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Sri Lanka Insurance Corporation Limited |
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Strength
and stability of the leader
In today's turbulent world of business it is re-assuring to know that
some things are always stable-such as Marine cargo Insurance from
THE LEADER.
When your cargo is being shipped it may run the risk of being damaged
by unforseen perils, that's where the LEADER with over 3 decades of
expertise in Marine Insurance can help your organisation in times
of adversity. THE LEADER has efficient and experienced staff and will
send a surveyor promptly to inspect the goods at the site.
THE LEADER'S unmatched financial strength and our total commitments
to customer satisfaction strength is your safeguard against financial
liability as a result of Marine Cargo Loss.
The Marine Insurance Department
The Marine Insurance Department caters to the needs of importers,
exporters and large transporters. Marine cargo policies are issued
to cover the risks encountered by the aforementioned parties. Therefore,
the marine department is able to help in covering the risk encountered
in international trade. Currently, the department has issued a large
number of insurance policies for cargo imported and/or exported by
most of the state corporations, industrialists and business establishments
both large and small.
In addition to that, department also insures ocean going vessels,
pleasure crafts, fishing vessels and nets, ship repairs liability
and ship builders risks. The Ceylon Shipping Corporation Ltd. fleet
is insured by us as well as a large volume of fishing craft. All the
risks are covered by the marine department and adequately secured
through reinsurance arrangements worldwide.
Marine Cargo Insurance
Marine Cargo Insurance Covers
The Marine Department issues cargo policies to cater to the needs
of exporters and importers. The cover under these policies depends
on:
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Commodity and on the
type of vessel as well as their susceptibility to damages. |
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Upon additional premium required. |
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Upon the agreement of the underwriters
to grant the desired cover. |
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All risks of loss or damage to the
subject matter insured. |
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With payment of an additional premium,
coverage can be obtained for: war, strikes, riots and civil
commotion perils, transhipment perils and storing cargo in warehouses. |
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Liability general average and salvage
charges. |
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Further details on Marine Cargo Insurance can
be obtained from the Marine Department. |
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The Marine Department also caters to the needs of local transporters
to transport the goods in transit from one point to another within
the country (inland transport). Inland transit insurance covers all
risks of loss of or damage to the subject matter. Insurance cover
can be obtained by paying an additional premium to an existing Marine
Cargo Insurance Policy.
1. Institute cargo clause (A):
This insurance covers all risks of loss of or damage to the subject
matter insured except loss or damage or expenses caused by misconduct
of the insured, and delay, ordinary leakage, wear and tear, loss of
weight or volume insufficiency or unsuitability of packing, inherent
vice or nature of the subject matter insured, insolvency or financial
default of the owners of the vessel, unseaworthiness of the vessel,
war, strikes, riots and civil commotion. However, with a payment of
additional premium cover for war, and S.R.C.C perils and perils of
transshipment, storing cargo in warehouses and inland transport may
be obtained. Clause (A) covers also the liability arising from general
average and salvage charges determined according to the law and accepted
practice.
2. Institute cargo clause (B):
Under institute cargo clause (B), insurance covers loss of or damage
to the subject matter insured reasonably attributable to fire or explosion,
vessel or craft being stranded, grounded. Sunk or capsized, overturning
or derailment of land conveyance, collision of vessel with any external
object, discharge of cargo at a port stress, earthquake, volcanic
eruption or lightning and loss of or damage to the subject matter
insured, caused by general average sacrifice, jettison on or washing
overboard, sea, lake or river water and total loss of any package
lost overboard or dropped whilst loading or unloading. However, this
clause does not cover damage or loss caused by excluded perils enumerated
in the institute cargo clause (A)
3. Institute cargo clause (C):
Institute covers provided under institute cargo clauses(c) are similar
to those of institute cargo clause (B), except few perils. The perils
which are not covered by institute cargo clauses(c) are washing overboard,
damage by sea, lake and river water and total loss of any package
occurs whilst handling, loading and unloading.
4. Total loss only:
This type of covers is limited to total loss only of the entire consignment
of cargo. The risks covers usually include all the maritime perils.
However, in certain insistence the perils are specified. For example,
cargo shipped in country craft will be insured only against total
loss of the cargo following total loss of the craft. However, additional
cover against the risk of the jettison and washing overboard may be
obtained at an additional rate of premium
The following additional covers are also provided if required for
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War & S.R.C.C, trans-shipment, storage (for a limited period),
conveyance by inland transit.
The department also issues marine hull policies to cover risks of
sea-going vessels, fishing vessels and nets, ship repairers liability
and ship builders. Marine department affords covers in two forms,
namely:
a. Hull liability and covers for all vessels other than fishing boats.
b. Fishing boats insurance.
