Marine open policy & other covers

The importing and exporting of goods can expose you to massive financial losses should your shipments be damaged or destroyed in transit. An Open policy covers all of your shipments as and when they happen, in order to provide full protection.

Catering to both importers’ and exporters’ needs, the coverage is comprehensive and flexible with both local & international shipments protected from the time the goods leave the seller’s warehouse until they reach the Buyer’s warehouse.

A Marine open policy allows you to take one policy that covers your total sending(value of goods shipped) over a year. You then have to declare every trip made to the insurer(made simple and automated thanks to Perilwise’s systems).

Open Policy

This policy covers all the marine sendings(shipments) of a client in a 12 month policy period where the voyage involved is within a country (domestic/inland).

Declarations are made on a regular basis, and rates are calculated on expected volumes/materials shipped, and on previous history.

Open Cover

This policy covers all the marine sendings of a client in a 12 month policy period where the voyage involved is import or export.

  • Duty Insurance Policy - Customs duties form a major part of the cost of imported goods. Once the goods land at the port of destination custom, duty becomes payable. If the goods are damaged during the transit from the port to the importer's warehouse, the sum insured value(on Cost + Insurance + Freight (CIF)basis) is not sufficient to represent the actual value of the goods since the custom duties should have already been paid.

This additional element of cost can be covered by a duty Insurance Policy. Claims under a duty policy are only payable if the claim is otherwise admissible in the marine cargo policy covering the goods.

Seller’s Contingency Policy

In almost all export transactions where credit is allowed by the seller to the Buyer and the goods are not exported on CIF basis, responsibility for the goods passes to the Buyer when the goods are loaded on to the overseas vessel. However, the ownership does not change until the Buyer accepts the goods and relative documents.

Thus, in the event of loss of or damage to the goods in transit and the buyer refusing to pay for such loss or damage, the seller could stand to lose financially. Seller's Interest or Contingency Interest cover could help to prevent this.

The cover is normally arranged as an extension of FOD cover. The seller's interest cover in effect retrospectively reinstates cover, as per Institute Cargo Clauses as provided for in the policy and allows the seller to be protected in an area where he has no control over the insurance arrangement.

Marine Sales Turnover Policy

A marine Sales Turnover policy(STOP) is an Open Policy in the real sense of the term. The premium for the policy is charged only on sales turnover. There are no declaration, only the total value of goods shipped annually.

A sales turnover policy provides Transit insurance coverage on:

  • Imports and Customs Duty (Actual or Deemed / Contingent)
  • Domestic purchase of raw materials, consumables & stores
  • Any number of inter- factory / inter-depot / To & from job worker movements
  • Exports on Freight on board (FOB)/ Cost insurance Freight (CIF) basis
  • Domestic sales of finished goods
  • Temporary storage cover at intermediate locations like Job workers / C & F premises etc.

There are many advantages to a sales turnover policy, primarily a sizeable saving in premium that is charged only on actual sales turnover.

  • Seamless cover with all movement of goods automatically covered.
  • No hassles of submitting periodical declaration of movements to the insurer. Only monthly sales figures need to be submitted.
  • Intermediate storage cover can be built into the policy.
  • Premium on full annual sales turnover need not be paid in advance. Payment frequency can also be customised
  • This policy provides cover from the time the raw material is purchased to movements to all intermediate locations for processing or storage until it reaches the final destination or until the customers responsibility ceases.

This gives a seamless cover on a worldwide basis thereby reducing gaps in the overall process. Since each industry comes with its unique challenges and logistical issues Perilwise provides customised solutions using technology and expertise, and designs an economical product tailored to the specific needs of a business.

Multinational Cargo Transport

Multinational Cargo Transport Policy is a tailor-made cover for Indian companies whose operations span the globe. In this case, a Master Open Policy is underwritten in India covering the global transit risks of the policyholder and offers admitted policies in foreign countries as and when required. Perilwise works with insurers who have a large worldwide network, to provide a cover customised to your particular operations and setup.

This policy can cover DIC (Difference in Conditions), movements between subsidiaries along with the coverages offered under a standard open policy.

Marine Cargo Insurance in general offers three types of covers:

Institute Cargo Clause (C):

Named Peril basis. This is the most restricted clause and covers only loss or damage reasonably attributable to:

  • Fire or explosion
  • Vessel or craft being stranded grounded sunk or capsized
  • Overturning or derailment of land conveyance
  • Collision or contact of vessel craft or conveyance with any external object other than water
  • discharge of cargo at a port of distress and loss or damage caused by General Average Sacrifice / Jettison

Institute Cargo Clause (B)

Named Peril basis; this cover covers everything that ICC ‘C’ Clause covers, but in addition:

  • Earthquake, volcanic eruption or lightning
  • Washing Overboard
  • Entry of sea, lake or river water into the vessel, craft, hold, conveyance, container, lift, van or place of storage
  • Total loss of any package lost overboard or dropped whilst loading onto, or unloading from, vessel or craft

Institute Cargo Clause (A)

The widest form of cover under Marine Cargo Insurance in so far as it relates to the perils covered. ICC (A) is an unnamed perils clause; all risks except standard exclusions are covered.


Various clauses can be added on depending upon the nature of the goods being carried. The Institute Cargo Clauses comprise a range of covers from the most comprehensive ones such as (A) Clauses to the basic minimum protection available termed (C) Clauses.

Additional cover can also be provided for the following:

  • Loading and Unloading
  • Customs duty
  • Removal of debris

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