Easypolicy FAQs
FAQs
    OR you may click on the below product categories to view their respective FAQs
General FAQs | Car Insurance FAQs | Health Insurance FAQs | Travel Insurance FAQs | Term Plans FAQs | Child Plans FAQs | Investment Plans FAQs | Pension Plans FAQs | Marine Insurance FAQs
 
Marine Insurance FAQs
Please click on a question to view its answer.

Q- What is Marine Insurance?
A- Marine or transit insurance covers your cargo from loss or damage while in transit by rail, road, sea or air. The insurance protection starts from the origin to the destination.

Q- Why do you need Marine Insurance?
A- Marine insurance safeguards your cargo against untoward contingencies associated with the voyage of the cargo by air, sea, rail and road, worldwide. Many a times the carrier entrusted with the freight may not be able to compensate adequately for any losses or damaged suffered and since the cost of this insurance is nominal, therefore it is prudent to buy your own insurance.

Q- What is covered in Cargo insurance?
A- It safeguards the cargo from the perils or risks of the journey undertaken. The risks of the journey are detailed as per the inland transit (ITC A/B/C )or institute cargo clauses ( ICC A/ B/ C ), which form part of the insurance.

Q- What is an Open policy?
A- This policy can be taken for a substantial sum insured, to cover transit of regular and multiple consignments, within the country, over a particular period of time, normally a year. Declaration of transit is made by the insured which reduces the sum insured accordingly. If the sum insured is depleted before the expiry of the policy period another policy can be taken or additional premium be paid and endorsed to the policy accordingly.

Q- What is Specific policy?
A- The specific Policy insures cargo against risks involved in a particular or specific voyage/transit only, It is the opposite of an open policy or cover and is the insurance of a specific invoice only.

Q- What is Sales Turnover Policy?
A- This policy covers all transit of stock right from the moment the raw material is purchased and transported for processing or storage to all intermediate locations until it reaches the final destination. Under this policy, the premium is determined on the basis of sales turnover of the business.

Q- What are the normal clause applicable to Marine insurance?
A- Following are the major clauses applicable
1. To voyages within the country - Inland Transit Clause (ITC-A, ITC-B, ITC-C),
2. To voyages for export and imports - Institute Cargo Clause (ICC-A, ICC-B, ICC-C)
3. Additional covers of SRCC, Terrorism and War can be taken as per the requirement of the journey undertaken.


Q- What is an all risk cargo insurance policy?
A- An all-risk cargo insurance policy is the broadest form of marine insurance and covers any physical loss/damage from any external cause. An all-risk policy will list or name any exclusion that is not covered.

Q- Who can take the policy?
A- A buyer /seller/importer/exporter/contractor and such like can buy cargo insurance depending on the terms of sale or contract.

Q- What should be the sum insured?
A- The amount of sum insured or value of the policy depends upon the type of contract. E.g. if the terms of sale are C&F then the sum insured to be specified will be the invoice value plus the cost of freight added.

Q- What are the risks covered by The Inland Transit Clauses?
A-
Risks ITC – A ( All Risk ) ITC – B( Basic ) ITC - C
Loss or damage by:
Fire Covered Covered Covered
Lightening Covered Covered Covered
Breakage of bridges Covered Covered Not covered
Collision with or by the carrying vehicle Covered Covered Not covered
Overturning of the carrying vehicle Covered Covered Not covered
Derailment or accident to the carrying vehicle Covered Covered Not covered
Any other risk not specifically excluded in the policy or clause Covered Not covered Not covered


Q- What are the risks covered by The Institute Cargo Clauses?
A-
Risks ICC – A ICC – B ICC – C
Loss or damage by
Fire or explosion Covered Covered Covered
Vessel or craft being stranded ,grounded, sunk or capsized Covered Covered Covered
Overturning or derailment of land conveyance Covered Covered Not covered
Collision with any external object other than water Covered Covered Not covered
Discharge of cargo at any port of distress Covered Covered Not covered
Earthquake volcanic eruption or lightening Covered Covered Not covered
General average sacrifice Covered Covered Not covered
Jettison Covered Covered Covered
Washing overboard Covered Covered Not covered
Entry of sea lake or river water into the vessel Covered Covered Not covered
Total loss of any package lost overboard or dropped while loading/unloading Covered Covered Not covered
Any other risk not specifically excluded in the policy or clauses Covered Not covered Not covered


Q- When does the policy terminate?
A- The Policy normally terminates either, when the goods pass into the custody of the consignee or, on delivery to any intermediate warehouse used by the Insured for storage or distribution or, on expiry of the specified time period at the final port of discharge as per the transit clause applicable, whichever is earlier.

