a study on voyage insurance

7/24/2019 A Study on Voyage Insurance

1/35

A STUDY ON VOYAGE INSURANCE (MARINE INSURANCE)

INTRODUCTION

A financial protection plan that provie! covera"e for "oo! in tran!it #$ !ea% In orer for

a vo$a"e polic$ to #e vali& the ve!!el tran!portin" the car"o '!t #e in "oo conition an

capa#le of 'ain" the *orne$& an the ve!!el+! cre, '!t #e co'petent% Thi! re-ire'ent e.i!t!

#eca!e a vo$a"e polic$& lie an$ in!rance polic$& i! intene to protect a"ain!t nfore!een

ri!!& not a"ain!t preventa#le ri!!% Vo$a"e policie! are i'portant in the e.port #!ine!!%

A voyage policy may also be called "marine cargo insurance."

Marine in!rance cover! the lo!! or a'a"e of !hip!& car"o& ter'inal!& an an$ tran!portor car"o #$ ,hich propert$ i! tran!ferre& ac-ire& or hel #et,een the point! of ori"in an final

e!tination% Car"o in!rance / i!c!!e here / i! a !#0#ranch of 'arine in!rance& tho"h

Marine al!o incle! On!hore an Off!hore e.po!e propert$& (container ter'inal!& port!& oil

platfor'!& pipeline!)& 1ll& Marine Ca!alt$& an Marine 2ia#ilit$% 3hen "oo! are tran!porte

#$ 'ail or corier& !hippin" in!rance i! !e in!tea%

Mariti'e in!rance ,a! the earlie!t ,ell0evelope in of in!rance& ,ith ori"in! in the Gree

an Ro'an 'ariti'e loan% Separate 'arine in!rance contract! ,ere evelope in Genoaan

other Italian citie! in the forteenth centr$ an !prea to northern Erope% 4re'i'! varie

,ith intitive e!ti'ate! of the varia#le ri! fro' !ea!on! an pirate!% 567Moern 'arine in!rance

la, ori"inate in the2e. 'ercatoria(la, 'erchant)% In 6896& a !peciali:e cha'#er of

a!!rance !eparate fro' the other Cort! ,a! e!ta#li!he in En"lan% ;$ the en of the

!eventeenth centr$& 2onon+! "ro,in" i'portance a! a centre for trae ,a! increa!in" e'an

for 'arine in!rance% In the late 68


2/35

'aret 2lo$+! of 2ononan !everal relate !hippin" an in!rance #!ine!!e!% The

participatin" 'e'#er! of the in!rance arran"e'ent eventall$ for'e a co''ittee an 'ove

to the Ro$al E.chan"eonCornhilla! the Societ$ of 2lo$+!% The e!ta#li!h'ent of in!rance

co'panie!& a evelopin" infra!trctre of !peciali!t! (!ch a!!hip#roer!& a'iralt$la,$er!&

#aner!& !rve$or!& lo!! a*!ter!& "eneral avera"e a*!ter!& et al.)& an the "ro,th of the ;riti!h

E'pire"ave En"li!h la, a pro'inence in thi! area ,hich it lar"el$ 'aintain! an for'! the

#a!i! of al'o!t all 'oern practice% 2or Man!fiel& 2or Chief =!ticein the 'i0ei"hteenth

centr$& #e"an the 'er"in" of la, 'erchant anco''on la,principle!% The "ro,th of the

2onon in!rance 'aret le to the !tanari:ation of policie! an *icial preceentfrther

evelope 'arine in!rance la,% In 6>98 the Marine In!rance Actcoifie the previo!

co''on la,? it i! #oth an e.tre'el$ thoro"h an conci!e piece of ,or% Altho"h the title of

the Act refer! to 'arine in!rance& the "eneral principle! have #een applie to all non0life

in!rance% In the 6>th centr$& 2lo$+! an the In!titte of 2onon Uner,riter! (a "ropin" of

2onon co'pan$ in!rer!) evelope #et,een the' !tanari:e cla!e! for the !e of 'arine

in!rance& an the!e have #een 'aintaine !ince% The!e are no,n a! the In!titte Cla!e!

#eca!e the In!titte covere the co!t of their p#lication% Ot of 'arine in!rance& "re, non0

'arine in!rance an rein!rance% Marine in!rance traitionall$ for'e the 'a*orit$ of #!ine!!

ner,ritten at2lo$+!% No,aa$!& Marine in!rance i! often "rope ,ith Aviation an Tran!it

(car"o) ri!!& an in thi! for' i! no,n #$ the acron$' +MAT+%

O;=ECTIVE

Thi! polic$ cover! "oo!&frei"ht an other intere!t! a"ain!t lo!! or a'a"e to "oo!

