Benefits of being a MUI Member

1. Free conveyance of our quarterly home journal 'The Oceanite'. It contains sea/maritime news, M.S. notices, articles relevant to shipping and general subjects.

2. Restricted monetary help to immediate family members of member officers (spouse and 2 children up to age of 18 to 25 (Indian/foreign company) for clinical treatment.

3. You and your immediate family can stay at convalescent Homes. In your absence, your wife along with your kids can profit the advantages of home. For additional details generously keep in touch with the Maritime Floating Staff Welfare Trust (MFSWT) or The Merchant Navy Officers Welfare Fund (MNOWF).

4. In a tough situation, MUI will broaden help with all ports through affiliates and fraternal unions.

Benefits of Certificate of Competency (COC) Protection

This facility can be profited on for completely paid Individuals of the union. An officer will be given legitimate and monetary help with instance of suspension, cancellation, replacement of his/her Certificate of Competency (COC), subject to various terms & conditions.

1. Suspension of Certificate: A most extreme remuneration of Rs.3,20,000/ - (Rupees Three Lakh Twenty Thousand Only) which is spread over 8 months.

2. Cancellation of Certificate: A most extreme remuneration of Rs.6,00,000/ - (Rupees Six Lakh only) over time of year and a half.

3. Certificate replacement: Certificate replaced by the lower certificate up to Rs.22,500/ - (Rupees Twenty-Two thousand Five Hundred Only) each month not surpassing 8 installments as Pay. Given that this MUI COC Security Application is in force upon the arrival of the occurrence leading to an authority investigation into a Transportation Setback (or was in force no less than a half year before same).

4. Lawful Help in India: Legitimate help with India under the watchful eye of any Court of Request where Capability would be questioned up to an amount of Rs.5,00,000/ - (Rupees Five Lakh Only).

5. Lawful Help outside India: Legitimate help outside India under the watchful eye of any Court of Request where Capability would be questioned up to an amount of Rs.5,00,000/ - (Rupees Five Lakh as it were).

MUI COC Insurance Application covers competency certificates only. But not against cancellation of disciplinary misconduct or legal offenses.

The maritime union of India is not bound to give notice for renewal of premium.

TYPES OF MARINE INSURANCE POLICIES

 

TYPES OF MARINE INSURANCE POLICIES

 

1. FLOATING POLICY (BY SHIP OR SHIPS) 
    

• A TYPE OF INSURANCE IN WHICH THE VALUE OF THE  GOODS BEING INSURED CANNOT BE CALCULATED EXACTLY, SO THE PAYMENT FOR INSURING THEM CAN BE CHANGED AFTER A PERIOD OF TIME.
• LARGE EXPORTERS MAY OPT FOR AN OPEN POLICY, ALSO KNOWN AS A BLANKET POLICY, INSTEAD OF TAKING INSURANCE SEPARATELY FOR EACH SHIPMENT.
• AN OPEN POLICY IS A ONE-TIME INSURANCE THAT PROVIDES INSURANCE COVER AGAINST ALL SHIPMENTS MADE DURING THE AGREED PERIOD, OFTEN A YEAR.
• THE EXPORTER MAY NEED TO DECLARE PERIODICALLY (SAY, ONCE A MONTH) THE DETAIL OF ALL SHIPMENTS MADE DURING THE PERIOD, TYPE OF GOODS, MODES OF TRANSPORT, DESTINATIONS, ETC.
• A FLOATING POLICY IS A POLICY WHICH DESCRIBES THE INSURANCE IN GENERAL TERMS, AND LEAVES THE NAME OR NAMES OF THE SHIP OR SHIPS AND OTHER PARTICULARS TO BE DEFINED BY SUBSEQUENT DECLARATION.
• THE SUBSEQUENT DECLARATION OR DECLARATIONS MAY BE MADE BY ENDORSEMENT ON THE POLICY, OR IN OTHER CUSTOMARY MANNER.
• UNLESS THE POLICY OTHERWISE PROVIDES, THE DECLARATIONS MUST BE MADE IN THE ORDER OF DISPATCH OR SHIPMENT. THEY MUST, IN THE CASE OF GOODS, INCLUDE ALL CONSIGNMENTS WITHIN THE TERMS OF THE POLICY AND THE VALUE OF THE GOODS OR OTHER PROPERTY MUST BE HONESTLY STATED, BUT AN OMISSION OR ERRONEOUS DECLARATION MAY BE RECTIFIED EVEN AFTER LOSS OR ARRIVAL, PROVIDED THE OMISSION OR DECLARATION WAS MADE IN GOOD FAITH.
• UNLESS THE POLICY OTHERWISE PROVIDES, WHERE A DECLARATION OF VALUE IS NOT MADE UNTIL AFTER NOTICE OF LOSS OR ARRIVAL, THE POLICY MUST BE TREATED AS AN UNVALUED POLICY AS REGARDS THE SUBJECT-MATTER OF THAT DECLARATION.

