Marine Insurance

NATURE OF MARINE INSURANCE CONTRACT : NATURE OF MARINE INSURANCE CONTRACT

Section 2 (13) A of the Insurance Act 1938 defines marine insurance as follows:- : Section 2 (13) A of the Insurance Act 1938 defines marine insurance as follows:-

“Marine insurance business” means the business of effecting contract of insurance upon vessels of any description, including cargoes, freights : “Marine insurance business” means the business of effecting contract of insurance upon vessels of any description, including cargoes, freights

and other interests which may be legally insured in or in relation to such vessels, cargoes and freights, goods, wares, merchandise and property of whatever : and other interests which may be legally insured in or in relation to such vessels, cargoes and freights, goods, wares, merchandise and property of whatever

description insured for any transit by land or water or both, and whether or not including warehouse risks or similar risks in addition or as incidental to : description insured for any transit by land or water or both, and whether or not including warehouse risks or similar risks in addition or as incidental to

such transit and includes any other risks customarily included amount the risks insured against in marine insurance policies. : such transit and includes any other risks customarily included amount the risks insured against in marine insurance policies.

The above definition clearly lays down the following classification of the marine insurance. : The above definition clearly lays down the following classification of the marine insurance.

HULL INSURANCE Insurance of vessel and its equipments are included under hull insurance. : HULL INSURANCE Insurance of vessel and its equipments are included under hull insurance.

CARGO INSURANCEThe cargo maybe of any description, for example, wares, merchandise, property, goods and so on. : CARGO INSURANCEThe cargo maybe of any description, for example, wares, merchandise, property, goods and so on.

FREIGHT INSURANCEFreight is to be payable for the carriage of cargoes or if the vessel is chartered, the money to be paid for the use of the vessel. : FREIGHT INSURANCEFreight is to be payable for the carriage of cargoes or if the vessel is chartered, the money to be paid for the use of the vessel.

The carrier is unable to earn freight if the goods or property (called cargoes) are not safely transported. : The carrier is unable to earn freight if the goods or property (called cargoes) are not safely transported.

LIABILITY INSURANCEThe marine insurance policy may include liability hazards such as collision or running down. : LIABILITY INSURANCEThe marine insurance policy may include liability hazards such as collision or running down.

ELEMENTS OF MARINE INSURANCE CONTRACT : ELEMENTS OF MARINE INSURANCE CONTRACT

The marine insurance has the following essential features which are also called fundamental principles of marine insurance. : The marine insurance has the following essential features which are also called fundamental principles of marine insurance.

Features of General ContractInsurable InterestUtmost Good FaithDoctrine of Indemnity : Features of General ContractInsurable InterestUtmost Good FaithDoctrine of Indemnity

SubrogationWarrantiesProximate causeAssignment and nomination of the policyReturn of premium : SubrogationWarrantiesProximate causeAssignment and nomination of the policyReturn of premium

FEATURES OF GENERAL CONTRACT : FEATURES OF GENERAL CONTRACT

PROPOSALThe broker will prepare a slip upon receipt of instructions to insure from ship-owner, merchant or other proposers. Proposal forms, : PROPOSALThe broker will prepare a slip upon receipt of instructions to insure from ship-owner, merchant or other proposers. Proposal forms,

so common in other branches of insurance, are known in the marine insurance and only the ‘slip’ so called ‘the original slip’ is used for the proposal : so common in other branches of insurance, are known in the marine insurance and only the ‘slip’ so called ‘the original slip’ is used for the proposal

The original slip is accompanied with other material information which the broker deems necessary for the purpose. : The original slip is accompanied with other material information which the broker deems necessary for the purpose.

ACCEPTANCEUnderwriters or other insurers or to the Lead of the insures, who initial the slip and the proposal is formally accepted. : ACCEPTANCEUnderwriters or other insurers or to the Lead of the insures, who initial the slip and the proposal is formally accepted.

But the contract can be legally enforced until a policy is issued : But the contract can be legally enforced until a policy is issued

The slip is an evidence that the underwriter has accepted an insurance and that he has agreed subsequently to sign a policy. : The slip is an evidence that the underwriter has accepted an insurance and that he has agreed subsequently to sign a policy.

ISSUE OF POLICYHaving effected the insurance, the broker will now send his client a cover note advising the terms and conditions : ISSUE OF POLICYHaving effected the insurance, the broker will now send his client a cover note advising the terms and conditions

on which the insurance has been placed. The broker’s cover note is merely an insurance memorandum and naturally has no value in enforcing the contract with the underwrites. : on which the insurance has been placed. The broker’s cover note is merely an insurance memorandum and naturally has no value in enforcing the contract with the underwrites.

INSURABLE INTERESTAn insured person will have insurable interest in the subject matter where he stands in any legal or equitable relation : INSURABLE INTERESTAn insured person will have insurable interest in the subject matter where he stands in any legal or equitable relation

to the subject matter in a such a way that may benefit by the safety or due arrival of insurable property or may be prejudiced by its loss, : to the subject matter in a such a way that may benefit by the safety or due arrival of insurable property or may be prejudiced by its loss,

or by damage thereto or by the detention thereof or may incur liability in respect thereof. Since marine insurance is frequently effected before the commercial transaction : or by damage thereto or by the detention thereof or may incur liability in respect thereof. Since marine insurance is frequently effected before the commercial transaction

to which the apply are formally completed it is not essential for the assured to have an insurable interest at the time of effecting insurance, : to which the apply are formally completed it is not essential for the assured to have an insurable interest at the time of effecting insurance,

though he should have an expectation of acquiring such an interest. If he fails to acquire insurable interest in due course, he does not become entitled to indemnification. : though he should have an expectation of acquiring such an interest. If he fails to acquire insurable interest in due course, he does not become entitled to indemnification.

. Since the ownership and other interest of the subject matter often change from hands to hands, the requirement of the insurable interest to be present only at the time of loss makes a marine insurance policy freely assignable. : . Since the ownership and other interest of the subject matter often change from hands to hands, the requirement of the insurable interest to be present only at the time of loss makes a marine insurance policy freely assignable.

EXCEPTIONSThere are two exceptions of the rule in marine insurance. : EXCEPTIONSThere are two exceptions of the rule in marine insurance.

LOST OR NOT LOSTA person can also purchase policy in the subject-matter in which it was known whether the matters were lost not lost : LOST OR NOT LOSTA person can also purchase policy in the subject-matter in which it was known whether the matters were lost not lost

In such cues the assured and the under writer are ignorant about the safety or otherwise of the goods and complete reliance was placed on the principle of Good Faith. : In such cues the assured and the under writer are ignorant about the safety or otherwise of the goods and complete reliance was placed on the principle of Good Faith.