,hil!t #ein" tran!porte #$ rail&roa&!ea an@or air%

Different policie! are availa#le epenin" on the t$pe of covera"e re-ire ran"in" fro'

an A22 RIS cover to a re!tricte BIRE RIS ON2Y cover%

Thi! polic$ i! freel$ a!!i"na#le an i! #a!icall$ an a"ree vale polic$%
https://en.wikipedia.org/wiki/Lloyd's_of_Londonhttps://en.wikipedia.org/wiki/Royal_Exchange_(London)https://en.wikipedia.org/wiki/Cornhill,_Londonhttps://en.wikipedia.org/wiki/Lloyd's_of_Londonhttps://en.wikipedia.org/wiki/Shipbrokinghttps://en.wikipedia.org/wiki/Admiralty_lawhttps://en.wikipedia.org/wiki/British_Empirehttps://en.wikipedia.org/wiki/British_Empirehttps://en.wikipedia.org/wiki/William_Murray,_1st_Earl_of_Mansfieldhttps://en.wikipedia.org/wiki/Lord_Chief_Justicehttps://en.wikipedia.org/wiki/Common_lawhttps://en.wikipedia.org/wiki/Precedenthttps://en.wikipedia.org/wiki/Marine_Insurance_Act_1906https://en.wikipedia.org/wiki/Codification_(law)https://en.wikipedia.org/wiki/Reinsurancehttps://en.wikipedia.org/wiki/Lloyd's_of_Londonhttps://en.wikipedia.org/wiki/Lloyd's_of_Londonhttps://en.wikipedia.org/wiki/Royal_Exchange_(London)https://en.wikipedia.org/wiki/Cornhill,_Londonhttps://en.wikipedia.org/wiki/Lloyd's_of_Londonhttps://en.wikipedia.org/wiki/Shipbrokinghttps://en.wikipedia.org/wiki/Admiralty_lawhttps://en.wikipedia.org/wiki/British_Empirehttps://en.wikipedia.org/wiki/British_Empirehttps://en.wikipedia.org/wiki/William_Murray,_1st_Earl_of_Mansfieldhttps://en.wikipedia.org/wiki/Lord_Chief_Justicehttps://en.wikipedia.org/wiki/Common_lawhttps://en.wikipedia.org/wiki/Precedenthttps://en.wikipedia.org/wiki/Marine_Insurance_Act_1906https://en.wikipedia.org/wiki/Codification_(law)https://en.wikipedia.org/wiki/Reinsurancehttps://en.wikipedia.org/wiki/Lloyd's_of_London


3/35

Time and Voyage Policies

A 'arine polic$ 'a$ #e a vo$a"e or ti'e polic$% If it !e! the ,or! at an fro' or fro' a

particlar place to another place it i! a vo$a"e polic$% If it in!re! the !#*ect 'atter for a perio

of ti'e it i! a ti'e polic$% A vo$a"e polic$ co'e! to an en at the concl!ion of the vo$a"e% A

ti'e polic$ co'e! to an en pon the e.pir$ of the ti'e !pecifie%

Special Rules For Voyage Policies

Bor a vo$a"e polic$ there i! an i'plie ter' that the 'arine aventre ,ill co''ence ,ithin a

rea!ona#le ti'e an if it i! not& the in!rer 'a$ avoi the contract nle!! the in!rer ,aive the

ri"ht to avoi or ,a! a,are of the circ'!tance! ca!in" the ela$% (!%9 MIA)

A vo$a"e polic$ ,ill not attach if the !hip !ail! fro' or to place! ifferent fro' tho!e !pecifie%

(!% 6 MIA)

3here after the co''ence'ent of the ri! the e!tination of the !hip i! volntaril$ chan"e the

in!rer i! i!char"e fro' all lia#ilit$ for an$ lo!! occrrin" on or after the ti'e the intention to

chan"e i! 'anife!te& nle!! the polic$ provie! other,i!e% (!%F MIA)

A eviation ,ithot la,fl e.c!e fro' the a"ree cor!e or c!to'ar$ cor!e i!char"e! the

in!rer fro' lia#ilit$ for an$ lo!! occrrin" on or after the eviation% Bailre to call at the port!

of i!char"e in the orer !pecifie or in their "eo"raphical orer ,ill #e a eviation% (!% MIA)


4/35

A vo$a"e polic$ '!t #e carrie ot ,ith rea!ona#le i!patch an the in!rer i! i!char"e fro'

all lia#ilit$ for an$ lo!! occrrin" on or after the ti'e ,hen the ela$ #eco'e! nrea!ona#le%

(!% MIA)

(a) athori!e #$ an$ !pecial ter' in the 'arine polic$?

(#) ca!e #$ circ'!tance! #e$on the control of the 'a!ter an the 'a!ter+! e'plo$er?

(c) rea!ona#l$ nece!!ar$ in orer to co'pl$ ,ith an e.pre!! ,arrant$ or an i'plie ,arrant$?

() rea!ona#l$ nece!!ar$ for the !afet$ of the !hip or !#*ect0'atter in!re?

