Marine Stock Turnover
What this Policy covers?
Marine Cargo Policy covers goods (machinery, raw materials, finished goods etc) during transit under a contract of affreightment.
This Policy covers physical loss or damage to insured goods during transits by (a) Sea (b) Post or parcels (c) Rail/Road/Air. The scope of cover shall be determined by the Institute Clauses attached to the Policy.
All Overseas Transits are subject to Institute Cargo Clauses A, B &C given by Institute of London Underwriters. The brief coverage is as under:
| Risk | Institute Cargo Clauses | ||
| ( Proximate Cause) |
A (All Risk Cover) |
B (Wider Cover) |
C (Basic Cover) |
|
Stranding , Grounding, Sinking or Capsizing |
Yes |
Yes |
Yes |
|
Overturning or Derailment of Land Conveyance |
Yes |
Yes |
Yes |
|
Collision of Ship or Craft with another Ship or Craft |
Yes |
Yes |
Yes |
|
Contact of Ship, Craft or Conveyance with anything other than |
Yes |
Yes |
Yes |
|
Discharge of Cargo at Port of Distress |
Yes |
Yes |
Yes |
|
Loss overboard during Loading/Discharge (total loss only). |
yes |
Yes |
No |
|
Fire or Explosion |
Yes |
Yes |
Yes |
|
Malicious Damage |
Yes |
No* |
No* |
|
Theft/ Pilferage |
Yes |
No |
No |
|
General Average Sacrifice |
Yes |
Yes |
Yes |
|
Jettison |
Yes |
Yes |
Yes |
|
Washing Overboard (deck cargo) |
Yes |
Yes |
No |
|
War Risks |
No* |
No* |
No* |
|
Seawater entering Ship, Craft, Hold, |
Yes |
Yes |
No |
|
River or Lake Water entering same |
Yes |
Yes |
No |
|
* Can be bought back |
|
|
|
Goods (merchandise) dispatched by rail or road from any place in India to any place in India (not in conjunction with an overseas voyage) are subject to Inland Transit (Rail/Road) Clause A,B & C. The brief coverage is as under::
1. Inland Transit (Rail or Road) Clause – A (All Risks): Covers All Risks of Physical loss or damage subject to exclusions
2. Inland Transit (Rail or Road) Clause – B (Basic Cover): Covers Physical loss or damage caused by:
i) Fire, Lightning, Breakage of Bridges
ii) Collision with or by the carrying vehicle, derailment or accidents of the like nature to the carrying railway wagon/vehicle.
3. Inland Transit (Rail or Road) Clause – C: Covers Physical loss or damage caused by (i) Fire (ii) Lightning
Optional Extensions:
1. For Inland Transit: Strike, Riot and Civil Commotion
2. For Overseas Transit:
i) War, Strike, Riot and Civil Commotion
ii) Duty and Increased Value Insurance ( for Imports only)
iii) Seller’s Interest Insurance ( for Exports with C&F or FOB terms only)
Salient Features:
1. The policy is assignable (except in case4 of Seller’s Interest Insurance)
2. The Sum Insured is fixed on ‘Agreed Value’ basis. Normally with a margin of 10% on invoice price for incidental expenses
3. The premium rates depend on factors like nature of cargo, scope of cover, packing, mode of conveyance, distance and past claims experience
4. Policies can be issued for (a) Specific Transit. (b) Marine Open policy with periodical declarations and (c) Sales Turn Over Policy with quarterly statements.
What the Policy does not cover ?
1. Willful misconduct
2. Ordinary leakage/loss in weight or volume , wear and tear
3. Improper packing
4. Inherent vice
5. Delay
6. Insolvency/financial default of carriers
7. War, Strike, Riot and Civil Commotion
Important Note:
This document is for your information and the description herein is a summary only. It does not attempt to provide full details of every aspect of cover, nor all exclusions or limitations which apply. For full details, please read our policy wordings which are available on request.