 

2. VOYAGE POLICY

 

• A VOYAGE POLICY IS MARINE INSURANCE COVERAGE FOR RISKS TO A SHIP'S CARGO DURING A SPECIFIC VOYAGE.
• UNLIKE MOST INSURANCE POLICIES IT IS NOT TIME-BASED BUT EXPIRES WHEN THE SHIP ARRIVES AT ITS DESTINATION.
• IT COVERS ONLY THE CARGO, NOT THE SHIP THAT CARRIES IT.
• A VOYAGE POLICY IS IN EFFECT ONLY WHILE THE SHIP IS AT SEA; ADDITIONAL INSURANCE IS NEEDED TO COVER LOSSES DURING LOADING AND UNLOADING OF CARGO.
• A VOYAGE POLICY COVERS UNFORESEEN RISKS BUT NOT PREVENTABLE RISKS. FOR A VOYAGE POLICY TO BE VALID, THE VESSEL TRANSPORTING THE CARGO MUST BE IN GOOD CONDITION AND CAPABLE OF MAKING THE JOURNEY, AND THE VESSEL'S CREW MUST BE COMPETENT.

 

 

3. TIME POLICY 

• TIME POLICY IN MARINE INSURANCE IS GENERALLY ISSUED FOR A YEAR’S PERIOD.
• THE SHIP IS INSURED FOR A FIXED PERIOD IRRESPECTIVE OF VOYAGES.
• TIME POLICIES MAY SOMETIMES BE ISSUED FOR MORE THAN A YEAR OR THEY MAY BE EXTENDED BEYOND A YEAR TO ENABLE A SHIP TO COMPLETE A VOYAGE.
•  IN INDIA, A TIME POLICY IS NOT ISSUED FOR MORE THAN A YEAR.

 

4. MIXED POLICY

• THIS POLICY IS A MIXTURE OF TIME AND VOYAGE POLICIES.
• A SHIP MAY BE INSURED DURING A PARTICULAR VOYAGE FOR A PERIOD, E.G., A SHIP MAY BE INSURED BETWEEN BOMBAY AND LONDON FOR ONE YEAR. THESE POLICIES ARE ISSUED TO SHIPS OPERATING ON A PARTICULAR ROUTE.

 

5. NAMED POLICY

• NAMED POLICY IS ONE OF THE MOST POPULAR POLICIES IN MARINE INSURANCE POLICY. THE NAME OF THE SHIP IS MENTIONED IN THE INSURANCE DOCUMENT, STATING THE POLICY ISSUED IS IN THE NAME OF THE SHIP.

 

6. PORT RISK POLICY

• IT IS A POLICY TAKEN TO ENSURE THE SAFETY OF THE SHIP WHEN IT IS STATIONED IN A PORT.

 

7. FLEET POLICY

• A POLICY MAY BE TAKEN UP FOR ONE SHIP OR FOR THE WHOLE FLEET.
• IF IT IS TAKEN FOR EACH SHIP, IT IS CALLED A SINGLE VESSEL POLICY.
• WHEN A COMPANY PURCHASES ONE POLICY FOR ALL ITS SHIPS, IT IS CALLED A FLEET POLICY.
• THE INSURED HAS AN ADVANTAGE OF COVERING EVEN OLD SHIPS AT AN AVERAGE RATE OF PREMIUM.
• THIS POLICY IS GENERALLY A TIME POLICY.