The policy terminated if anyone of the two parties was aware of the fact of loss. In this case, therefore, the insurable interest may not be present at the time of contract because the subject-matter would have been lost. : The policy terminated if anyone of the two parties was aware of the fact of loss. In this case, therefore, the insurable interest may not be present at the time of contract because the subject-matter would have been lost.

P.P.I. POLICIESP.P.I. ( Policy Proof of Interest), i.e. interest proof policies.The insurable interest marine insurance can be of the following forms: : P.P.I. POLICIESP.P.I. ( Policy Proof of Interest), i.e. interest proof policies.The insurable interest marine insurance can be of the following forms:

1.ACCORDING TO OWNERSHIPThe owner has insurable interest up to the full value of the subject-matter. The owners are of different types according to the subject-matter. : 1.ACCORDING TO OWNERSHIPThe owner has insurable interest up to the full value of the subject-matter. The owners are of different types according to the subject-matter.

IN CASE OF SHIPSThe ship-owner or any person who has purchased it on character-basis can insure the ship up to its full price. : IN CASE OF SHIPSThe ship-owner or any person who has purchased it on character-basis can insure the ship up to its full price.

IN CASE OF CARGOThe cargo-owner can purchase policy up to the full price of the cargo. If he has paid the freight in advance, he can take the policy for the full price of the goods plus amount of freight plus expense of insurance. : IN CASE OF CARGOThe cargo-owner can purchase policy up to the full price of the cargo. If he has paid the freight in advance, he can take the policy for the full price of the goods plus amount of freight plus expense of insurance.

IN CASE OF FREIGHTThe receiver of the freight can insure up to the amount of freight to be received by him. : IN CASE OF FREIGHTThe receiver of the freight can insure up to the amount of freight to be received by him.

INSURABLE INTEREST IN RE-INSURANCEThe underwriter under a contract of marine insurance has an insurable interest in his risk, and may re-insure in respect of it. : INSURABLE INTEREST IN RE-INSURANCEThe underwriter under a contract of marine insurance has an insurable interest in his risk, and may re-insure in respect of it.

3. INSURABLE INTEREST IN OTHER CASESIn this case all those underwriters are included who have insurable interest in the salary and own liabilities. : 3. INSURABLE INTEREST IN OTHER CASESIn this case all those underwriters are included who have insurable interest in the salary and own liabilities.

. For example, the master or any member of the crew of a ship has insurable interest in respect of his wages. The lender of money on bottomry or respondentia has insurable interest in respect of the loan. : . For example, the master or any member of the crew of a ship has insurable interest in respect of his wages. The lender of money on bottomry or respondentia has insurable interest in respect of the loan.

UTMOST GOOD FAITH : UTMOST GOOD FAITH

The doctrine of caveat emptor (let the buyer beware) applies to commercial contracts, but insurance contracts are based upon the legal principle of uberrimae fides (utmost good faith). : The doctrine of caveat emptor (let the buyer beware) applies to commercial contracts, but insurance contracts are based upon the legal principle of uberrimae fides (utmost good faith).

But the duty of disclosure of material facts rests highly on the insured because he is aware of the material common in other branches of insurance are not used in the marine insurance. : But the duty of disclosure of material facts rests highly on the insured because he is aware of the material common in other branches of insurance are not used in the marine insurance.

DOCTRINE OF INDEMNITY : DOCTRINE OF INDEMNITY

The contract of marine insurance is of indemnity. Under no circumstances an insured is allowed to make a profit out of a claim. : The contract of marine insurance is of indemnity. Under no circumstances an insured is allowed to make a profit out of a claim.

EXCEPTIONSThere are two exceptions of the doctrine of indemnity in marine insurance. : EXCEPTIONSThere are two exceptions of the doctrine of indemnity in marine insurance.

PROFITS ALLOWEDActually the doctrine says that the market price of the loss should be indemnified and no profit should be permitted, but in marine insurance a certain profit margin is also permitted. : PROFITS ALLOWEDActually the doctrine says that the market price of the loss should be indemnified and no profit should be permitted, but in marine insurance a certain profit margin is also permitted.

INSURED VALUEThe doctrine of indemnity is based on the insurable value whereas the marine insurance is mostly based on insured value. The purpose of the valuation is to predetermine the worth of insured. :

INSURED VALUEThe doctrine of indemnity is based on the insurable value whereas the marine insurance is mostly based on insured value. The purpose of the valuation is to predetermine the worth of insured.

WARRANTIESA Warranty is that by which the assured undertakes that some particular thing shall of shall be fulfilled or whereby he affirms or negatives the existence of a particular state of facts. : WARRANTIESA Warranty is that by which the assured undertakes that some particular thing shall of shall be fulfilled or whereby he affirms or negatives the existence of a particular state of facts.

SEAWORTHINESS OF SHIPThe warranty implies that the ship should be seaworthy at the commencement of the voyage, or if the voyage is carries out in stages at the commencement of each stage. : SEAWORTHINESS OF SHIPThe warranty implies that the ship should be seaworthy at the commencement of the voyage, or if the voyage is carries out in stages at the commencement of each stage.

LEGALITY OF VENTUREThis Warranty implies that the adventure insured shall be lawful and that so far as the assured can control the matter it shall be carried out in the lawful manager of the country : LEGALITY OF VENTUREThis Warranty implies that the adventure insured shall be lawful and that so far as the assured can control the matter it shall be carried out in the lawful manager of the country

OTHER IMPLIED WARRANTIESThere are other warranties which must be complied in marine insurance. : OTHER IMPLIED WARRANTIESThere are other warranties which must be complied in marine insurance.

NO CHANGE IN VOYAGEWhen the destination of voyage is changed intentionally after the beginning of the risk, this is called change in voyage. : NO CHANGE IN VOYAGEWhen the destination of voyage is changed intentionally after the beginning of the risk, this is called change in voyage.

PROXIMATE CAUSEAccording to Marine Insurance Act, ‘ Subject to the provisions of the Act and unless the policy otherwise provides the insurer is liable for any loss : PROXIMATE CAUSEAccording to Marine Insurance Act, ‘ Subject to the provisions of the Act and unless the policy otherwise provides the insurer is liable for any loss

proximately caused by a peril insured against, but subject to as aforesaid he is not liable for any loss which is not proximately caused by a peril insured against : proximately caused by a peril insured against, but subject to as aforesaid he is not liable for any loss which is not proximately caused by a peril insured against

The insurer is not liable for any attributable to the willful misconduct of the assured, but unless the policy otherwise provides, he is liable for any loss proximately caused by a peril insured against. : The insurer is not liable for any attributable to the willful misconduct of the assured, but unless the policy otherwise provides, he is liable for any loss proximately caused by a peril insured against.

