Products-marine

Types of Policies

1. OPEN COVER:-

Open cover are commonly used in international trade, specifically by companies involved in high volume trade over long periods of time. Companies purchase this type of coverage because it eliminates the need to negotiate terms of a new policy each time a shipment is made. Open Covers are normally issued for one year, in the form of an agreement to cover shipments by sea/air between two specified terminals or on a worldwide basis.

2. OPEN POLICY:-

Big commercial firms and establishments with huge volume of trade and numerous transactions will find it administratively cumbersome to insure their transits individually. Open policies provide a handy and effective method of providing automatic protection to all consignments of such insured’s. Open policies are issued for one year in proper policy form duly stamped, for a sum insured representing aggregate of dispatches likely to take place during the policy period. Premium will be collected in advance and declarations of transits made by the Insured will be recorded and accounted, diminishing the estimated sum insured under the policy. This policy is used to cover indigenous dispatches by rail/road/air/registered post subject to a limit of maximum value per sending or dispatch. The Open policy will cease to operate upon expiry of policy period or on exhaustion of sum insured whichever is earlier. Hence, the insured should ensure that the sum insured is enhanced by additional premium in case of possibility of it being exhausted prior to the expiry of the policy.

Specific Voyage Policy

This policy is valid for a single voyage or transit. The policy will be issued before the voyage starts. The coverage will cease immediately on completion of the voyage. The specific voyage policy must show complete details of the risk. It should contain particulars of conveyance/Vessel name/ Bill of Lading/ Air Way Bill / Consignment Note and date, sum insured terms and conditions of cover, voyage, cargo description etc.

Types of Policies

Open Cover

• Open cover is usually issued for import/export. The open cover is a contract effected for a period of 12 months whereby the insurance company agrees to provide insurance cover to all shipments coming within the scope of the open cover. Open cover is not a policy. It is an unstamped agreement. As and when shipments are declared specific policies are issued as evidence of the contract and on collection of premium.

Open Policy

• This policy is issued for transit of goods within India. Policy is valid for one year and all transits during the policy period and declared are automatically covered by the insurance company subject to the availability of the overall suminsured
• It is a stamped document. In this case specific policies are not issued for each consignment . Premium can be collected in advance for the entire estimated value during the policy period . Stamp duty is collected in advance along with premium for despatches to be declared periodically

Specific Voyage Policy

Annual Policy

• This policy is valid for a single voyage or transit. The policy will be issued before the voyage starts. The coverage will cease immediately on completion of the voyage.
• The specific voyage policy must show complete details of the risk..It should contain particulars of conveyance/Vessel name/ Bill of Lading or Way bill and date sum insured terms and conditions of cover voyage cargo description etc like all other marine policies.
  • This policy may be issued to cover goods in transit by road or rail or sea from specified depots or processing units owned or hired by the insured. The goods covered must belong to or held in trust by the insured .
  • These policies can not be issued to transport operators clearing forwarding and commission agents or freight forwarders or in joint names.. They can not be assigned or transferred. For such policies the sum insured should not be less than Rs 5000/-.