 

8. SINGLE VESSEL POLICY

• IN SINGLE VESSEL POLICY ONLY ONE VESSEL IS COVERED UNDER MARINE INSURANCE POLICY.

 

9. BLANKET POLICY

• MARINE INSURANCE BLANKET POLICY, ALSO SOMETIMES REFERRED TO AS MARINE OPEN COVER, IS ONE OF THE MOST COMMON AND COMPREHENSIVE TYPES OF INSURANCE AVAILABLE TO THE INSURED.
• THIS POLICY IS TAKEN TO COVER DAMAGES OR LOSSES WITHIN A SPECIFIC PERIOD.

 

10. BLOCK POLICY

• SOMETIMES A POLICY IS ISSUED TO COVER BOTH LAND AND SEA RISKS.
• IF THE GOODS ARE SENT BY RAIL OR BY TRUCK TO THE DEPARTURE, THEN IT WILL INVOLVE RISK ON LAND ALSO.
• ONE SINGLE POLICY CAN BE ISSUED TO COVER RISKS FROM THE POINT OF DESPATCH TO THE POINT OF ULTIMATE ARRIVAL.
• THIS POLICY IS CALLED A BLOCK POLICY.

 

11. VALUED POLICY 
    
    

• UNDER THIS POLICY THE VALUE OF THE POLICY IS DECIDED AT THE TIME OF CONTRACT.
• THE VALUE IS WRITTEN ON THE FACE OF THE POLICY.
• IN CASE OF LOSS, THE AGREED AMOUNT WILL BE PAID.
• THERE IS NO DISPUTE LATER ON FOR DETERMINING THE VALUE OF COMPENSATION.
• THE VALUE OF GOODS INCLUDES COST, FREIGHT, INSURANCE CHARGES, SOME MARGIN OF PROFIT AND OTHER INCIDENTAL EXPENSES.
• THE SHIPS ARE INSURED IN THIS MANNER.

 

12. UNVALUED POLICY

• WHEN THE VALUE OF INSURANCE POLICY IS NOT DECIDED AT THE TIME OF TAKING UP A POLICY, IT IS CALLED UNVALUED POLICY.
• THE AMOUNT OF LOSS IS ASCERTAINED WHEN A LOSS OCCURS.
• AT THE TIME OF LOSS OR DAMAGE THE VALUE OF THE SUBJECT-MATTER IS DETERMINED.
• IN FINDING OUT THE VALUE OF GOODS, FREIGHT, INSURANCE CHARGES AND SOME MARGIN OF PROFIT IS ALLOWED TO THE POLICY IN COMMON USE.

 

CARRIER LIMIT OF LIABILITY FOR INTERNATIONAL SHIPPING?

 

CARRIER LIMIT OF LIABILITY FOR INTERNATIONAL SHIPPING?

(IN THE EVENT OF DAMAGE, LOSS, OR DELAY OF CARGO)

 

WHAT IS CARRIER LIMIT OF LIABILITY?

•      •       THE CARRIER LIMIT OF LIABILITY DETERMINES THE MAXIMUM AMOUNT OF MONEY THAT CARRIERS CAN BE HELD LIABLE FOR IN THE EVENT OF DAMAGE, LOSS, OR DELAY OF CARGO.
• •       HOWEVER, LIMITS OF LIABILITY VARY BETWEEN CARRIERS AND SITUATIONS.

WHAT IS COVERED?