The insurer will not be liable for any loss caused by delay unless otherwise provided. : The insurer will not be liable for any loss caused by delay unless otherwise provided.

The insurer is not liable for ordinary wear and tear, ordinary leakage and breakage, inherent vice or nature of subject matter insured, or for any loss proximately caused by rats or vermin, or for any injury to machinery not proximately caused by maritime perils. : The insurer is not liable for ordinary wear and tear, ordinary leakage and breakage, inherent vice or nature of subject matter insured, or for any loss proximately caused by rats or vermin, or for any injury to machinery not proximately caused by maritime perils.

NATURE OF INSURANCE OF FIRE INSURANCEDEFINATION AND NATUREFire insurance is a device to compensate for the loss consequent upon destruction by fire. : NATURE OF INSURANCE OF FIRE INSURANCEDEFINATION AND NATUREFire insurance is a device to compensate for the loss consequent upon destruction by fire.

FUNCTIONSThe system of fire insurance cannot save the society from the economic loss to the community to the extent of the property lost by fire, : FUNCTIONSThe system of fire insurance cannot save the society from the economic loss to the community to the extent of the property lost by fire,

but it compensates someone and this saves him from a ruinous loss, at the cost of group of some others. : but it compensates someone and this saves him from a ruinous loss, at the cost of group of some others.

CAUSES OF FIREFire waste is the result of two types of hazard viz., ‘physical’ and ‘moral’. : CAUSES OF FIREFire waste is the result of two types of hazard viz., ‘physical’ and ‘moral’.

PHYSICAL HAZARD: It refers to the inherent risk of fire in the property which may occur due to inflammable nature, construction, artificial lighting and heating, lack of extinguishing apparatus use of the property etc. : PHYSICAL HAZARD: It refers to the inherent risk of fire in the property which may occur due to inflammable nature, construction, artificial lighting and heating, lack of extinguishing apparatus use of the property etc.

MORAL HAZARD: The moral hazard depends upon the man as physical hazard depends on the property. The property may be set on fire by the owner or by any person with his willingness, carelessness and lack of sense of duty may also increase the fire waste : MORAL HAZARD: The moral hazard depends upon the man as physical hazard depends on the property. The property may be set on fire by the owner or by any person with his willingness, carelessness and lack of sense of duty may also increase the fire waste

Sometimes, when market price is going down the owner can willingly set fire on the property and gain from the payment of insurance money. Thus, where the property was destroyed with the willingness of the property owner, moral hazard exists. : Sometimes, when market price is going down the owner can willingly set fire on the property and gain from the payment of insurance money. Thus, where the property was destroyed with the willingness of the property owner, moral hazard exists.

PREVENTION OF LESSInsurance is meant for indemnification of loss and not for prevention of loss although every reasonable step can be taken to eliminate it or minimize it through the agencies engaged in prevention of loss. : PREVENTION OF LESSInsurance is meant for indemnification of loss and not for prevention of loss although every reasonable step can be taken to eliminate it or minimize it through the agencies engaged in prevention of loss.

INDEMINIFICATION OR CURATIVE EFFORTS: The insurance provides protection by indemnifying the financial loss suffered by insured person which occurred beyond the control of insured and insurer. : INDEMINIFICATION OR CURATIVE EFFORTS: The insurance provides protection by indemnifying the financial loss suffered by insured person which occurred beyond the control of insured and insurer.

PREVENTIVE EFFORTS: Fire insurers stimulate the installation of protective device and better types of construction through granting credit. They help in installation of fire-fighting apparatus, water supply and engineering services. : PREVENTIVE EFFORTS: Fire insurers stimulate the installation of protective device and better types of construction through granting credit. They help in installation of fire-fighting apparatus, water supply and engineering services.

REINSURANCEReinsurance is an arrangement whereby an original insurer who has insured a risk again with another insurer, that is to say, reinsures a part of the risk in order to diminish his own liability. : REINSURANCEReinsurance is an arrangement whereby an original insurer who has insured a risk again with another insurer, that is to say, reinsures a part of the risk in order to diminish his own liability.

Insurance is a contract between the insurer and the original insured. Reinsurance is a contract between the reinsured (the insurer) and the reinsurer. : Insurance is a contract between the insurer and the original insured. Reinsurance is a contract between the reinsured (the insurer) and the reinsurer.

REINSURANCEReinsurance is the transfer of insurance business from one insurer to another. : REINSURANCEReinsurance is the transfer of insurance business from one insurer to another.

The insurer transferring the business is called the ‘Principal’ or ceding or original office and the office to which the business is transferred is called for ‘reinsurer or guaranteeing office’ : The insurer transferring the business is called the ‘Principal’ or ceding or original office and the office to which the business is transferred is called for ‘reinsurer or guaranteeing office’

ADVANTAGE OF REINSURANCEReinsurance makes it possible to accept each risk for the very amount desired by the proposer and to transfer the excess above the ‘retention limit’ to another insurer. : ADVANTAGE OF REINSURANCEReinsurance makes it possible to accept each risk for the very amount desired by the proposer and to transfer the excess above the ‘retention limit’ to another insurer.

1. Compiled by S. M.Gupta 2

2. INTRODUCTION INSURANCE CONNECTED WITH THE RISKS OF TRANSPORTATION OF GOODS, IS

ONE OF THE OLDEST AND MOST IMPORTANT FORMS OF INSURANCE THE VALUE OF GOODS

SHIPPED BY THE BUSINESS FIRMS EACH YEAR COST BILLIONS OF RUPEES THESE GOODS ARE

EXPOSED TO DAMAGE OR LOSS FROM NUMEROUS PERILS ASSOCIATED WITH TRANSPORTATION

THESE GOODS CAN BE PROTECTED BY MARINE INSURANCE CONTRACTS. Compiled by S. M.Gupta 3

3. INTRODUCTION IT IS AN IMPORTANT ELEMENT OF THE GENERAL INSURANCE INDUSTRY IT

ESSENTIALLY PROVIDES COVER FOR THE LOSSES SUFFERED DUE TO MARINE PERILS IN INDIA,

THE MARINE INSURANCE IS REGULATED BY: THE INDIAN ‘MARITIME INSURANCE ACT, 1963’. WHICH

IS BASED ON THE ORIGINAL ‘MARINE INSURANCE ACT, 1906. OF U.K. Compiled by S. M.Gupta 4

4. HISTORY OF MARINE INSURANCE MARINE INSURANCE AS WE KNOW IT TODAY, CAN BE

DESCRIBED AS MOTHER OF ALL INSURANCES IT IS BELIEVED TO HAVE ORIGINATED IN ENGLAND

OWING TO THE FREQUENT MOVEMENT OF SHIPS OVER HIGH SEAS FOR COMMERCE AND TRADE

IN INDIA, MARINE INSURANCE HAS BEEN IN VOGUE FOR SEVERAL CENTURIES. Compiled by S.

