Marine Insurance: Definition, Different Types of Policies and Risk, Premium Calculation and Placement of Claims including Case Study.

Marine Insurance: Definition, Different Types of Policies and Risk, Premium Calculation and Placement of Claims including Case Study.

Insurance is nothing but a system of spreading the risk of one onto the shoulders of many. Whilst it becomes somewhat impossible for a man to bear by himself 100% loss to his own property or interest arising out of an unforeseen contingency, insurance is a method or process which distributes the burden of the loss on a number of persons within the group formed for this particular purpose.

‡bŠ-exgv Pzw³i msÁv (Definition of Marine Insurance Contract):

wba©vwiZ wcÖwgqv‡gi wewbg‡q †bŠc‡_ PjvPjKvix RvnvR, hvÎvc‡_ Rvnv‡R †evSvBK…Z cY¨ mvgMÖx, exgvK…Z SuywK Øviv AvµvšÍ n‡q ÿwZMÖ¯’ n‡j D³ ÿqÿwZi ÿwZc~ib cÖ`v‡bi A½xKvi †h exgv Pzw³‡Z Kiv n‡q _v‡K, Zv‡K †bŠ-exgv Pzw³ ejv nq|

hy³iv‡R¨i 1906 mv‡ji †bŠ-exgv AvB‡bi 01 bs aviv (Section-1) Abyhvqx †bŠ-exgvi wb¤œiƒc msÁv cÖ`vb Kiv n‡q‡Q t

ÒA contract of Marine Insurance is a contract whereby the insurer undertakes to indemnify the assured, in a manner and to the extent thereby agreed against Marine losses, that is to say, the losses incidental to Marine adventure.

hy³iv‡R¨i D‡jøwLZ AvB‡bi mwnZ m½wZ †i‡L A_© gš¿Yvj‡qi Aaxb¯’ IDRA’i ZË¡veav‡b cwiPvwjZ Central Rating Committee KZ©„K cÖYxZ U¨vwid AvBb Abymv‡i Avgv‡`i †`‡k †bŠ-exgv e¨emv cwiPvwjZ n‡”Q|

‡bŠ-exgvi mswÿß BwZnvm (History of Marine Insurance) t

Marine is the oldest form of insurance and came first in the list. This type of insurance probably began in Northern Italy sometime during the 12^th & 13^th Century and gradually the concept was rather transferred to or taken over by the United Kingdom. During the 13^th/14^th century the Italian merchants went to U. K. and along with the merchandise carried with them the trading customs including the concept of marine insurance. Marine insurance as such was not being practiced as a separate specialized entity during that time since it were the merchants who used to transact marine insurance business side by side with their general trading activities.

wewfbœ cÖKvi exgvi g‡a¨ †bŠ exgvB n‡jv cÖvPxbZg Ges me©cÖ_g †bŠ-exgviB D™¢e N‡UwQj| m¤¢eZ: †bŠ-exgv e¨emv Øv`k kZ‡Ki †kl w`‡K DËi BUvjx‡Z ïiæ n‡qwQj| BUvjxq ewY‡Kiv ·qv`k kZ‡K Zv‡`i ixwZ I †bŠ-exgvi aviYv (Concept of Marine Insurance) wb‡q hy³iv‡R¨ AvMgb K‡iwQj| ewY‡Kiv ZLb Zv‡`i e¨emv evwY‡R¨i wecix‡Z †bŠ-exgv Pzw³mg~‡n Ave× n‡Zv| KviY †bŠ-exgv Pzw³mg~n mvaviY e¨emvqxK Kvh©µ‡gi mv‡_ AwZ Avbylw½K wQj|

1575 L„óv‡ã i‡qj GK‡PÄ (Royal Exchange Assurance) cÖwZwôZ nIqvi ci †bŠ-exgv cÎmg~n wbeÜxKi‡Yi D‡Ï‡k¨ GKwU we‡kl †P¤^vi hvi bvg Chamber of Assurance cÖwZwôZ n‡qwQj hvi d‡j †bŠ-exgv msµvšÍ wewfbœ RwUjZv, gZ we‡iva I bvbvwea mgm¨vi mgvavb AwaKZi mnR n‡qwQj| cieZ©x‡Z 1601 mv‡j Court of Arbitration ¯’vcb Kiv nq| GB †Kv‡U© †bŠ-exgv cwjwm msµvšÍ we‡iv‡ai gxgvsmv Kiv n‡Zv| 1720 mv‡j Bubble Act cvk K‡i `yBwU exgv †Kv¤úvbx‡K †bŠ-exgv e¨emv cwiPvjbv Kivi mb` †`qv nq| GB `yÕwU †Kv¤úvbx n‡”Q Royal Exchange Ges London Assurance Gi ciB G‡K G‡K cÖwZwôZ n‡jv wewfbœ m¤úwË exgv †Kv¤úvbx| cÖwZwôZ n‡jv AvaywbK m¤úwË exgv wk‡íi wfwË|

Protection against financial losses through Marine Insurance:

Marine insurance primarily provides financial protection to the shipowners, cargo owners or the freight owners in respect of any loss or damage to their interests caused by maritime perils insured against. A ship may be lost, damaged or destroyed by a maritime peril which will invariably involve the owner of the ship in a financial loss. He might be totally crippled if he invested all his capital to that ship. If such a vessel is insured then the insurers will indemnify the insured to the extent of the loss so sustained. He will therefore be in a position to go back to his original financial position, as if no loss has been sustained. The proposition is also to true with regard to cargo owners. They may also sustain the loss in the same way due to the application of the maritime perils and marine insurance will provide protection against such losses by affording indemnity. Freight is also under constant threat of maritime perils and if the cargo  is lost or damaged either the shipowner or the cargo owner will suffer a loss of the freight depending on whether the freight is pre-paid (when the cargo owner loses) or after paid (when the ship owner loses). This loss of financial interest can also be protected by a marine policy.