• •       CARRIER LIMIT OF LIABILITY COVERS DAMAGE OR LOSS THAT OCCURRED DUE TO CARRIER NEGLIGENCE.
• •       TO SETTLE A CLAIM, THE RESPONSIBILITY IS TYPICALLY ON THE IMPORTERS / SHIPPER TO PROVE THAT THE DAMAGE WAS THE FAULT OF THE CARRIER.
• •       THERE IS ALSO NO OFFICIAL DEADLINE TO SETTLE A CLAIM SO THAT THE PROCESS COULD DRAG ON FOR MONTHS.
• •       FOR A CARRIER TO BE LIABLE FOR LOSS OR DAMAGE, IMPORTERS / SHIPPER HAVE TO PROVE THAT THEIR CARGO WAS IN GOOD CONDITION WHEN GIVEN TO THE CARRIER, BUT WAS DELIVERED DAMAGED, OR NOT DELIVERED, AND THEY MUST PROVE THE AMOUNT OF THE DAMAGE THEY ARE CLAIMING.
• •       IMPORTERS / SHIPPER MUST FILE CLAIMS WITHIN NINE MONTHS OF THE DATE UPON WHICH DELIVERY WAS OR SHOULD HAVE BEEN MADE.
• •       CARRIERS HAVE 30 DAYS TO ACKNOWLEDGE A CLAIM HAS BEEN MADE AND MUST RESPOND TO THE SHIPPER WITHIN 120 DAYS.

WHAT IS NOT COVERED?

• CARRIERS ARE NOT HELD RESPONSIBLE FOR DAMAGE OR LOSS THAT OCCURS DUE TO:

1. AN ACT OF GOD, LIKE EXTREME WEATHER OR A NATURAL DISASTER
2. FIRE
3. INTERFERENCE BY A PUBLIC ENEMY
4. ACT OF WAR, LIKE STRIKES, RIOTS OR CIVIL FUSSES.
5. IMPROPER PACKAGING OF CARGO BY THE SHIPPER
6. GOVERNMENT ACTION, LIKE ROAD CLOSURES, QUARANTINES, OR TRADE BANS.
7. GOODS THAT ARE PRONE TO SPOIL OR BECOME DEFECTIVE OVER TIME, LIKE CROP, TOBACCO, OR MEDICAL.
8. LATENT DEFECTS TO THE HULL OR MACHINERY (A LATENT DEFECT IS DEFINED AS A DEFECT WHICH EXISTS AT THE TIME OF ACCEPTANCE BUT CANNOT BE DISCOVERED BY A REASONABLE INSPECTION).
9. CRIMINAL ACTS OR NEGLIGENCE BY MASTER OR CREW

CARRIER LIABILITY CLAIMS PROCESS VS. CARGO INSURANCE CLAIMS PROCESS

 

A . IF YOU ARE MAKING A CLAIM AND YOUR FREIGHT IS ONLY COVERED BY CARRIER LIMIT OF LIABILITY COVERAGE:

1. YOUR CLAIM MUST BE FILED WITHIN NINE MONTHS OF DELIVERY.
2. THE DELIVERY RECEIPT HAS TO INCLUDE NOTICE OF DAMAGE.
3. PROOF OF VALUE AND LOSS IS REQUIRED.
4. CARRIERS HAVE 30 DAYS TO ACKNOWLEDGE YOUR CLAIM AND HAVE TO RESPOND WITHIN 120 DAYS.
5. CARRIER NEGLIGENCE HAS TO BE PROVEN.

B. IF YOUR SHIPMENT IS COVERED BY FREIGHT INSURANCE:

1. PROOF OF VALUE AND LOSS IS REQUIRED.
2. CLAIMS ARE TYPICALLY PAID WITHIN 30 DAYS.
3. YOU ARE NOT REQUIRED TO PROVE CARRIER NEGLIGENCE.

 

TYPES OF MARINE INSURANCE

 

TYPES OF MARINE INSURANCE

Freight Insurance

Liability Insurance

Hull Insurance

Marine Cargo Insurance

 

1. Freight Insurance

•       PROVIDES PROTECTION AGAINST THE LOSS OF FREIGHT.

•       IN MANY CASES, THE OWNER OF GOODS IS BOUND TO PAY FREIGHT, UNDER THE TERMS OF THE CONTRACT, ONLY WHEN THE GOODS ARE SAFELY DELIVERED AT THE PORT OF DESTINATION.

