Page 13 - Marine Insurance IC67 EBOOK

The Insurance Times

annual despatches. One time mid term increase Basis of Valuation :
in the policy is allowed on payment of premium.
Further it is also clarified that second time mid This may be as agreed value but normally does
term is also allowed subject to verifying the not exceed CIF value plus 10%.
reasons for the need of the same after RO's
approval. Declaration under policy :

Turnover Discount : Total value of the goods despatched in form of a
certified statement shall be declared at periodical
Slabwise turnover discount is allowed under the intervals by at least one on completion of each
policy quarter counting from date of inception of the
policy.
SUM INSURED DISCOUNT
Adjustment of policy :
Upto 5 Crores 20% of the premium
Policy shall be finally adjusted on receipt of all
Exceeding 5 Crores 25% of the premium declaration for refund of premium for undeclared
but more than 10 balanced of sum insured. Upward adjustment of
Crores 35% of the premium policy is not permitted.

Exceeding 10 Crores 45% of the premium Claim experience :
but more than 25 50% of the premium
Crores Loading in premium rate where loss ratio exceeds
70%
Exceeding 25 Crores
but not more than 50 If the claim ratio for the three year excluding
Crores immediately preceding year or for any shorter
period for which experience is available is more
Exceeding 50% Crores than 70% the premium rate (Basic Plus wider
cover) has to be appropriately loaded in such a
No Turnover discount shall be allowed on SRCC way that after the loading the loss ratio does not
premium. If Policy is issued for a BASIC COVER but exceed 70% at the loaded rate. It has been
than turnover discount shall be allowed on BASIC subsequently been clarified by TAC vide circular
rate and if the Policy is issued for a wider cover, No. 21/92/92 dt, 31st July'92 that slabwise
the turnover discount shall be allowed on wider discount are to be granted to special declaration
risk rate. Where Annual Turnover exceeds rupees policies thereafter.
one thousand crores, matter should be referred to
HO for Special Turnover Discount exceeding One
Thousand Crores.

Who can take this policy ? When an open policy with an adverse loss ratio is
converted in to an SDP, loaded rate or reference
Policy can be taken by an individual company/ rate whichever is higher has to be charged.
firm. Policy cannot be issued in Joint names i.e., Circumstances becomes advantageous because
more than One company though under the control on applying turnover discount the lnsured can
of the same management or owned by a holding manage with a lower rate.
company. Policy cannot be issued to Transport
Operators/Contractor. Clearing Forwarding and When an open policy with an adverse loss ratio is
commission Agents or Freight forwarders either in converted into as SDP the loaded rate or
their own name or jointly with owner of the reference rate whichever is higher must be
company.

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