‡bŠ-exgvi cÖKvimg~n (Types of Marine Insurance) t

mg~`ªc‡_ cY¨ cwien‡bi Su„ywK MÖnb Kivi Rb¨ wewfbœ iK‡gi ‡bŠ-exgvi Kfvi †bvU I cwjwm †bqv †h‡Z cv‡i| Gi g‡a¨ K‡qKwU cÖPwjZ cwjwm Ges Kfvi †bv‡Ui eY©bv wb‡¤œ †`qv n‡jv t

01	mgq exgvcÎ (Time Policy)
02)	hvÎv exgvcÎ (Voyage Policy)
03)	wgkª exgvcÎ (Mixed Policy)
04)	fvmgvb exgvcÎ (Floating Policy)
05)	D¤§y³ exgvcÎ (Open Policy/Cover Note)

01) mgq exgvcÎ (Time Policy)

‡h ‡bŠ-exgv cwjwm mg‡qi Dci wfwË K‡i cÖ`vb Kiv n‡q _v‡K Zv‡K UvBg cwjwm e‡j| wbw`©ó mg‡qi g‡a¨ (mvavibZ: 1 eQi) cY¨ †evSvB RvnvR †hLv‡bB Ae¯’vb KiæK bv †Kb, SuywK MÖnY Kivi w`b †_‡K wbw`©ó †gqv` †kl nIqvi w`b ch©šÍ exgv †Kv¤úvbx Rvnv‡R †evSvBK…Z gvjvgv‡ji SuywK MÖnb Ki‡e| †gqv`~Ë©xY© nevi ciI hw` RvnvR Mfxi mg~‡`ª Ae¯’vb K‡i Ges cwjwm bevqb bv Kiv nq Zvn‡j Rvnv‡Ri wKsev Rvnv‡R †evSvBK…Z gvjvgv‡ji ‡Kvb cÖKvi ÿwZ n‡j exgvKvix D³ ÿwZi Rb¨ `vqx _vK‡e bv| mvavibZ: †gwib nvj exgv mgq exgvc‡Îi AvIZvq AveixZ _v‡K Ges m‡e©v”P GK eQ‡ii Rb¨ exgv SuywK MÖnb Kiv n‡q _v‡K|

 02) hvÎv exgvcÎ (Voyage Policy)

G RvZxq cwjwm mg‡qi Dci wfwË K‡i Kiv nq bv RvnvR GK e›`i †_‡K Ab¨ e›`‡i bv †cŠuQv ch©šÍ SuywK Kfvi Kiv nq| ‡hgb- Rvcv‡bi †UvwKI e›`i †_‡K PÆMÖvg e›`‡i G‡m †cŠuQv| GLv‡b mgq †Kvb Av‡jvP¨ welq bq| mvaviYZ: cY¨ mvgMÖxi wecix‡Z hvÎv exgvcÎ (Voyage Policy) MÖnb Kiv n‡q _v‡K|

03) wgkª exgvcÎ (Mixed Policy)

wgkª exgv cwjwm (Mixed Policy) n‡jv Ggb GK ai‡bi exgvcÎ hv Voyage Policy I Time Policy Gi GKÎxKib| ev¯Í‡e †`Lv hvq †h Voyage Policy ev Time Policy-‡Z †ek wKQz RwUjvZvi m„wó nq| †hgb mgq exgvc‡Îi †ÿ‡Î exgv cwjwmi †gqv` Ggb mg‡q DËxY© n‡jv hLb cY¨ †evSvB RvnvR ga¨ mvM‡i Ae¯’vb Ki‡Z‡Q| GgZve¯’vq †bŠ-exgv SuywK Øviv RvnvR wKsev cY¨ mvgMÖxi †Kvb ÿwZ msNwUZ n‡j UvBg exgv cwjwmi (under Time Policy) Aax‡b exgvKvix ÿwZ c~ib cÖ`v‡bi Rb¨ `vqx _vK‡e bv| Ab¨ w`‡K f‡qR cwjwmi †ÿ‡Î RvnvR cY¨ mgMÖx wb‡q PzovšÍ e›`‡i (Final Port of Destination) ‡cŠuQvi ci e›`i KZ©„c‡ÿi AvBbvbyhvqx KvMRcÎ `vwLj K‡i cY¨ mvgMÖx Lvjvm Ki‡Z wKQz w`b mgq jvM‡Z cv‡i| GB AwZwi³ mg‡q cY¨ mvgMÖxi ÿwZ n‡Z cv‡i| Ab¨ w`‡K e›`‡i Aew¯’Z Warehouse ‡_‡K cY¨ mvgMÖx cwjwm‡Z D‡jøwLZ Final Warehouse-G †cŠuQvi AvM ch©šÍI †h †Kvb g~û‡Z© ÿwZ n‡Z cv‡i| UvBg cwjwm I f‡qR cwjwmmg~‡ni G RvZxq Amyweavmg~n `yixKi‡bi wbwg‡Ë wg·W cwjwmi cÖPjb nq| wg·W cwjwm‡Z GKwU mg~`ª hvÎvi c~Y© SuywKi Kfvimn D³ mg~`ª hvÎvi †gqv` †kl nevi ciI AwZwi³ mg‡qi SuywKi Kfvi AvewiZ _v‡K| eZ©gv‡b Avgv‡`i †`‡k †bŠ Kv‡M©vi †ÿ‡Î †h exgv cwjwmi cÖPjb Av‡Q Zv n‡”Q wg·W cwjwm|

