Marine Insurance Cover for Storage Risks
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.Read more
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Coverage for Intermediate Storage Place
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.
Coverage for Storage Risks
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 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.
Types of Losses That Might Occur During Storage
Here are some of the types of goods that might get damaged during storage.
- Cargogets damaged when crushed by payload/heavy vehicle types during the movement of vehicles around the storage location/port area. Theft can also occur when cargo is moved from one package to another package using the payloader. Such volume shortages are also reflected in customers' books through multiple handling losses, improper loading and embedded
- Machinery and equipment, especiallyproject cargo, is sometimes stored outdoors at the loading/unloading port awaiting shipment/clearance for an onward If the machine is left unprotected for a long period of time, it is likely to get damaged by rain. Machines can also become submerged due to flooding at the storage location.
- Agri-foodproducts such as corn, sugar, rice, pulses, wheat, etc. are generally stored in the shed of the transit, the railway platform, the marshalling yard before loading and/or after These types of perishables are stored outdoors or in areas not fully covered by banks, including the roof. Cargo damage caused by rain, theft, theft, bursting and tearing of luggage during loading/unloading is the most common cause of damage during outdoor storage.
- Baled cottonis stored externally in the railway platforms, CFS,railway yard, etc. awaiting further transport and/or filling of containers for During outdoor storage, subscribers suffer severe fire damage to the cotton from dropping crackers and/or throwing the tail of lit cigarettes/offers/matches onto the cotton pile.
- Building material such as cement stored outdoorsin train stations/platforms/sheds is liable for water damage even if covered with plastic Strong wind and sudden rain can severely damage the bags of cement stored there. It is because cement is inherently hygroscopic, it absorbs water vapor from the air, which solidifies the cement in bags.
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.