M.Gupta 5

5. HISTORY OF MARINE INSURANCE PRIOR TO THE DEVELOPMENT OF MARINE INSURANCE, THE

PEOPLE ACROSS THE WORLD, HAD A SYSTEM OF: POOLING THEIR CONTRIBUTIONS SO THAT IF

ANY ONE OF THEM SUFFERS LOSS DURING VOYAGE HE WOULD BE COMPENSATED FROM THE

POOL. TODAY MARINE INSURANCE HAS ASSUMED A VAST DIMENSIONS DUE TO EVER EXPANDING

TRADE ACROSS THE GLOBE. Compiled by S. M.Gupta 6

6. HISTORY OF MARINE INSURANCE IT INVOLVES LARGE SHIPPING COMPANIES THAT REQUIRE

PROTECTION: NOT ONLY FOR THEIR COSTLY FLEET AGAINST THE PERILS OF THE SEA, BUT ALSO

TO THE CARGO BEING CARRIED IN EACH OF THESE SHIPS. THE VALUE OF EACH SHIP AND THE

CARGO CARRIED THEREIN, MAY BE COSTING MILLIONS OF RUPEES TO THE OWNERS. Compiled by

S. M.Gupta 7

7. World’s biggest Passenger-ship ‘MS Freedom of the Seas’ 4300 passenger Capacity Inside Compiled by

S. M.Gupta 8

8. World’s biggest Passenger-ship Compiled by S. M.Gupta 9

9. MARINE INSURANCE MARKET LLOYD’S, A CORPORATE ESTABLISHED IN LONDON, IS THE

BIGGEST CENTRE FOR MARINE INSURANCE IN THE WORLD LLOYD’S WAS A COFFEE HOUSE

FREQUENTED BY THE TRADESMEN, SHIP- OWNERS AND OTHERS THE COFFEE HOUSE BECAME

THE MEETING GROUND FOR: BROKERS, INSURERS AND SHIP OWNERS FOR NEGOTIATING THEIR

BUSINESS. Compiled by S. M.Gupta 10

10. LLOYD’S COFFEE HOUSE AT THE COFFEE HOUSE THEY WOULD DISCUSS VARIOUS ASPECTS

OF THE SHIPPING BUSINESS INCLUDING CARGO AND SHIP INSURANCE AND: ULTIMATELY IT

STARTED TRANSACTING MARINE INSURANCE IN A BIG WAY. WHEN THE BRITISH OCEAN LINER

‘TITANIC’ WHICH SANK IN 1912, DURING HER MAIDEN VOYAGE: WAS INSURED BY LLOYD’S WHO

PAID AN INSURANCE CLAIM OF ONE MILLION US $. Compiled by S. M.Gupta 11


12. MARINE INSURANCE IN INDIA THERE IS EVIDENCE THAT THE MARINE INSURANCE WAS

PRESENT IN SOME FORM OR THE OTHER IN INDIA SINCE A VERY LONG TIME. IN EARLIER DAYS

TRAVELERS BY SEA WERE PARTICULARLY AFRAID OF: LOSING THEIR VESSELS AND

MERCHANDISE BECAUSE OF: PIRACY ON THE OPEN SEAS. Compiled by S. M.Gupta 13

13. SUBJECT MATTER OF MARINE INSURANCE THE INSURANCE IN THE CURRENT SCENARIO,

HOWEVER IS, MUCH MORE THEN, WHAT WAS ENVISAGED EARLIER IT IS NOW REQUIRED TO

PROTECT THE INTEREST OF: THE OWNER OF THE SHIP OWNER OF THE CARGO THE PERSON

INTERESTED IN FREIGHT FOR LIABILITIES AND IN RESPECT OF FINES IMPOSED FOR VARIOUS

REASONS. Compiled by S. M.Gupta 14

14. SUBJECT MATTER OF MARINE INSURANCE IN CASE THE SHIP CARRYING THE CARGO SINKS:

THE SHIP WILL BE LOST ALONG WITH: THE CARGO THE INCOME THAT THE CARGO WOULD HAVE

GENERATED WOULD ALSO BE LOST IT MAY ALSO DAMAGE THIRD PARTY PROPERTY THIRD PARTY

INJURIES OR DEATH. Compiled by S. M.Gupta 15

15. CLASSIFICATION OF MARINE INSURANCE BASED ON THE FACTS STATED EARLIER, MARINE

INSURANCE CAN BE CLASSIFIED INTO FOUR BROADER CATEGORIES I.E: HULL INSURANCE CARGO

INSURANCE FREIGHT INSURANCE AND LIABILITY INSURANCE HOWEVER OUR ENDEAVOUR

WOULD BE LIMITED TO DISCUSSING THE ‘MARINE CARGO INSURANCE’ ONLY. Compiled by S.

M.Gupta 16

16. Types of ‘Hull’ Compiled by S. M.Gupta 17

17. CARGO INSURANCE ‘CARGO’ REFERS TO: THE GOODS AND COMMODITIES CARRIED DURING

TRANSIT BY: RAIL, ROAD, SEA OR AIR FROM ONE PLACE TO ANOTHER. THE ‘CARGO’

TRANSPORTED BY SEA IS SUBJECT TO MANIFOLD RISKS SUCH AS: LOSS OR DAMAGE AT THE

PORT AND LOSS OR DAMAGE DURING THE VOYAGE. Compiled by S. M.Gupta 18

18. WORLD’S BIGGEST CARGO LINERS Compiled by S. M.Gupta 19

19. CARGO INSURANCE ‘MARINE CARGO INSURANCE’ PROVIDES THE INSURANCE COVER IN

RESPECT OF: LOSS OF OR DAMAGE TO CARGO DURING TRANSIT BY: RAIL, ROAD, SEA OR AIR.

