MARINE CARGO INSURANCE Rashmi Lucy Barwa The New India Assurance Co. Ltd.

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MARINE CARGO MARINE CARGO INSURANCE INSURANCE Rashmi Lucy Barwa Rashmi Lucy Barwa The New India Assurance The New India Assurance Co. Ltd. Co. Ltd.

Transcript of MARINE CARGO INSURANCE Rashmi Lucy Barwa The New India Assurance Co. Ltd.

Page 1: MARINE CARGO INSURANCE Rashmi Lucy Barwa The New India Assurance Co. Ltd.

MARINE CARGO MARINE CARGO INSURANCEINSURANCE

Rashmi Lucy BarwaRashmi Lucy Barwa

The New India Assurance Co. The New India Assurance Co. Ltd.Ltd.

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CargoCargo

Anything that is transported from one Anything that is transported from one place to another is called CARGOplace to another is called CARGO

If it moves on its own it is not cargo. If it moves on its own it is not cargo. e.g. Car being sent on truck, railways, e.g. Car being sent on truck, railways, ships, aircraft will be cargo and can ships, aircraft will be cargo and can be covered under marine policy.be covered under marine policy.

As long as Cargo is in Transit – As long as Cargo is in Transit – Subject Matter of Marine InsuranceSubject Matter of Marine Insurance

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CoveragesCoverages

Inland Transit – By Inland Transit – By Rail/RoadRail/Road

ITC (A)ITC (A) All risk, All risk,

named named exclusionsexclusions

ITC (B)ITC (B) Basic cover, Basic cover,

named named exclusionsexclusions

ITC (C)ITC (C) Fire only, Fire only,

named named exclusionsexclusions

Overseas Transit – By SeaOverseas Transit – By Sea ICC (A) All risk, ICC (A) All risk,

named named exclusionsexclusions

ICC (B) Named perils, ICC (B) Named perils,

named named exclusionsexclusions

ICC (C) Basic maritime ICC (C) Basic maritime

perils, named perils, named

exclusionsexclusions

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Risk Covered - InlandRisk Covered - Inland

ITC-A:ITC-A: All Risk of loss or damageAll Risk of loss or damage ITC-B:ITC-B: Physical loss or damage Physical loss or damage

caused bycaused by

Fire, Lightning, Breakage of Fire, Lightning, Breakage of Bridges, Bridges, Collision, derailment Collision, derailment or accidentor accident

ITC-CITC-C Physical loss or damage Physical loss or damage caused bycaused by

Fire & LightningFire & Lightning

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ExclusionExclusion

Willful misconduct of the insuredWillful misconduct of the insured Ordinary lossesOrdinary losses Insufficiency or unsuitability of packingInsufficiency or unsuitability of packing DelayDelay Inherent vice or nature of the subject Inherent vice or nature of the subject

matter insured.matter insured. WarWar Malicious Damage (ITC-B &C)Malicious Damage (ITC-B &C) Strike Riots & Civil Commotion (Add on)Strike Riots & Civil Commotion (Add on)

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Duration of CoverageDuration of Coverage

As soon as the consignments leaves the seller’s As soon as the consignments leaves the seller’s premises, continues during ordinary course of premises, continues during ordinary course of transit and terminates either:-transit and terminates either:-

On delivery to consignee’s warehouse at On delivery to consignee’s warehouse at destination named in the policy, ordestination named in the policy, or

In case of rail only or rail/road, until expiry of In case of rail only or rail/road, until expiry of 7 days after arrival of railway wagon at 7 days after arrival of railway wagon at destination station ordestination station or

In case of road only, until expiry of 7 days In case of road only, until expiry of 7 days after arrival of vehicle at the destination townafter arrival of vehicle at the destination town

Whichever shall first occur.Whichever shall first occur.

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Risk Covered (by vessel)Risk Covered (by vessel)

ICC-AICC-A

Covers Covers ALL RISKSALL RISKS of loss or damage of loss or damage to the subject matter insured under to the subject matter insured under the policy proximately caused by the policy proximately caused by insured perils, except risks insured perils, except risks specifically excluded.specifically excluded.

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Risk CoveredRisk Covered

Perils ICC-B ICC-C

Fire & Explosion Yes Yes

Vessel or craft being stranded, grounded, capsized or sunk

Yes Yes

Overturning or derailment of land conveyance

Yes Yes

Collision or contact of vessel, craft or conveyance with any external object other than water

Yes Yes

Entry of sea, lake or river water Yes No

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Risk CoveredRisk Covered

Perils ICC-B ICC-C

Discharge of cargo at port of distress Yes Yes

Earthquake,volcanic eruption or lightning

Yes No

General Average Sacrifice Yes Yes

Jettison Yes Yes

Washing overboard Yes No

General Average & Salvage charges Yes Yes

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Duration of CoverageDuration of Coverage

As soon as the consignments leaves the seller’s As soon as the consignments leaves the seller’s premises, continues during ordinary course of premises, continues during ordinary course of transit and terminates either:-transit and terminates either:-

On delivery to consignee’s warehouse or other On delivery to consignee’s warehouse or other final warehouse at destination named in the final warehouse at destination named in the policy; orpolicy; or

On delivery to any other warehouse prior to at On delivery to any other warehouse prior to at destination which the insured may elect for destination which the insured may elect for storage other than in ordinary course of transit storage other than in ordinary course of transit or for allocation or distribution; oror for allocation or distribution; or

On expiry of 60 days after discharge over side of On expiry of 60 days after discharge over side of the insured goods from the overseas vessel at the insured goods from the overseas vessel at the final port of dischargethe final port of discharge

Whichever shall first occur.Whichever shall first occur.

