Marine Insurance Act was passed in 1963 in India and this governs the field with the help of Insurance Act 1938.  As usual the three basic principles of any insurance contest i.e. utmost good faith, Insurance interest, indemnity are equally applicable to marine insurance also.  Normally marine policies are issued on agreed value bais.  The valuation cannot be questioned unless there is a fraud.

Marine insurance can divided in to Hull insurance and Cargo insurance.  Under Hull Insurance, LMB Insurance Brokers deal with insurance of ships, fishing vessels, sailing vessels, builders risk insurance charterers liability etc and under Cargo Insurance, we cover transportation of cargo by Land (Rail or Road) Sea or Air.  As marine insurance is closely linked with the trade and therefore it is essential to know the various types of contracts of sale and responsibilities of buyer/seller under each type of contract. The main types of contracts are FOB C&F and CIF.

FOB : This stands for free on board.  In this  types of contract the seller is responsible till the time the goods are placed on board of the ship, then onwards the responsibility shifts to the buyer.  In other words the buyer’s insurance will cover the risk after the consignment is loaded.

C&F  :  This stands the cost and fright.  In this case cost and freight are borne by the seller and insurance is arranged by the buyer.

Normally only one party arranges for insurance and therefore their is  an element of risk involved in both the above types of contracts.

CIF :   This stands for cost insurance freight.  In this case the seller sells the goods with the insurance and later transfers the insurance policy by means of endorsement.  So under this the seller or buyer can in the event of loss claim from the insurance company depending on who has got  insurable interest  at the time of loss.  Since the ownership of goods can change from one hand to another, marine cargo policy  has been made  freely assignable.

The following documents required for settling Marine claims

I  Inland transit claims

1. Claim form

2. Insurance with packing list.

3. Consignor copy of loss receipt /rail receipt.

4. Original  policy of insurance /declarations in case of open policy/certificate of insurance

5.  Carrier’s certificate

6. Copy of notice of claim served on cashier with A/D cards and their reply.

7. FIR in the case of accident claim

8. Survey report in original along with stamped receipts for the feeds paid.

9. Any other documents which may be of relevance.

 II Export/Import claims by Sea or Air

1. Claim Form

2. Original Insurance Policy duly discharged

3. Signed copy of the invoice with packing list.

4. Copy of Bill of lading (all non-negotiable originals printed in case of total loss)

5.  Landing remark certificate issued by port authorities

6. Original insurance survey report.

7. Copy of ship survey report

8. Copy of notice of claims served on the carriers and port authorities with the reply A/D card.

9. Triplicate copy of Bill of entry.

10. Claim Bill

Where the claim for customs duty is involved, in addition to the above documents, proof of settlement by cargo underwriters, copy of application submitted to the customs for refund of duty and their reply rejecting the claim should also be submitted.