Marine Open Cover

Marine Open Cover is a specialized insurance policy offering comprehensive, continuous protection for goods transported by sea, air, or land. It covers various risks and dangers during transit, giving assurance to importers, exporters, and logistics providers.

Key Features

  1. Continuous Coverage: Offers ongoing insurance protection for multiple shipments over a specified period, removing the need for individual shipment insurance.
  2. Flexibility: The policy is customizable, allowing adjustments in coverage limits, deductibles, and specific risk types to meet the unique needs of the cargo.
  3. Automatic Renewal: Some policies have automatic renewal clauses, ensuring continuous coverage without needing frequent renewals.
  4. Streamlined Claims: The claims process is designed for efficiency, helping ensure fast and straightforward settlements in case of damage or loss.

Benefits

  1. Convenience: Simplifies the insurance process by covering multiple shipments under one policy, reducing paperwork.
  2. Cost Effectiveness: Consolidating coverage into one policy can be more affordable than insuring each shipment separately.
  3. Risk Management: Helps mitigate financial risks from potential damages, theft, or disasters during transport.
  4. Business Continuity: Continuous coverage reduces financial losses, ensuring goods are delivered on time and business operations remain uninterrupted.

Eligibility Criteria

  1. Shippers and Exporters: Available to those involved in the transport of goods, including shippers, exporters, and freight forwarders.
  2. Regular Shipments: Applicants should show a regular pattern of shipments to make the policy viable.
  3. Compliance: Must adhere to regulations concerning cargo transport, insurance, and necessary documentation.

Coverages

  1. All-Risk Coverage: Covers all risks of damage or loss to cargo during transit, with some exclusions specified in the policy.
  2. War & Strikes Risks: Optional coverage for events like war, strikes, riots, and terrorism, which may not be included in standard policies.
  3. Customs Duty Insurance: Covers customs duties and taxes in case of loss or damage to cargo, providing extra protection.

Add-Ons

  1. Storage Extension: Additional coverage for cyber risks and data breaches, covering financial losses and data recovery costs.
  2. Consequential Loss Insurance: Covers financial losses due to delayed or non-delivered cargo resulting from covered risks.
  3. Additional Insureds: Allows adding other stakeholders, such as consignees or third-party logistics providers, for broader coverage.

Exclusions

  1. Uninsurable Risks: Excludes risks like inherent defects in the goods, improper packing, or inadequate stowage.
  2. Fraudulent Acts: Losses due to fraud or intentional misconduct by the insured or related parties are not covered.
  3. Policy Violations: Coverage may be voided if policy terms are violated, including misrepresentation or non-disclosure.

Claim Process

  1. Notification: The insured must inform the insurer promptly of any loss or damage, providing details of the incident.
  2. Documentation: A formal claim must be submitted, including required shipping documents and evidence of damage or loss.
  3. Assessment: The insurer evaluates the claim, verifying the details and compliance with the policy.
  4. Settlement: If the claim is approved, the insurer reimburses the insured or pays directly for the loss or damage based on policy terms.