Q- Are cargo policies assignable?
A- Cargo policies are freely assignable and insurable interest is to be established in the event of a mishap.

Q- Are perils related to war covered under marine insurance?
A- Yes, generally the perils related to war are covered under export and import marine insurance policies. It is an add on cover and the insurance company charges specified rate as per norms, to cover the Insured goods against Risk of war.

Q- What is FOB (Free on Board)?
A- The goods are placed on board a ship by the seller at a port of shipment named in the sales contract. The risk of loss or damage to the goods is transferred from the seller to the buyer when the goods pass the ship's rail at the port of lading.

Q- What is C&F (Cost and Freight)?
A- The seller must pay the costs and freight necessary to bring the goods to the named destination but the Risk of loss of or damage to the goods, as well as of any cost increases, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment./destination.

Q- What is CIF (Cost, Insurance and Freight)?
A- This is another term of sale, contracted between the buyer and the seller. The term is the same as C&F but with the addition that the seller has to buy marine insurance against the risk of loss of or damage to the goods during the carriage.

Q- What are the general exclusions of marine insurance?
A- Following are the general Exclusions of marine insurance:
• Willful conduct of the insured.
• Ordinary leakage, wear and tear, normal losses in weight or volume of cargo.
• Insufficient or unsuitability of packing or preparation of cargo.
• Inherent vice or nature of cargo.
• Delay, even if delay is by an Insured risk.
• Insolvency or financial default of the owners, managers, charterers or operators of the vessel.
• Use of any weapon of war employing atomic or nuclear fission.
• If the carrying vessel / vehicle is not fit or worthy of the journey it is undertaking
• Strike, riot, civil commotion, war and terrorism which can be purchased as add on covers on payment of additional premium.


Q- Can Losses caused due to Inherent Vice be claimed under Transit Insurance?
A- No, because the loss is caused by the inherent property or nature of the items insured and the loss is not the result of a fortuitous external cause; e.g. rusting of iron, sweating of sugar in bags or bulk cargo, yellowing of photographs with age and such like.

Q- What is the duration of coverage under an open cargo policy?
A- Under an open cargo Policy the goods are Insured from the moment they leave the point of shipment, being at the Risk of the assured, and the Coverage continues in due course of transit until they are delivered to the final warehouse at destination.

Q- What is ICC A, ICC B, ICC C ?
A- ICC means Institute Cargo Clauses in this context. There are three types of clauses written for covering the risks of journeys undertaken by cargo. The comparative chart of these Clauses of I.C.C.- A, B and C, detailing the risks covered is given below. These clauses are normally used for export and import shipments.
Risks ICC – A ICC – B ICC – C
Loss or damage by
Fire or explosion Covered Covered Covered
Vessel or craft being stranded ,grounded, sunk or capsized Covered Covered Covered
Overturning or derailment of land conveyance Covered Covered Not covered
Collision with any external object other than water Covered Covered Not covered
Discharge of cargo at any port of distress Covered Covered Not covered
Earthquake volcanic eruption or lightening Covered Covered Not covered
General average sacrifice Covered Covered Not covered
Jettison Covered Covered Covered
Washing overboard Covered Covered Not covered
Entry of sea lake or river water into the vessel Covered Covered Not covered
Total loss of any package lost overboard or dropped while loading/unloading Covered Covered Not covered
Any other risk not specifically excluded in the policy or clauses Covered Not covered Not covered


Q- What is ITC A, ITC B, ITC C ?
A- ITC means Inland Transit Clauses in this context. There are three types of clauses written for covering the risks of journeys undertaken by cargo. The comparative chart of these Clauses of I.T.C.- A, B and C, detailing the risks covered is given below. These clauses are normally used for covering inland or domestic journeys within the country.
Risks ITC – A ( All Risk ) ITC – B( Basic ) ITC - C
Loss or damage by:
Fire Covered Covered Covered
Lightening Covered Covered Covered
Breakage of bridges Covered Covered Not covered
Collision with or by the carrying vehicle Covered Covered Not covered
Overturning of the carrying vehicle Covered Covered Not covered
Derailment or accident to the carrying vehicle Covered Covered Not covered
Any other risk not specifically excluded in the policy or clause Covered Not covered Not covered


 
Can't find what you are looking for?  
Please email us at smeinsurance@easypolicy.com   
or call us at 011-6657 6857   
Insurance is the subject matter of solicitation.
www.easypolicy.com
Easypolicy Insurance Web aggregator Pvt. Ltd.(Lic. No. IRDAI/WBA 18/14 valid till 25/02/2018)
Disclaimer: The information displayed on this website is of the insurers with whom our company has an agreement. The prospect's particulars could be shared with insurers.