•       IF THE GOODS ARE DAMAGED IN TRANSIT, THE OPERATOR WOULD LOSE FREIGHT RECEIVABLES & SO THE INSURANCE WILL BE PROVIDED ON COMPENSATION FOR LOSS OF FREIGHT.

•       FREIGHT INSURANCE OFFERS AND PROVIDES PROTECTION TO MERCHANT VESSELS’ CORPORATIONS WHICH STAND A CHANCE OF LOSING MONEY IN THE FORM OF FREIGHT IN CASE THE CARGO IS LOST DUE TO THE SHIP MEETING WITH AN ACCIDENT.

•       THIS TYPE OF MARINE INSURANCE SOLVES THE PROBLEM OF COMPANIES LOSING MONEY BECAUSE OF A FEW EXCEPTIONAL EVENTS AND ACCIDENTS OCCURRING.

2.    Liability Insurance

•       MARINE LIABILITY INSURANCE IS ONE IN WHICH THE INSURER UNDERTAKES TO INDEMNIFY AGAINST THE LOSS WHICH THE INSURED MAY SUFFER ON ACCOUNT OF LIABILITY TO A THIRD PARTY CAUSED BY COLLISION OF THE SHIP AND OTHER SIMILAR HAZARDS.

3.    Hull Insurance

•       HULL INSURANCE: HULL INSURANCE MAINLY PROVIDESTHE UPPER BODY AND HULL OF THE VESSEL ALONG WITH ALL THE ARTICLES AND PIECES OF FURNITURE ON THE SHIP. THIS TYPE OF MARINE INSURANCE IS MOSTLY TAKEN OUT BY THE OWNER OF THE SHIP TO AVOID ANY LOSS TO THE VESSEL IN CASE OF ANY MISHAPS OCCURRING.

•       MACHINERY INSURANCE: ALL THE ESSENTIAL MACHINERY ARE COVERED UNDER THIS INSURANCE AND IN CASE OF ANY OPERATIONAL / ACCIDENTAL  DAMAGES, CLAIMS CAN BE COMPENSATED.

•       THE ABOVE TWO INSURANCES ALSO COME AS ONE UNDER HULL & MACHINERY (H&M) INSURANCE.

•       THE H&M INSURANCE CAN ALSO BE EXTENDED TO COVER WAR RISK COVERS AND STRIKE COVER (STRIKE IN PORT MAY LED TO DELAY AND INCREASE IN COSTS)

4.    Marine Cargo Insurance

•       MARINE CARGO INSURANCE IS A SUB SECTION OF MARINE INSURANCE.

•       THE PROTECTION IT PROVIDES IS AGAINST THE LOSS OR THEFT AND DAMAGE CAUSED TO CARGO DURING TRANSIT NETWORKS. 

•       THERE ARE TWO TYPES OF MARINE CARGO INSURANCE

1. ALL-RISK MARINE CARGO INSURANCE.
2. NAMED PERILS MARINE CARGO INSURANCE.

Types of Marine Cargo Insurance Coverage

1.    ALL-RISK MARINE CARGO INSURANCE COVERAGE

2.    NAMED PERILS MARINE CARGO INSURANCE COVERAGE

ALL-RISK MARINE CARGO INSURANCE

•       INSTITUTE CARGO CLAUSE A IS THE WIDEST COVERAGE YOU CAN PURCHASE, ALSO KNOWN AS AN ‘ALL RISKS’ CARGO INSURANCE POLICY.

•       FOR THIS REASON, IT IS THE MOST EXPENSIVE OF THE THREE ( A,B, & C). 

 

WHAT EXACTLY DOES IT COVER?

•       CLAUSE A COVERS MAXIMUM RISKS.

•       IT CAN COVER THE CARGO, CONTAINER, AND TRANSPORTATION, AND ANY EXCLUSIONS CAN BE FOUND IN THE GENERAL EXCLUSION CLAUSES.

