Marine Open Cover
Marine open cover is a legal contract between the insurer and the insured. The tenure of the policy is 12 months and the insured stays protected during this period for a large number of shipments/dispatches and the premium amount is adjusted from the cash deposit account that the insurer maintains. In a marine open cover, the insured does not get a fixed sum insured amount however, the amount is decided with PBL/SCL along with the terms of cover. Open Cover is not a policy and that is why it is not stamped.
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Highlights of Marine Open Cover
Here are some of the highlights of this cover:
- Marine open cover provides coverage for frequent shipments and dispatches instead of purchasing an individual policy for every shipment mainly for import and export.
- Under open cover, the policyholder has to maintain a certain amount in the cash deposit account that enables them to send the declaration for issuing a certificate/policy even after a later date.
- According to the terms of the marine open cover, the insured has to declare every shipment that comes within the scope of the contract.
- The insurer is also bound to accept the insurance of all the dispatches and shipments made by the insured during the period by keeping enough amount in the cash deposit account.
Marine Open Cover: Inclusions
Marine open cover provides coverage for the following:
- The cover protects all risks, as per the ICC (A) or ITC (A) standards.
- The cover includes protection against damage due to accidents or fire during the journey.
- The premium rate will depend on the specific terms of cover chosen.
- The basic cover is cheaper than the all risks cover, and it protects against specific risks only.
- War & SRCC (Strikes, Riots, & Civil Commotion in Import and Export)
- SRCC for inland transit is covered
- Theft, Pilferage & Non-delivery (TNPD) in basic cover only
- Buyer can opt for additional storage cover before the delivery of cargo
Marine Open Cover: Exclusions
Marine open cover does not provide coverage for the following:
- Insolvency of carrier
- Wilful misconduct of the assured
- Ordinary leakage in case of liquid cargo
- Ordinary loss in weight
- Improper packing
- Inherent vice
- Ordinary wear & tear