04) fvmgvb exgvcÎ (Floating Policy)

eo eo e¨emvqx I wkí cÖwZôv‡bi gvwjKMY eQ‡i GKvwaK evi wewfbœ Rvnv‡R K‡i mg~`ªc‡_ cY¨ mvgMÖx Avbvqb K‡ib| cÖ‡Z¨Kevi cÖwZwU wkc‡g‡›Ui Rb¨ c„_Kfv‡e bZzb K‡i cwjwm †bqv‡Z A‡bK Sv‡gjv nq| GB Sv‡gjv Gov‡bvi Rb¨ Zviv GKm‡½ wba©vwiZ wWcwRU wcÖwgqvg Rgv w`‡q me KqwU wkc‡g‡›Ui Rb¨ GKwUgvÎ exgv cwjwm MÖnb K‡i _vK‡b| G ai‡bi exgvc·K fvmgvb exgvcÎ (Floating Policy) ejv n‡q _v‡K|

G RvZxq †bŠ-Kv‡M©v cwjwmi cÖPjb `„k¨Z: Avgv‡`i †`‡k bvB| eis Gi weKí wnmv‡e I‡cb Kfvi‡bvU/cwjwmi cÖPjb i‡q‡Q|

05) D¤§y³ exgvcÎ (Open Policy/Cover Note)

eo eo Avg`vbx-ißvbxKviK hviv cÖvq mgq gvj Avg`vbx ißvbx K‡ib Zv‡`i Rb¨ cÖ‡Z¨Kevi bZzb K‡i Kfvi †bvU/cwjwm †bqv GKUv Sv‡gjvi e¨vcvi| G Sv‡gjv Gov‡bvi Rb¨ Zviv B”Qv Ki‡j GKwU wbw`©ó cwigvY wWcwRU wcÖwgqvg ev e¨vsK M¨vivw›U w`‡q GK erm‡ii †gqv`Kvjxb mg‡q hZevi Lywk gvj Avgv`bx ißvbx Kivi Rb¨ I‡cb Kfvi †bvU/I‡cb cwjwm wb‡Z cv‡i| Z‡e H Kfvi †bvU/cwjwm Bmy¨ Kivi Av‡M exgv MÖnxZv‡K exgvKvixi wbKU e‡j w`‡Z n‡e wK wK gvj Avg`vbx ißvbx Ki‡e Ges wK wK SuywK Kfvi Ki‡eb, mviv erm‡i m‡e©v”P KZ UvKvi gvj Avg`vbx ev ißvbx Ki‡eb (Annual Turnover) Ges cÖ‡Z¨K wkc‡g‡›Ui Aax‡b m‡e©v”P KZ UvKvi gvj Avg`vbx ev ißvbx n‡e Zvi wWK¬v‡ikb cwjwm/mvwU©wd‡KU (I‡cb cwjwmi Aax‡b) Bmy¨i wbwg‡Ë exgvKvix‡K cÖ`vb Ki‡Z n‡e| G RvZxq Kfv‡ii †ÿ‡Î cÖ‡Z¨K wkc‡g‡›Ui Kwcmg~n exgv †Kv¤úvbxi wbKU cvVv‡bvi ci exgv †Kv¤úvbx KZ©„K cÖ‡qvRbxq wcÖwgqvg cÖvwß mv‡c‡ÿ I‡cb Kfvi †bv‡Ui †ÿ‡Î cwjwm Ges I‡cb cwjwmi †ÿ‡Î mvwU©wd‡KU Bmy¨ Ki‡eb| GLv‡b D‡jøL¨ †h, cÖ‡Z¨K cwjwm wKsev mvwU©wd‡K‡Ui Aax‡b miKvi KZ©„K wba©vwiZ ó¨v¤ú wWDwU jvMv‡Z n‡e| Ab¨_v cwjwm wKsev mvwU©wd‡KU AvBbZ MÖnb‡hvM¨ n‡e bv|

