Import Export Insurance Policy in India

> The Benefits of Export Import Insurance
> Quick Guide to Export Import Insurance
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The Benefits of Export & Import Insurance

Meet Contractual Requirements

Export and Import cargo insurance meets contractual requirements that may oblige you to protect buyer's or their banker's interest. This is an important aspect while shipping goods CIF and CIP.

Limited Carrier Liability Cover

This Marine Insurance cover offers overall protection to your cargo because freight forwarder and carriers' liability in the event of loss is limited. Also, they are not legally responsible for the most common causes of loss.

Customised Policy

Export import cargo insurance can be customised specifically to your requirement. For instance, damage to cargo due to heating, breakage, leakage or damage due to extraneous causes can be covered.

Clear Loss Assessment

Export insurance follows internationally accepted principles of total and average loss while estimating loss value. Total loss is when the cargo is completely destroyed while the average is when a part of it is damaged.

Quick Guide to Export Import Insurance

What Is Export & Import Insurance?

An Export and Import Insurance is designed to provide compensation to the exporters or importers for the loss or damage to the goods, whilst in transit, due to perils associated with transport. It covers for all possible damages to the cargo either onshore or offshore. This insurance policy can provide cover for the commercial risks (such as faults and delays in payment, bankruptcy) and political risks (such as war, riots, etc.); if they are covered under your policy. This policy can provide cover for multiple export or import shipments and also cover for damage against a lot of named and unnamed perils.

It is the contract between the insurer and the insured, tailored for the insured, for the reimbursement of damages caused to cargo due to various covered perils.

Types of Export Import Insurance

Some of the common types of import export insurance are:

Pre-shipment Export Credit Insurance - This type of insurance policy covers the risks of non-payment by the buyer before the shipment of goods. It provides protection against default of payment by the buyer, political risks, and commercial risks.

Post-shipment Export Credit Insurance - This type of insurance policy covers the risks of non-payment by the buyer after the shipment of goods. It provides protection against default of payment by the buyer, political risks, and commercial risks.

Marine Cargo Insurance - This type of insurance policy covers the risks of loss or damage to goods during transit by sea, air, or land. It provides protection against risks such as fire, theft, piracy, collision, and natural disasters.

Product Liability Insurance - This type of insurance policy covers the risks of liability for damages caused by defective products. It provides protection against risks such as lawsuits and product recalls.

Political Risk Insurance - This type of insurance policy covers the risks of political events that can impact exports, such as war, expropriation, and currency inconvertibility.

Trade Credit Insurance - This type of insurance policy covers the risks of non-payment by customers due to commercial or political reasons. It provides protection against risks such as bankruptcy, insolvency, and default.

Exporters should carefully evaluate various types of export insurance policies available and select the one that is most suitable to their needs

Benefits of Export & Import Insurance Policy

Wide Risk Coverage

The Marine cargo policy provides the international covers defined under Institute Cargo Clauses (ICC) as ICC (A), ICC (B) and ICC (C), which cover different levels of risks and are universally accepted.
Export cargo insurance covers perils like fire, lightning, stranding, grounding, sinking or capsizing of vessels etc.
Maritime, extraneous and strike perils can also be covered under the marine cargo insurance.

Legal Requirements Cover

Export Import Insurance fulfills the obligation under the Letter of Credit as this insurance may need to be presented to the bank if requested in order to get your money.
This insurance may be demanded at the port by some countries during import operations in order to complete import procedures.
International cargo insurance takes the responsibility to expedite the release of cargo following the general average which is an internationally accepted principle.

Reduced Exposure to Financial Loss

As an exporter or importer, you can reduce the risk of suffering a financial loss if the goods are lost or damaged during transit by rail, sea, road, air or damage while loading or unloading.
You can include add-ons like war and strike clauses, and theft cover, in order to protect your cargo.
Export and Import Marine policy will also pay for the customs duty, removal of debris and loss of documents.

What are the Inclusions under Export Import Insurance Policy

Export Import Insurance Policy is a type of insurance policy that protects businesses engaged in international trade against the risks associated with exporting and importing goods. This policy provides coverage against loss or damage to goods during transit, including sea, air, and land transportation. The policy also covers risks such as non-payment by foreign buyers, political risks such as war or civil unrest, and regulatory risks such as changes in import/export laws. Export insurance coverage provides protection for goods shipped from one country to another, while import coverage provides protection for goods received from another country. Both types of coverage can include risks such as loss, damage, and delay in transit.

Export Import Insurance Policy typically covers three types of risks : marine insurance, credit insurance, and political risk insurance. Marine insurance provides coverage against damage to goods during transportation. Credit insurance covers the risk of non-payment by foreign buyers. Political risk insurance provides coverage against losses due to political events such as war, expropriation, and nationalization.

The coverage under this policy can be tailored to the specific needs of the exporter or importer. This policy provides peace of mind to businesses engaged in international.

What are the exclusions under Export & Import Insurance Policy

Below are the exclusions under an export import policy.

