Marine Open Policy

IRDAI License Number: IRDAI/INT/ISNP/2022/250

Marine Open Policy

Cover defense cost
Legal advice, if required
Covernote/Risk Held Letter/Binder Letter Issued immediately after premium payment to the insurance company
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Introduction

Who can take this Policy?

Coverage

Add on Covers

Basis of Sum lnsured

Exclusions

Marine Policy is a security for your goods while they are in transit. This policy secures business goods & personal belongings that are being transported within the country.It covers your belongings against damage or loss happening anywhere from the source to destination.

The contract of sale determines who buys the policy:

FOB, Ex-works- buyer is responsible for insurance
C & F, CIF- seller is responsible for insurance

The policy covers loss or damage to goods whilst being transported by rail, road, sea, air and/or courier.
During transit of goods The scope of cover varies ranging from Fire only risk to All Risk.

Add-ons under Marine Policy are as follows:

Seal Intact Clause
FOB Clause
Repacking Clause
Conceal Damage Clause

Marine Open Policy is an agreed value policy wherein Insurance company agrees to settle the claim according to the value decided by the client.

General exclusions under this policy are:

Loss or damage due to Delay
Loss or damage due to Insufficiency of packing
Loss or damage due to insolvency, financial default etc.
Loss damage or expense arising from the use of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter

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Important Points to remember while Buying the Policy

Adequate Sum Insured - To Avoid Underinsurance

Policy should be start before consignment start date

Policy should be started before consignment start date to avoid gap in coverage.

Ensure that assets should be covered under the right entity/company

Sum Insured should not be exhausted

There should be properly monitoring that available balance sum insured should not be less than the consignment at any point of time during the whole policy period.

Risk Location/s should be properly mentioned

Per Sending and Per Location limits should be on higher side

Keep these limits on higher side as per the requirement of you consignment sending pattern.

Downloads

Proposal Form

Policy Wordings

Claim Form

Key Documents

General Claim
Intimation Format

Immediate Action Client
Should Take

Indicative General Documents
for Settlement of Claims

Immediate Action Client Should Take

Intimate the Transporter

Make a note of the loss on the L.R./POD. Get the same signed by the driver / the deliveryman. Do not give a clean receipt under any circumstances. All the material received has to be inspected at the time of delivery. In case the entire consignment cannot be inspected at the time of delivery make the following note on the L.R./P.O.D. Received subject to verification.
Send an intimation letter to the courier/transporter informing them of the loss, as per Annexure I within 24 hrs of the loss. Send the letter by Registered A.D. Keep a photocopy of the A.D. card and postal receipt.
Send a recovery letter to the courier/transporter raising a claim for the loss within 24 hrs of the loss describing the nature, its quantum and the financial implication of the loss. Send the letter by Registered A.D. Keep a photocopy of the A.D. card and the postal receipt.
Arrange to get the shortage/damage certificate from the courier/transporter.

Survey of the Loss

The surveyors deputed by the insurer will call upon the insured to inspect the loss.

Please keep the following documents handy when the surveyor visits:

A. Copy of the intimation letter sent to the insurance company.

B. Invoice Copy

C. Packing List

D. GR Copy

E. Copy of FIR incase lodged. FIR will be lodged by the transporter / courier in case of theft of goods, damage to goods due to rioting, damage to goods due to a major road accident etc.

F. Shortage / Breakage certificate, if received from the courier / transporter.

G. Copy of the intimation letter sent to the courier / transporter as described above and a copy of the A.D. card with postal receipt, if the original A.D. has not returned back.

H. Copy of the recovery letter sent to the courier / transporter and a copy of the A.D. card with postal receipt, if the original A.D. has not returned back.

A claim form has to be filled with the description of the loss and its quantum Estimate of loss.
The surveyor will submit his report to the insurer.
In case any document is taken by the surveyor in original get the same acknowledged from him.
Send all the documents mentioned above, in original, to Epoch to file the claim on the insurer.

Indicative General Documents for Settlement of Claim

Ocean Transit

Claim Form duly filled in & signed
Original Policy /Certificate
Short Landing Certificate /Landed But Missing Cargo/Damage Certificate (as applicable)
Suppliers Invoice
Packing List
Quadruplicate copy of Bill of Entry
Steamer Survey report in original. (if arranged)
Copy of Claim Notice served on Carrier/Port authorities along with postal acknowledgment card
Copy of correspondence with the carrier/Port authorities/Customs authorities
Copies of Correspondence exchanged with the suppliers (reply from suppliers is a must) in connection with short packing (if applicable)
Lost Overboard Certificate from the Port Trust countersigned by the master of the vessel or steamer agents (in respect of Loss Over Board /Sling Losses)
Original Repair Bills with receipt/Proforma Invoice for value of item lost/damaged
Copy of Application filed with Customs for refund of Duty (if applicable)
Photographs if arranged
Letter of Subrogation cum special power of Attorney

Inland Transit (Rail)

Claim Form duly filled in & signed
Original Policy /Certificate
Open delivery Certificate or copy of application for open delivery, Reply received from the Railways refusing open delivery, Copy of the letter of protest sent to Railways with the acknowledgment thereto and certified extract of the remarks made in the station delivery or complaints book
Suppliers Invoice
Packing List
Copy of Claim Notice served on Railway along with postal acknowledgment card
Copy of correspondence with the Railways
Copies of Correspondence exchanged with the suppliers (reply from suppliers is a must) in connection with short packing (if applicable)
Original Railway Receipt
Original Repair Bills with receipt/Proforma Invoice for value of items lost/damaged
Photographs if arranged
Letter of Subrogation cum special power of Attorney

Inland Transit (Road)

