A marine insurance policy works wonders by covering you and your consignment against a myriad of perils like fire, earthquake, lightning, washing overboard, etc. The policy comes loaded with various insurance clauses, which are stated below:
1.Institute Cargo Clause A
The clause covers all the risks of loss or damages to goods.
2.Institute Cargo Clause B
As compared to the Institute Cargo Clause A, this clause covers lesser risks.
3.Institute Cargo Clause C
It covers the least number of risks.
The value of the subject is stated in the marine insurance policy document. It is the value that is agreed upon by both the parties— marine insurance company and policyholder. In case of any loss or damage, the compensation would not be more than the valuation amount stated in the policy document.
5.At and From’ Clause
The clause states the time when the risk will start. As per the clause, the risk cover would start when the ship is at the port of the departure and from the time it leaves the port. For instance, if the insurance policy states the words, ‘at and from Mumbai’, it means the risk would be covered when the ship arrives at Mumbai port and also when it leaves this port.
6.Sue and Labour Clause
This clause states that if the policyholder has spent some money in order to save the goods from an impending loss, then he/she can recover the same amount from the insurance company. However, here the act of saving the subject-matter on curtailing loss will not be considered as a deviation and therefore, if such a thing happens, the insurance policy will not become void.
7.Warehouse to Warehouse Clause
The clause covers risks from the warehouse of the shipper to the warehouse at the destination. It means, if cargo is required to be bought from the hinterland to the port, a marine insurance policy will cover those risks which may arise at land and also at sea.
8.Change of Voyage
A marine insurance policy mentions the details of the voyage, including the ports of departure and arrival. Along with this, the insurance policy clearly mentions the route which needs to be followed by the ship. If there were a deviation in the voyage, the marine insurance company would not be liable to settle the claim. Also, if the ship deviates from its original route, however, follows the same route, later on, it will be considered as a deviation. The insurer would not be liable to indemnify the loss in case of any change in the original route.
9.Touch and Stay Clause
As per the clause, it is essential for the ship to go and stay at the ports which are mentioned in the marine insurance policy. In case, ports are not mentioned, the ship should follow the customary route and stay at the port which is coming on that route only. In case the ship goes to any other port, it will be considered as the deviation. Note, there must be justifiable reasons behind calling at ports.
10. Inchmaree Clause
As per the clause, any loss caused by the negligence of the master or crew member is also covered under the marine insurance policy. Further, losses or damages which arise to the cargo while loading and unloading of operations are also recoverable.
It means, throwing off certain goods to lighten the load and secure the ship in an emergency situation to avoid a marine peril. It is necessary that the jettison must be done intentionally.
The clause is intended to save the insurance company from paying losses of perishable goods. Under this clause, the policyholder would not be liable to pay partial losses.