Open Marine Policy
What Is Open Marine Policy?
An Open Marine Policy is a comprehensive and continuous insurance contract designed to cover multiple shipments of goods over a period (usually 12 months) without the need for separate declarations for each transit. It is ideal for businesses that have frequent or regular goods movement via sea, air, rail, or road.
Key Features of Open Marine Policy
Open Marine Policy covers:
- Annual Contract
- Automatic Coverage
- Simplified Declaration
- Customizable Terms
- Worldwide Coverage
- Cost-Effective
Benefits of Open Marine Policy
- Streamlined Process: No need to issue a new policy for each shipment.
- Time-Saving
- Comprehensive Protection
- Improved Risk Management
- Audit-Friendly
- Custom Terms
Who Should Buy a Open Marine Policy
Buyers
- Exporters and Importers,
- Manufacturers with Inter-Plant Transfers,
- Traders Involved in Bulk Shipments,
- Logistics & Supply Chain Companies,
- Frequent Domestic and International Shippers,
- Companies Engaged in E-commerce Fulfilment
How to claim?
- Take immediate steps to minimise loss.
- Inform nearest office of the insurance company or claim settling agent mentioned on the policy(In case of claim on export shipment).
- In case of damage to goods whilst on ship or port , arrange for joint ship survey or port survey.
- Lodge monetary claim with carrier within stipulated time period.
- Submit duly assigned insurance policy/certificate along with the original invoice and other documents required to substantiate the claim such as :
- Bill of Lading / AWB/GR
- Packing list
- Copies of correspondence exchanged with carriers.
- Copy of notice served on carriers along with acknowledgment/receipt.
- Shortage/Damage Certificate issued by carriers.
- Survey fees is to be paid to the surveyor appointed by the insurance company. This fees will be reimbursed along with the claim if the claim is otherwise admissible.
Documents Required
- Proposal Form
- Nature and Description of Goods
- Details of Past Marine Claims (if any)
- Transit Details (routes, modes, frequency)
- Estimated Annual Turnover or Shipment Value
- Invoice Copies (for periodic declarations)
- Packing Details and Certificates (for fragile goods)
- KYC Documents (PAN, GST, etc.)
Premium Calculation Factors
- Nature of Goods (perishable, fragile, durable, etc.)
- Sum Insured per Transit and total annual turnover
- Type of Packing Used
- Mode of Transport (sea, air, rail, road)
- Transit Routes (domestic, international, war-prone areas)
- Frequency and Volume of Shipments
- Past Claim Experience
- Coverage Add-ons Selected (e.g., War Risk)