All hulls other than fishing boats are covered subject to international
institute clauses as given below.
Marine Hull Insurance
Marine Hull's are covered against the perils of the sea or other waterways.
These include, hazards such as: volcanic eruptions, lightning and
heavy weather damage. Loss damaged are covered either for partial
loss or total loss. This includes partial or strictly for total loss
and/or constructive total loss.
ACTUAL TOTAL LOSS: is the physical total loss of the subject matter.
*CONSTRUCTIVE TOTAL LOSS: is where saving or salvaging the subject
matter damaged is economically unviable. In addition to covering Hull
and Machinery of a vessel, Hall insurance also-covers LIABILITY INSURANCE
such as: *Ship Repairers Liability. *Ship Builders Risk.
Another important feature is the cover granted to CONTAINERS both
reefer and general cargo containers.
The above-mentioned risks are covered under various International
Clauses, which include:
Institute time
Clauses-Hulls
Institute time
Clauses-Total Loss
Institute time
Clauses-Port Risks
Institute Yacht
Clauses
Ship Builders
Clauses
Ship Repairers
Liability
Hull and fishing boats insurance schemes
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Institute time clauses - Hulls:
This clause covers total loss and partial losses against all
risks. This policy is issued on a time basis, usually for period
of time, i.e. one year. The only exception is the voyage insurance
policy, which is for the duration of one voyage. |
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Institute time clauses - total loss
This cover is generally confined to small vessels where the
assured is prepared to pay for his own repairs and partial losses
without reference to insurance. The cover is strictly limited
to total loss of the insured ship and does not extend to cover
collision liability. |
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Institute time clauses - port risks
The port risk clauses among other risks mainly cover total and
partial losses against specified perils and also include 3rd
party and protection and indemnity liability. Generally, the
3rd party and protection and indemnity liability covers collision
liability or legal liability by way of damages for loss of or
damage to any other vessel or property and legal liability for
loss of life of personal injuries to 3rd parties. These clauses
are used for insurance of vessels operating within the port
- hence the name: port risk clause. |
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Institute yacht clauses
These clauses are made use of to cover vessels used for pleasure
purposes only and in addition to the normal total and partial
looses coverage, it includes cover for 3rd party liability in
addition it covers, if required, outboard motors dropping off
or falling over-board and racing risks. |
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Ship repairers liability
Ship repairers liability insurance is meant for those engaged
in ship repair work and the insurer covers only the liability
of the repairers towards the ship owner in respect of any loss/damage,
which may occur to a vessel whilst in the custody of the ship
repairers, at his ship repairing yard. |
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Fishing Boat Insurance
Fishing Boat insurance covers Hull Machinery and Fishing Gear such
as Nets and Long Lines and other fishing equipment against loss or
damage. As in Hull insurance,the fishing craft are covered for specific
perils of the sea and other inland waterways.
The additional cover afforded to fishing boats (including machinery
and hull) are: Strike, Riot and Civil Commotion.The fishing boat policy
has an extension which gives cover to the crew members of the insured
vessel against personal accident benefits for named risks.
Settlement of claims - cargo
When loss/damage arises in respect of cargo, the consignee has to
inform the marine department by letter and obtain a survey before
the damaged cargo is removed from the port. Thereafter, the consignee
submits his claim with the damage survey report, policy of certificate
of insurance, bill of loading, invoices, delivery order and other
documents. As regards export cargo, the consignee obtains the survey
report from surveyor nominated in the policy and follows up by handling
over all documents to the claims settling agent, also nominated in
the policy.
Settlement of claims - Hull
As in the case of cargo, loss/damage is intimated by letter, a surveyor
nominated by the marine department carries out damage survey, as well
as inquiry as to how, when and where the loss/damage occurred. On
hull risks where there is large involvement of reinsurance, where
terms and conditions have been advised by reinsurers, documents are
collected at this end and referred to average adjusters in London,
for adjustment of the claim.
In regard to the fishing boats insurance, survey/investigation and
assessment of claims are carried out by an investigator from the marine
department’s panel of investigators. The important documents
here are policy, receipts, invoices, damage repair bills and reports
from the district fisheries extension officer from the area, the loss/damage
had occurred.
Contact - Mr. R.Z.H.G. Lewis
Manager - Marine Department
P.O Box 864, Al Hambra Building
Sri B. Jayathilake Mawatha, Colombo 1, Sri Lanka.
Tele : 94-1-327408, 94-1-320909, 94-1-327408
Fax : 94-1-327408 |
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