(e) for the prpo!e of !avin" h'an life or aiin" a !hip in i!tre!! ,here h'an life

Protection and indemnity

A 'arine polic$ t$picall$ covere onl$ three0-arter of the in!re+! lia#ilitie! to,ar! thir

partie!% The t$pical lia#ilitie! ari!e in re!pect of colli!ion ,ith another !hip& no,n a! Hrnnin"

o,nH (colli!ion ,ith a fi.e o#*ect i! a Hhar#orH)& an ,rec re'oval (a ,rec 'a$ !erve to

#loc a har#or& for e.a'ple)% In the 6>th centr$& !hipo,ner! #ane to"ether in 'talner,ritin" cl#!no,n a! 4rotection an Ine'nit$ Cl#! (4I)& to in!re the re'ainin" one0

-arter lia#ilit$ a'on"!t the'!elve!% The!e Cl#! are !till in e.i!tence toa$ an have #eco'e

the 'oel for other !peciali:e an nonco''ercial 'arine an non0'arine 'tal!& for e.a'ple

in relation to oil polltion an nclear ri!!% Cl#! ,or on the #a!i! of a"reein" to accept a

!hipo,ner a! a 'e'#er an lev$in" an initial HcallH (pre'i')% 3ith the fn acc'late&

rein!rance ,ill #e prcha!e? ho,ever& if the lo!! e.perience i! nfavora#le one or 'ore

H!pple'entar$ call!H 'a$ #e 'ae% Cl#! al!o t$picall$ tr$ to #il p re!erve!& #t thi! pt!

the' at o! ,ith their 'tal !tat!%;eca!e lia#ilit$ re"i'e! var$ thro"hot the ,orl&

in!rer! are !all$ carefl to li'it or e.cle A'erican=one! Actlia#ilit$%
https://en.wikipedia.org/wiki/Mutual_insurancehttps://en.wikipedia.org/wiki/Mutual_insurancehttps://en.wikipedia.org/wiki/Protection_and_indemnity_insurancehttps://en.wikipedia.org/wiki/Merchant_Marine_Act_of_1920https://en.wikipedia.org/wiki/Mutual_insurancehttps://en.wikipedia.org/wiki/Mutual_insurancehttps://en.wikipedia.org/wiki/Protection_and_indemnity_insurancehttps://en.wikipedia.org/wiki/Merchant_Marine_Act_of_1920


5/35

Actual total loss and constructive total loss

The!e t,o ter'! are !e to ifferentiate the e"ree of proof ,here a ve!!el or car"o ha! #een

lo!t% An actual total lossoccr! ,here the a'a"e! or co!t of repair clearl$ e-al or e.cee the

vale of the propert$% A constructive total lossi! a !itation ,here the co!t of repair! pl! the

co!t of !alva"e e-al or e.cee the vale% The !e of the!e ter'! i! contin"ent on there #ein"

propert$ re'ainin" to a!!e!! a'a"e!& ,hich i! not al,a$! po!!i#le in lo!!e! to !hip! at !ea or in

total theft !itation!% In thi! re!pect& 'arine in!rance iffer! fro' non0'arine in!rance& ,here

the in!re i! re-ire to prove hi! lo!!% Traitionall$& in la,& 'arine in!rance ,a! !een a! an

in!rance of Hthe aventreH& ,ith in!rer! havin" a !tae an an intere!t in the ve!!el an@or the

car"o rather than !i'pl$ an intere!t in the financial con!e-ence! of the !#*ect0'atter+! !rvival%

Specialist policies

Vario! !peciali!t policie! e.i!t& inclin"J

Newbuilding risksThi! cover! the ri! of a'a"e to the hll ,hile it i! ner

con!trction%

!pen argoor S#ipper$s %nterest %nsuranceJ Thi! polic$ 'a$ #e prcha!e #$ a

carrier& frei"ht #roer& or !hipper& a! covera"e for the !hipperK! "oo!% In the event of lo!! or

a'a"e& thi! t$pe of in!rance ,ill pa$ for the tre vale of the !hip'ent& rather than onl$

the le"al a'ont that the carrier i! lia#le for%

&ac#t %nsurance In!rance of plea!re craft i! "enerall$ no,n a! H$achtin!ranceH

an incle! lia#ilit$ covera"e% S'aller ve!!el! !ch a! $acht! an fi!hin" ve!!el! are

t$picall$ ner,ritten on a H#inin" athorit$H or Hline!lipH #a!i!%

'ar risksGeneral hll in!rance oe! not cover the ri!! of a ve!!el !ailin" into a ,ar

:one% A t$pical e.a'ple i! the ri! to a taner !ailin" in the 4er!ian Glfrin" theGlf 3ar%

The ,ar ri!! area! are e!ta#li!he #$ the 2onon0#a!e =oint 3ar Co''ittee& ,hich ha!
https://en.wikipedia.org/wiki/Yachthttps://en.wikipedia.org/wiki/Persian_Gulfhttps://en.wikipedia.org/wiki/Persian_Gulfhttps://en.wikipedia.org/wiki/Gulf_Warhttps://en.wikipedia.org/wiki/Yachthttps://en.wikipedia.org/wiki/Persian_Gulfhttps://en.wikipedia.org/wiki/Gulf_War


6/35

recentl$ 'ove to incle the Malacca Strait!a! a ,ar ri!! area e topirac$% If an attac i!

cla!!ifie a! a HriotH then it ,ol #e covere #$ ,ar0ri! in!rer!%

%ncreased Value (%V)Increa!e Vale cover protect! the !hipo,ner a"ain!t an$

ifference #et,een the in!re vale of the ve!!el an the 'aret vale of the ve!!el%

!verdue insuranceThi! i! a for' of in!rance no, lar"el$ o#!olete e to avance! in

co''nication!% It ,a! an earl$ for' of rein!rance an ,a! #o"ht #$ an in!rer ,hen a

