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.
Marine Sales Turnover Insurance Policy popularly called STOP is a distinguished product. It is an Open Policy in the real sense of the term. STOP covers transit of raw material, semi-finished & finished products pertains to insured's a trade which encompasses Export, Import, Inter Depot movement from originating point to a destination on a seamless basis.
Advantage of STOP
Any manufacturer/producer, distributor, exporter, Importer can buy the policy.
The premium rate is arrived at considering the total number of transits taking place including the inward outward movement and the rate is applied on the Annual sales turnover.
Yes, as per the recent guideline the minimum sum insured required is 100 Crores.
Imports + Customs Duty (Actual or Deemed/Contingent)
Domestic purchase of raw materials, consumables & stores
Any number of inter- factory/inter-depot/to & fro job worker movements
Domestic sales of finished goods
Temporary storage cover at intermediate locations like Job workers / C & F premises etc.
The following steps should be taken in event of a loss or damage to goods insured:
Take immediate steps to minimize loss.
1. Inform nearest office of the insurance company or claim settling agent mentioned on the policy.
2. In case of damage to goods whilst on ship or port , arrange for joint ship survey or port survey.
3. Lodge monetary claim with carrier within stipulated time period.
4. Submit duly assigned insurance policy/certificate along with the original invoice and other documents required to substantiate the claim such as:
Bill of Lading / AWB/GR
Copies of correspondence exchanged with carriers.
Copy of notice served on carriers along with acknowledgment/receipt.
Shortage/Damage Certificate issued by carriers.
A survey fee is to be paid to the surveyor appointed by the insurance company. This fee will be reimbursed along with the claim if the claim is otherwise admissible.
A client trading in high quality paper had a consignment of raw material badly damaged by heavy rain.
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.
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.
It was made very clear to the client that the right kind of transporters should be used so that such occurrences do not recur.
Client deals in solar module. The module efficiency decreases if it falls due to micro cracks not apparent from external appearance.
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.
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.
Claim Preparation and Salvage Disposal add-on was advised to be taken in the policy.