NAMED PERILS MARINE CARGO INSURANCE

•       NAMED PERILS COVERAGE REFERS TO INSTITUTE CARGO CLAUSES ‘B’ AND ‘C’.

•       WHICH ARE MORE RESTRICTIVE TYPES OF MARINE CARGO INSURANCE.

•       THIS INCLUDES VARIOUS DEGREES OF NARROWER COVERAGE THAT WILL ONLY COVER THE LOSS IF IT IS CAUSED BY SPECIFIC, NAMED PERILS SUCH AS SINKING, STRANDING, OR BURNING.

•       ANY PERIL NOT NAMED IN THESE POLICY TYPES IS NOT COVERED BY THE INSURANCE.

WHAT IS CARRIER LIMIT OF LIABILITY?

 

•       THE TWO MAIN TYPES OF CARGO INSURANCE COVERAGE AN IMPORTER CAN PURCHASE TO PROTECT THEIR GOODS WHILE IN TRANSIT ARE        ALL-RISK AND NAMED PERILS.

•       IF AN IMPORTER DOES NOT PURCHASE CARGO INSURANCE, THEY ARE ONLY COVERED BY CARRIER LIMIT OF LIABILITY.

•       THE CARRIER LIMIT OF LIABILITY DETERMINES THE MAXIMUM AMOUNT OF MONEY THAT CARRIERS CAN BE HELD LIABLE FOR IN THE EVENT OF DAMAGE, LOSS, OR DELAY OF CARGO. HOWEVER, LIMITS OF LIABILITY VARY BETWEEN CARRIERS AND SITUATIONS.

 

Institute Clauses in marine insurance

 

Institute Clauses In Marine Insurance

INSTITUTE TIME CLAUSES

•       IN THE 19TH CENTURY, LLOYD’S AND THE ILU (INSTITUTE OF LONDON UNDERWRITERS) DEVELOPED STANDARDIZED CLAUSES FOR THE USE OF MARINE INSURANCE.

•       THESE HAVE BEEN MAINTAINED EVER SINCE AND ARE KNOWN AS INSTITUTE CLAUSES.

THE INTERNATIONAL HULL CLAUSES

•       THE INTERNATIONAL HULL CLAUSES (IHC) ARE A SET OF STANDARD TERMS AND CONDITIONS THAT GOVERN MARINE INSURANCE POLICIES FOR HULL AND MACHINERY.

•       THESE CLAUSES ARE USED BY INSURERS AND REINSURERS WORLDWIDE AS A BASIS FOR THEIR MARINE INSURANCE CONTRACTS.

•       THE IHC PROVIDE A COMPREHENSIVE FRAMEWORK FOR THE COVERAGE, RIGHTS, AND OBLIGATIONS OF THE INSURED AND INSURER IN RELATION TO THE HULL AND MACHINERY OF A VESSEL.

•       THEY COVER VARIOUS ASPECTS SUCH AS INSURABLE INTERESTS, PERILS INSURED AGAINST, EXCLUSIONS, DEDUCTIBLES, VALUATION OF THE INSURED VESSEL, CLAIMS SETTLEMENT, AND OTHER IMPORTANT PROVISIONS.

•       THE IHC ARE TYPICALLY USED FOR OCEAN-GOING VESSELS OF VARIOUS TYPES, INCLUDING CARGO SHIPS, TANKERS, PASSENGER VESSELS, AND OFFSHORE INSTALLATIONS.

•       THEY AIM TO PROVIDE A STANDARDIZED APPROACH TO HULL AND MACHINERY INSURANCE, ENSURING CONSISTENCY AND CLARITY IN THE INSURANCE COVERAGE ACROSS DIFFERENT POLICIES AND JURISDICTIONS.

•       HOWEVER, IT'S IMPORTANT TO NOTE THAT INDIVIDUAL INSURERS MAY MODIFY OR ADAPT THE IHC TO SUIT THEIR SPECIFIC NEEDS OR TO COMPLY WITH LOCAL REGULATIONS.

