Corporate Insurance

Marine Cargo/Transit - Open Policy

Highlights

A marine cargo open policy is the agreement between a merchant and an insurance company to insure all goods in transit falling within that agreement for an agreed period or even indefinitely until the agreement is cancelled by either party.

The policy specifies:

• Who is insured, and the insurers are.
• The general description of the goods.
• The countries or places to or from which the goods will be insured.
• The maximum value payable under the policy.
• How the goods will be valued.
• The conditions of insurance.

Extentions

The following additional covers can be considered to give the exporter some additional cover under an Marine Open Policy:

• Expediting Expenses
• Removal of Debris
• Advance loss of profits (machinery transit)
• Strikes Diversion Expenses
• Sellers interest (FOB exporter)
• Difference in Conditions clauses (CIF importer)
• Returned goods
• Duty

Risk

Risk ‘in the goods’ – when the goods reach the delivery point in the Incoterm, risk transfers from the seller to the buyer. This is when the goods are on board the vessel at the port of export.

Before this point,if the goods are lost or damaged, the seller can claim on the insurance. After this time the buyer must pay for the goods, even when the goods have not reached them yet, and recover their loss from marine insurance.

Note : Policy details given are indicative, not exhaustive. Please contact your nearest Arunaya office for further details.