Marine Insurance
Who needs it? • Manufacturers • Importer • Exporter • Traders • Contractors of Projects
Need of Marine Insurance • • • •
Safety Compliance of Terms of Sale Customs of Laws Letter of Credit Transactions
NEED
Legs of transit that can be covered • • • • • • •
Import Export Domestic Purchase Domestic Sales Intra Transfer Intra- Depot/Warehouse Jobwork
COVERAGE
Types of Marine Insurance • • • •
Specific Transit Insurance Marine Open Policy Marine Sales Turnover Policy(STOP) Stock Throughput Insurance Policy
TYPES
Risks covered Loss / damage to the subject matter insured reasonably attributable to /caused by: 1. Fire or Explosion; 2. Vessel or craft being stranded, grounded, sunk or capsized. 3. Overturning or derailment of land conveyance; 4. Collision or contact of vessel craft or conveyance with any external object …. 5. Discharge of cargo at a port of distress; 6. General Average Sacrifice; 7. Jettison; 8. General Average and Salvage Charges
9. “Both to Blame” Clause 10. Washing overboard; 11. Earthquake., volcanic eruption or lightning. 12. Entry of sea, lake or river water into vessel, craft, hold, container 13. Total loss of any package lost overboard or dropped whilst loading/unloading…… 14.Any other risk not specifically excluded in the policy or the clauses Exclusion extra (Malicious Damage) under B and C
“Deliberate damage to or deliberate destruction of the subject matter insured or any part thereof by the wrongful act of any person or persons.”
General Exclusions • • • • • •
Willful misconduct of the Assured Insufficient, unsuitable or defective packing Inherent vice Proximately caused by delay Insolvency or financial default of owners, managers charterers or Operator of the vessels Nuclear or Radioactivity
EXCLUSIONS
INCOTERMS Ex Factory
C&F
CIF
Factory
Ex Works
FOB
CIP
Works
Load Port
Discharge Port
Additional covers •
2009 Wordings
•
Seals intact clause
•
Concealed Damage Clause
•
Shut out Cargo
•
Removal of Debris
•
Sellers Interest Clause
•
Buyers’ Interest Clause
•
Brand Clause
•
Pair and Set Clause
•
Delay Clause
•
Intermediary Storage Clause: 30 Days
•
Container Demurrage Clause
COVERS
Data required for a Marine Policy proposal form •
Name of the Insured
•
Description of Goods
•
Sum Insured
•
Exposure to imports, exports, domestic sales, domestic purchases and intra-transfer
•
Packaging Details
•
Per Sending Limit
•
Per Location Limit
•
Claim Details for the last 3 years
DATA
Thank You
Disclaimer The information and material provided in this presentation do not constitute an offer or solicitation for the purchase or sale of any security and financial instrument. The information may be obtained from various sources and PINC and/or its affiliates do not represent that the information is accurate or complete, and it should not be relied upon as such. PINC accepts no liability whatsoever for any direct or consequential loss arising from the use of this material or its contents. All estimates and opinions provided herein constitute the original researcher’s judgment as of the date of the report and may be subject to change without notice. PINC will not be responsible for the consequences of reliance upon any opinion or statement contained herein. The returns on the products discussed in this material are not guaranteed by any bank unless specifically stated and are subject to investment risks, including possible loss of the principal amount invested. An investment in any product should be made only after careful study of the most recent sales prospectus, term sheets, relevant fund regulations and basic legal information contained therein. Furthermore, investments in foreign currencies are subject to exchange rate fluctuations. Before entering into any transaction, you should consider the suitability of the transaction to your particular circumstances and independently review (with your professional advisors as necessary) the specific financial risks as well as legal, regulatory, credit, tax and accounting consequences.