•       THEREFORE, IT IS CRUCIAL TO CAREFULLY REVIEW AND UNDERSTAND THE TERMS AND CONDITIONS OF THE SPECIFIC MARINE INSURANCE POLICY BEFORE PURCHASING COVERAGE OR MAKING A CLAIM.

THE INTERNATIONAL HULL CLAUSES ARE DIVIDED INTO THREE PARTS:

•       PART ONE CONTAINS THE PRINCIPAL INSURING CONDITIONS.

•       PART TWO PRESENTS A RANGE OF ADDITIONAL CLAUSES THAT WERE FREQUENTLY REQUIRED BY ASSUREDS AND ADDED TO ITC SEPARATELY.

•       PART THREE CONTAINS PROVISIONS FOR CLAIMS HANDLING AND SETS OUT THE RIGHTS AND RESPONSIBILITIES OF UNDERWRITERS AND ASSUREDS.

THE INSTITUTE TIME CLAUSES

•       THE INSTITUTE TIME CLAUSES (ITC) ARE A SET OF STANDARD TERMS AND CONDITIONS THAT GOVERN MARINE INSURANCE POLICIES FOR TIME-BASED RISKS.

•       THESE CLAUSES ARE PRIMARILY USED FOR INSURING VESSELS AND THEIR ASSOCIATED RISKS DURING A SPECIFIED PERIOD, OFTEN REFERRED TO AS A VOYAGE OR TIME CHARTER.

•       THE ITC PROVIDE A FRAMEWORK FOR COVERAGE, RIGHTS, AND OBLIGATIONS OF THE INSURED AND INSURER IN RELATION TO THE VESSEL AND THE VOYAGE OR TIME CHARTER PERIOD.

•       THEY COVER ASPECTS SUCH AS INSURABLE INTERESTS, PERILS INSURED AGAINST, EXCLUSIONS, DEDUCTIBLES, CLAIMS SETTLEMENT, AND OTHER IMPORTANT PROVISIONS.

•       THERE ARE DIFFERENT VERSIONS OF THE ITC THAT PROVIDE TO DIFFERENT TYPES OF RISKS AND VESSELS. FOR EXAMPLE, THE INSTITUTE TIME CLAUSES (HULLS) COVER THE HULL AND MACHINERY OF THE VESSEL, WHILE THE INSTITUTE TIME CLAUSES (CARGO) COVER THE CARGO BEING TRANSPORTED.

•       THE ITC ARE WIDELY USED IN THE MARINE INSURANCE INDUSTRY AS A BASIS FOR TIME-BASED INSURANCE CONTRACTS.

•       HOWEVER, INSURERS AND REINSURERS MAY MODIFY OR ADAPT THE CLAUSES TO SUIT THEIR SPECIFIC NEEDS OR TO COMPLY WITH LOCAL REGULATIONS.

•       THEREFORE, IT'S IMPORTANT TO CAREFULLY REVIEW AND UNDERSTAND THE TERMS AND CONDITIONS OF THE SPECIFIC MARINE INSURANCE POLICY BEFORE PURCHASING COVERAGE OR MAKING A CLAIM.

THE INSTITUTE TIME CLAUSES-HULL

•       THE INSTITUTE TIME CLAUSES, WHICH AFFORD COVERAGE FOR A SPECIFIC PERIOD, (USUALLY 12 MONTHS) ARE THE MOST IMPORTANT CLAUSES IN MARINE HULL INSURANCE POLICIES.

•       DEPENDING ON THE NATURE AND DEGREE OF RISKS, THERE ARE THREE CATEGORIES OF ITC:

•       (1) INSTITUTE TIME CLAUSES (HULL) THAT PROVIDES MAXIMUM COVERAGE (I.E. PERILS AND OTHER LOSSES AND EXPENSES COVERED).

•       (2) INSTITUTE TIME CLAUSES (FREE PARTIAL AVERAGE-FPA) THAT PROVIDES SIMILAR COVERAGE TO THAT OF THE HULL’S CLAUSES, BUT EXCLUDES COVERAGE ON MACHINERY DAMAGES, &

•       (3) INSTITUTE TIME CLAUSES (TOTAL LOSS ONLY) THAT PROVIDES COVERAGE ONLY IN THE EVENT OF A TOTAL LOSS. THIS IS USUALLY EXTENDED TO OLD VESSELS.

