Page 18 - Insurance Times March 2017 Sample

5) C & F contracts: Here freight is paid by seller but Particulars of Marine underwriting
insurance beyond FOB point is arranged by buyer in his
account. The nature and duties of seller and buyer in documents
FOB and C&F contract are same. The term FOB is used Various types of documents are used in Marine
for consignments going by sea whereas the term C&F Underwriting department and that are:-
is used for consignments going by Air. 1) Questionnaire
2) Proposal Form
Details of Marine Policy Form:
3) Cover note
Earlier SG Form (Ship &Goods) policy was in voyage in U.K
4) Policy form
Markets. The London market finally simplified and
streamlined the wordings of the policy and clauses. The 5) Marine clauses
revised policy and clauses were adopted w.e.f. 1.1.1982. 6) Endorsements
The Indian market introduced this new policy form with
revised clauses w.e.f. 1.4.1983. In a marine cargo 7) Certificate of Insurance
department only one policy form is used and any type of
1) QUESTIONAIRE: There is an exception that unlike other
policy can be issued b attaching relevant clauses. That
insurances, proposal form in general is not required in
means form remains the same and for any policy relevant
Marine cargo insurance. Instead the proposer fills up
clauses are attached.
a questionnaire and insurance is granted on the basis
of information furnished in the questionnaire. In Marine
Contents of Marine Cargo Policy Form:
cargo, policy can be issued on the basis of information
1) Assured: He can be seller or buyer depending upon provided on telephone/ fax/e-mail etc.
nature of sale contract.
2) PROPOSAL FORM: It is mandatory to obtain proposal
2) Sum Insured: Amount to be mentioned in Indian
currency and also in foreign currency for export policies. form in special declaration policy; custom duty
insurance, increased value insurance, Annual policies
3) Premium: Rate and Amount to be mentioned. and special storage risk insurance policies.
4) Stamp Duty: Stamp duty is charged as per Indian Stamp
3) COVER NOTE: This document is used in all claims of
Act. Stamps of requisite value are affixed on the policy.
insurances. A Marine policy can be insured only when
5) Vessel Name: Which is used & intimated as to ship the all the relevant information is furnished to the insurers.
cargo. At times the insurers assume risk pending non-
6) Voyage / Journey: Place of commencement of transit availability of some information. For example the
and place of termination of transit. insured is unable to provide lorry receipt no and date
7) Affreightment Particulars: or Bill of loading no. and date . In such cases after
a) (B/L) Bill of Landing No - Sea borne consignment; acceptance of risk, premium is collected and a
temporary document of insurance is insured. Such a
b) (AWB) Airway Bill No - Air borne consignment;
document is called cover note, which is valid for 15 or
c) RR railway Receipt No - Rail borne consignment; 30 days. After the insured furnish the relevant
d) GR/LR Lorry/ Goods receipt No - Truck borne information, a duly stamped policy is issued.
consignment; 4) POLICY FORM: As stated earlier in Marine cargo
e) RPP (Registered Post parcel receipt) by Post of department only one type of policy form is issued and
other consignment. any type of policy can be prepared by attaching
relevant clauses. The column in Marine cargo policy is
8) Subject Matter: Insured goods details.
to be stamped as per provisions of Indian Stamp Act
9) Type of cover: Whether all risk cover Road Risk cover
and to be signed as specified in Marine Insurance Act
etc.
1963.
10) Clauses to be attached: Depending upon nature of
5) MARINE CLAUSES: Depending upon the type of policy
cover.
and coverage of risks desired by the insured, relevant
11) Place of issue of policy. clauses are attached to the policy before it is issued to
12) Date and signature. the insured. The clauses will specify the scope of
18 The Insurance Times, March 2017

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