Procedure for Obtaining Marine Insurance Policy

Procedure for Obtaining Marine Insurance Policy
 

 

The following is the procedure for obtaining marine insurance policy:

(a) Selecting the Insurance Company: General insurance business in India is the monopoly of General Insurance Corporation (GIC) of India and its four subsidiaries. However, if an exporter intends to insure with a foreign company, then prior permission of the RBI must be obtained.
 

(b) Deciding Appropriate Type of Policy: There are various types of marine insurance policies issued by the GIC to suit the requirements of exporters. The exporter should decide the appropriate type of policy as per his requirements.
 

(c) Application to the Insurance Company: When the goods are ready for despatch the exporter should apply to the insurance company in the prescribed 'Declaration Form' giving the following details:

Address of the exporter and importer.

Description of goods;

Marks, numbers and kind of packages.

Value of packages.

Transportation from the warehouse to its final destination.

Risk to be covered for insurance.
 

 

(d) Payment of Premium: The insurance premium charges may vary from company to company and country to country. Payment on marine insurance policy can be made in rupees provided exporter certifies that insurance charges on the shipment in question have to be borne by him.
 

 

(e) Issue of the Insurance Policy: After the completion of all the formalities, the exporter has to produce the Bill of Lading and the name of the ship to the insurance company. The insurance company issues the insurance certificate (in triplicate) as per the declaration given by the exporter. The policy generally contains the following details:
 

Name and address of the exporter.

Type of policy and description of the risks covered.

Description of the goods insured.

Amount of sum assured and premium paid.

Date of issue and the period of policy.

Special conditions and warranties.

Special instructions regarding procedure to be followed in the event of loss.

 

 

(f) Processing of the Policy: The exporter submits the original policy to the bank with his other documents. The second copy of the policy is sent to the importer and the third copy is retained by the exporter for his own information.
 

 

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