THUS ‘MARINE CARGO INSURANCE’ COVERS THE FOLLOWING: EXPORT AND IMPORT SHIPMENTS

BY OCEAN TRANSSHIPMENTS SHIPMENT BY INLAND VESSELS CONSIGNMENTS SENT BY RAIL,

ROAD, AIR & ARTICLES SENT BY POST. Compiled by S. M.Gupta 20

20. WORLD’S BIGGEST PLANE ‘AIRBUS A380’ - 555 Passengers Compiled by S. M.Gupta 21

21. CARGO INSURANCE ‘MARINE CARGO INSURANCE’ COVERS THE SHIPPER OF THE GOODS, IF

THE GOODS ARE DAMAGED OR LOST DURING TRANSIT THE ‘CARGO’ POLICY COVERS THE RISKS

ASSOCIATED WITH THE TRANSSHIPMENT OF GOODS THE POLICY COULD BE ISSUED TO COVER A

SINGLE SHIPMENT OR IF REGULAR SHIPMENTS ARE MADE: AN ‘OPEN POLICY’ CAN BE ISSUED

WHICH INSURES THE GOODS/ CARGO AUTOMATICALLY WHENEVER A SHIPMENT IS MADE.

Compiled by S. M.Gupta 22

22. DEFINITION OF MARINE INSURANCE MARINE INSURANCE IS A CONTRACT UNDER WHICH THE

INSURER UNDERTAKES TO INDEMNIFY THE INSURED: IN THE MANNER AND TO THE EXTENT

THEREBY AGREED AGAINST MARINE LOSSES, INCIDENTAL TO MARINE ADVENTURES. IT MAY BE

DEFINED AS A FORM OF INSURANCE COVERING LOSS OR DAMAGE TO: ‘VESSELS’ OR TO ‘CARGO’

DURING Compiled by S. M.Gupta 23 TRANSPORTATION.

23. FEATURES OF MARINE INSURANCE IT IS BASED ON ‘UTMOST GOOD FAITH’ I.E. BOTH THE

INSURED AND THE INSURER’S MUST DISCLOSE: EVERYTHING WHICH IS IN THEIR KNOWLEDGE

AND CAN AFFECT THE CONTRACT OF INSURANCE. IT IS A CONTRACT OF ‘INDEMNITY’: THE

INSURED IS ENTITLED TO RECOVER ONLY THE ACTUAL AMOUNT OF LOSS FROM THE INSURER.


24. INSURABLE INTEREST ‘INSURABLE INTEREST’ IN THE SUBJECT MATTER INSURED ‘MUST EXIST

AT THE TIME OF THE LOSS’ IT NEED NOT EXIST WHEN THE INSURANCE POLICY WAS TAKEN

UNDER MARINE INSURANCE, THE FOLLOWING PERSONS WOULD DEEMED TO HAVE ‘INSURABLE

INTEREST’: Compiled by S. M.Gupta 25

25. INSURABLE INTEREST THE OWNER OF THE SHIP THE OWNER OF THE CARGO A CREDITOR

WHO HAS ADVANCED MONEY ON THE SECURITY OF THE SHIP OR CARGO THE MORTGAGOR AND

MORTGAGEE THE MASTER AND CREW OF THE SHIP HAVE ‘INSURABLE INTEREST’ IN RESPECT OF:

THEIR WAGES AND IN CASE OF ADVANCE FREIGHT: THE PERSON ADVANCING THE FREIGHT HAS

AN ‘INSURABLE INTEREST’ IF SUCH FREIGHT IS NOT REPAYABLE IN CASE OF LOSS. Compiled by S.

M.Gupta 26

26. WARRANTIES A ‘WARRANTY’ IS A PROMISE BY THE ASSURED TO THE UNDERWRITER THAT

SOMETHING SHALL OR SHALL NOT BE DONE OR CERTAIN OF AFFAIRS DOES OR DOES NOT ARISE

A ‘WARRANTY’ MUST BE AND LITERALLY COMPLIED WITH, AS OTHERWISE THE INSURER MAY

AVOID ALL LIABILITY, FROM THE DATE OF BREACH ‘WARRANTY’ IS IN EFFECT A ‘SAFETY VALVE’

OF THE INSURER’S. Compiled by S. M.Gupta 27

27. TYPES OF WARRANTIES WARRANTIES ARE OF TWO TYPES I.E. ‘EXPRESS WARRANTY’ AND

‘IMPLIED WARRANTY’. AS EXPLAINED EARLIER, BOTH OF THESE WARRANTIES ARE TO BE

LITERALLY COMPLIED WITH, BY THE INSURED THE EXAMPLES OF THESE WARRANTIES ARE…..


28. EXPRESSED WARRANTIES ‘EXPRESSED WARRANTIES’: THESE ARE APPEARING IN THE POLICY

ITSELF AND NEEDS TO BE COMPLIED WITH. FOR EXAMPLE: WARRANTED PACKED IN NEW GUNNY

BAGS WARRANTED NEW DRUMS WARRANTED PROFESSIONALLY PACKED WARRANTED SAILING

WITHIN SEVEN DAYS WARRANTED SHIPPED UNDER DECK WARRANTED SURVEYED BEFORE

SHIPPING ETC. Compiled by S. M.Gupta 29

29. IMPLIED WARRANTIES • ‘IMPLIED WARRANTIES’: THESE ARE NOT EXPRESSED BUT IMPLIED

AND ARE THEREFORE TERMED ‘IMPLIED WARRANTIES’. FOR EXAMPLE: SEAWORTHINESS OF THE

VESSEL AT THE COMMENCEMENT OF THE VOYAGE AND LEGALITY OF THE ADVENTURE. IN THE

VOYAGE POLICY ON GOODS, THERE IS NO IMPLIED WARRANTY THAT THE GOODS INSURED ARE

SEAWORTHY. Compiled by S. M.Gupta 30

30. SUBROGATION/ CONTRIBUTION THE TERMS ‘SUBROGATION’ AND ‘CONTRIBUTION’ ARE

COROLLARY TO THE PRINCIPLE OF INDEMNITY. THEY APPLIES TO POLICIES, WHICH ARE

CONTRACTS OF INDEMNITY THE PURPOSE OF BOTH OF THESE ARE, TO ENSURE THAT THE

ASSURED SHALL NOT MAKE PROFIT OUT OF A LOSS, EITHER WHOLLY OR PARTLY, FROM

ANOTHER SOURCE. Compiled by S. M.Gupta 31

31. MEASUREMENT OF SUBROGATION THERE IS A DISTINCTION BETWEEN SUBROGATION RIGHTS

UNDER ‘TOTAL LOSS’ CASES AND ‘PARTIAL LOSS’ CASES. UNDER ‘TOTAL LOSS’, THE INSURER IS

ENTITLED TO TAKE OVER WHAT EVER MAY REMAIN OF THE SUBJECT MATTER, AFTER PAYMENT,

WHEREAS IN CASE OF ‘PARTIAL LOSS’, SUBROGATION IS TO THE EXTENT OF LOSS PAID, EXCESS

RECOVERY IF ANY, IS TO BE DISBURSED TO THE INSURED. Compiled by S. M.Gupta 32

32. PROXIMATE CAUSE ‘PROXIMATE CAUSE’ : IS THE ACTIVE, EFFICIENT CAUSE THAT SETS IN

MOTION A TRAIN OF EVENTS WHICH BRINGS ABOUT A RESULT, WITHOUT THE INTERVENTION OF

ANY FORCE STARTING AND WORKING ACTIVELY FROM A NEW AND INDEPENDENT SOURCE.

