Different clauses are available depending on the type of Coverage required ranging from ALL RISKS cover to a restricted Total loss only cover.
Transportation of goods is classified into three categories.
- Inland Transport
Various policies can be offered as follows:
Specific Voyage – to Cover only a specific single trip. The cover ends when goods reach destination.
Open Cover Policy – An open cover policy is an agreement whereby the insurer will accept insurance of all shipments made by the assured, within the terms of the cover for a fixed period. As the above is not a policy Certificates of Insurance are issued against the declaration made by the assured.
The open cover is of great convenience to the client engaged in regular import/export trade.
Who Can Take The Policy?
The contract of sale determines who buys the policy.
The most common contracts are:
- FOB (Free on Board)
- C&F (Cost and Freight)
- CIF (Cost, Insurance and Freight)
In FOB and C&F the seller is responsible to buy insurance. In CIF, the seller is responsible for insurance.
Select the Sum Insured
Usually 10-15 % in addition to the contract value should determine the sum insured.
How to claim
When there is a claim you should:
- Take steps to minimise loss
- Lodge monetary claim against carrier
- Inform the company or agent
- Submit the following original documents:
-Correspondence with Carrier
-Copy of notice served on carriers along with acknowledgement/receipt
-Survey Fee from a surveyor appointed by the Insurance Company.