Perishable products: the damages caused to the products that have very less shelf-life and are prone to spoil on their own without any external forces will not be covered under this policy.
Improper packaging: It is always advisable to have a proper packaging of the goods transported. Claims can get rejected, if there are instances of damage to goods due to improper packaging.

Note: This is just an indicative list. The policy copy will have details of the exclusions mentioned in it.

Types of Export and Import Insurance Policies in India

Insurers offer various types of plans under an export import insurance plan in India based on the needs of the traders. A few common types of export and import insurance policies are:

Specific Policy: this is a policy under export and import insurance that is only applicable for one consignment. You can buy such online transit insurance here.
Open Policy: Open policies are created for regular traders. This policy is designed to cover for all trades during a specified period (say 12 months).
Sales Turnover Policy: Such a policy is a comprehensive insurance for all types of transits for a company. This would include both domestic and international transits. Further, it will cover all types of transactions such as purchase, sale and warehouse movement.

Export Import Insurance Companies in India

There are several export insurance companies in India that offer various types of export insurance policies to cover the risks associated with exporting goods from India. A few examples of the export insurance companies in India are:

Export Credit Guarantee Corporation of India (ECGC) - It is a government-owned company that provides export credit insurance to Indian exporters. It offers various insurance policies, including pre-shipment and post-shipment insurance, to cover the risks of non-payment, political risks, and commercial risks.

HDFC ERGO General Insurance Company - It is a private sector exporters insurance company that offers marine insurance policies, including import coverage, to cover the risks of loss or damage to goods during transit.

Tata AIG General Insurance Company - It is a joint venture between Tata Group and American International Group (AIG) and offers various types of insurance policies, including export insurance.

Bajaj Allianz General Insurance Company - Bajaj Allianz is a joint venture between Bajaj Finserv Limited and Allianz SE and offers various types of insurance policies, including marine insurance and export insurance, to cover the risks associated with exporting goods.

Oriental Insurance Company Limited - It is a government-owned general insurance company that offers marine insurance policies, including export insurance, to cover the risks of loss or damage to goods during transit.

Best Export & Import Insurance Policy Online in India

A marine policy designed for export and import is a very personalized product which depends on the needs of the policyholder/trader. SecureNow can offer you help with buying an insurance that best suits your needs by providing you a platform to compare on the coverages and benefits offered by various insurance companies. We urge you to submit your details on the form above, check for the coverage and submit a purchase request, and an export import insurance expert will get in touch with you within 24 hours to help you identify the best insurance.

Documents required to obtain Export & Import Insurance

Obtaining an export import insurance policy doesn't require a lot of documentation. Two major requirements are:

Declarations given by the client has to be correct
Request for Quote (RFQ) details have to include:

Occupation
Commodity details
Transit type
New or old cargo
Annual Turnover
Max value of consignment
Mode of conveyance
Loss History

These are some of the data points that are required in the RFQ for the policy to be materialized.

Claims process in Export & Import Insurance

As soon as the loss is known this should be intimidated to the insurer. Insurer will appoint a surveyor to assess the loss. This would be followed by a list of documents required to establish cohesion and assess the actual loss. After reviewing the document, the insurer would provide a claim assessment. Typically, any marine loss entails disposal of the salvage as well. This could be retained by the client or could be sold to a third-party.

Frequently Asked Questions

The export import insurance policy, like any other insurance policy, is a contract between the insurer and the insured. An insurance company from which you opt for such an insurance issue the policy to the exporters or traders or the policyholders.

With an export & import insurance policy, your goods and cargo are safe all along the way while being carried through various modes of transport and transit. Export & import insurance policy protects exporters and importers from any losses incurred during transit, by compensating for the same. Thus, this policy protects the trade structure of every economy and is very important.
During an export-import transaction, the ownership of the goods gets transferred based upon the relevant INCO terms. The party who has the ownership of the goods will be at a loss when the goods get damaged. So, to cover such losses, it is always recommended to buy export import insurances.

Generally, regular traders prefer to buy an “open marine policy” which could cover multiple international transits. However, it is also routine for traders to buy insurance for single transits. In either case, one should prefer to buy an all-risk coverage under ICC (A) and ITC (A).Generally, regular traders prefer to buy an “open marine policy” which could cover multiple international transits. However, it is also routine for traders to buy insurance for single transits. In either case, one should prefer to buy an all-risk coverage under ICC (A) and ITC (A).

Generally, there are three types of covers, namely Institute Cargo Clause (C) - Named peril basis, Institute Cargo Clause (B) - Named peril basis and Institute Cargo Clause (A) - Unnamed peril basis. ICC (A) offers the widest form of cover under Marine Cargo Insurance because of the perils covered.

Institute cargo clause (C) also known as ‘named perils clause’ covers physical loss or damage to the cargo due to fire or explosion, discharge of cargo at the port of distress, vessel contact or collision, vessel or ship being stranded, grounded, sunk or capsized and overturning or derailment of conveyance other than water.