INSURER’S ARE LIABLE ONLY, IF AN INSURED PERIL IS THE ‘PROXIMATE CAUSE’ OF THE LOSS.


33. MEANING OF MARINE PERILS ‘MARITIME PERILS’ UNDER LAW IS DEFINED AS: THE FORTUITOUS

(AN ELEMENT OF CHANCE OR ILL LUCK) ACCIDENTS OR CASUALTIES OF THE SEA WITHOUT THE

WILLFUL INTERVENTION OF HUMAN AGENCY THE PERILS ARE INCIDENTAL TO THE SEA JOURNEY

AND THAT ARISES IN CONSEQUENCE OF THE SEA JOURNEY. Compiled by S. M.Gupta 34

34. INSURED PERILS SOME OF THE INSURED PERILS ARE: FIRE, EXPLOSION BREAKAGE ACCIDENT

DERAILMENT OF CONVEYANCE THEFT PILFERAGE NON-DELIVERY JETTISON….. Compiled by S.

M.Gupta 35

35. ‘Wilhelm Gustloff’ SINKING, the biggest Maritime disaster in the history. About 9,400 persons were killed

in this disaster in 1945. Compiled by S. M.Gupta 36

36. INSURED PERILS COLLISION OF ONE SHIP WITH ANOTHER SHIP/ AGAINST ROCKS BURNING

AND SINKING OF THE SHIP SPOILAGE OF CARGO FROM SEA WATER, MUTINY, PIRACY OR WILLFUL

DESTRUCTION OF THE SHIP AND CARGO BY: THE MASTER (CAPTAIN) OF THE SHIP OR THE CREW.


37. Typical Marine Loss of Hull Compiled by S. M.Gupta 38

38. UNINSURED PERILS SOME OF THE UNINSURED PERILS ARE: ORDINARY LEAKAGE, ORDINARY

LOSS IN VOLUME OR WEIGHTS OR ORDINARY WEAR & TEAR OF THE SUBJECT-MATTER INSURED

LOSS OR DAMAGE CAUSED BY INSUFFICIENCY OR UNSUITABILITY OF PACKING INHERENT VICE…..


39. UNINSURED PERILS DAMAGES CAUSED WITHOUT THE INTERVENTION OF ANY EXTERNAL

CAUSE WILLFUL MISCONDUCT OF THE ASSURED LOSS OR DAMAGE ARISING OUT OF INSOLVENCY

OR FINANCIAL DEFAULT OF THE OWNERS OR OPERATORS OF THE VESSEL LOSS, DAMAGE OR

EXPENSE ARISING OUT FROM THE USE OF ANY WEAPON OF WAR EMPLOYING: ATOMIC OR

NUCLEAR FISSION/ FUSION OR OTHER LIKE Compiled by S. M.Gupta 40 RADIOACTIVE REACTION/

FORCE.

40. TYPES OF MARINE POLICY MARINE POLICIES ARE KNOWN BY DIFFERENT NAMES, ACCORDING

TO THE MANNER OF THEIR EXECUTION, OR THE RISK THEY COVER SUCH AS: VOYAGE POLICY

TIME POLICY MIXED POLICIES VALUED POLICIES UNVALUED POLICIES OPEN POLICY FLOATING

POLICY. Compiled by S. M.Gupta 41

41. INLAND TRANSIT/ IMPORT & EXPORT IT CAN THEREFORE BE CONCLUDED THAT BESIDES

OTHERS, THE MARINE INSURANCE REFERS BROADLY TO: TRANSPORTATION RISK INVOLVING:

MARINE HULL AND MARINE CARGO. FURTHER, RISK ASSOCIATED WITH THE MARINE INSURANCE,

AT DIFFERENT STAGES, WOULD BE DURING: INLAND TRANSIT OR IMPORT AND EXPORT. Compiled

by S. M.Gupta 42

42. COMMERCE/ TRADE MARINE INSURANCE IS MOST SIGNIFICANT INSURANCE IN: OVERSEAS

COMMERCE AND DOMESTIC TRADE. IT PROVIDES INSURANCE PROTECTION AGAINST:

FORTUITOUS LOSSES LIKE: ACCIDENT, FIRE, THEFT, BURGLARY AND ALSO NATURAL VAGARIES:

WHILST THE GOODS ARE IN TRANSIT AND…. Compiled by S. M.Gupta 43

43. MODE OF TRANSPORTATION THE GOODS MAY BE IN TRANSIT BY: RAIL ROAD AIR AND SEA. IT

PROVIDES SECURITY FOR: VENTURING THE CAPITAL MORE FREELY, BY ALL CONCERNED AND

EXPANDS THEIR AREA OF OPERATION. Compiled by S. M.Gupta 44

44. World’s biggest truck ‘Midnight Rider Tractor Trailer Limousine’ Compiled by S. M.Gupta 45

45. IMPORT AND EXPORT FOR IMPORT & EXPORT ‘INSTITUTE CARGO CLAUSES’ (ICC – ‘A’, ‘B’ OR

‘C’) ARE USED. THESE CLAUSES ARE FRAMED BY: ‘INSTITUTE OF LONDON UNDERWRITERS’ MOST

OF THE COUNTRIES OF THE WORLD INCLUDING INDIA, ARE USING THESE CLAUSES. THE

COVERAGE & THE EXCLUSIONS ARE EXPLAINED BY WAY OF INSTITUTE CARGO CLAUSES

ATTACHED TO THE POLICIES. Compiled by S. M.Gupta 46

46. INLAND TRANSIT FOR TRANSPORTATION WITHIN THE COUNTRY, THE CLAUSES USED ARE:

‘INLAND TRANSIT CLAUSES’ (ITC – ‘A’, ‘B’ OD ‘C’) WHICH ARE PREPARED BY: TARIFF ADVISORY

COMMITTEE, ARE ATTACHED TO THE POLICY AND THE COVERAGE/ EXCLUSIONS ARE EXPLAINED

BY WAY OF ‘INLAND TRANSIT CLAUSES’ ATTACHED TO THE POLICIES.Compiled by S. M.Gupta 47



49. MOVEMENT OF CARGO ONCE THE GOODS MOVES OUT FROM THE WAREHOUSE OF THE

SELLER TO THE WAREHOUSE OF THE BUYER THEY ARE NO LONGER IN THE CUSTODY OF THE

SELLER OR THE BUYER THE GOODS ARE ENTIRELY IN THE HANDS OF OPERATORS OF THE SHIP

AND THEREFORE LARGELY DEPENDENT UPON: FITNESS & SEA WORTHINESS OF THE SHIP

COMPETENCE OF ALL CONCERNED (CREW MEMBERS ETC.) FOR SAFETY AND SOUND DELIVERY.


