Marine Insurance - Duty Insurance Policy
The insurance is on “Increased value” of cargo by reason of payment of custom duty at the port or place of destination. This policy is not a valued policy and claims are payable on the basis of actual duty paid or on the basis of the Sum insured, whichever is less. Period of insurance for this policy is one year if Open policy is issued.
This policy may be taken by Importers to cover the additional value of goods resulting due to payment of custom duty.
The policy is issued to the holder or assignee of the Import License or is the actual user who has purchased goods from a recognized Export house. The sum insured for “custom duty” is adjusted on the basis of actual assessed custom duty. The policy is one of pure indemnity.
Coverage
The policy covers loss of custom duty paid on that portion of goods damaged in transit, but not refunded/refundable. In order to admit claim under Duty policy, claim under cargo policy should be admitted. The Duty policy excludes claim in respect of
- Total loss of whole or part of cargo prior to Duty becoming payable
- General Average, Salvage and/or Salvage Charges arising from any casualty prior to Duty becoming payable.
The exclusions under Duty policy shall be in the line with cargo policy.
