Marine Sales Turnover Policy (STOP)

This policy offers coverage starting from the purchase of raw materials and continues through all transit and storage locations until the goods reach their final destination or until the customer’s responsibility ends. Unlike other marine open policies that insure the value of goods being offered for insurance, this policy covers the company’s sales turnover. The policy covers the company’s estimated annual turnover as a lump sum, and the business only needs to periodically provide sales turnover figures (typically quarterly) to the insurance company. This comprehensive policy meets all the requirements of a company’s marine insurance needs.

Key Benefits

  • Savings: The premium is based on the company’s annual sales turnover, rather than the value of individual shipments.
  • Hassle-Free: Businesses do not need to submit frequent declarations of transit and cargo movements; all sales-related transit is automatically insured.

Salient Features

  • Significant premium savings, charged only on your sales turnover.
  • Seamless coverage for all goods in transit, automatically insured without the need for declarations.
  • Only monthly sales figures need to be submitted to the insurer.
  • Intermediate storage coverage can be included in the policy.
  • Premium payments can be made on a quarterly or half-yearly basis rather than being paid upfront for the entire year.
  • This policy provides global coverage from the time raw materials are purchased to the goods being delivered to the final destination, ensuring no gaps in coverage.
  • Premium rates depend on factors such as cargo type, coverage scope, packing, mode of transport, distance, and previous claims history.

Coverages

Goods transported by rail or road within India are covered under the Inland Transit (Rail/Road) Clause A, B, & C. Here’s an overview of the coverage:

  • Inland Transit (Rail or Road) Clause A (All Risks): Covers all risks of physical loss or damage, subject to exclusions.
  • Inland Transit (Rail or Road) Clause B (Basic Cover): Covers physical loss or damage caused by fire, lightning, breakage of bridges, collision with or by the carrying vehicle, derailment, or similar accidents.
  • Inland Transit (Rail or Road) Clause C: Covers physical loss or damage due to fire or lightning.

Add-On Covers

  • Inland Transit: Covers risks related to strike, riot, and civil commotion.
  • Overseas Transit: Includes coverage for war, strike, riot, and civil commotion.
  • Duty and Increased Value Insurance: Only applicable for imports.
  • Seller’s Interest Insurance: Only for exports with C&F or FOB terms.

Exclusions

  • Loss or damage due to willful misconduct.
  • Ordinary leakage, loss in weight/volume, or wear and tear.
  • Improper packing.
  • Inherent vice of the goods.
  • Delays.
  • Insolvency or financial defaults of carriers.
  • War, strike, riot, and civil commotion if not opted for as an add-on.

Claim Process

In the event of a loss, the following steps should be taken:

  1. Immediately notify the insurer about the loss and provide a detailed written statement, including the nature and extent of the loss, and an estimate of the damages. Delays in notification can affect the acceptance of the claim.
  2. Take all necessary steps to reduce the loss or damage.
  3. Identify the proximate cause of the loss, assess the extent, and confirm whether it falls within the scope of the policy.
  4. Fully cooperate with the insurer and surveyor to complete the survey and loss assessment.
  5. Provide all records and documents requested by the surveyor or insurer to help assess the loss and liability.
  6. Submit documents like the claim form, policy copy, incident note, certificate of forwarding (COF), and monetary claim with proof of dispatch.
  7. Keep the damaged property in safe custody until the surveyor/insurer advises on its disposal. Ensure proper identification of the insured goods.