Marine Sales Turnover Policy

1. Marine Sales Turnover Policy

2. Manufacturing Concern – A Transit Chart Raw Material Supplier – Imports Road/Rail Domestic Customer Ocean/Air Cargo FINISHED GOODS FACTORY Ocean/Air Cargo Road/Rail Raw Material Supplier - Indigenous Overseas Customer PURCHASES Job Workers’ Premises SALES

3. Standard Marine Coverage Separate Marine Open Policies/Covers are issued for : • Domestic Input transits • Import purchases • Inter-depot movements • Customs Duty • Domestic - Finished Goods’ Sales • Export - Sales • Disadvantages – disjointed - coverage gaps, consignments to be declared under each and every policy and premium paid there for.

4. Marine Sales Turn-Over – Advantages ONE POLICY DOCUMENT PROVIDING SEAMLESS COVER for: Inputs: • DOMESTIC Raw material transits • IMPORT purchases • Customs Duty, Excise • Transits to Job-worker’s/fabricators premises • Inter-Depot movements Finished Goods Sales – • DOMESTIC - Sales • EXPORT - Sales Estimated Annual Sales Turnover to be declared initially

5. Special Features • Premium paid on Annual Sales Turnover • Inputs - Domestic & Import purchases gets automatically covered • No Declaration of specific consignments • Only Basis of Valuation for Imports, Domestic, Exports to be given with break-up of Sums Insured • Quarterly declaration of Turnover for adjustment.

6. Scope of Cover • Imports: “All Risks”, War & Strikes Insurance as per Institute Cargo Clauses; including Customs Duty at actuals. • Exports: “All Risk”, War & SRCC • Domestic Movements : “All Risks” and SRCC • Coverage can be extended to include the risks of loading and unloading, intermediate storage (up to limited extent) .

7. Voyages & Transits covered • Imports (FOB) and Import Duty : From anywhere in the world to Insured’s factory in India • Exports (CIF/FOB): Finished goods from the Insured’s premises to anywhere in world • Domestic Sales: Finished Goods from Insured’s premises to anywhere in India • Domestic Input: From anywhere in India to Insured’s factory in India • Policy can be extended to cover movement of raw materials/semi-finished/finished goods between Insured’s premises and their job worker’s premises situated at various locations in India

8. SALES TURNOVER POLICY : 2011-12 Policy Schedule (Example) Policy No: MTO00000………… Business of Insured: Period of Insurance : TBA Mode of Conveyance : Inland : Road / Rail /Air Export / Import : Sea / Air / Road / Rail Transits / Voyages : Exports : Anywhere in India To Anywhere in World Imports : Anywhere in World To Anywhere in India Inland Transits : Anywhere in India To Anywhere in India

9. Marine SALES TURNOVER POLICY • Interest / Subject matter insured: • Sales: Finished goods & other similar items. • Purchases: All Raw materials and any other materials pertaining to Insured’s trade. • Domestic Transfers: Raw materials/Semi-finished/Finished goods between Insured’s premises and their job worker’s/fabricators premises • Limits: • Per Sending Limit : Rail/Road & Air : • Per Bottom Limit : Sea voyages : • Per Location Limit : • Exports/Imports/Inland Transits :

10. Marine SALES TURNOVER POLICY • Estimated Annual Sales Turnover Bifurcation into (Example) : • Domestic Sales : Rs.750 crs. • Export Sales : Rs. 250 crs. • Import Purchases :Rs.600 crs. • Customs Duty : Rs. 60 crores • Domestic Purchases: Rs.100 crs. • Inter-Depot movements : Rs.200 crs.

11. Marine SALES TURNOVER POLICY • Extensions/Add-on : • Seller’s Contingency Cover • High Sea Sale cover subject to supporting documents • FOB Clause /Cargo Shut-out cover - For 2 weeks • Transshipment in normal course of transit. • Conditions: • Pair & Set Clause • Institute Replacement Clause • Limitation of Liability Clause • Institute Classification Clause • Cargo ISM & ISPS Endorsements.

12. Marine SALES TURNOVER POLICY • Fire, Burglary covered during the intermediate storage - should be in Class I construction premises/depots/warehouses. • Sales Return, Second-hand equipments, Tail-end transits are covered for ICC ‘B’/ITC ’B’ + TPND + SRCC risks. • Warranties: • Warranted consignments are carried in Tarp covered Trucks/closed Wagons adequately protected against water and rain damages. • Warranted ODC cargo to be carried in multi-axle low-bed Trailers. • Warranted ODC cargo to be properly lashed/strapped onto carrying vehicle/vessel. • Warranted cargo to be carried on vehicle/s registered under the Carriage by Road Act, 2007 (Read in conjunction with Carriage by Road Rules 2011). • Courier Despatch warranty. (consignments will be dispatched only vide couriers which are registered under the Service Tax Act, 1994)

13. Marine SALES TURNOVER POLICY • Some Exclusions • Excluding RODC unless caused by ICC (B) / ITC (B) perils • Pre- existing damages • Excluding denting, bending, twisting, pitting unless caused by ICC (B) / ITC (B) perils. • Any loss/damage due to delay. • Theft / pilferage unless visible sign of packaging slit open or package tampered. • Trade losses/ mysterious disappearances.

14. Wish You All The Best Thank You Very Much