Marine Insurance: Duty Insurance Policy
The policy is designed to help importers who are bringing in cargo where the landed costwould be more than the CIF value by imposing a custom duty. The policy is not an agreed value basis, and claims under this section are payable on actual basis.Read more
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Highlights of Duty Insurance Policy
Here are some of the highlights of Duty Insurance policy:
- The policy indemnifies the importer for the increased value of the cargo due to payment of Duty.
- The premium under the Duty Insurance Policy would normally be cheaper than the Cargo Insurance Policy by at least 25%.
- This policy’s sum insured is determined based upon the actual duty that is to be paid.
- The policy may also be issued on a provisional sum insured basis, since the amount of duty could not be known to the importer before landing the cargo at the destination port.
- The Duty Policy is to be issued to the holder or assignee of the Import License.
- The sum insured for custom duty is modified based on the actual evaluated custom duty at the expiration of open policy that was issued to cover custom duty.
Duty Insurance Policy Coverage
This policy provides coverage for the following:
- A duty insurance policy is usually issued in conjunction with a cargo policy.
- No claim under the duty policy can be made unless the liability is covered by the cargo policy.
- The terms of cover and exclusions are also applicable in tandem with the cargo policy.
Duty Insurance Policy Does Not Cover
This insurance policy does not provide cover for the following:
- In case of total or partial loss of cargo prior to Duty becoming payable.
- Salvage and/or Salvage Charges / General Average arising from any loss before the Duty becomes payable.