Marine Inland Policy

The Marine insurance provides protection against loss or damage of cargo or property while it is in transit, acquired, or held at any point between origin to the final destination. This policy provides coverage while transit takes place by any mode of transit like Sea, Rail, Road Air & Waterways.

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 would determine who buys the policy. The most common contracts are:

FOB (Free on Board
C & F (Cost & Freight)
CIF (Cost, Insurance & Freight)
Ex-Works

In FOB AND C&F contracts, the buyer is responsible for insurance. Whereas in CIF contracts the seller is responsible for insurance from his own premises to that of the purchaser. In ex works generally the buyer shall purchase insurance warehouse to warehouse.

This policy covers goods, freight and other interests against loss or damage to goods whilst being transported by rail, road, sea, air and/or courier
Different policies are available depending on the type of coverage required ranging from an ALL RISK cover to a restricted FIRE RISK ONLY cover
This policy is freely assignable and is basically an agreed value policy.

A vast majority of Marine Cargo policies are based on Institute Cargo Clauses, that appear in three versions viz., ITC (A), ITC (B) and ITC (C). ITC (A) is based on ''All Risks'' while (B) and (C) are based on named-perils.

Add-ons under Marine Policy are as follows:

Seal Intact Clause
FOB Clause
Repacking Clause
Conceal Damage Clause

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

Principal exclusions, which appear in the Institute Cargo Clauses are:

Loss or damage due to Inherent Vice
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

IMPORTANT POINTS TO REMEMBER WHILE BUYING THE POLICY

Policy should be start before consignment start date

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

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.

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.

Key Documents at The Time Of Claims

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

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FAQ's

PREMIUM

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OTHERS

What are the factors to be considered while rating for Marine Inland 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 Inland Transit Policy?

Yes, as per the recent guideline there is a minimum rate to be charged for Marine Inland Transit Policies or if the claims in last 3 years is below 70% then expiring rate would be charged.
What is the duration under duration clause for Inland Road/Rail/Air?

The maximum duration under duration clause for Inland Road/Rail/Air is 7 days and duration starts from the midnight of date of reaching the destination city.
Can premium be refunded if Sum Insured is not exhausted in Marine Inland open Declaration policy?

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

What is covered by the policy?

The policy covers goods in transit against risk of Fire, lightning, breakage of bridges, collision or derailment, Shortages, Theft etc.
Which goods are covered in the policy?

All kind of items like raw material, finished goods, merchandise, machinery etc. can be covered under the policy.
Does policy extend coverage to geographical area other than India?

Inland transit insurance generally covers goods sent within territory of India. The cover can be sometimes extended to countries like Bangladesh, Afghanistan, Nepal on payment of additional premium.
Is intentional storage covered under the marine Policy?

No, intentional storage is not covered under Marine Insurance.

What are the documents required to claim settlement under Marine Inland Transit 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
If the transit has not reached the destination city and stuck in state border due to National/State lockdown or any such similar situation, Will it be covered in the policy?

The risk is on till the cargo reaches the final destination. Note that any intentional storage would not be covered in the policy.

If the transit has reached the city but takes time to reach the final destination then for how long it can be covered?
- 7 days after arrival of wagon/vehicle carrying the consignment at the destination town
- 30 days after arrival of subject matter insured at the destination town by air/port
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.
How frequently declaration need to be done under Marine Open Policy?

The Declaration under Marine Open Policy has to be done on Monthly basis.
Can the premium be refunded if sum insured doesn't exhaust in Marine Inland Declaration Policy?

Premium can be refunded in Marine Inland Transit Policy subject to Monthly declaration every month and favorable claim ratio.

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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