Marine Insurance - Marine Cargo Special Declaration Policy
This is basically an open policy of 12 months duration and such policies are issued to Concerns having estimated annual turnover of Rs 2 crores or above. All transits upto the sum insured are covered without any exception and total value of goods in transit are required to be declared atleast once in a quarter in the form of a certified statement. Period of insurance for this policy is one year.
This policy allows the Assured to have volume discount in the rate of premium considering annual turnover of the Assured .Since the Insurers get sizable premium at the inception, they grant cash discount( called turnover discount) ranging from 20% to 50% on the premium.
The policy is not assignable or transferable. However where the interest in respect of goods in transit has passed on to the consignee, claims, if any, may be settled with such consignee, if so requested by the assured.
The sum insured under the policy shall be on the basis previous year’s annual turnover. In case of fresh proposal, the sum insured shall represent a fair estimate of annual dispatches. If the estimated annual turnover during the year is found to be inadequate due to increase in the Assured’s turnover, not envisaged at the inception of the policy, an increase in the Sum insured may be allowed on payment of the difference in premium involved. Such midterm increase should not be more than twice during the currency of the policy. Midterm increase in Sum insured may be allowed twice only during the currency of the policy. Final premium will be adjusted (downward only) on the basis of actual turnover of goods covered.
This Insurance covers
- All Risks subject to Inland Transit ( Rail or Road) Clause –A
- Inland transit ( Rail or Road) Clause (B) ( Basic Cover)
The policy may be extended to cover SRCC, subject to payment of additional premium.
The Inland Transit Clauses incorporates a set of exclusions
