This policy is valid for a single voyage or transit. The policy will be issued before the voyage starts. The coverage will cease immediately on completion of the voyage.
This policy is valid for a single voyage or transit. The policy will be issued before the voyage starts. The coverage will cease immediately on completion of the voyage.
ICC A & ITC A are All Risk Marine covers for goods in transit. The policy covers all risks to the cargo except the exclusions mentioned in the policy. The illustrative list of risks to the cargo which are covered by an ICC A policy are:
This policy which is issued for a policy period of one year indicates the rates, terms and conditions agreed upon by the insured and insurer to cover the consignments to be imported or exported. A declaration is to be made to the insurance company as and when a consignment is to be sent along with the premium at the agreed rate. The insurance company then issues a certificate covering the declared consignment. This form of cover is used for exports and imports.
Sales Turnover Policy is a highly flexible and customizible marine insurance cover. Instead of covering a particular type of transit, this policy can cover all the transits that are requried to achieve a sales. Hence the policy can cover:
The sum insured in the policy is the expected annual sales turnover.
This can be taken as a rider to a marine insurance policy and covers loss of custom duty paid if goods arrive in damaged condition. It can be taken as a standalone policy if the overseas transit has been covered by an insurance company abroad, but it has to be taken before the goods arrive in India.
This policy covers the interest of the seller against the contingency of non payment of the value of a consignment by the buyer on account of its condition having changed due to damage before retirement of documents.
In almost all export and domestic transactions, where credit is allowed by the seller to the buyer and the goods are not sent on CIF basis, responsibility for the goods passes to the buyer when the goods are loaded on to the vessel. But ownership does not change until the buyer accepts the goods and relative documents. In all such trading, the seller is technically relinquishing control of the goods without personal possession of insurance protection.
Thus, if the seller is allowing credit to the buyer and has shipped goods on FOB terms, where the responsibility for loss or damage to the goods is passed to the buyer when the goods are loaded on to the 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 FOB 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.
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