The policy can
be issued to the players in the field
of freight services in India. Till
now the insurance on the marine liability
of this industry was being placed
abroad with a special permission from
the Ministry of Finance, since no
such cover was available in the market.
This was so because no Indian Insurer
had any experience or expertise in
the market to provide and service
this kind of covers. It also involved
paying premium in foreign exchange
with no or little involvement of the
client in the event of claim.
Over the past few years, the freight
services industry has seen major
changes with the introduction of
Multi-modal Transporters (MTO) in
the market. This was in addition
to other players like freight forwarders,
shipping agents, packing and consolidating
agents clearing and forwarding agents
etc. Many of these enterprises have
also converted themselves into MTO
and have taken the license within
the purview of the MTO Act. At present
there are about 350 licensed MTOs
in the market and the number is
growing. The Director General of
Shipping gives the license to MTO
and insurance of this kind is mandatory
for issuing a license.
The policy:
The policy developed by Bajaj
Allianz takes care of all marine liabilities
of the freight services industry.
It is like an extension of carriers
legal liability within the meaning
of respective carriers act.
To whom the
policy can be sold:
The policy can be sold to the following
enterprises in the freight services
industry:
- MTO
- Freight Forwarder
- Packing and Consolidating Agents
- Custom House Agents
- Hauliers
- Clearing and Forwarding Agents
- Ship Agents
- In transit Warehousing
What operations
does the policy apply to:
The policy covers the following operations
of the prospective buyers of the policy:
- Air Movements
- Sea Movements
- Road Movements
- Rail Movements
- NVOCC
- Road Haulage Operations
- Parcel Carrier
In additions
to the above the policy can be extended
to cover the operations of:
- Warehouse keeping
- Errors and Omissions
- Third Party Liability
What coverage
does the policy provide:
The policy provides for all legal
liabilities that the freight services
is exposed to in its respective operations,
subject to terms and conditions proposed
and agreed to by the insurers. In
particular, the policy covers legal
liabilities arising out of:
-
Physical loss or damage to cargo
while in the care, custody and control
of the insured, or a party who has
contracted or sub-contracted to
provide transport services.
-
Physical loss or damage to third
party cargo, vessel, containers,
vessels, vehicles or transport equipment
belonging to another party and resulting
from 1 above.
-
Consequential loss and/ or business
interruption resulting from 1 above.
-
Cargo's proportion of general
average, salvage and/ or salvage
charges which are not recoverable
by the customer
-
Fines and Duty.
-
The Errors and Omissions extension
would cover legal liability arising
out of the operations of he insured
following a negligent act, error
or omission by the insured which
does not give rise to a claim in
1 above.
-
The Third Party Liability extension
would cover physical loss or damage
to property, bodily death or injury
or illness and legally recoverable
consequential loss arising out of
the operations of the insured.
The policy is one of indemnity only
unless otherwise specified in the
schedule. It is also for claims made
during the policy period except for
the extension of the policy specifically
stating the claims made basis nature
of the cover.
For detailed terms, conditions, and
exclusions the policy document may
please be referred.
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