Marine Insurance- Open Policy

Marine Insurance - Open Policy

Policy Details:

1) The open policy is issued to cover several shipments/ dispatches for the period of 12 (twelve) months based on the Sum Insured sufficiently large and adjusted against the value of each cargo in a reducing balance method.

2) Traders having regular dispatches are interested to take the benefit of the Open Policy.

Highlights :

1) The policy provides automatic and continuous insurance cover to a regular Exporter / Importer.

2) The traders deals with regular domestic dispatches are also benefited by the open policy.

3) The premium under the open policy should be paid in advance on projected Sum Insured.

4) The projected sum insured should be at least 4 (four) times of the Single carrying Limit / Per Bottom Limit.

5) As per the terms of the policy, Insured is bound to declare each and every shipment without any exceptions.

6) The adjustment of premium and sum insured are done based on the submission of each declaration.

7) The Sum Insured under the open policy can be enhanced 4 (four) times in a year.

8) Omissions or incorrect declarations may be rectified even after the loss or arrival provided such omissions or errors were genuine.

9) Refund of premium on unadjusted Sum Insured is allowed to the insured after expiry of the policy.

Covered :

All Risk as per ICC (A) / ITC (A) Basic Cover as per ICC (B) / ITC (B) - damage due to accident of carrying truck/conveyance & Fire during the course of journey. Rate of premium depends on the proposed Terms of Cover viz. Basic Cover would be cheaper than All Risks cover. The following risks are covered on paying additional premium.

1) War & SRCC (Import & Export)

2) SRCC (Inland Transit)

3) Theft, pilferage & Non-delivery (TPND) in case of Basic Cover only

4) Additional storage cover before delivery of cargo at the final destination.

Exclusions :

Applicable to all policies.

1) Willful misconduct of the assured

2) Ordinary leakage in case of liquid cargo

3) Ordinary loss in weight

4) Ordinary wear & tear

5) Improper packing

6) Inherent vice

7) Insolvency of carrier

8) Deliberate damages

9) Nuclear weapons

10) Rats and vermin For more details regarding exclusions.