I‡cb Kfvi †bvU wKsev I‡cb cwjwm‡Z D‡jøwLZ Per Bottom Limit hw` †Kvb wkc‡g‡›Ui †ÿ‡Î AwZwµg K‡i Zvn‡j †m‡ÿ‡Î Gjwm I‡c‡bi c~‡e©B exgvKvix‡K Rvbv‡Z n‡e| G †ÿ‡Î exgvKvix wkc‡g‡›Ui m‡ev©”P mxgv D‡jøL K‡i exgv MÖwnZv‡K G¨v‡WÛvg (Addendum) cÖ`vb Ki‡eb| Abyiƒcfv‡e I‡cb cwjwm wKsev Kfvi †bv‡U ewY©Z mgq AwZevwnZ nIqvi c~‡e©B hw` Annual Turnover AwZµg K‡i †m †ÿ‡ÎI exgvKvixi wbKU †_‡K cÖ‡qvRbxq ms‡kvabx (Addendum) MÖnb Ki‡Z n‡e| Ab¨_vq AwZwi³ wkc‡g‡›Ui wecix‡Z Avg`vbx-ißvbxK…Z c‡Y¨i †Kvb cÖKvi ÿwZ n‡j Zvi Rb¨ exgvKvix `vqx _vK‡e bv|

mvavib ‡gwib Kfvi †bvU (Ordinary Marine Cover Note) t

cY¨ Avg`vbx-ißvbxi wbwg‡Ë e¨vs‡Ki gva¨‡g Gjwm I‡cb Kivi cÖv°v‡j mPivPi exgvKvixi wbKU †_‡K c‡Y¨i SuywK AvewiZ K‡i †h Kfvi †bvU MÖnb Kiv nq ev †h Kfvi †bvU exgvKvix KZ©„K Bmy¨ Kiv nq Zv‡K Avgiv mvavib ‡gwib Kfvi †bvU (Ordinary Marine Cover Note) e‡j _vwK|

cY¨ Avg`vbx ißvbxi ‡ÿ‡Î mvavibZ: G RZxq Kfvi †bv‡Ui cÖPjbB me‡P‡q †ekx| G RvZxq Kfvi †bv‡UI †Kvb& †`k †_‡K KZ UvKvi cY¨ Avgv`bx wKsev ißvbx n‡e Ges wK cÖvK‡ii SuywK MÖnb Ki‡Z n‡e Zvi we¯ÍvwiZ weeiY D‡jøL Ki‡Z n‡e| mvavibZ: Kfvi †bvU Bmy¨i ZvwiL †_‡K 01 (GK) eQ‡ii g‡a¨ cY¨ mvgMÖx Aek¨B wkc‡g›U n‡Z n‡e| gvj wkc‡g›U nevi ci cwjwm Bmy¨i myweav‡_© cÖ‡qvRbxq wkwcs WKz‡g›U exgvKvixi wbKU cvVv‡Z n‡e Ges exgvKvix H wkwcs WKz‡g‡›Ui wfwˇZ cwjwm WKz‡g›U Bmy¨ Ki‡e, †hLv‡b gv‡ji weeiY, SuywKi weeib, wk‡ci bvg, Gjwm b¤^i, wkc‡g‡›Ui ZvwiL (Sailing Date) Ges Kfvi †bv‡U ewY©Z dvBbvj Iq¨vi nvDR ev d¨v±ixi wVKvbvi eY©bv _vK‡Z n‡e| †bŠ-exgvi kZ© Abyhvqx SzuwKi cÖK…wZ Abymv‡i cÖ‡qvRbxq K¬Rmg~n cwjwmi mv‡_ ms‡hvRb Kiv n‡q _v‡K Ges cwjwmwU‡K AvBbZ: MÖnb‡hvM¨ ev AvBbwm× Kivi wbwg‡Ë cÖ‡qvRbxq ó¨v¤ú wWDwU jvMv‡Z n‡e|

‡bŠ-exgvi mv‡_ m¤úK©xZ wewfbœ cÖKv‡ii SuywK (Different types of Risks under Marine Insurance) t

mg~`ª c‡_ cY¨ Avg`vbx-ißvbx Kivi Rb¨ †h mg¯Í SuywK i‡q‡Q Zvi cÖKvi‡f` Abymv‡i Zv‡K wb‡¤œv³ 03wU †kÖYx‡Z fvM Kiv hvq| †hgb t

01) Institute Cargo Clauses ‘C’ (ICC ‘C’)

02) Institute Cargo Clauses ‘B’ (ICC ‘B’)

03) Institute Cargo Clauses ‘A’ (ICC ‘A’)

Ab¨w`‡K ¯’jc‡_ I AvKvk c‡_ cY¨ Avg`vbx-ißvbx Kiv hvq| G †ÿ‡Î ‡h mg¯Í SzuwK MÖnb Kiv n‡q _v‡K Zv wb¤œiƒc t

01) Import Rail/Lorry/Truck risks only clauses.

02) Import Rail/Lorry/Truck All risks clauses.

03) Air Risk only clauses.

04) Air All Risks clauses.

Risks Covered Under Institute Cargo Clauses ‘C’ (ICC -C)

1.      Loss or damage to the subject matter insured lying in the vessel during transit reasonably caused by fire or explosion.

2.      Loss or damage to the ship/subject matter insured during its voyage being sunk, capsized, stranded or grounded.

3.      Loss or damage to the subject matter insured during transit reasonably caused by collision with ship, tug boat etc. other than sea water.