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ExclusionExclusion Willful misconduct of the InsuredWillful misconduct of the Insured Ordinary (inevitable) lossOrdinary (inevitable) loss Improper packingImproper packing Inherent viceInherent vice DelayDelay Insolvency/ financial default of carrier, Insolvency/ financial default of carrier,

manager, charters or operator of vesselmanager, charters or operator of vessel Deliberate damage/ destructionDeliberate damage/ destruction Nuclear weapons exclusionNuclear weapons exclusion War and SRCC (Add On)War and SRCC (Add On) Un-seaworthiness and unfitness of vessel / craftUn-seaworthiness and unfitness of vessel / craft

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ICC-1982 & ICC-2009ICC-1982 & ICC-2009Unseaworthiness & Unfitness Unseaworthiness & Unfitness Exclusion ClauseExclusion Clause

Exclusion applied if assured / his Exclusion applied if assured / his employees is privy or aware at employees is privy or aware at time of loading. This protects the time of loading. This protects the innocent party.innocent party.

War exclusion including piracy War exclusion including piracy Piracy covered under ICC-A but Piracy covered under ICC-A but not under ICC-B & ICC-Cnot under ICC-B & ICC-C

Loss damage or expenses due to Loss damage or expenses due to financial default of the owners financial default of the owners managers, charterers or operators managers, charterers or operators of the vesselof the vessel

This exclusion apply only when the This exclusion apply only when the party claiming was unaware of the party claiming was unaware of the financial circumstances of the financial circumstances of the carriercarrier

Terrorism excludedTerrorism excluded Still excluded but wider range of Still excluded but wider range of threats also excluded (eg. State threats also excluded (eg. State sponsored terrorism)sponsored terrorism)

From time the goods leave the From time the goods leave the warehouse. warehouse.

Does not cover loadingDoes not cover loading

From the time the subject matter From the time the subject matter insured is first moved in the insured is first moved in the warehouse…for purpose of warehouse…for purpose of immediate loading” immediate loading”

Covers loading, but des not cover Covers loading, but des not cover storage prior to transit.storage prior to transit.

On deliveryOn delivery On completion of unloadingOn completion of unloading

Insurance also terminates if the Insurance also terminates if the goods remain in the carrying goods remain in the carrying vehicle and the assured / their vehicle and the assured / their employees elect to use it for employees elect to use it for storage.storage.

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Types of PoliciesTypes of Policies

Specific Voyage PolicySpecific Voyage Policy Open PolicyOpen Policy Open CoverOpen Cover Annual Turnover PolicyAnnual Turnover Policy Duty InsuranceDuty Insurance Seller’s Contingency InsuranceSeller’s Contingency Insurance Increased Value InsuranceIncreased Value Insurance

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INCO TERMSINCO TERMS

Deals with Risk Deals with Risk Deals with Transfer of RiskDeals with Transfer of Risk Rights & Duties of Buyers & SellersRights & Duties of Buyers & Sellers Deals with who organises the Deals with who organises the

transport & insurancetransport & insurance

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INCO TERMSINCO TERMSInco Inco TermsTerms

Risk TransferRisk Transfer Exporter arranges Exporter arranges insuranceinsurance

ExWExW At seller’s premises At seller’s premises after loadingafter loading

Exporter does not. Buyer Exporter does not. Buyer to arrangeto arrange

FCAFCA When delivered to When delivered to carrier namedcarrier named

Upto delivery to CarrierUpto delivery to Carrier

FASFAS When delivered When delivered alongside shipalongside ship

Upto Port till placed Upto Port till placed alongside ship. Loading alongside ship. Loading not coverednot covered

FOBFOB When loaded on ocean When loaded on ocean going vesselgoing vessel

Upto loading on ocean Upto loading on ocean Going Vessel. Loading Going Vessel. Loading Covered.Covered.

CFRCFR When loaded on ocean When loaded on ocean going vesselgoing vessel

Upto loading on ocean Upto loading on ocean Going Vessel. Loading Going Vessel. Loading Covered.Covered.

CIFCIF When loaded on ocean When loaded on ocean going vesselgoing vessel

Till Delivery to buyer as Till Delivery to buyer as per Contract of Carriage per Contract of Carriage e.g. destination port. Min. e.g. destination port. Min. ICC-CICC-C

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Parties involvedParties involved The seller (Consignor) and the buyer The seller (Consignor) and the buyer

(Consignee)(Consignee) BankBank The Insurance CompanyThe Insurance Company Port AuthoritiesPort Authorities The Carrier (Ship, Air, Road, Rail)The Carrier (Ship, Air, Road, Rail) Custom AuthoritiesCustom Authorities Shipping AgentsShipping Agents Clearing and Forwarding Agents (C & F Agents)Clearing and Forwarding Agents (C & F Agents) Stevedores: Contractors appointed by Shipping Stevedores: Contractors appointed by Shipping

Company for loading and discharge of CargoCompany for loading and discharge of Cargo

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Claim DocumentsClaim Documents Original Insurance Policy/Certificate /Declaration, Original Insurance Policy/Certificate /Declaration,

duly discharged or a Letter of Indemnity.duly discharged or a Letter of Indemnity. Original or signed copy of Invoice with packing list.Original or signed copy of Invoice with packing list. Signed copy of Bill of Lading / Airway BillSigned copy of Bill of Lading / Airway Bill Exchange control copy of Bill of Entry – to check Exchange control copy of Bill of Entry – to check

delay and duty payment.delay and duty payment. Letter of SubrogationLetter of Subrogation Special Power of AttorneySpecial Power of Attorney Lost overboard certificate / short landing / non Lost overboard certificate / short landing / non

delivery certificate / Landed but Missing / Damage delivery certificate / Landed but Missing / Damage Certificate.Certificate.

Registered AD cards or any other evidence – claim Registered AD cards or any other evidence – claim noticenotice

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Thank YouThank You