Claim Form duly filled in & signed
Original Policy /Certificate
Original Open delivery certificate or copy of notice given to carriers advising about survey, protest made to them (for Packages delivered apparently in damaged condition)
Suppliers Invoice
Packing list
Copy of Claim Notice served on carriers along with postal acknowledgment card
Copy of correspondence exchanged with the carriers
Copies of correspondence exchanged with the suppliers (reply from suppliers is a must) in connection with short packing (for short receipt claims)
Original Non Delivery Certificate (for Non Delivery Claims)
Original Repair Bills with receipt / program invoice for value of items lost/damaged
Photographs if arranged
Letter of Subrogation cum Special Power of Attorney

Air Transit

Claim Form duly filled in & signed
Original Policy /Certificate
Original Airway Bill
Quadruplicate copy of bill of Entry
Suppliers Invoice
Packing list
Copy of Claim Notice served on carriers along with postal acknowledgment card
Copy of correspondence exchanged with the carriers
Copies of correspondence exchanged with the suppliers (reply from suppliers is a must) in connection with short packing (for short receipt claims).
Original Non Delivery Certificate (for Non Delivery Claims)
Original Short Delivery Certificate (for Short Delivery Claims)
Copy of application filed with Customs for refund of Duty
Original Repair Bills with receipt / program invoice for value of items lost/damaged
Photographs if arranged
Letter of Subrogation cum Special Power of Attorney

Postal Transit

Claim Form duly filled in & signed
Original Policy /Certificate
Original Post Parcel Receipt
Suppliers Invoice
Copy of Claim Notice served on Postal Authorities along with postal acknowledgment card
Copy of correspondence exchanged with the Postal authorities
Original Non Delivery Certificate (for Non Delivery Claims)
Original Short Delivery Certificate (for Short Delivery Claims)
Original certificate of damage /loss issued by the postal authorities (for Shortage/Damage Claims)
Letter of Subrogation cum Special Power of Attorney

Our Insurance Partners

Claim Case Study - 1

Situation

A client trading in high quality paper had a consignment of raw material badly damaged by heavy rain.

Challenge

It was found on discussing with the surveyors that the proper covering on the truck was not maintained. It would have adversely effected the claim.

Solution

We convinced the insurance company that this was one solitary instance and otherwise the tarpaulin covering was always adequately done. The claim was paid accordingly.

Advisory/Conclusion

It was made very clear to the client that the right kind of transporters should be used so that such occurrences do not recur.

Claim Case Study - 2

Situation

Client deals in solar module. The module efficiency decreases if it falls due to micro cracks not apparent from external appearance.

Challenge

Since testing had to be done on large number of sample modules, the cost of which was high. The cost of disposal latter was also extremely high. It was opined by the surveyor that both this costs will have to be borne by the insured.

Solution

We were able to Negotiate strongly with the surveyor that this cost testing and salvage was necessary for both the sites. It was eventually agreed that 50% of these costs will be paid to the insured.

Advisory/Conclusion

Claim Preparation and Salvage Disposal add-on was advised to be taken in the policy.

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FAQ's

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What are the factors to be considered while rating for Marine open policy?
The important factors are as follows:
- Nature of Cargo
- Percentage of Fragile items
- Countries of Transit
- Past Loss details etc.
Is there any minimum rate for Marine open Policy?

Yes, as per the recent guideline there is a minimum rate to be charged for Marine open Policies or if the claims in last 3 years is below 70% then expiring rate would be charged.
Is there any minimum sum insured required to offer Marine open Policy?

No, there is no as such minimum sum Insured required under Marine open policy. Policy can be issued for a sum insured as low as INR 50,000.
Can premium be refunded if Sum Insured is not exhausted in Marine open policy?

Yes, Premium can be refunded if Sum insured is not exhausted in marine open policy subject to favorable claim ratio.

Is SRCC automatically covered under Marine Open Policy?

SRCC is not automatically covered under Marine Open Policy, it is to be taken as an add-on.
What are the three types of cover in Marine open policy?

Generally, there are three types of covers, namely Institute Cargo Clause (C) - Named peril basis, Institute Cargo Clause (B) - Named peril basis and Institute Cargo Clause (A) - Unnamed peril basis. ICC (A) offers the widest form of cover under Marine Cargo Insurance because of the perils covered.
Is intentional storage covered under the marine Policy?

No, intentional storage is not covered under Marine Insurance.
Which perils are not covered in Marine Open Policy?
- Willful misconduct
- Ordinary leakage/loss in weight or volume, wear and tear
- Improper packing
- Inherent vice
- Delay
- Insolvency/financial default of carriers

What are the documents required to claim settlement under Marine Open Policy?
- Intimation Mail to Insurance company
- Commercial Invoice Copy
- Packing List
- Consignment Note
- Notification to carriers in case of shortage claims
What types of Claims are made under ICC-C?

Loss due to fire, explosion, vessel being stranded, sunk or capsized, overturning, collision, general average, jettison etc.
Are Accident Claims covered under Marine Open Policy?

Yes, accident claims are covered under Marine Open Policy except ITC C Cover.
Is shortage covered under Marine open Policy?

Shortage claims are covered under ITC-A/ICC-A Policy.

How frequently the declaration has to be done under Marine Open Policy?

The Declaration under Marine Open Policy has to be done on Monthly basis.
Can Sum Insured be increased mid term in the policy?

Yes, Sum Insured can be increased mid term in the policy subject to approval from Insurance Company.
What are the advantage of Marine open Policy?

All Transits in a 12 months duration is covered in a Policy. Insured just need to declare the transits at the end of each month.
What is General Average in Marine Policy?

The general average sacrifice is a principle of maritime law which is enforced during an accident wherein some part of cargo or ship has to be intentionally sacrificed in order to safeguard the ship in case of emergency. Generally, the loss incurred due to such events has to be proportionately shared by all parties in a sea venture.

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