Optima Insurance Brokers Pvt. Ltd.

Archive for the ‘Transit’ Category

Specific Policy

Posted on: November 8th, 2019 by shiv No Comments

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.

Open Policy

Posted on: November 8th, 2019 by shiv No Comments

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:

  • Fire or explosion
  • Stranding, grounding sinking, capsizing
  • Over turning or derailment
  • Collision or contact of vessel craft or conveyance with any external object other then water
  • Discharge of cargo at point of distress
  • General average
  • Jettison
  • Earthquake, volcanic eruption or lightning
  • Water damage by entry of sea/ river water
  • Total loss of package lost overboard
  • Total loss of package dropped during loading and unloading
  • Breakage
  • Scratching, chipping, denting, bursting
  • Theft
  • Malicious damage
  • All water damage including rain damage

Additional cover

  • SRCC

The main exclusions are:

  • Willful misconduct,
  • Ordinary leakage /loss of volume/weight,
  • Insufficient packing,
  • Delay,
  • Inherent vice of the cargo,
  • Insolvency of transporter,
  • War & SRCC (These risks can be covered on payment of extra premium)

Open Cover

Posted on: November 8th, 2019 by shiv No Comments

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

Posted on: November 8th, 2019 by shiv No Comments

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:

  • Domestic Purchase of raw material, consumable & stores
  • Imports
  • Inter-Factory, Inter-Warehouse or Inter-Depot transfer
  • To & Fro job work movements
  • Domestic sales
  • Export Sales

The sum insured in the policy is the expected annual sales turnover.

The benefits of Sales Turnover Policy are:

  • Sizeable saving in premium
  • Seamless cover with all movement of goods covered
  • No hassles of submitting periodical declaration of movements
  • Intermediate storage cover can be built into the policy
  • Facility for quarterly or half yearly premium payment

Custom Duty Cover

Posted on: November 8th, 2019 by shiv No Comments

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.

Increased Value Insurance

Posted on: November 8th, 2019 by shiv No Comments

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.

Sellers’ Contingency Policy

Posted on: November 8th, 2019 by shiv No Comments

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.

Recent Comments


    Optima’s core group has more than 100 man-years of experience in insurance. Our experience has trained us in reading the fine print of insurance policies, understanding it and applying it for the benefit of our clients.

    • Follow Us:  

    Corporate Office

    M6, M Block Market, Greater Kailash-II, New Delhi-110 048
    +91-11-40 50 51 52, +91-11-40 50 51 53

    Registered Office

    M4, Greater Kailash-II, New Delhi-100 048

    IRDA Registration Number 326  |  CIN : U66030DL2000PTC103603  |  Category : Direct Broker (Life and Non-Life)  |  License period : 22-03-21 to 21-03-24
    © 2024 Copyrights, Optima Insurance Brokers Pvt. Ltd.