Download MARINE CARGO INSURANCE

MARINE CARGO
INSURANCE
Rashmi Lucy Barwa
The New India Assurance Co. Ltd.
Cargo
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Anything that is transported from one place to
another is called CARGO
If it moves on its own it is not cargo. e.g. Car
being sent on truck, railways, ships, aircraft will
be cargo and can be covered under marine
policy.
As long as Cargo is in Transit – Subject Matter
of Marine Insurance
Coverages
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Inland Transit – By Rail/Road
ITC (A)
All risk,
named exclusions
ITC (B)
Basic cover,
named exclusions
ITC (C)
Fire only,
named exclusions
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Overseas Transit – By Sea
ICC (A) All risk,
named exclusions
ICC (B) Named perils,
named exclusions
ICC (C) Basic maritime
perils, named
exclusions
Risk Covered - Inland
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ITC-A: All Risk of loss or damage
ITC-B: Physical loss or damage caused by
Fire, Lightning, Breakage of Bridges,
Collision, derailment or accident
ITC-C Physical loss or damage caused by
Fire & Lightning
Exclusion
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Willful misconduct of the insured
Ordinary losses
Insufficiency or unsuitability of packing
Delay
Inherent vice or nature of the subject matter insured.
War
Malicious Damage (ITC-B &C)
Strike Riots & Civil Commotion (Add on)
Duration of Coverage
As soon as the consignments leaves the seller’s premises,
continues during ordinary course of transit and
terminates either: On delivery to consignee’s warehouse at destination
named in the policy, or
 In case of rail only or rail/road, until expiry of 7 days
after arrival of railway wagon at destination station or
 In case of road only, until expiry of 7 days after arrival
of vehicle at the destination town
Whichever shall first occur.
Risk Covered (by vessel)
ICC-A
Covers ALL RISKS of loss or damage to the
subject matter insured under the policy
proximately caused by insured perils, except
risks specifically excluded.
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Risk Covered
Perils
ICC-B
ICC-C
Fire & Explosion
Yes
Yes
Vessel or craft being stranded,
grounded, capsized or sunk
Yes
Yes
Overturning or derailment of land
conveyance
Yes
Yes
Collision or contact of vessel, craft or
conveyance with any external object
other than water
Yes
Yes
Entry of sea, lake or river water
Yes
No
Risk Covered
Perils
ICC-B
ICC-C
Discharge of cargo at port of distress
Yes
Yes
Earthquake,
volcanic eruption or lightning
Yes
No
General Average Sacrifice
Yes
Yes
Jettison
Yes
Yes
Washing overboard
Yes
No
General Average & Salvage charges
Yes
Yes
Duration of Coverage
As soon as the consignments leaves the seller’s premises,
continues during ordinary course of transit and terminates
either: On delivery to consignee’s warehouse or other final
warehouse at destination named in the policy; or
 On delivery to any other warehouse prior to at destination
which the insured may elect for storage other than in
ordinary course of transit or for allocation or distribution;
or
 On expiry of 60 days after discharge over side of the
insured goods from the overseas vessel at the final port of
discharge
Whichever shall first occur.
Exclusion
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Willful misconduct of the Insured
Ordinary (inevitable) loss
Improper packing
Inherent vice
Delay
Insolvency/ financial default of carrier, manager,
charters or operator of vessel
Deliberate damage/ destruction
Nuclear weapons exclusion
War and SRCC (Add On)
Un-seaworthiness and unfitness of vessel / craft
ICC-1982 & ICC-2009
Unseaworthiness & Unfitness Exclusion Clause Exclusion applied if assured / his employees
is privy or aware at time of loading. This
protects the innocent party.
War exclusion including piracy
Piracy covered under ICC-A but not under
ICC-B & ICC-C
Loss damage or expenses due to financial
default of the owners managers, charterers or
operators of the vessel
This exclusion apply only when the party
claiming was unaware of the financial
circumstances of the carrier
Terrorism excluded
Still excluded but wider range of threats also
excluded (eg. State sponsored terrorism)
From time the goods leave the warehouse.
Does not cover loading
From the time the subject matter insured is
first moved in the warehouse…for purpose of
immediate loading”
Covers loading, but des not cover storage
prior to transit.
On delivery
On completion of unloading
Insurance also terminates if the goods remain
in the carrying vehicle and the assured / their
employees elect to use it for storage.
Types of Policies
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Specific Voyage Policy
Open Policy
Open Cover
Annual Turnover Policy
Duty Insurance
Seller’s Contingency Insurance
Increased Value Insurance
INCO TERMS
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Deals with Risk
Deals with Transfer of Risk
Rights & Duties of Buyers & Sellers
Deals with who organises the transport &
insurance
INCO TERMS
Inco Terms Risk Transfer
Exporter arranges insurance
ExW
At seller’s premises after
loading
Exporter does not. Buyer to
arrange
FCA
When delivered to carrier
named
Upto delivery to Carrier
FAS
When delivered alongside ship Upto Port till placed alongside
ship. Loading not covered
FOB
When loaded on ocean going
vessel
Upto loading on ocean Going
Vessel. Loading Covered.
CFR
When loaded on ocean going
vessel
Upto loading on ocean Going
Vessel. Loading Covered.
CIF
When loaded on ocean going
vessel
Till Delivery to buyer as per
Contract of Carriage e.g.
destination port. Min. ICC-C
Parties involved
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The seller (Consignor) and the buyer (Consignee)
Bank
The Insurance Company
Port Authorities
The Carrier (Ship, Air, Road, Rail)
Custom Authorities
Shipping Agents
Clearing and Forwarding Agents (C & F Agents)
Stevedores: Contractors appointed by Shipping
Company for loading and discharge of Cargo
Claim Documents
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Original Insurance Policy/Certificate /Declaration, duly
discharged or a Letter of Indemnity.
Original or signed copy of Invoice with packing list.
Signed copy of Bill of Lading / Airway Bill
Exchange control copy of Bill of Entry – to check delay and duty
payment.
Letter of Subrogation
Special Power of Attorney
Lost overboard certificate / short landing / non delivery
certificate / Landed but Missing / Damage Certificate.
Registered AD cards or any other evidence – claim notice
Thank You