Marine Insurance - Open Cover
Although shipments/despatches of goods are frequently insured individually, the merchants with a large number of shipments/despatches during the year will find it difficult to protect themself continuously throughout an unspecified period of time. Open cover is a contract effected for a period of time, usually for 12 months, whereby the insurer agrees to accept the insurance of all shipments/despatches made by the Insured. An open cover is not a policy and therefore not stamped.
An open cover is issued to the assured having substantial turnover with large number of export/import shipments throughout the year. It is an agreement binding an honour, under which the Insurer will accept the declarations and issue specific policies with appropriate stamp duty.
Under Open cover, the insurer agrees to accept the insurance of all shipments/despatches made by the Assured during the period. The Assured is bound to declare all shipments/despatches coming within the scope of contract. It is not open to him to run his own risk on certain shipments/despatches or to insure them elsewhere.
This Insurance covers
- All Risks subject to Institute Cargo Clause –A
- Institute Cargo Clause (B)/ Institute Cargo Clause (C)
The Open cover may be extended to cover War/SRCC, subject to payment of additional premium.
The Institute Clauses incorporates a set of exclusions.
