Page 15 - Marine Insurance IC67 EBOOK
P. 15
The Insurance Times
and/or shipment the basis of valuation shall be Ocean transit are subject to institute Classification
prime cost of goods plus charges actually incurred Clause (1-8-97) in order to ensure that the
and for which the insured is liable. carrying vessel is of the desired class or standard.
Minimum premium on any Certificate issued under
The insured is obliged to declare each and every an Open Cover is Rs.20/-.
shipment coming within the scope of the Open
Cover. Unintentional failure to report shipments will Duty and Increased Value Insurance
not void the Open cover and such shipment will General Regulations
be held covered. However, should the assure
wilfully fail to report shipments (he may do so (1) Cover may be granted only on goods
when shipments have arrived safely) the Open imported to India. The insurance shall be
Cover, at Company's option will become null and granted only if there exists insurance on CIF
void as to all subsequent shipments. value of cargo itself and against the same
risks as the basis cargo insurance and only
It is not enough to state : "Rates as arranged". A on the basis of a signed proposal form. If
schedule of rates must be attached containing cargo is imported on CIF basis because of an
names of commodities, type of packing, terms unavoidable contractual obligation to insure
and scope of cover and rate in respect of each. abroad, insurance on "Increased value" and
"Duty" may be granted on terms and
It is not sufficient to state in the Open Cover conditions wider then overseas CIF
"various types of goods" general merchandise". It insurance.
is important to be specific and precise in the
description of the subject matter insured e.g. (2) The insurance should be granted only to the
Textiles and readymade garments in cases, party in whose favour the import licence has
cotton in bales,tinned provisions in cartons, rice been issued/officially endorsed. In respect of
in new single bags, etc. This, together with the imports by State Trading Corporation of India
rate schedule would protect us, in as much as and/or any other government body under their
the insured cannot include other interests which two import licence and allotment is made to
have not been specified at the time of issuing the various parties on High Seas Sale Basis"
Open Cover. Any addition to the list of such allottees may be considered as actual
commodities originally stated in the Open cover holders of the licences provided an allotment
should be done only be endorsement also letter or certificate from S.T.C. of India or
showing the relevant rates and conditions of cover. government body concerned is produced as
proof.
As far as possible issue a specific policy against
each declaration to cover the insured's export (3) In all cases a duly completed and signed
shipments, so that consignees at destination and proposal from must be obtained in case where
our setting agents will have a complete policy an Open Cover is issued, a master proposal
document for verification. Certificates of from may be obtained if the facts mentioned
insurance, may be issued to cover the insureds therein applied to all declarations under the
import shipments as the terms of cover can open cover.
always be verified from the open cover, a copy of
which is with the insured and the policy issuing (4) No insurance on "Increased Value" or "Duty"
office. shall be granted after arrival on carrying ship
at destination port. This however shall not
apply where such insurance have been
granted under open covers
230 Portal : www.bimabazaar.com / Website : www.sashipublications.com
