People who are involved in the import-export business must be aware of the marine insurance policy. Since there are different kinds of risks involved in the business that has to use the sea to import and export goods, marine insurance is an important policy to have.
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The customer often calls on insurers to provide coverage for storage in intermediate locations in connection with the marine transport policy. Such storage in intermediate locations is normally carried out in port warehouses, bonded warehouses, clearing agents and freight forwarders, railway platforms, etc. In addition to the above, storage is also carried out in warehouses owned or rented by the customer.
Storage in different locations is normally done for allocation, distribution, processing, bagging of goods, etc. Sometimes the customer chooses to store the cargo in the bonded warehouse for lack of funds to pay import duties on the cargo and/or at the carrier due to the unavailability of the insured's own warehouse and/or customs clearance and freight forwarder.
Although these types of storage are under the control of the customer, it is now common in the marine insurance market to issue a single transit policy that is transparently associated with storage risks. Therefore, marine underwriters should consider whether it would be prudent to provide storage coverage at intermediate locations under the marine transit policy, if any, the total storage duration and risks to be covered.
Until now you must have understood the concept of intermediate storage which in simple words means the storage of goods during transit. For example, the cargo ship was loaded with goods at location A and drop it at location B from where those goods will be distributed to different locations. Location B will be considered as the intermediate storage point.
For example, the ship carrying the goods is stopped at an intermediate location. The insured might have done it due to the original storage point would be short in space. Since marine cargo insurance does not provide coverage for such storage, the policy will be terminated as soon as the storage is affected.
In addition, warranties during storage at Carrier's Warehouse, Bonded Warehouse, Freight Forwarder's Warehouse and Freight Forwarder's Warehouse are generally granted even if the customer is forced to store materials there due to unavoidable circumstances such as labor strike. transport, port transport strike, delay in the examination and imposition of duties on goods by customs authorities, etc.
Here are some of the types of goods that might get damaged during storage.
Conclusion
Be it any insurance policy, whether home, motor or marine. It is suggested by the insurance experts to discuss all the terms and conditions with the insurer along with the coverage as well as what is excluded. Also, conditions like this where coverage for storing goods at an intermediate storage point is provided or not.
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