50. THE VOYAGE OR TRANSIT THE MARINE POLICIES ARE GENERALLY KNOWN AS ‘WAREHOUSE

TO WAREHOUSE’, THEREFORE EACH AND EVERY STAGE OF TRANSIT IS IMPORTANT FOR PROPER

UNDERWRITING I.E. CONDITIONS AT THE PORT OF ORIGIN/ DISCHARGE DISTANCE INVOLVED

DIRECT OR BROKEN (INVOLVING TRANS- SHIPMENTS) PORTS OR LOCATIONS INVOLVED…..


51. THE VOYAGE OR TRANSIT LOADING/ UNLOADING AND OTHER FACILITIES THEREON PAST

EXPERIENCES AT THOSE PORTS GENERAL CONDITIONS THERE I.E. OVER BUSY OR NORMAL

WEATHER CONDITIONS CARGO STORED ON-DECK/ UNDER DECK CURRENT WORLD EVENTS I.E.

POLITICAL TENSION CIVIL WARS LABOUR DISTURBANCES ETC. ETC. Compiled by S. M.Gupta 52


53. SPECIFIC VOYAGE POLICY UNDER THIS POLICY, THE SUBJECT MATTER IS INSURED AGAINST

THE RISK OF A PARTICULAR VOYAGE I.E. FROM THE ‘WAREHOUSE OF THE CONSIGNER’ TO THE

‘WAREHOUSE OF THE CONSIGNEE’, FOR EXAMPLE: ‘WAREHOUSE OF CONSIGNER AT MUMBAI’ TO

‘WAREHOUSE OF THE CONSIGNEE AT NEW YORK’. THEREFORE: THE RISK COMMENCES FROM

THE DEPARTURE OF GOODS FROM THE ‘WAREHOUSE’ NAMED IN THE POLICY AND TERMINATES

ON ARRIVAL AT THE ‘WAREHOUSE’ NAMED IN THE POLICY. Compiled by S. M.Gupta 54

54. SPECIFIC VOYAGE POLICY THIS POLICY COVERS THE SUBJECT MATTER IRRESPECTIVE OF

THE TIME FACTOR THIS POLICY IS NOT SUITABLE FOR ‘HULL INSURANCE’ AS: A SHIP USUALLY

DOES NOT OPERATE OVER A PARTICULAR ROUTE OR VOYAGE. THE POLICY IS USED MOSTLY IN

CASE OF ‘CARGO INSURANCE’. Compiled by S. M.Gupta 55

55. SPECIFIC VOYAGE POLICY TO SUM UP, THIS POLICY IS ISSUED FOR: A ‘SPECIFIC VOYAGE’

(ONE PLACE TO ANOTHER) PERIOD OF INSURANCE NOT VERY SIGNIFICANT HERE AND IS:

SUITABLE FOR CLIENTS HAVING LIMITED NUMBER OF SENDING’S AND EXPIRES ON COMPLETION

OF THE VOYAGE. Compiled by S. M.Gupta 56


57. OPEN POLICY AN ‘OPEN POLICY’ IS ALSO KNOWN AS ‘FLOATING POLICY’ IT IS ISSUED FOR A

PERIOD OF TWELVE MONTHS AND ALL CONSIGNMENTS SENT DURING THE PERIOD ARE COVERED

BY THE INSURER’S THIS POLICY IS SUITABLE FOR BIG COMPANIES THAT HAVE REGULAR

SHIPMENTS IT SAVES THEM THE TEDIOUS AND EXPENSIVE PROCESS OF ACQUIRING AN

INSURANCE POLICY FOR EACH SHIPMENT. Compiled by S. M.Gupta 58

58. OPEN POLICY THE RATES ARE FIXED IN ADVANCE THE ASSURED HAS TO DECLARE THE

NATURE OF EACH SHIPMENT AND THE COVER IS PROVIDED TO ALL THE SHIPMENTS THE

ASSURED NEEDS TO DEPOSIT A PREMIUM FOR: THE ESTIMATED VALUE OF THE CONSIGNMENT

DURING THE POLICY PERIOD. Compiled by S. M.Gupta 59

59. DECLARATION EACH CONSIGNMENT NEEDS TO BE DECLARED ON EACH DECLARATION THE

SUM INSURED GETS REDUCED ‘OPEN POLICY’ IS ISSUED FOR AGGREGATE VALUE OF:

ANTICIPATED SHIPMENT DURING THE PERIOD OF INSURANCE. SUM INSURED SHALL NOT BE LESS

THAN: SPECIFIED PERCENTAGE OF ANNUAL TURNOVER AND DEPENDING ON THE DISTANCE

INVOLVED. Compiled by S. M.Gupta 60

60. PREMIUM AS AND WHEN THE CONSIGNMENTS ARE SENT, THE DECLARATIONS ARE GIVEN TO

THE INSURER’S THE SUM INSURED IS ADJUSTED ACCORDINGLY IF THE PREMIUM IS EXHAUSTED

DURING THE YEAR ADDITIONAL PREMIUM IS CHARGED ON: THE RATES ALREADY AGREED UPON

FALLING WHICH: THE POLICY STANDS TERMINATED. Compiled by S. M.Gupta 61

61. CERTIFICATE/ POLICY A CERTIFICATE IS ISSUED AGAINST EACH DECLARATION THE

CERTIFICATE OF INSURANCE IS: UNSTAMPED WHILST THE POLICY IS STAMPED. CLAUSES FOR

COVERAGE I.E. ‘ITC’ – ‘A’, ‘B’ OR ‘C’, ARE ATTACHED TO THE POLICY. Compiled by S. M.Gupta 62

62. INCREASE IN SUM INSURED THE SUM INSURED UNDER THE ‘OPEN POLICY’ CAN BE

INCREASED: BEFORE THE POLICY IS EXHAUSTED OR AFTER THE PREMIUM PAID IS EXHAUSTED.

