Page 4 - Marine Insurance IC67 EBOOK
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are susceptible and port conditions prevailing all weight, would not be covered. The Policy may for
over the world. So all times in the declaration are certain commodities be extended to cover
much relevant to proper underwriting. shortage but evidence of actual loss would be
necessary.
Perils Covered : Before 1.4.1983 the covers
available under Marine Cargo insurance were. (2) Fresh Water and/or Rain Water Damage :
i) T.L.O. (Total Loss Only) These risks exist particularly when inland transit
ii) F.P.A.(Free of Particular Average) is involved before shipment or after discharge and
iii) W.A. (with Average) while awaiting shipment or delivery. This cover is
iv) W.A.Comp. (With Average Comprehensive) sought for cotton shipments, piecegoods, hides,
v) All Risks. skins and general merchandise.
Marine insurance cover starts right from the (3) Hook Damage :
movement of goods/machinery/Raw Material from Goods may be damaged by hooks used in the
the foreign/Indian manufacturer's warehouse & process loading and/or unloading. Bagged cargo
remain continuously in force during voyage, inland and carpets are particularly liable to hook
transit to the factory site/ware house damage.
.
(4) Oil Damage :
Name of the Assured : This risk generally arise from contact of cargo
with oil having leaked from the engines of the
The name of the party who effects the insurance steamer. Damage by oil taint is very common in
or on whose behalf insurance is affected should the case of food stuffs and other cargo like
be given. The Insured Party can be manufacturers, tobacco and tea.
suppliers, contractor, subcontractor or owner of
the goods/machinery/raw material. The Policy can (5) Damage by Mud :
be taken jointly by the owner covering interests of Acid and other Extraneous Substances.
all other parties.
(6) Heating :
Scope : Some cargos like rice, oil, cakes, fishmeal, coal
are liable to ''Spontaneous" heating due to growth
Various types of covers are granted according to of micro organisms, insects or by straight
the requirement of the client. oxidation.
Covers can be classified as under :— (7) Sweating :
Damage due to condensation of water in the
Transit Risk : (Basic Cover) ships holds, as a result of climatic changes or
insufficient ventilation is covered under the
The insurance covers the risk of Physical loss or term "Sweating". The term also includes
damage to the Insured's goods/machinery/raw damages caused by the sweating of the
materials etc. caused by fire, lightning, breakage commodity itself. e.g. groundnuts from the
of bridges, overturning of vehicle, collision with or west coasts of Africa which are notorious for
by the carrying vehicle. their tendency to sweat.
Wider Cover : Loading & Unloading :
(1) Theft, Pilferage and/or non delivery (TPND) If loading on the carrying vehicle/wagon at the
It should be noted that non delivery refers only to
the non delivery of entire package due to any
cause and that short delivery or shortage,
meaning the delivery of packages short of their full
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