4.      Loss or damage to the subject matter insured reasonably caused by discharging of Cargo at a Port of distress.

5.      Loss or damage to the subject matter insured during transit caused by general average sacrifice (Hull, Cargo & Freight).

6.      Loss or damage to the subject matter insured caused by jettison.

7.      Loss or damage to the subject matter insured caused by overturning or derailment of land conveyance. (Truck, Rail)

N. B: Theft, Pilferage and non delivery (TP & ND) risks may be covered as special perils under ICC-‘C’ on payment of additional premium but theft and pilferage (TP) alone can not be granted without non delivery (ND).

GLv‡b D‡jøL¨ †h ICC-‘C’ clauses Gi 4, 5, 6 I 7 b¤^‡i ewY©Z Kvi‡b gv‡ji †Kvb ÿwZ n‡j Zvi Rb¨ †Kvb ÿwZc~ib cvIqv hv‡e bv| hv‡K Exclusions wnmv‡e clause G D‡jøL Kiv n‡q‡Q|

Risks Covered Under Institute Cargo Clauses ‘B’ (ICC -B)

1.      Loss or damage to the subject matter insured lying in the vessel during transit reasonably caused by fire or explosion.

2.      Loss or damage to the ship/subject matter insured during its voyage being sunk, capsized, stranded or grounded.

3.      Loss or damage to the subject matter insured during transit reasonably caused by collision with ship, tug boat etc. other than sea water.

4.      Loss or damage to the subject matter insured reasonably caused by discharging of Cargo at a Port of distress.

5.      Loss or damage to the subject matter insured during transit caused by general average sacrifice (Hull, Cargo & Freight).

6.      Loss or damage to the subject matter insured caused by jettison.

7.      Loss or damage to the subject matter insured caused by overturning or derailment of land conveyance. (Truck, Rail)

8.      Loss or damage to the subject matter insured caused by washing overboard.

9.      Loss or damage to the subject matter insured caused by entry of sea, lake or river water into the vessel, craft, container, lift van or place of storage.

10. Total loss of any package lost, overboard or dropped whilst loading on to, or unloading from the vessel or craft.

11. Loss or damage to the subject matter insured caused by earthquake, volcanic eruption or lightning.

N. B: Theft, Pilferage and non delivery (TP &ND) risk may be covered as special perils    under   this clause on payment of additional premium.

Risks Covered Under Institute Cargo Clauses ‘A’ (ICC -A)

It covers all other risks including the risk as mentioned in the ICC-‘C’ and ICC-‘B’. In other words it covers all risk except some general exclusions under institute cargo clause ICC-’A’, ICC-‘B’ and ICC-‘C’.

N. B:   GLv‡b we‡klfv‡e D‡jøL¨ †h, ICC-‘B’ Ges ICC-‘A’ clause-Gi †ÿ‡ÎI ICC-‘C’-Gi gZ clause-mg~‡ni 4, 5, 6 Ges 7 b¤^‡i ewY©Z Kvi‡b hw` exgvK…Z gv‡ji †Kvb cÖKvi ÿwZ nq Zvn‡j Zvi Rb¨ †Kvb ÿwZ c~iY cvIqv hvq bv|

General Exclusions under Institute Cargo Clauses ICC-A, ICC-B & ICC-C are as under (Analysis of Exclusions - 4, 5, 6 & 7):

1.      Loss or damage to subject matter Insured caused by willful misconduct of the insured.

2.      Ordinary leakage, ordinary losses in weight or volume or ordinary wear and tear of the subject matter insured.

3.      Loss or damage to the subject matter insured caused by insufficiency or unsuitability of packing or improper packing.

4.      Loss of or damage to the subject matter insured caused by inherent vice.

5.      Loss or damage to the subject matter insured caused by delay.

6.      Loss or damage to the subject matter insured due to insolvency or financial default of the ship owners, managers, charterers or operators of the vessel.

7.      Deliberate damage to or deliberate destruction of the subject matter insured.

8.      Loss or damage to the subject matter insured caused by nuclear weapons.

9.             Loss or damage to the subject matter insured caused by unseaworthiness of vessel or craft.

10. War, Civil war, revolution, insurrection or any hostility.

11. Loss or damage to the subject matter insured caused by strikers, lockouts workmen or persons taking part in labour disturbances, riot or civil commotions.

12. Loss or damage to the subject matter insured caused by any terrorist or any person acting from a political motive.

Duration under ICC-‘C’, ICC-‘B’ & ICC-‘A’ Clauses.

ICC-‘C’, ICC-‘B’ & ICC-‘A’ SuywKi AvIZvq mg~`ªc‡_ A_©vr Rvnv‡Ri gva¨‡g  Avg`vbxK…Z gvjvgvj e›`‡i Avmvi/hvIqvi ci RvnvR wKsev e›`i KZ©„c‡ÿi gvj msiÿYvMvi †_‡K 60 w`‡bi g‡a¨ Aek¨B gvj cwjwm‡Z ewY©Z ¯’v‡b †cuŠQv‡Z n‡e| hw` †Kvb Kvi‡b e›`i †_‡K 60 w`‡bi g‡a¨ Final Destination-G †cuŠQv‡bv m¤¢e bv nq Zvn‡j †m †ÿ‡Î AwZwi³ 10% nv‡i wcÖwgqvg Av`vq mv‡c‡ÿ cÖ‡qvRbxq ms‡kvabxi gva¨‡g 30 w`b ch©šÍ mgq ewa©Z Kiv †h‡Z cv‡i| 

Risks covered under Import Rail/Lorry/Truck risk only clauses. 