THE INSTITUTE TIME CLAUSES-CARGO

•       THE INSTITUTE CARGO CLAUSES (ICC) DEFINE THE RISKS COVERED, CIRCUMSTANCES EXCLUDED, DURATION OR VALIDITY OF COVERAGE AND CONDITIONS OF CLAIMS. COVERAGE IS PROVIDED ON AN A, B, OR C BASIS, A HAVING THE WIDEST COVERAGE AND C THE MOST RESTRICTED.

THE PURPOSE OF INSTITUTE CARGO CLAUSES

•       WITHIN THE CONTEXT OF MARINE INSURANCE, INSTITUTE CARGO CLAUSES SERVE A SPECIFIC PURPOSE.

•       THIS IS TO SPECIFY WHAT IS AND IS NOT COVERED WHEN THERE IS DAMAGE OR LOSS TO THE SHIPMENT.

•       COVER CAN INCLUDE ANYTHING FROM THE CARGO TO THE CONTAINER THAT HOLDS IT AND EVEN THE TRANSPORTATION USED TO SHIP SAID CARGO.

•       THE DIFFERENCE IN COVERAGE IS DETAILED BY EACH DIFFERENT CATEGORY OF CLAUSE: A, B, AND C. CLAUSE C IS THE MOST RESTRICTIVE OF THE THREE, WITH A BEING THE BROADEST.

      Institute Cargo Clause ‘A’

•       INSTITUTE CARGO CLAUSE A IS THE WIDEST COVERAGE YOU CAN PURCHASE.

•       ALSO KNOWN AS AN ‘ALL RISKS’ CARGO INSURANCE POLICY.

•       FOR THIS REASON, IT IS THE MOST EXPENSIVE OF THE THREE ( A,B, & C ).

         WHAT EXACTLY DOES IT COVER?

•       CLAUSE A COVERS MAXIMUM RISKS. IT CAN COVER THE CARGO, CONTAINER, AND TRANSPORTATION, AND ANY EXCLUSIONS CAN BE FOUND IN THE GENERAL EXCLUSION CLAUSES.

      Institute Cargo Clause ‘B’

•       THIS CLAUSE IS A MORE RESTRICTIVE KIND OF COVERAGE.

•       FOR THIS REASON, YOU SHOULD EXPECT TO PAY A MODERATE PREMIUM.

•       IN THE CASE OF THIS CLAUSE, YOU MIGHT ONLY REQUEST FOR THE MORE VALUABLE ITEMS IN YOUR CARGO TO BE COVERED OR FOR PARTIAL CARGO COVERAGE.

Institute Cargo Clause ‘C’

•       THIS CLAUSE, OF COURSE, IS THE MOST RESTRICTIVE OF THE THREE.

•       IT COVERS ONLY VERY LIMITED RISKS.

•       FURTHERMORE, MOST OF THE SITUATIONS COVERED MUST HAPPEN DURING CARRIAGE.

•       THE MAIN ASPECTS OF COVER INCLUDE:

1. GENERAL AVERAGE
2. FIRE / EXPLOSION
3. VESSEL GROUNDING / CAPSIZING
4. COLLISION
5. GENERAL AVERAGE SACRIFICE                                                                                               The Differences Between Institute Cargo Clauses A, B, and C                                                                                     

•       THE MAIN DIFFERENCES BETWEEN THE THREE LEVELS OF INSTITUTE CARGO CLAUSES ARE WHAT THEY COVER, AND IN WHAT CIRCUMSTANCES SAID ITEMS ARE COVERED.

•       EACH CLAUSE SETS FORTH DETAILED PARAMETERS FOR WHAT IT DOES AND DOESN’T COVER.

•       BECAUSE OF THE DIFFERENCE IN COVER THE PREMIUM PAYABLE FOR EACH WILL VARY.