BALANCE PREMIUM IF ANY UNDER THE POLICY IS REFUNDED TO THE INSURED ‘OPEN POLICIES’

ARE GENERALLY ISSUED FOR ‘INLAND TRANSIT’. Compiled by S. M.Gupta 63

63. ADVANTAGES ADVANTAGES OF ‘OPEN POLICY’: AUTOMATIC AND CONTINUOUS INSURANCE

PROTECTION SAVING IN ADMINISTRATIVE EXPENSES SAVING IN STAMP DUTY VIS A VIS: ‘SPECIFIC

POLICIES’ BEING ISSUED FOR EACH AND EVERY DECLARATION AND STAMP DUTY IS CHARGED

EVERY TIME. Compiled by S. M.Gupta 64


65. OPEN COVER ‘OPEN COVER’ GIVES THE INSURED AN AUTOMATIC AND CONTINUOUS

INSURANCE PROTECTION SO THAT THERE IS NO RISK OF: ANY SHIPMENT REMAINING

UNINSURED/ UNCOVERED EVEN THROUGH AN OVERSIGHT. THE RATES AND TERMS AND

CONDITIONS ARE AGREED IN ADVANCE ‘OPEN COVER’ IS VALID FOR ONE YEAR. Compiled by S.

M.Gupta 66

66. OPEN COVER IT IS OBLIGATORY ON THE PART OF THE INSURED TO DECLARE: EACH AND

EVERY SHIPMENT WITHOUT FAIL AND NO ATTEMPT SHOULD BE MADE TO: WITHHOLD ANY

DECLARATION TO SAVE PREMIUM. AN ‘OPEN COVER’ IS NOT A POLICY BUT IS AN AGREEMENT

BINDING IN HONOUR. THE INSURER WOULD INSURE ALL SHIPMENTS AND THE INSURED

SIMILARLY BOUND TO DECLARE EACH SHIPMENT. Compiled by S. M.Gupta 67

67. OPEN COVER AS PER THE PROVISIONS OF THE ‘INSURANCE ACT’, THE PREMIUM FOR THE

RISKS HAS TO BE PAID IN ADVANCE AND THEREFORE: THE PREMIUM IS REQUIRED TO BE PAID ON

EACH AND EVERY DECLARATION. ‘OPEN COVER’ IS SUITABLE FOR PERSONS ENGAGED IN:

REGULAR IMPORTS AND EXPORTS AND SEPARATE POLICY IS ISSUED FOR EACH SHIPMENT.S.

M.Gupta Compiled by 68





72. DUTY INSURANCE THIS INSURANCE IS ON INCREASED VALUE OF CARGO, BY REASON OF

PAYMENT OF CUSTOM DUTY AT DESTINATION IT IS SUBJECT TO SAME CLAUSES AND CONDITIONS

AS THE INSURANCE OF CARGO AND PAYS THE SAME PERCENTAGE OF LOSS AS MAY BE PAID

THEREON, HOWEVER: EXCLUDING CLAIM IN RESPECT OF: TOTAL LOSS OF WHOLE OR PART OF

CARGO PRIOR TO DUTY BECOMING PAYABLE. Compiled by S. M.Gupta 73

73. INCREASED VALUE INSURANCE THIS INSURANCE IS ON INCREASE VALUE BY REASON OF

MARKET VALUE OF THE GOODS AT DESTINATION ON THE DATE OF LANDING IS HIGHER THAN THE

VALUE OF CARGO INSURED THE TERMS AND CONDITIONS ARE SAME AS THAT OF THE ORIGINAL

POLICY, HOWEVER: THE INSURER’S PAYS 75% OF THE VALUE & THE ASSURED HAS TO BEAR 25%

OF THE CLAIM AMOUNT. Compiled by S. M.Gupta 74

74. SPECIAL DECLARATION POLICY IT IS A FORM OF ‘OPEN POLICY’ OR ‘FLOATING POLICY’ ISSUED

TO CLIENT WHO HAVE A LARGE TURNOVER AND FREQUENT DISPATCHES OF GOODS ANY WHERE

WITHIN THE COUNTRY BY: RAIL, ROAD OR INLAND WATERWAYS. THE POLICY IS ISSUED TO THE

CLIENTS, WHOSE ESTIMATED ANNUAL DISPATCHES ARE FOR AT LEAST 2 CRS. Compiled by S.

M.Gupta 75

75. ANNUAL POLICY ‘ANNUAL POLICY’ UNDER THE MARINE DEPARTMENT IS ISSUED FOR: 12

MONTHS TO COVER GOODS BELONGING TO: THE ASSURED OR HELD IN TRUST BY THE ASSURED

BUT: NOT UNDER CONTRACT OF SALE OR PURCHASE PROVIDED….. Compiled by S. M.Gupta 76

76. ANNUAL POLICY SUCH GOODS ARE IN TRANSIT BY RAIL OR ROAD FROM: SPECIFIED DEPOTS/

PROCESSING UNITS TO OTHER SPECIFIED DEPOTS/ PROCESSING UNITS, HOWEVER: THE

DEPOTS/ PROCESSING UNITS MUST BE OWNED OR HIRED BY THE ASSURED. THE POLICY IS NOT

ASSIGNABLE OR TRANSFERABLE. Compiled by S. M.Gupta 77

77. SPECIAL STORAGE RISK POLICY (SSRI) THE COVER UNDER ‘SPECIAL STORAGE RISK POLICY’

POLICY TAKES INTO CONSIDERATION: THE REQUIREMENT OF THE CONSIGNER OF THE GOODS

FOR INSURANCE TO PROTECT HIS GOODS DURING STORAGE AT: RAILWAY YARD OR CARRIER

PREMISES. Compiled by S. M.Gupta 78

78. SPECIAL STORAGE RISK POLICY (SSRI) PENDING CLEARANCE BY THE CONSIGNEES ON

TERMINATION OF COVER (7 DAYS) UNDER ‘OPEN POLICY’ OR ‘SPECIAL DECLARATION POLICY’

(SDP), HOWEVER: THE COVER IS GRANTED IN CONJUNCTION WITH ‘OPEN POLICY’ OR ‘SDP’

COVERING TRANSIT OF GOODS BY RAIL OR ROAD. Compiled by S. M.Gupta 79

79. KINDS OF MARINE LOSSES DIFFERENT TYPES OF MARINE LOSSES Compiled by S. M.Gupta 80




83. THANKS ANY QUESTIONS? Compiled by S. M.Gupta 84

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