Page 12 - Marine Insurance IC67 EBOOK

OPEN POLICY Policy has been in operation not exceeding 60%.
When insured have frequent large number of
despatches, or incoming materials despatches, it
becomes inconvenient to go for separate individual
policies for each despatches. For such clients
marine open policy is very convenient document.
It is customary to issue an open policy for
insurance of goods despatched within the country
by Rail/Road/Air Fright Registered Post.
PERIOD : 1 YEAR
Sum Insured :
Sum insured should not be less than value of
despatches anticipated in one month estimated
despatches, Full premium of this sum insured will
be paid in advance & when sum insured is nearly
exhausted same can be insured further by
additional premium.
Declaration :
Each & every despatch coming under scope of
open policy send to Co. daily, weekly, as per
prescribed form.
Limit Per Consignment :
Insured should be very careful in selecting limit as the rates applicable for the Two transits as per
per consignment over policy, but in any case value
of consignment exceeds the limit, insured should
promptly inform..
Basis of Valuation :
Invoice cost of goods, tax, freight & insurance
premium plus 10% incidental charges. At the end
of policy year premium undeclared balance of sum
insured will be refunded to the insured.
Loading :
The existing rates of Open Policies though lower
than the 'minimum rates' shall be allowed to
continue, subject to the average claims ratio for
the preceding three years, excluding the expiring
Policy Year of for lesser period for which the
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Where the average loss ratio exceeds 60% the
specially reduced rates shall cease to continue
and the rating shall be subject to the "minimum
rates" stated above.
Discount :
Suitable discounts may be granted at the
discretion of the underwriting offices in respect of
Open Policies under which the average claim ratio
for the preceding three years, excluding the
expiring Policy Year or for lesser period for which
the Policy has been in operation does not exceed
60% (Sixty per cent). However, the net discount
rates shall not be less than 60% of the minimum
rates" given in the annexed schedule.
SPECIAL DECLARATION
POLICY
Applicability :
Applicable to in land Transit governed by Inland
Transit Rail/Road Guidelines. Further this was
extended to cover inland, water Transits. This will
be as per the rule, regulations, terms, conditions
and rates of the respective tariffs. Thus the rate
for a Land cum water Transit will be the total of
respective tariffs.
Minimum Sum Insured : 2 Crores
Minimum premium : Rs. 5,000/-
(Five thousald only)
Turnover :
The turnover means total Insured value of the
goods in Transit which includes all incoming and
outgoing consignments, comprising capital goods,
raw materials store, finished and semi finished
products, transit including inter depot transfers.
Sum Insured :
Sum Insured shall be on the basis of previous
year's annual turnover. In case of fresh proposals
the Sum Insured shall represent a fair estimate of