Sales Turnover Policy
Overview Sales Turnover Policy (STOP)
The Sales Turnover Policy is a type of marine insurance designed to provide seamless coverage for goods in transit based on the company’s annual sales turnover instead of individual consignments or declarations. It simplifies marine insurance for businesses engaged in regular and high-volume trade by offering continuous, automatic coverage for both incoming and outgoing goods.
Key Features of Sales Turnover Policy
Sales Turnover Policy covers:
- Coverage Based on Turnover
- Automatic Protection
- Covers Multiple Transit Stages
- Warehouse-to-Warehouse Protection
- Efficient Policy Management
- Customizable for Business Operations
Benefits of Sales Turnover Policy
- Simplified Premium Calculation
- Covers Entire Supply Chain
- Time-Saving and Paperless
- Flexible and Transparent
- Comprehensive Marine Coverage
- Reduces Risk of Underinsurance or Gaps in Coverage
Who Should Buy a Sales Turnover Policy
Buyers
- Exporters and Importers,
- Large-Scale Manufacturers,
- Distributors with Multi-Location Warehousing,
- Companies with High Frequency of Shipments,
- E-commerce or Retail Chains,
- Businesses Seeking a Consolidated Marine Solution
How to calculate turnover?
The standard formula divides the number of departures by the average number of employees, multiplied by 100. Different turnover types (voluntary vs. involuntary) offer distinct insights into underlying workforce challenges
Documents Required
- Duly Filled Proposal Form
- Last Year’s Audited Financial Statements
- Sales Turnover Projections for the Policy Year
- Nature and Type of Goods
- Details of Transit Routes (domestic/international)
- Loss History or Claims Experience
- KYC Documents (PAN, GST, Company Registration)
Premium Calculation Factors
- Total Annual Sales Turnover
- Nature and Value of Goods
- Mode of Transportation (road, rail, air, sea)
- Type of Packing Used
- Transit Routes and Destinations
- Frequency of Shipments
- Add-On Covers Opted
- Previous Claims Experience