1.      Loss or damage caused by Fire and/or lightning.

2.      Breakage of bridges.

3.      Collision with or by the carrying vehicle / Railway wagon.

4.      Overturning of the carrying vehicle.

5.      Derailment or accidents of like nature to the carrying railway wagon / vehicle.

N. B: GLv‡b D‡jøL¨ †h, D‡jøwLZ K¬‡Ri 2, 3 I 4 b¤^‡i ewY©Z Kvi‡b hw` exgvK…Z gv‡ji †Kvb cÖKvi ÿwZ n‡q              Zvn‡j Zvi Rb¨ †Kvb cÖKvi ÿwZc~ib cvIqv hv‡e bv|

Duration under Import Rail/Lorry/Truck/Air Risk clauses

Rail/Lorry/Truck/Air Risk clauses-Gi Aax‡b SuywK MÖnY K‡i gvj Avg`vbxi †ÿ‡Î Avg`vbxK…Z gvj mswkøó ¯’je›`i ev wegvb e›`‡i Avmvi ci e›`i KZ©„c‡ÿi gvj msiÿYvMvi †_‡K 30 w`‡bi g‡a¨ Aek¨B gvj cwjwm‡Z ewY©Z ¯’v‡b †cuŠQv‡Z n‡e| hw` †Kvb Kvi‡b e›`i †_‡K 30 w`‡bi g‡a¨ Final Destination-G †cuŠQv‡bv m¤¢e bv nq Zvn‡j †m †ÿ‡Î AwZwi³ 10% nv‡i wcÖwgqvg Av`vq mv‡c‡ÿ cÖ‡qvRbxq ms‡kvabxi gva¨‡g m‡e©v”P GK gvm ch©šÍ mgq ewa©Z Kiv †h‡Z cv‡i| 

Duration under Inland Transit by Rail/Lorry/Truck Risk clauses

Inland Transit-Gi †ÿ‡Î cwjwmi †gqv` Kvj n‡”Q cwjwm‡Z D‡jøwLZ exgv MÖnxZvi gvj msiÿYvMvi †_‡K Lorry/Truck-G gvj †evSvB Kivi ci †_‡K 07 (mvZ) w`b Ges †ijI‡q IqvM‡bi gva¨‡g cwien‡bi †ÿ‡Î 10 (`k) w`‡bi g‡a¨ Aek¨B cwjwm‡Z ewY©Z wba©vwiZ MšÍe¨¯’v‡b gvj †cuŠQv‡Z n‡e| hw` †Kvb Kvi‡b cwien‡b gvj †evSvB Gi ci ewY©Z mg‡qi g‡a¨ wba©vwiZ MšÍe¨¯’v‡b gvj †cuŠQv‡bv m¤¢e bv nq Zvn‡j †m‡ÿ‡Î wba©vwiZ wcÖwgqvg †iB‡Ui 25% nv‡i wcÖwgqvg Av`vq mv‡c‡ÿ cÖ‡qvRbxq ms‡kvabxi gva¨‡g m‡e©v”P 07 (mvZ) w`b K‡i 14 w`b (`yB mßvn) ch©šÍ mgq ewa©Z Kiv †h‡Z cv‡i| 

According to the risks some premium rates and premium calculation are given below:

‡bŠ exgvi †ÿ‡Î cY¨ Avg`vbx ißvbxi wbwg‡Ë wb¤œ ewY©Z Routes e¨envi Kiv n‡q _v‡K|

01.	By Steamer or Powered Vessels.
02.	By Lorry/Truck/Rail.
03.	By Air.

Premium Rates for 100% export oriented Garments Industries (BGMEA) and Knitwear Industries (BKMEA).

01) For Import of commodities by the members of above BGMEA & BKMEA by Steamer or Powered Vessels from any place of the world to any place of Bangladesh.

	Types of Risk	Premium Rate
a)	ICC ‘A’ (All Risks)	0.70%
B)	ICC ‘B’	0.26%
c)	ICC ‘B’+ ND	0.45%
d)	ICC ‘B’ + TPND	0.50%
e)	ICC ‘C’	0.19%
f)	ICC ‘C’ + ND	0.36%
g)	ICC ‘C’ + TPND	0.43%

02) Import of Commodities by Lorry/Truck/Rail-from India, Bhutan & Nepal to Bangladesh by the members of BGMEA & BKMEA.