Export and Import policy do not cover ordinary leakage, wear and tear of cargo, improper packaging and any delay, however caused. Any willful misconduct and illegal activities are excluded from the policy. Damage to the cargo due to war, riot, strike, and civil commotion are also not covered, unless specifically included. Insolvency or default by the carrier is also excluded.

The premium rate of export and import cargo insurance generally depends on various risks associated with the business. While calculating premium, some factors like the nature of the cargo, type of packaging, the scope of cover, navigational territory and mode of conveyance are considered. Past claim experience or history also plays a role while determining the premium.

In order to reduce the export marine insurance premium cost, you can opt for deductible, as this affects the premium directly. Higher the deductible, lower will be the premium. Also, you should make sure that you have taken appropriate measures to minimize the risk on the ship, such as installing safety equipment. You should also compare policies across different marine insurance companies in India and SecureNow can help you do that.

Insurers typically analyze the frequency and nature of past claims to offer a price. In case claims are infrequent and are linked to natural disasters then the impact on pricing is minimal.

Most general insurance companies provide this type of insurance in India. Some of the popular private insurers are: ICICI Lombard, Tata AIG, IFFCO TOKIO, HDFC Ergo, Liberty, Reliance General Insurance, Bajaj Allianz. PSUs dealing in export import insurance are: The New India Assurance, Oriental Insurance, National Insurance, United India Insurance.

These types of insurances need personalization based on the needs and requirements of the traders. We, at SecureNow, offer you the platform to compare values and coverages of insurers to be able to choose the insurance that best suits your needs. You can submit a purchase request with us after checking on the quotations available online, an export import insurance expert will get in touch with you within 24 hours to help you with your insurance needs.

In the basic Export and Import policy loss due to terrorism is not covered. But you can include this as an extension under the policy by paying the marginally extra premium. It is advised to do this addition at the time of buying the policy. We’ll make sure that you include the necessary add-on coverages while buying the policy.

Export import insurance policy is a highly customized product and requires guidance from your insurance advisor. SecureNow can help you design a suitable policy and provide you with multiple quotes from various insurers for comparison. We will be your one point of contact from buying the policy to filing the claim. To start, just fill in the contact details form above, and we will get in touch with you in order to start the process.

While premium is important, the coverage provided by your export and import insurance is the factor that you should consider first. While buying this policy, you should look for a plan that covers all types of claims against various risks faced by your business. It is always recommended to buy adequate coverage regardless of premium in order to stay fully protected.
Additionally, you should consider the claim history of the insurer, digital capability to issue instant certificates of insurance, international coverage of the insurer to appoint a surveyor and the turnaround time to settle a claim.

It is always advisable to do a little research before you buy any kind of insurance policy online. But an export and import insurance policy definitely needs expert advice before you purchase it as the requirements and needs vary with traders and so does the policy type. SecureNow will help you pick the best insurance policy by helping you compare prices from and coverages. You can check out the details online on our website to submit a request for buying an export and import insurance with us, and an expert will get in touch with you within 24 hours to help you with buying the policy that best suits your requirements.

In order to file a claim under international insurance, you should notify the insurer about the loss or damage to the cargo. Once intimated, you should take all the possible measures to minimize the loss of goods. The surveyor will be appointed by the insurance company who will inspect the loss, outward damage and missing packages. You have to submit all claim documents within a specified time limit in order to get a claim paid.

Yes, you can claim for partial loss which is considered of two types. A general average loss which is caused voluntarily to avoid danger. For instance, the cargo might be thrown out of the ship to save the crew and ship, if it is sinking due to overload. The second type of partial loss is a particular average loss in which damage is caused by covered marine peril.

Claims arising from loss of cargo due to fire, explosion, earthquake, volcanic eruption, the collision of ships or overturning can be filed under this clause of international marine insurance. Apart from this, you can also file claims arising from washing overboard, jettison loss, or if the package is dropped while loading or unloading from the vessel.

Insuropedia

Can a Customs Duty cover be bought along with an Open Cover policy under export/import insurance?

Export and import insurance policies protect businesses and cover them against various risks. This policy helps the business owners to secure against a variety of perils involved in export and import transactions. An export and import insurance has various types of policies for different users.

And yes, a customs duty cover can be bought....

What is a Cargo Insurance Policy?

The cargo insurance policy is specially designed insurance cover for goods in transit. It offers coverage to freight against all types of losses or damages from external causes during transportation whether by land, sea, or rail.

Usually, cargo insurance policies are freely assignable. However, in the case of insured goods being personal....

What is Particular Average Clause in Marine Cargo Insurance?

It is referred to as the particular loss or damage which is caused to a cargo where the damages happen due to a particular peril and the loss is directly borne by the persons who are affected by the damages to the cargo. It means, in any situation, it is not possible to shift the burden of loss to other persons involved in the maritime....

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Cost-effective Insurance

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Quick Turnaround

Cover notes are issued within hours of request. This ensures that your goods don’t sit idle at any stage.

Strong Claim Support

We manage all aspects of your claim - from survey appointment to documentation to insurer follow-up.

Value Added Services

We will advice you on risk management best practices.

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Export Import Insurance

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