!hip ,a! late at arrivin" at her e!tination port an there ,a! a ri! that !he 'i"ht have #een

lo!t (#t& e-all$& 'i"ht !i'pl$ have #een ela$e)% The overe in!rance of

the Titanic,a! fa'o!l$ ner,ritten on the oor!tep of 2lo$+!%

argo insuranceCar"o in!rance i! ner,ritten on the In!titte Car"o Cla!e!& ,ith

covera"e on an A& *& or #a!i!& Ahavin" the ,ie!t cover an the 'o!t re!tricte%

Vala#le car"o i! no,n a!!pecie% In!titte Cla!e! al!o e.i!t for the in!rance of !pecific

t$pe! of car"o& !ch a! fro:en foo& fro:en 'eat& an particlar co''oitie! !ch a! #l

oil& coal& an*te% Often the!e in!rance conition! are evelope for a !pecific "rop a! i!

the ca!e ,ith the In!titte Beeration of Oil!& See! an Bat! A!!ociation! (BOBSA) Trae!

Cla!e! ,hich have #een a"ree ,ith the Beeration of Oil!& See! an Bat! A!!ociation!

an In!titte Co''oit$ Trae! Cla!e! ,hich are !e for the in!rance of !hip'ent!

of cocoa&coffee& cotton& fat! an oil!& hie! an !in!& 'etal!&oil !ee!& refine !"ar&

anteaan have #een a"ree ,ith the Beeration of Co''oit$ A!!ociation!%

Warranties and conditions

A pecliarit$ of 'arine in!rance an in!rance la, "enerall$& i! the !e of the

ter'! conditionan warranty% In En"li!h la,& a conition t$picall$ e!cri#e! a part of the

contract that i! fna'ental to the perfor'ance of that contract& an& if #reache& the non0#reachin" part$ i! entitle not onl$ to clai' a'a"e! #t to ter'inate the contract on the #a!i!

that it ha! #een repiate #$ the part$ in #reach%

;$ contra!t& a ,arrant$ i! not fna'ental to the perfor'ance of the contract an #reach of a

,arrant$& ,hile "ivin" ri!e to a clai' for a'a"e!& oe! not entitle the non0#reachin" part$ to
https://en.wikipedia.org/wiki/Strait_of_Malaccahttps://en.wikipedia.org/wiki/Piracyhttps://en.wikipedia.org/wiki/RMS_Titanichttps://en.wikipedia.org/wiki/RMS_Titanichttps://en.wikipedia.org/wiki/Lloyd's_of_Londonhttps://en.wikipedia.org/wiki/Lloyd's_of_Londonhttps://en.wikipedia.org/wiki/Moneyhttps://en.wikipedia.org/wiki/Moneyhttps://en.wikipedia.org/wiki/Frozen_foodhttps://en.wikipedia.org/wiki/Coalhttps://en.wikipedia.org/wiki/Jutehttps://en.wikipedia.org/wiki/Cocoa_beanhttps://en.wikipedia.org/wiki/Cocoa_beanhttps://en.wikipedia.org/wiki/Coffeehttps://en.wikipedia.org/wiki/Cottonhttps://en.wikipedia.org/wiki/Oil_seedshttps://en.wikipedia.org/wiki/Oil_seedshttps://en.wikipedia.org/wiki/Refined_sugarhttps://en.wikipedia.org/wiki/Teahttps://en.wikipedia.org/wiki/Teahttps://en.wikipedia.org/wiki/Contractual_term#Condition_or_Warrantyhttps://en.wikipedia.org/wiki/Warrantyhttps://en.wikipedia.org/wiki/Strait_of_Malaccahttps://en.wikipedia.org/wiki/Piracyhttps://en.wikipedia.org/wiki/RMS_Titanichttps://en.wikipedia.org/wiki/Lloyd's_of_Londonhttps://en.wikipedia.org/wiki/Moneyhttps://en.wikipedia.org/wiki/Frozen_foodhttps://en.wikipedia.org/wiki/Coalhttps://en.wikipedia.org/wiki/Jutehttps://en.wikipedia.org/wiki/Cocoa_beanhttps://en.wikipedia.org/wiki/Coffeehttps://en.wikipedia.org/wiki/Cottonhttps://en.wikipedia.org/wiki/Oil_seedshttps://en.wikipedia.org/wiki/Refined_sugarhttps://en.wikipedia.org/wiki/Teahttps://en.wikipedia.org/wiki/Contractual_term#Condition_or_Warrantyhttps://en.wikipedia.org/wiki/Warranty


7/35

ter'inate the contract% The 'eanin" of the!e ter'! i! rever!e in in!rance la,% Inee& a

,arrant$ if not !trictl$ co'plie ,ith ,ill ato'aticall$ i!char"e the in!rer fro' frther

lia#ilit$ ner the contract of in!rance% The a!!re ha! no efen!e to hi! #reach& nle!! he can

prove that the in!rer& #$ hi! conct& ha! ,aive hi! ri"ht to invoe the #reach& po!!i#ilit$

provie in !ection () of the Marine In!rance Act 6>98 (MIA)% Brther'ore& in the a#!ence

of e.pre!! ,arrantie! the MIA ,ill i'pl$ the'& nota#l$ a ,arrant$ to provie a !ea,orth$ ve!!el

at the co''ence'ent of the vo$a"e in a vo$a"e polic$ (!ection >(6)) an a ,arrant$ of le"alit$

of the in!re vo$a"e (!ection 6)%

Type o+ policies

6% Annual Turn !ver Policy ATO4 #$ a"ree'ent cover! tran!it of ra, 'aterial& !e'ifini!he fini!he proct! pertain! to in!re+! trae i%e% E.port& I'port& Inter Depot