	Types of Risk		Premium Rate
01.	Rail/Lorry/Truck risk (As per normal cargo and nature of packing).		0.28%
02.	Rail/Lorry/Truck  all risks.
	a)	As per nature of commodities (Mentioned in the Marine Import Tariff).	0.80%
	b)	As per nature of Commodities (Mentioned in the Marine Import Tariff).	0.65%
	c)	As per nature of all others items (Mentioned in the Marine Import Tariff)..	0.50%

03) Import of Commodities by Air by the members of  BGMEA & BKMEA

	Types of Risk	Premium Rate
01)	Air Risk only	0.15%
02)	Air risk ND	0.30%
03)	Air Risk TPND	0.45%
04)	Air all risks	0.50%

04) Export: By Steamer/powered vessel by the members of  BGMEA & BKMEA

Type of Risk		Premium Rate
01)	ICC ‘A’	0.40%
02)	ICC ‘B’	0.20%
03)	ICC ‘C’	0.15%

Other terms and conditions:

01.	Usual 10% tariff reduction will be applicable from the aforesaid premium present rates.
02.	The above rates are applicable to all 100% export oriented Garments and Knitwear Industries irrespective of whether those are within or outside EPZ.
03.	All other general terms & conditions of the respective tariff will apply in so far as they relate there to.

For Import of sugar in bag/raw sugar in bulk by the General Importers other than the members of BGMEA & BKMEA import:

Risk	Premium Rate	Excess
ICC ‘A’	0.35%	2% on whole sum insured
ICC ‘B’	0.20%	2% on whole sum insured
ICC ‘C’	0.125%	2% on whole sum insured

Usual 10% tariff reduction will be applicable on the above rates.

For Import of Commodities from India to Bangladesh by Rail/Lorry/Truck by the General Importers and 100% Export Oriented Industries:

Types of Risk			Premium Rate
			For General Traders)	For 100% Export Oriented Ind.
01.	Rail/Lorry/Truck risk		0.60%	0.40%
02.	Rail/Lorry/Truck all risks.
	a)	As per nature of commodities (Mentioned in the Marine Import Tariff).	1.75%	1.30%
	b)	As per nature of Commodities (Mentioned in the Marine Import Tariff).	1.50%	1.05%
	c)	All others items except rice & Wheat (Mentioned in the Marine Import Tariff).	1.15%%	0.80%

Usual 10% tariff reduction will be applicable on the above rates.

D‡jøL¨ †h, wewfbœ cÖKvi cY¨ Avg`vbx ißvbxi Rb¨ wi¯‹ Abymv‡i mgq mgq exgv Dbœqb I wbqš¿Y KZ…©c‡ÿi wbqš¿Yvaxb †m›Uªvj ‡iwUs KwgwU wewfbœ cÖKv‡ii †iU wba©vib K‡i _v‡Kb| Zv Qvov ‡h mg¯Í ¯^bvgab¨ †Kv¤úvbx `xN©w`b a‡i cÖPzi cwigvY gvj we‡`k †_‡K wbqwgZfv‡e Avg`vbx K‡i _v‡Kb Zv‡`i Aby‡iv‡aI †ÿÎ we‡k‡l ewY©Z KwgwU KZ©„K ‡¯úkvj wcÖwgqvg †iU cÖ`vb K‡i _v‡Kb|

Types of Risk Abymv‡i D‡jøwLZ ‡¯úkvj †iU QvovI mvaviYZ: ‡ekxifvM cY¨ Avg`bxi ‡ÿ‡Î wb¤œ wjwLZ wcÖwgqvg †iU wba©vib Kiv n‡q _v‡K| hv mvavib e¨emvqx‡`i †ÿ‡Î cÖ‡hvR¨|

Sl. No.	Type of Risk	Premium Rate
01)	ICC ‘C’	0.50%	Via Chittagong Sea Port
02)	ICC ‘B’	0.70%
03)	ICC ‘C’	0.60%	Via Chalna/Mongla Port
04)	ICC ‘B’	0.80%

‡Kvb exgv MÖnxZv hw` ewY©Z SuywK MÖnb e¨wZZ All Risks (ICC ‘A’) MÖnY K‡i gvj Avg`vbx Ki‡Z AvMÖnx nb †m‡ÿ‡Î 0.70% A_ev 0.80% Gi mv‡_ AviI AwZwi³ 05 (cvuP) wU SuywK h_v- 01) ND (Non-Delivery), 02) TP (Theft, Pilferage), 03) Hooks, Holing, Bursting, Tearing Leakage loss of contents caused by damaged to containers, 04) RFWD, Extraneous, Substance, Heating, & 05) Scratching Splitting MÖnb Ki‡Z n‡e| 

D‡jøL¨ †h, ewY©Z SuywKmg~‡ni mv‡_ War & SRCC SuywKI MÖnb Kiv †h‡Z cv‡i hvi wcÖwgqvg †iU n‡”Q 0.05%|

(Ref. Bangladesh Marine Tariff provided by Central Rating Committee, Dhaka, Bangladesh.)

As example some premium calculation are given below:

01) Say Bank name HSBC, A/c. M/s. Norp Knit Industries Ltd. will import Fabrics in standard export packing from China to Factory site, Gazipur Via Chittagong Sea Port and the client desire to takes risk coverage of ICC ‘A’ War & SRCC. The Sum Insured of the said Fabrics US$100,000.00 + 10% @ Tk. 78.00 = Tk. 8,580,000.00.

