Page 22 - Insurance Times March 2017 Sample

Institute Cargo Clause (Air) is expected to take all steps so as to prevent / minimize
Whenever goods are in transit by Air, either within India or losses. In terms of Marine Insurance Act insurers agree
export/ import of goods from India to anywhere in world to pay all reasonable expenses incurred by the insured
or vice versa, then policies are subjected to Institute cargo to achieve this objective e.g.
clause -Air. This is an all risk cover like ICC-A and with similar A) Sue and Labour Charges: These charges are incurred
exclusions. after operation of marine peril and before arrival
of the cargo at destination. Further there expenses
The cover under ICC- (Air) is similar to ICC (A) and duration must be incurred by insured, their agent / servant
cover is also similar but with some changes. and for the benefit of insured's goods only.
B) Particular Charges: These charges are incurred to
The cover is warehouse to warehouse as in ICC (A) but the avoid a loss and expenses should be for the benefit
period of cover after unloading of cargo from the aircraft of insured's property only and not for common
at the final place of discharge is limited to 30 days. In case adventure.
of export / import of goods by Air, the war & SRCC risks can
C) Salvage Charges: Sometimes the services of third
be granted on payment of additional premium.
party are utilized to save property during transit.
So, salvage charges are remuneration payable to
Concept of General Average
third parties. These services are rendered on non-
The concept of General Average originated much before cure-no-pa basis i.e. no recovery- no charges.
Marine Insurance. This system was based on the principal
of equity. In simple terms here losses are incurred D) Extra Charges: The services of surveyors are
deliberately for the benefit of cargo owners, Ship owner and utilized for survey and assessment of loss for Export
Freight earner, and losses are restored by contribution of claims the services of settling Agents or survey
all those whose interests are saved. agents are utilized. Survey free is paid to insured
over and above

General average has following important E) The Marine claim: Sometimes damaged cargo is
ingredients: auctioned through the surveyors; in such case
1) It is either a sacrifice or an expenditure. auction charges are also paid over and above the
claim.
2) The entire adventure should be in danger.
3) The act must be extra ordinary in nature. Marine Claims:
4) The loss/ expense incurred should be for the common When cargo is in transit, it is exposed to various risks during
safety of the vessel, cargo and freight. Rail/ Road/ Sea/ Air transit. Due to operation of one or
5) The loss / expense are shared by all those whose more perils there may be claim under a Marine Policy. The
interests are saved. nature of various claims can be put under following:
6) The GA is declared by Master/ Ship owner. 1) Non- deliver
7) G.A adjusters are appointed by insurers to settle such 2) Short-delivery
claims. 3) Pilferage
8) The amount paid by the interests saved is called 4) Leakage
'contribution'.
5) Damage
9) G.A claims are payable provided ____ of loss is covered
under the policy.
The liability under Marine Cargo Policy can be ascertained
b analyzing the cause of loss and correlating the same with
Charges in Addition of Claim: the scope of cover under the relevant policy. Due to
In addition to payment of claim in respect of damage to operation of any peril the consignment can be totally lost
cargo, there are certain charges / expenses which are paid (e.g. non-delivery of entire consignment, consignment
over and above the claim. totally damaged b water etc.Sometimes the consignment
There are following types of charges: is lost/ damaged but in a manner that the cost of its
1) Loss Prevention & Minimization charges: The insured retrieval is more than the value of cargo. So any total loss

22 The Insurance Times, March 2017

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