Marine Insurance
- Insurance Policy:
Insurance Policy is an evidence of insurance contract. This insurance contract is made between the Insured/Policy-holder and Insurance Company. Subject to the terms & conditions of the policy, the insurance company indemnifies the Insured/Policyholder so that property damaged by insured event can be restored to its former position. Insurance Company provides this insurance coverage in exchange of money which is called ‘premium’ for certain period; usually one (01) year.
- Marine Insurance:
Under this marine insurance, two types of Insurance Coverage are provided, Such as;
- Marine Cargo Insurance
- Marine Hull
Marine Cargo
Insurance
Insurance Policy is an evidence of insurance contract. This insurance contract is made between the Insured/Policy-holder and Insurance Company. Subject to the terms & conditions of the policy, the insurance company indemnifies the Insured/Policyholder so that property damaged by insured event can be restored to its former position. Insurance Company provides this insurance coverage in exchange of money which is called ‘premium’ for certain period; usually one (01) year.
Insurance Policy is an evidence of insurance contract. This insurance contract is made between the Insured/Policy-holder and Insurance Company. Subject to the terms & conditions of the policy, the insurance company indemnifies the Insured/Policyholder so that property damaged by insured event can be restored to its former position. Insurance Company provides this insurance coverage in exchange of money which is called ‘premium’ for certain period; usually one (01) year.
- Risk Coverage:
For transit (Import/Export purpose) between two countries:
- By Sea: Following clauses are mainly use:
- ICC-“A”
- ICC-“B”
- ICC-“C”
- By Air:
- Rail/Lorry All Risk
- Rail/Lorry Risk
- By Land:
- Rail/Lorry All Risk
- Rail/Lorry Risk
- Inland Risk Coverage:
For transit within country by Inland Cargo Vessel/Lorry/Rail:
- By Waterborne: Perils are covered as per following clauses:
- Inland Cargo (Waterborne) clauses - All Risks
- Inland Cargo (Waterborne) clause
- By Land:
- Rail/Lorry All Risk
- Rail/Lorry Risk only
- What is covered under Marine Cargo Insurance?
The policy provides coverage for loss/damage of cargo during transit by Sea.
Risk coverage varies with Institute Cargo Clauses (ICC) used.
- However, coverage under ICC “C”-
- Fire & Explosion
- Vessel or craft being stranded, grounded, sunk or capsized
- Overturning or derailment of land conveyance
- Collision or cargo of vessel, Craft or conveyance with any external object other than water
- Discharge of cargo at port of distress
- General Average Sacrifice
- Jettison
- Coverage under ICC “B”: It covers all the perils covered under ICC “C” and in addition it covers:
- Earthquake volcanic eruption or lightning.
- Washing Overboard
- Total loss any package lost overboard or dropped whilst loading on to or unloading from vessel or craft.
- Entry of sea lake or river water into vessel craft holds conveyance container lift van or place of storage.
- ICC “A”: It covers all the perils covered under ICC “C” & ICC “B” and in addition it covers Non-delivery, Theft, Breakage etc.
Marine Hull:
Marine Hull insurance covers loss/damage of the vessel, including its machinery and equipment, as well as legal liability due to collision related to the vessel’s operations or the actions of masters or crew.
- Marine Hull Coverage:
Marine Hull transit is applicable to all vessels operating in land waterways, Estuaries and coastal waters of Bangladesh. Marine Hull includes Hull and Machinery. The coverage available under are as follows;
- TLO (With Sue, Labour & Salvage Charges)
- TC Hull
- Cost of Insurance:
Cost of Insurance means the amount of money that the clients pay to buy their desired insurance. This cost of insurance includes Premium, VAT and Stamp Duty in common.
- Sample of premium calculation:
- Marine Cargo Insurance:
Premium Rate: Marine Cargo Premium rate is taken from the Marine Tariff. Premium rate depends on Risk Coverage, Nature of Cargo & Packing and Mode of Transit as well.
Premium: Sum Insured (Insured Value) x
Premium Rate (Depends on mainly risk coverage)
xxxxx
(+) VAT (Premium x 15%)
xxxxx
(+) Stamp Duty (As per Stamp Act)
xxxxx
Total Payable Amount
xxxxx
- Marine Hull Insurance (Inland Vessels only):
Premium Rate: Marine Hull Premium rate is taken from the Marine Tariff. Hull Premium rate depends on nature of vessel and risk coverage (TLO & TC Hull).
Premium: Sum Insured (Insured Value) x
Premium Rate (Depends on mainly risk coverage)
xxxxx
(+) VAT (Premium x 15%)
xxxxx
(+) Stamp Duty (As per Stamp Act)
xxxxx
Total Payable Amount
xxxxx