'ove'ent inciental !tora"e fro' ori"inatin" point to e!tination point on !ea'le!! #a!i!%

e$ featre! of ATO4 areJ0

o Si:ea#le !avin" in pre'i'& ,hich i! char"e onl$ on $or !ale! trnover%

o Sea'le!! cover ,ith all 'ove'ent of "oo! ato'aticall$ covere%

o No ha!!le! of !#'ittin" perioical eclaration of 'ove'ent! to the in!rer% Onl$

'onthl$@Larterl$ !ale! fi"re! nee to #e !#'itte%o Bacilit$ for pa$'ent of pre'i' on half0$earl$ @ -arterl$ #a!i!%

F% Speci+ic Voyage In Marine In!rance !pecific policie! are i!!e to cover a !pecific

!in"le tran!it% Cover en! a! !oon a! arrival of car"o at e!tination%

% !pen Policy It i! an Annal Car"o In!rance Contract e.pre!!e in "eneral ter'! an

effecte for a ron !' !fficient to cover a n'#er of i!patche! ntil the !' in!re i!

e.ha!te #$ eclaration!% The Open 4olic$& al!o no,n a! the Bloatin" 4olic$& !ave! the

a!!re the inconvenience of affectin" iniviall$ the in!rance of "oo! i!patche

,ithin the contr$% The polic$ 'a$ cover #oth inco'in" an ot"oin" con!i"n'ent! fro'

an$,here in Inia to an$,here in Inia% The !' in!re ner the polic$ !hol

orinaril$ repre!ent the a!!re! e!ti'ate annal trnover of the "oo!%

% Annual Policy Annal polic$ i! "rante in re!pect of "oo! #elon"in" to the A!!re

an or hel in tr!t #$ the a!!re an not ner contract of !ale an or prcha!e ,hich are


8/35

in tran!it #$ roa or rail fro' !pecifie epot! @proce!!in" nit! to other !pecifie epot!

@proce!!in" nit!% I'portant featre! of Annal 4olic$ are0

o In!ra#le intere!t to re'ain ,ith in!re

o 4olic$ not a!!i"na#le or tran!fera#le

o I!!e of Annal polic$ to tran!port operator!@contractor!& clearin" an for,arin"

a"ent!

o 4rohi#ite 4olic$ i! !#*ect to the conition of avera"e

% !pen over An open cover i! an a"ree'ent (not a polic$) ,here#$ the in!rer ,ill

accept in!rance of all !hip'ent! 'ae #$ the a!!re& ,ithin the ter'! of the cover for a

fi.e perio& !all$ for 6F 'onth!% ;ein" an a"ree'ent& it i! not !ta'pe% 1o,ever&!ta'pe policie! or certificate! of in!rance are i!!e a"ain!t the eclaration 'ae #$ the

a!!re% The open cover i! of "reat convenience to the client! en"a"e in re"lar

i'[email protected] trae%

Add on covers

Inlan tran!it policie! can #e e.tene to cover the follo,in" peril! on pa$'ent of aitional

pre'i' J6% SRCC 0 Strie& riot an civil co''otion (inclin" terrori!t act)

F% BO; 0 3here the inlan tran!it i! re-ire to #e e.tene to cover the "oo! till the$ are

loae on #oar the ve!!el & thi! e.ten!ion can #e taen%

E.port @I'port policie! can #e e.tene to cover 3ar an @or SRCC peril! on pa$'ent of an

aitional pre'i'%

Top

'#o can take t#e policy,

The contract of !ale ,ol eter'ine ,ho #$! the polic$% The 'o!t co''on contract! are J

BO; (Bree on ;oar)

C B (Co!t Brei"ht)
http://newindia.co.in/Content.aspx?pageid=8#maincontenthttp://newindia.co.in/Content.aspx?pageid=8#maincontent


9/35

CIB (Co!t& In!rance Brei"ht)

In BO; AND CB contract!& the #$er i! re!pon!i#le for in!rance% 3herea! in CIB contract!

the !eller i! re!pon!i#le for in!rance fro' hi! o,n pre'i!e! to that of the prcha!er%

Top

-ow to select t#e sum insured,

The !' in!re or vale of the polic$ ,ol epen pon the t$pe of contract% U!all$& in

aition to the contract vale 69@6 i! ae to tae care of inciental co!t%

Top

-ow to claim,

The follo,in" !tep! !hol #e taen in event of a lo!! or a'a"e to "oo! in!re J

6% Tae i''eiate !tep! to 'ini'i!e lo!!%

F% Infor' neare!t office of the in!rance co'pan$ or clai' !ettlin" a"ent 'entione on thepolic$%

% In ca!e of a'a"e to "oo! ,hil!t on !hip or port & arran"e for *oint !hip !rve$ or port

