Check your Export Marine Policy
Check the following important wordings to ensure that your policy has been correctly issued, as per your requirements:
Subject Matter Insured
Be satisfied that all items required to be insured are included. Items which are not specifically included or not appropriately worded in the policy would fall outside the scope of the policy.
By “standard & customary” it is meant that the packing should be strong, stable & suitable to withstand the intended journey keeping in mind the nature of the goods, the journey involved, the port conditions at origin & destination, handling methodology at theports & on board the conveyance, season, duration & all other aspectswhich would fall within the ordinary course of the transit.
Check that all the probable modes that would carry the insured cargo have been included; otherwise, shipments by conveyances not included would remain uncovered. Ensure that the conveyance chosen / used is fit, suitable & clean to carry the intended cargo.
Check that the places included meet your requirements. Shipments to or from, as may be applicable, places not included would not be covered under the policy.
Limit per Bottom / Sending Limit
This denotes the maximum value of any one of your shipment. Shipment values exceeding this limit would remain uncovered unless prior notice is given to the Company & suitable amendments have been made in the policy.
This denotes accumulation of all your shipments at any one place at any one time, e.g. intermediate storage, carriers' or other godowns, at the port awaiting shipment & similar places.
Basis of Valuation
This denotes the components on the basis of which the valuation should be arrived at by you, e.g. FOB (Free on Board value) value + 10%, Invoice value, Invoice value + 10%, C&F (Cost & Freight value) value, CIF (Cost, Insurance & Freight) value + 10% etc. The additional 10% is generally allowed by the Company, as per universal practice, to take care of various incidental expenses that may have to be incurred by the supplier/exporter. Shipments exceeding the Basis of Valuation incorporated in the policy would fall outside the scope. The premium is calculated on the value declared for the shipment which, as explained, should neither exceed the 'Sending Limit' nor the 'Basis of Valuation'.
Ensure that there is always adequate sum insured balance before a shipment is made, otherwise, inadequate balance would render the shipment concerned to be uncovered.
As per Section 64 VB of the Insurance Act, 1938, adequate premium balance is required to be maintained before the commencement of a shipment. Inadequate premium balance would render a shipment uncovered.
Declarations assist you in maintaining adequate premium balances at all times. It ismandatory to declare all shipments that fall within the scope of the Policywithin the time limit.
Excess, Exclusions,Warranties,Conditions etc
Read these carefully & make yourself conversant with the same.