MARINE CARGO FAQs
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.