!rve$%

% 2o"e 'onetar$ clai' ,ith carrier ,ithin !tiplate ti'e perio%

% S#'it l$ a!!i"ne in!rance polic$@certificate alon" ,ith the ori"inal invoice an

other oc'ent! re-ire to !#!tantiate the clai' !ch a! J

6% ;ill of 2ain" @ A3;@GR

F% 4acin" li!t

% Copie! of corre!ponence e.chan"e ,ith carrier!%

% Cop$ of notice !erve on carrier! alon" ,ith acno,le"'ent@receipt%

% Shorta"e@Da'a"e Certificate i!!e #$ carrier!%
http://newindia.co.in/Content.aspx?pageid=8#maincontenthttp://newindia.co.in/Content.aspx?pageid=8#maincontenthttp://newindia.co.in/Content.aspx?pageid=8#maincontenthttp://newindia.co.in/Content.aspx?pageid=8#maincontent


10/35

8% Srve$ fee! i! to #e pai to the !rve$or appointe #$ the in!rance co'pan$% Thi! fee!

,ill #e rei'#r!e alon" ,ith the clai' if the clai' i! other,i!e a'i!!i#le%

IM4ORTANCE OB INSURANCE IN INDIA

%nsurance is t#e only sector w#ic# garners long term savings

In!rer! are increa!in"l$ introcin" innovative proct! to 'eet the !pecific nee! of the

pro!pective polic$holer!% An evolvin" in!rance !ector i! of vital i'portance for econo'ic

"ro,th% 3hile encora"in" !avin"! ha#it it al!o provie! a !afet$ net to #oth enterpri!e! an

Inivial!%

In!rance Co'panie! receive& ,ithot 'ch efalt& a !tea$ ca!h !trea' of pre'i' or

contri#tion! to pen!ion plan!% Vario! actar$ !tie! an 'oel! ena#le the' to preict&relativel$ accratel$& their e.pecte ca!h otflo,!%

2ia#ilitie! of In!rance co'panie! #ein" lon"0ter' or contin"ent in natre& li-iit$ i! e.cellent

an their inve!t'ent! are al!o lon"0ter' in natre% Since the$ offer 'ore than the retrn on

!avin"! in the !hape of life0cover to the inve!tor!& the rate of retrn "arantee in their in!rance

policie! i! relativel$ lo,% Con!e-entl$& the nee to !ee hi"h rate! of retrn! on their

inve!t'ent! i! al!o lo,% The ri!0retrn trae off i! heavil$ tilte in favor of ri!%

A! a co'#ine re!lt of all thi!& inve!t'ent! of in!rance co'panie! have #een lar"el$ in #on!

floate #$ GOI& 4SU!& !tate "overn'ent!& local #oie!& corporate #oie! an 'ort"a"e! of lon"

ter' natre%


11/35

enerates /ong term +unds +or in+rastructure and strong positive correlation between

development o+ capital markets and insurance0pension sector

Bor GD4 to "ro, at < to 69& -alitative i'prove'ent in infra!trctre i! e!!ential% E!ti'ate! of

fn! re-ire for evelop'ent of infra!trctre var$ ,iel$% An inve!t'ent of 8&6>&899 crore i!

anticipate in the ne.t $ear!% Tenre of fnin" re-ire for infra!trctre nor'all$ ran"e!

fro' 69 to F9 $ear!% The in!rance in!tr$ al!o provie! crcial financial inter'eiar$ !ervice!&

tran!ferrin" fn! fro' the in!re to capital inve!t'ent& critical for contine econo'ic

e.pan!ion an "ro,th& !i'ltaneo!l$ "eneratin" lon"0ter' fn! for infra!trctre

evelop'ent%

In fact infra!trctre inve!t'ent! are ieal for a!!et0lia#ilit$ 'atchin" for life in!rance

co'panie! "iven their lon" ter' lia#ilit$ profile% Accorin" to preli'inar$ e!ti'ate! p#li!he

#$ the Re!erve ;an of Inia& contri#tion of in!rance fn! to financial !avin"! ,a! 6%F per

cent in F99098& vi:%& F% per cent of the GD4 at crrent 'aret price!% Develop'ent of the

in!rance !ector i! th! nece!!ar$ to !pport contine econo'ic tran!for'ation% Social !ecrit$

an pen!ion refor'! too #enefit fro' a 'atre in!rance in!tr$%

The in!rance !ector in Inia& ,hich ,a! opene p to private participation in the $ear 6>>>& ha!

co'plete over !even $ear! in a li#erali:e environ'ent% 3ith an avera"e annal "ro,th of

per cent in the fir!t $ear pre'i' in the life !e"'ent an 6%F per cent "ro,th in the nonlife

!e"'ent& to"ether ,ith the lar"e!t n'#er of life in!rance policie! in force& the potential of the

Inian in!rance in!tr$ i! !till lar"e%


12/35

2ife in!rance penetration in Inia ,a! le!! than 6 per cent till 6>>90>6% Drin" the 6>>9!& it ,a!

#et,een 6 an F per cent an fro' F996 it ,a! over F per cent% In F99 it ha increa!e to F%

per cent%

Spread o+ +inancial services in rural areas and amongst socially less privileged

IRDA Re"lation! provie certain 'ini'' #!ine!! to #e one

0 in rral area!

