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MARINE CARGO
WHAT IT COVERS
It compensates for
financial loses
resulting from loss of
or damage to goods
arising out of maritime
disaster. The policy may
also be extended to
cover loses arising from
road conveyance from the
warehouse of the
exporter to the port and
/ or from the port to
the warehouse of the
importer. Depending on
the terms of sale, loss
of freight and cost of
insurance may also be
insured by either the
exporter or the
importer.
REQUIREMENTS
Depending on the
contract of sale, the
insurance may be
affected by either the
exporter or the
importer.
WHY TAKE THE POLICY
Since it is expensive to
trade in / import goods
from overseas, it makes
it possible for people
to engage in such
activities without the
fear of loosing their
investment.
CLASSES OF COVER
CLASS A: This is an all
risk policy and offers
the widest cover.
It covers loss of or
damage to the subject
matter insured except
those that the policy
excludes
CLASS B: This covers
losses arising out of
major sea perils and
Others like washing
overboard, Jettison,
Earthquake
CLASS C: This gives the
least coverage. It
covers loses arising Out
of major sea perils like
capsizing of vessels.
Fire or explosion,
General Average and
Jettison.
RENEWAL
OPEN COVER: At renewal,
all declared shipments
are totalled and
appropriate premium is
charged. There may be
refund or an extra
premium may be charged
depending on whether
higher or lesser value
was declared at
inspection.
With voyage policy, the
policy is automatically
cancelled as soon as the
voyage is completed. For
vessels under
construction, the policy
is automatically
cancelled as soon as the
construction is
completed
PROCEDURE FOR TAKING THE
POLICY
1. A proposal form may
be completed. However
due to the endless
varieties of cargoes and
many modes of packaging,
a personal discussion
with the underwriter may
be preferred. Go to the
forms page ,download
Marine Cargo Proposal
form.
2. Premium is paid
3. A cover note is
issued with open cover,
a provisional premium is
charge depending on the
estimate given. |
