Specific Marine Policy

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

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

The policy covers physical loss or damage to insured goods during transit by sea, rail, road, air or post parcel.

Anyone can have this policy who have to send goods from one place to another and one should have insurable interest.

Scope: The policy covers physical loss or damage to insured goods during transit by sea, rail, road, air or post parcel

Coverage: The policy coverage is guided by standard marine clauses

Movement of goods within India- Inland Transit Clause-A, B, C
Export/Import- Institute Cargo clause- A, B, C

The policy commonly covers loss or damage due to Fire, lightening, breakage of bridges, collision, overturning and sinking/capsizing etc.

Add-ons under Marine Specific Policy are as follows:

Seal Intact Clause
FOB Clause
Repacking Clause
Conceal Damage Clause

Sum Insured of the policy is fixed on Agreed value basis, depending on terms of sale - FOB, C& F, CIP, CIF with loading of 10-15% for incidental charges.

The Policy does not cover following:

Willful misconduct
Ordinary leakage/loss in weight or volume, wear and tear
Improper packing
Inherent vice
Delay
Insolvency/financial default of carriers
War, strike, riot and civil commotion

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Important Points to remember while Buying the Policy

Adequate Sum Insured - To Avoid Underinsurance

Policy should be started 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

Proforma invoice should be shared upfront

Policy document contains the details of proforma/original invoice like Cargo/Goods description and value therefore it is required upfront.

Risk Location/s should be properly mentioned

Invoice Number and exact location of transit should be mentioned in the policy

It need to be checked that invoice number, transit details (From & To) are clearly mentioned in the policy document.

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 in case 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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How is premium calculated for specific transit insurance policy?

Factors such as length of the journey, means of transport, nature of the product are considered before determining the premium for the transit insurance policy.
When should one pay premium for specific transit insurance?

Since, the insurance policy applies to a single trip the premium has to be paid before the transit of the goods commences. If you fail to do so, you will not get the cover against the claim.
Is there any minimum premium for Specific Marine Policies?

Minimum Premium does vary between insurer to insurer but overall policy is economical.
Can the policy for Specific Marine be issued in less than couple of hours in order to submit it further?

These days insurers are using the technology and issuing the Marine Specific Policies through portal.

Can the tail end transit be covered?

A tail end transit cover is offered by insurer but generally on ITC-B cover.
Is intentional storage covered under any marine Policy?

No, intentional storage is not covered under Marine Insurance.
What is Specific Transit Insurance Policy?

Specific transit insurance policy is part of the marine cargo policy that applies to goods or freight for a single trip or transit.
Do marine insurance policies cover cargo carried via aerial route?

Institute Cargo Clause (Air), covers cargo carried via aerial routes

What are the documents required to claim settlement under Marine Specific Policy?
- Intimation Mail to Insurance company
- Commercial Invoice Copy
- Packing List
- Consignment Note
- Notification to carriers in case of shortage claims
Which Perils are covered in ITC B Policy?

Fire, Lightening, breakage of bridge, collision with or by the carrying vehicle, overturning of the carrying vehicle, derailment or accidents of like nature to the carrying railway wagon/vehicle.
Which Perils are covered in ITC C Policy?

Fire & Lightening
What is the difference between excess and franchise?

A franchise is a provision in the insurance policy whereby the insurer will not pay unless damage (or loss) exceeds the franchise amount whereas, an excess (deductible) is a provision in the insurance policy whereby the insurer will pay any amounts of damage that exceed the Excess (deductible) amount.

What is specific Transit Insurance Policy?

Specific transit insurance policy is part of the marine cargo policy that applies to goods or freight for a single trip or transit.
Who should take specific transit insurance policy?

Specific transit insurance policy is specially designed for business owners and sellers who are required to send out goods seldom or rarely.
Can the policy be taken once goods are about to reach the destination site.

Marine specific policy should always be taken before dispatching the cargo.
What cover is offered to Tail end Transits?

In case of Tail end transits, insurers generally offers ITC-B Cover but if inspection can be arranged then ITC A Can be offered.