0 in the !ociall$ ,eaer !ection!

2ife In!rance office! are !prea over nearl$ 699 centre!% 4re!ence of repre!entative in ever$

teh!il P eeper penetration in rral area!%

In!rance a"ent! n'#erin" over 8%F lah! in rral area!%

4olicie! !ol in rral area! (F9909) 0 No% of policie! 0 lah!& S' a!!re 8&999 crore!%

Social !ecrit$ 0 No% of live! covere F9909 6% lah! F9909 F%6 lah!

In!rance ha! evolve a! a proce!! of !afe"arin" the intere!t of people fro' lo!! an

ncertaint$% It 'a$ #e e!cri#e a! a !ocial evice to rece or eli'inate ri! of lo!! to life an

propert$%

In!rance contri#te! a lot to the "eneral econo'ic "ro,th of the !ociet$ #$ provie! !ta#ilit$ to

the fnctionin" of proce!!% The in!rance in!trie! evelop financial in!tittion! an rece

ncertaintie! #$ i'provin" financial re!orce!%

1. Provide sa+ety and security

In!rance provie financial !pport an rece ncertaintie! in #!ine!! an h'an life% It

provie! !afet$ an !ecrit$ a"ain!t particlar event% There i! al,a$! a fear of !en lo!!%

In!rance provie! a cover a"ain!t an$ !en lo!!% Bor e.a'ple& in ca!e of life in!rance


13/35

financial a!!i!tance i! provie to the fa'il$ of the in!re on hi! eath% In ca!e of other

in!rance !ecrit$ i! provie a"ain!t the lo!! e to fire& 'arine& accient! etc%

2. enerates +inancial resources

In!rance "enerate fn! #$ collectin" pre'i'% The!e fn! are inve!te in "overn'ent

!ecritie! an !toc% The!e fn! are "ainfll$ e'plo$e in in!trial evelop'ent of a contr$

for "eneratin" 'ore fn! an tili!e for the econo'ic evelop'ent of the contr$%

E'plo$'ent opportnitie! are increa!e #$ #i" inve!t'ent! leain" to capital for'ation%

3. /i+e insurance encourages savings

In!rance oe! not onl$ protect a"ain!t ri!! an ncertaintie!& #t al!o provie! an inve!t'ent

channel too% 2ife in!rance ena#le! !$!te'atic !avin"! e to pa$'ent of re"lar pre'i'% 2ife

in!rance provie! a 'oe of inve!t'ent% It evelop! a ha#it of !avin" 'one$ #$ pa$in"

pre'i'% The in!re "et the l'p !' a'ont at the 'atrit$ of the contract% Th! life

in!rance encora"e! !avin"!%

4. Promotes economic growt#

In!rance "enerate! !i"nificant i'pact on the econo'$ #$ 'o#ili:in" o'e!tic !avin"!%

In!rance trn acc'late capital into proctive inve!t'ent!% In!rance ena#le! to 'iti"ate

lo!!& financial !ta#ilit$ an pro'ote! trae an co''erce activitie! tho!e re!lt! into econo'ic

"ro,th an evelop'ent% Th!& in!rance pla$! a crcial role in !!taina#le "ro,th of an

econo'$%

5. 6edical support

A 'eical in!rance con!iere e!!ential in 'ana"in" ri! in health% An$one can #e a victi' of

critical illne!! ne.pectel$% An ri!in" 'eical e.pen!e i! of "reat concern% Meical In!rance

i! one of the in!rance policie! that cater for ifferent t$pe of health ri!!% The in!re "et! a

'eical !pport in ca!e of 'eical in!rance polic$%


14/35

7. Spreading o+ risk

In!rance facilitate! !preain" of ri! fro' the in!re to the in!rer% The #a!ic principle of

in!rance i! to !prea ri! a'on" a lar"e n'#er of people% A lar"e n'#er of per!on! "et

in!rance policie! an pa$ pre'i' to the in!rer% 3henever a lo!! occr!& it i! co'pen!ate ot

of fn! of the in!rer%

8. Source o+ collecting +unds

2ar"e fn! are collecte #$ the ,a$ of pre'i'% The!e fn! are tili!e in the in!trial

evelop'ent of a contr$& ,hich accelerate! the econo'ic "ro,th% E'plo$'ent opportnitie!

are increa!e #$ !ch #i" inve!t'ent!% Th!& in!rance ha! #eco'e an i'portant !orce of

capital for'ation%

The econo'ic evelop'ent of Inia ,a! o'inate #$ !ociali!t Pinflence policie!& !tateo,ner

!ector& an re tape an e.ten!ive re"lation!& collectivel$ no,n a! Q2icen!e Ra*K% The Inian

econo'ic evelop'ent "ot a #oo!t thro"h it! Econo'ic refor'! in 6>>6 an a"ain thro"h it!

rene,al in the F999% In!rance !erve! a n'#er of vala#le econo'ic fnction! that are lar"el$

i!tinct fro' other t$pe! of financial inter'eiarie!% In!rance contri#tion 'ateriall$ to

econo'ic "ro,th #$ i'provin" the inve!t'ent cli'ate an pro'otin" a 'ore efficient 'i. of

activitie! then ,ol #e nertaen& in the a#!ence of ri! 'ana"e'ent in!tr'ent% In!rance

