Marine Insurance is essential for overseas trade, inland trade and shipping. The Marine cargo insurance policy provides following covers, this is also known as Logistics Insurance.

• The insurance of goods in transit from one place to another place by sea, by inland waterways, by rail, road and air.
• The insurance of ships that is hull insurance covering loss or damage to the hull, machinery and liabilities.
• The insurance of freight at the risk of the carrier.

INTERNATIONAL CONTRACTS OF SALE (INCOTERMS)

The following terms are widely used in the marine insurance:

• Free on Board (FOB) – The seller undertakes to deliver the goods over the ship’s rail at which point the risk passes from the seller to the buyer. The buyer is also responsible for insurance from the time he assumes the risk, once the goods pass the ship’s rail.
• Cost and Freight (C&F) or (CFR) – The responsibility to arrange insurance is on the buyer. The risk passes to the buyer on the shipment.
• Cost, Insurance and Freight (CIF) – The seller is responsible for insurance from his own premises to that of the buyer at the destination point. The risk covers the goods from the seller’s warehouse to the buyer’s warehouse on an all-risk basis.

Marine Insurance Cover – International Trade

Institute Cargo Clause- C (ICC-C)
The “C” cover provides the following risk covers:

• Fire or Explosion
• Vessel or craft being stranded, grounded, sunk or capsized
• Overturning or derailment of land conveyance
• Collision or contact of vessel, craft or conveyance with any external object other than water
• Discharge of cargo at a port of distress
• General Average sacrifice
• Jettison

Institute Cargo Clause – B (ICC-B)
The “B” cover provides all the covers in the ICC-C and also the following risks:

• Washing Overboard
• Entry of sea, lake or river water into the vessel, craft hold conveyance, container, lift van or place of storage
• Total loss of any package lost overboard or dropped whilst loading onto, or unloading from vessel or craft

Institute Cargo Clause – A (ICC-A)
The “A” cover provides loss or damage to the cargo on an All Risk basis except those specifically excluded.

Inland Transit Clauses

This clause specifically provides the covers for Inland or domestic cargo movements.

Inland Transit Clause- A (ITC-A)
In this, the risk of loss or damage to the cargo is covered on an All Risk basis, unless specifically excluded under the cover.

Inland Transit Clause-B (ITC-B)
The “B” cover provides the following risk covers:

• Fire
• Lightning
• Breaking of Bridges
• Collision
• Overturning of the Carrying Vehicle
• Derailment or Accidents of like nature to the carrying railway wagon or vehicle

Inland Transit Clause-C (ITC-C)
The “C” cover provides the following risk covers:

• Fire
• Lightning

The marine Insurance policy is a Non-tariff product. The rates will be based on the Commodity, Packing of the cargo, Mode of Transport and the Turnover. The customers who have frequent shipments can go for Open Policies. The open policy provides flexibility to insure the cargo risk, unlike in the specific policy rushing to the insurance companies to cover the risk in the last minute.

Marine Cargo policy can be given to customers who have multiple transits like Inland (inward & outward), Export and Import movements in one single policy. It is advisable to provide the information prior to the implementation.

The term money includes cash, bank drafts, currency notes, treasury notes, postal orders, money orders and postage stamps. The money insurance policy covers

• Cash in transit from bank to insured premises for payment of wages
• Cash in transit from the insured’s main premises to insured’s branch premises, for the payment of wages
• Cash in transit from the insured’s premises to bank/post office for purchase of demand drafts, postal orders, money orders, postage or revenue stamps
• Cheques, bank drafts, currency notes, treasury notes, postal orders, money orders and postage stamps etc., in transit from the bank/post office to insured’s premises
• Cash, other than for purpose of wages, in transit from bank to insured’s premises, from insured’s premises to bank and between insured’s main premises and the insured’s branch premises
• Cheques, bank drafts, currency notes, treasury notes, postal orders, money orders and postage stamps in transit from the insured’s premises to bank
• Cash collected by employees from the time of collection and until delivered at the insured’s premises or bank on the day of collection.

Perils Covered

• Loss of money in transit caused by robbery, theft, or any fortuitous event.
• Loss of money from the insured’s premises during business hours caused by theft or robbery.
• Loss of money from the insured’s safe or strong room caused by burglary, housebreaking, Dacoity, robbery and hold up or robbery.
• Loss or damage to insured safe.
• The loss of money in transit must occur whilst being carried by the insured or his authorized employee.

The machinery insurance policy is intended to cover any loss or damage to various types of machinery, plant and equipment due to practically any accident/cause not specifically excluded. The cover offers protection to the machinery, which is in operation or at rest, and also when they are being dismantled for the same premises. In case of machinery insurance policy as the fire policies exclude this risk.

• Short circuiting, excess voltage & electrical arcing
  (These damages may occur in electrical machines due to failure of insulation, entry of vermin, due to moisture and ageing)

• Centrifugal forces
  (In rotating machines due to failure of speed limiting devices)

• Faulty design, faulty material & faulty casting

• Carelessness and lack of skill in operation and maintenance of machinery.

• Failure of operation of safety devices.

• Entry of foreign bodies/objects.

The machinery break down policy covers the accidental breakdown to the machineries. The following machineries can be covered under the policy:

• Boilers with auxiliaries such as strokes, oil firing equipment, fans and blowers, and feed pumps.
• Electrical equipment including alternators and generators, motors, rectifiers, switchgears and transformers.
• Mechanical plant including engines, turbines (steam, water, gas), blowers, compressors, pumps, machine tools and presses. Process machinery in such industries, paper/pulp making, printing, rubber/plastics and textiles, etc.
• Lifting equipment including cranes with fixed installations, conveyors and lifts. (Movable cranes can only be covered under contractors plant and machinery policy).

The machinery insurance policy is intended to cover any loss or damage to various types of machinery, plant and equipment due to practically any accident/cause not specifically excluded. The cover offers protection to the machinery, which is in operation or at rest, and also when they are being dismantled for the same premises. In case of machinery insurance policy as the fire policies exclude this risk.

• Short circuiting, excess voltage & electrical arcing
  (These damages may occur in electrical machines due to failure of insulation, entry of vermin, due to moisture and ageing)

• Centrifugal forces
  (In rotating machines due to failure of speed limiting devices)

• Faulty design, faulty material & faulty casting

• Carelessness and lack of skill in operation and maintenance of machinery.

• Failure of operation of safety devices.

• Entry of foreign bodies/objects.

The machinery break down policy covers the accidental breakdown to the machineries. The following machineries can be covered under the policy:

• Boilers with auxiliaries such as strokes, oil firing equipment, fans and blowers, and feed pumps.
• Electrical equipment including alternators and generators, motors, rectifiers, switchgears and transformers.
• Mechanical plant including engines, turbines (steam, water, gas), blowers, compressors, pumps, machine tools and presses. Process machinery in such industries, paper/pulp making, printing, rubber/plastics and textiles, etc.
• Lifting equipment including cranes with fixed installations, conveyors and lifts. (Movable cranes can only be covered under contractors plant and machinery policy).