Page 5 - Marine Insurance IC67 EBOOK

The Insurance Times
commencement of the transit is intended to be
covered under inland transit (Rail/Road -
I.T.C.A.B.C.) it should be mentioned specifically
on the face of the policy by charging additional
premium if required. Unloading from vehicle/wagon
is automatically covered under inland transit
clause (Rail/Road - I.T.C.A.B.C.)
Wider Covers & Extension of Covers :
For wider cover with Basic cover plus TPND Fresh
& rain water damage, Hooks, nails, oil, mud,
acids, bursting of bagged cargo including bursting
& tearing of bags and extension of cover beyond
the period of 7 days not exceeding 8 weeks under
transit clause, extra premium should be charged,
However, the office incharge of RO/DO/Branch or
the officer nominated by the incharge will have the
discretionary power depending on merits of each
case to suitably reduce or increase the rate taking
into account the nature of commodity, packing,
mode of transport, claim experience, competitive
market and such other underwriting consideration.
All Risk Cover:
This is an all embracing term and includes all the
extraneous risks mentioned above and also
physical loss or damage due to any other risk
plus leakage, breakage, country damage.
(1) Leakage :
The risk of leakage depends, largely on the
condition of the containers. In new, sound steel
drums, the risk of leakage is comparatively less.
In wooden barrels, however, there is always a
certain amount of leakage and in such cases a
trade allowance for customary wastage is usual
for which insurer is not liable. The cover against
leakage is usually granted subject to an
"Excess"; that is leakage claims are paid only in
excess of a specified percentage of the value of
the consignment. On liquids the cover is granted
against "Leakage and/or breakage" is usually in
excess of a certain percentage.
(2) Breakage :
Breakage is generally caused by rough handling
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of goods in transit. The nature of packing is very
important while considering the risk of breakage.
(3) Country Damage :
The risk refers to damage arising from weather
conditions and exposure-during inland transit prior
to shipment and/or whilst awaiting shipment. The
risk is particularly covered for cotton shipments.
Duration :
Insurance attaches from the time the goods leave
the premises for the commencement of transit
and continuous during the ordinary course of
transit, including customary transhipment, if any.
(1) Until delivery to final warehouse at
destination, named in the policy.
(2) In respect of transits by rail only or by rail and
road, until expiry of 7 days after arrival of
railway wagon at final destination station or in
respect of transits by road only, until expiry of
7 days after arrival of vehicle at the destination
town whichever shall first occur.
Note: For covering goods sent through courier
following conditions to be fulfilled.
1. Courier should have professional legal liability
(public liability) policy.
2. The cargo owner should not make any
contract with courier restricting/reducing/
limiting their liability.
3. Carrier Numbered Receipt to be issued giving
full details like L.R.
4. Despatch by Courier/Owner's vehicle - Co's
Liability 75%
Additional Risk :
(1) War & SRCC Cover :
War & Civil War Institute Strike Clause cover loss
or damage caused by strikes, lock out, workman
or person taking part in labour disturbance or Riot
& Civil commotion.
The insured can cover War & SRCC risk on
Payment of additional premiums are as under.
SRCC @ Rs. 0.0225% (inland)
War & SRCC @ Rs. 0.05% (Export/import) as
per recent guideline.