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Property and Misc Insurance

Marine Insurance

International business carries with it significant risks. The importing and exporting of goods can expose you to massive financial losses should your international shipments be damaged or destroyed in transit.

HDFC ERGO’s Marine Cargo Insurance not only provides the best protection for your cargo, but also understands the importance of swift response and efficient service in handling your claims.

Catering to both importers’ and exporters’ needs, the coverage is comprehensive and flexible with international shipments protected from the time the goods leave the seller’s warehouse until they reach the Buyer’s warehouse.

The party usually responsible for insuring the goods is determined by the sales contract. To help you familiarise yourself with the Buyer’s and seller’s responsibilities, HDFC ERGO can extend its experience in respect of the most common sales contracts, i.e. ex-Works, Free on Board(FOB), Cost and Freight (CFR) and Cost Insurance and Freight (CIF).

The Marine Cargo Insurance offers four types of covers:

  • Institute Cargo Clause (C): Named Peril basis.
    This is the most restricted clause and covers only: loss or damage reasonably attributable to
    • Fire or explosion
    • Vessel or craft being stranded grounded sunk or capsized
    • Overturning or derailment of land conveyance
    • Collision or contact of vessel craft or conveyance with any external object other than water
    • discharge of cargo at a port of distress and loss or damage caused by – General Average Sacrifice / Jettison
  • Institute Cargo Clause (B): Named Peril basis.
    This cover is similar to ‘C’ Clause, but in addition covers:
    • Earthquake, volcanic eruption or lightning
    • Washing Overboard
    • Entry of sea, lake or river water into the vessel, craft, hold, conveyance, container, liftvan or place of storage
    • Total loss of any package lost overdoard or dropped whilst loading onto, or unloading from, vessel or craft
  • Institute Cargo Clause (A): The widest form of cover under Marine Cargo Insurance in so far as it relates to the perils covered. ICC (A) is an unnamed perils clause.
  • Institute Cargo Clause (Air).
  • Various clauses can be added on depending upon the nature of the goods being carried. The Institute Cargo Clauses comprise a range of covers from the most comprehensive ones such as (A) Clauses to the basic minimum protection available termed (C) Clauses.
  • Additional cover can also be provided for the following:
  • Loading and Unloading
  • Customs duty
  • Removal of debris
  • Policies are customisadle to your needs, with a specific policy to cover each single consignment. There are also other various types of policies:
  • Open Policy - This policy covers all the marine sendings of a client in a 12 month policy period where the voyage involved is within a country (domestic/inland)
  • Open Cover – This policy covers all the marine sendings of a client in a 12 month policy period where the voyage involved is import or export
  • Specific Voyage or Time Policy - These policies are issued to firms that require coverage for a specific voyage. It is suitable for those firms who seldom require marine cargo policies in the course of their trade.

    These policies are issued on a "from and to" basis and the cover commences once the goods leave the place of origin named in the policy and terminates on delivery at the place of destination.

    Sometimes these policies are also issued in terms of duration of the voyage, in which case the cover commences on the date and time specified for the same in the policy. Inland specific transit will exclube terrorism.
  • Duty Insurance Policy - Customs duties form a major part of the cost of imported goods. Once the goods land at the port of destination custom, duty becomes payable.

    In case the goods are damaged during the transit from the port to the importer's warehouse, the CIF value is not sufficient to represent the actual value of the goods since the custom duties should have already been paid.

    This additional element of cost can be covered by a duty Insurance Policy. Claims under a duty policy are only payable if the claim is otherwise admissidle in the marine cargo policy covering the goods.
  • Seller’s Contingency Policy - In almost all export transactions where credit is allowed by the seller to the Buyer and the goods are not exported on CIF basis, responsibility for the goods passes to the Buyer when the goods are loabed on to the overseas vessel. but ownership does not change until the Buyer accepts the goods and relative documents.

    Thus, if the seller is allowing credit to the Buyer and has shipped goods on FOd terms, where the responsibility for loss or damage to the goods is passed to the Buyer when the goods are loabed on to the overseas vessel, the seller has no control over the conditions of the insurance cover arranged by the Buyer.

    In the event of loss of or damage to the goods in transit from a peril insured against and the Buyer refusing to pay for such loss or damage, the seller could stand to lose financially. Seller's Interest or Contingency Interest cover could help to prevent this.

    The cover is normally arranged as an extension of FOd cover. The seller's interest cover in effect retrospectively reinstates cover, as per Institute Cargo Clauses as provided for in the policy and allows the seller to be protected in an area where he has no control over the insurance arrangement.
  • E-marine – HDFC ERGO has the facility which provides any time marine certificate issuance facility to clients/ intermediary. This facility is provided free of cost and can be availed by any one who Buys open marine cover or policy from HDFC ERGO.
  • This is an agreed value policy. Normally, the insurance is taken for CIF +10%.
  • The insurance rate depends on a variety of factors such as the nature of the cargo, scope of cover, packing, mode of conveyance, distance and past claims experience.
  • This policy does not cover loss or damage due to willful misconduct, ordinary leakage, improper packing, delay, inherent vice, war, strikes, riot and civil commotion.