What is the scope of the policy?
- The scope of cover under inland policies are determined by Inland Transit Clauses A, B and C.
- C broadly covers the losses arising due to fire/ explosion/ sinking/ stranding/ jettison/ General Average.
- B covers losses arising due to earthquake, entry of sea water, washing overboard etc besides whatever is covered in C.
- Institute Cargo Clause A is an All Risk policy.
- All the policies are subject to certain exclusions like inherent vice, losses arising due to war and nuclear perils etc.
- The sum insured is based on cost, insurance, freight and other incidental expenses. This is an agreed value policy.
What are the different type of policies?
While the movement of cargo within the country is covered under inland policies, cargo going out of India/cargo coming to India from broad are covered under overseas policies.
One has the option of covering the voyage under a specific policy. However, if the voyages are frequent and it is difficult/ cumbersome to take specific policies, option is also available to obtain cover of all despatches under an open policy.
How is Sum Insured decided?
The sum insured is based on cost, insurance, freight and other incidental expenses. This is an agreed value policy.
How is Premium Rate decided?
Premium rate depends on various factors associate with the risk. Important amongst them are nature of cargo, scope of cover, packaging, mode of conveyance, past claims experience etc.
What is the scope of coverage of the policy?
The Indian market currently provides cover for Hull and Machinery of inland/coastal vessels as per Institute Time Clause Hulls 01.10.1983. Besides covering the H&M this clause also provides cover for 3/4th collision liability. However Institute Port Risks Clause 20.07.1987 provides cover for 4/4th collision liability and also wreck removal subject to the limit of H&M sum insured.
While the P&I cover was available to large vessel operator through international clubs, the small vessel operator was fending for himself against potential liabilities incurred by him for wreck removal & liability for collision with FIFO ( fixed and floating objects), if these exceed the value of the vessel itself.
We had formulated Sagar Bandhu Bima Policy keeping in mind the small inland/ coastal vessel operators. This unique product has been approved by IRDA and was launched on 26th November, 2005.
What does Section 1 of the policy cover?
Section 1 -
Cover for H&M, wreck removal and 4/4th collision liability as per Institute Port Risks Clause 1987.
What does Section 2 of the policy cover?
Protection and Indemnity cover for following liabilities:-
- Liability for damage to other vessels.
- Liability for loss or damage to third party property.
- Liability for wreck removal.
- Liability for crew.
- Liability to persons other than crew.
- Liability for pollution risks.
- Liability for damage to cargo.