Marine Premium	@0.70%-10%	Tk.	54,054.00
War & SRCC	@ 0.05%	Tk.	4,290.00
	Net premium	Tk.	58,344.00
15% VAT		Tk.	Exempted
Stamp Duty		Tk.	5,720.00
	Total Premium	Tk.	64,064.00

N. B: The above client is treated as a member of BGMEA and 100% export oriented industry.

02) Say IFIC Bank Ltd., A/c. M/s. Bidyut Hardware & Tools will import Hardware & Tools Items in standard export packing from Japan to Dhaka Via Chittagong by Steamer covering the risk of ICC ‘C’, War & SRCC The Sum Insured of the above noted items US$ 8,175.31 + 10% @ Tk. 78.85 = Tk. 709,086.00

Marine Premium	@0.50%-10%	Tk.	3,191.00
War & SRCC	@ 0.05%	Tk.	355.00
	Net premium	Tk.	3,546.00
15% VAT		Tk.	532.00
Stamp Duty		Tk.	473.00
	Total Premium	Tk.	4,551.00

03) Say AB Bank Ltd., A/c. M/s. S. S. Traders will import Mustard Oil Cake in standard export packing from India to Dhaka Via Benapole by Truck covering the risk of Lorry, & SRCC risks only, which invoice price US$ 9,000.00 + 10% @ Tk. 78.85 = Tk. 780,615.00.

Marine Premium	@0.60%-10%	Tk.	4,215.00
& SRCC	@0.05%	Tk.	390.00
	Net premium	Tk.	4,605.00
15% VAT		Tk.	691.00
Stamp Duty		Tk.	50.00
	Total Premium	Tk.	5,346.00

04) Say AB Bank Ltd., A/c. M/s. Karim & Sons will import Medical Equipments in standard export packing from Any European Airport to Hazrat Shahjalal Int. Airport, Dhaka by Air covering the Air risk The Sum Insured of the aforesaid interests US$ 37,000.00 + 10% @  Tk. 79.00 = Tk. 3,215,300.00.

Marine Premium	@0.30%-10%	Tk.	8,681.00
War & SRCC	-	Tk.	00.00
	Net premium	Tk.	8,681.00
15% VAT		Tk.	1,302.00
Stamp Duty		Tk.	50.00
	Total Premium	Tk.	10,033.00

It may be mentioned here that premium calculation is fully depended on the Nature of Risks, Nature of Commodities and Mode of Shipments. Yet the above examples are given for some idea about the calculation of premium only.

Claims including case study

01.       Underwriting and settlement of claims are the two primary functions of an insurance organization. From the insured’s point of view, the latter function is more important. When the insured buys insurance he is buying an ‘intangible’ product in the form of a contract of insurance which promises to ‘indemnify’ him in the event of loss.

02.        It is only when he suffers a loss that the insurance contract assumes a ‘tangible’ shape and insurance protection becomes meaningful to him. Settlement of losses, therefore, is the vital link between the insurance industry and the insuring public. The very existence of the insurance system depends upon the possibility of occurrence of unforeseen events causing financial loss. Without losses, there can be no insurance business.

03.       Therefore, the important function of an insurance organization is settlement of claims promptly and fairly. Promptitude in settlement of claims is called for, irrespective of whether the insured is a corporate client or an individual or whether the size of the loss is big or small. Delay in settlement of losses is the main source of complaints from the insuring public.

04.       Secondly, settlement of claims has to be based on considerations of fairness and equity. Rejection of claims decided on mere ‘technicalities’ will result in well-justified criticism that is wide-spread that insurers rely more on the ‘fine print’ than on the spirit of the contract. Even if the loss is not payable, it is necessary that the same should be communicated to the insured giving reasons why it is not payable.

One practical example of claims settlement under ICC ‘A’, ICC ‘B’ & ICC ‘C’ Clauses.

A consignment of apple in 400 cases was booked from Mumbai to Dhaka Via Chittagong by Steamer and was insured for Tk.4,000,000.00 At the destination, it was noticed that

	(i)	120 cases were damaged by Fire - depreciation 30%
	(ii)	40 cases were damaged by Sea water - depreciation 50%
	(iii)	50 cases were found to be missing due to pilferage
	(iv)	10 cases were lost overboard during discharge.
	(v)	180 cases arrival sound, The survey fee was Tk. 10,000.00

Find claim amount if insurance is under ICC (A), ICC (B) and ICC (C)

		Particulars	Insures Value	Depreciation	Claim
	(i)	120 cases Fire damaged	1,200,000.00	30%	360,000.00
	(ii)	40 cases seawater damaged	400,000.00	50%	200,000.00
	(iii)	50 cases missing (pilferage)	500,000.00	-	500,000.00
	(iv)	10 cases lost overboard	100,000.00	-	100,000.00
					1,160,000.00

A. Claim Under – ICC (A)-All Risks

	All claims	Tk.	1,160,000.00
	+ Survey fees	Tk.	10,000.00
		Tk.	1,170,000.00

B. Claim Under – ICC (B) -named risks in this clause pilferage is not insured. So total claim – loss by pilferage

	=Tk. 1,160,000.00 – 500,000.00 =	Tk.	660,000.00
	+ Survey fees	Tk.	10,000.00
		Tk.	670,000.00

C. Claim Under – ICC (C) -named risks. Other losses are not covered under ICC (C). Only Fire damaged in insured.

	Thus:	Tk.	3,60,000.00
	+ Survey fee	Tk.	10,000.00
		Tk.	3,70,000.00

N. B. Survey fee is entitled by the surveyor.