!ector in Inia i! one of the 'o!t #oo'in" !ector! of the econo'$ an i! "ro,in" at the rate of

60F9 percent per ann'% In Inia& in!rance i! a flori!hin" in!tr$& ,ith !everal national an

international pla$er! co'petin" ,ith each other! an "ro,in" at rapi rate!% Inian in!rance

co'panie! offer a co'prehen!ive ran"e of in!rance plan!& a ran"e that i! "ro,in" a! the

econo'$ 'atre! an the ,ealth of the 'ile cla!!e! increa!e!% De to the "ro,in" e'an for

in!rance& 'ore an 'ore co'panie! are no, e'er"in" in the Inian in!rance !ector% The

econo'$ of Inia i! the eleventh lar"e!t in the ,orl #$ no'inal GD4 an the forth lar"e!t #$

4rcha!in" 4o,er 4arit$ (444)% EY3ORDSJ 2icen!e Ra*& Econo'ic refor'& financial

inter'eiarie!& Inve!t'ent cli'ate& Ri! 'ana"e'ent in!tr'ent& Co'prehen!ive ran"e&

No'inal GD4& 44%


15/35

Bor econo'ic evelop'ent inve!t'ent! are nece!!ar$% Inve!t'ent! are 'ae ot of !avin"!% 2ife

In!rance Co'pan$ i! a 'a*or in!tr'ent for the 'o#ili:ation of !avin"! of people& particlarl$

fro' the 'ile an lo,er "rop% All "oo life in!rance co'panie! have h"e fn!

acc'late thro"h the pa$'ent! of !'all a'ont! of pre'i' of inivial!% The!e fn! are

inve!te in ,a$! that contri#te !#!tantiall$ for the econo'ic evelop'ent of the contrie! in

,hich the$ o #!ine!! The !$!te' of in!rance provie! n'ero! irect an inirect #enefit!

to the inivial! an hi! fa'il$ a! ,ell a! to in!tr$ an co''erce an to the co''nit$ an

the nation a! a ,hole% 4re!ent a$ or"ani:ation of in!tr$& co''erce an trae epen entirel$

on in!rance for their operation& #an!& an financial in!tittion! len 'one$ to in!trial an

co''ercial nertain"! onl$ on the #a!i! of the collateral !ecrit$ of in!rance%

SCO4E OB T1E INSURANCE IN INDIA

In!rance i! a nice0looin" option for inve!t'ent #t 'o!t people are not a,are of it! avanta"e!

a! an inve!t'ent option% Re'e'#er that fore'o!t an fir!t& in!rance i! a#ot ri! cover an

protection% ;$ #$in" life in!rance& $o #$ peace of 'in% In!rance al!o !erve! a! an

e.cellent ta. !avin" 'echani!'% The Govern'ent of Inia ha! provie ta. incentive! to life

in!rance proct! in orer to facilitate the flo, of fn! into proctive a!!et!

%

The in!rance !ector ha! opene p for private in!rance co'panie! ,ith the enact'ent of IRDA

Act& 6>>>% A lar"e n'#er of co'panie! are co'petin" ner #oth "eneral an life In!rance%

The BDI cap@e-it$ in thi! !ector i! F8 an the propo!al! have to #e cleare #$ In!rance

Re"lator$ an Develop'ent Athorit$ (IRDA) e!ta#li!he to protect the intere!t of holer of

In!rance polic$ an act a! a re"lator an facilitator in the in!tr$%

So'e of the 'a*or pla$er! in thi! !ector are 2IC& Ma. Ne, Yor 2ife In!rance& ;a*a* Allian:&

ICICI 4rential& 1DBC Stanar 2ife& Metlife In!rance& ;irla Sn 2ife In!rance& etc

vario! t$pe! of in!tr'ent! an policie! are co'in" p in the 'aret to attract 'ore client!%

Mo!t of the poplation of Inia i! not in!re& hence there i! a lot of !cope in thi! !ector an a

n'#er of co'panie! are plannin" to enter the !ector%


16/35

2ife in!rance i! a financial cover for a contin"enc$ line ,ith h'an life& lie eath& i!a#ilit$&

accient& retire'ent etc% It provie! a efinite a'ont of 'one$ in ca!e the life in!re ie!

rin" the ter' of the polic$ or #eco'e! i!a#le on accont of an accient%6th centr$% The =oint fa'il$ !$!te' an the

cohe!ive livin" in the villa"e! ,ere ,orin" ,ell% A! the fa'ilie!& !plit into nclear fa'ilie!& the

nee for in!rance cover #eco'e! !tron"er an 'ore prononce% Toa$& in!rance #!ine!! i!

one of the fa!t pro'i!in" financial !ervice!& 'ainl$ in the evelopin" nation lie Inia% In!rance

#!ine!! perfor'! re'ara#le feat! #$ in!rin" the in!ra#le p#lic an it! propertie!% 1o,ever&

it i! !#'itte that even after !i. ecae! of the li#erali:ation& the pro"re!! in in!rance !ector in

Inia ha! not #een !ati!factor$%

a study on voyage insurance

Documents