer accepts the goods and relative documents.

Thus, if the seller is allowing credit to the Buyer and has shipped goods on FOd terms, where the responsibility for loss or damage to the goods is passed to the Buyer when the goods are loabed on to the overseas vessel, the seller has no control over the conditions of the insurance cover arranged by the Buyer.

In the event of loss of or damage to the goods in transit from a peril insured against and the Buyer refusing to pay for such loss or damage, the seller could stand to lose financially. Seller's Interest or Contingency Interest cover could help to prevent this.

The cover is normally arranged as an extension of FOd cover. The seller's interest cover in effect retrospectively reinstates cover, as per Institute Cargo Clauses as provided for in the policy and allows the seller to be protected in an area where he has no control over the insurance arrangement.