Marine
Cargo Quote Information
To enable us to offer a quotation for your customer the following pieces of information will be required to help us deal with your enquiry quickly and efficiently.
- Type of Cargo to be insured
- Type of packing
- Method of shipment
- Main mode of transport
- Sum insured
- Claims experience
- Limits of indemnity
- Estimated annual turnover
- Basis of valuation
- Voyages
Generic terms such as machinery or fruit will not give us sufficient detail to quote. Detail surrounding the cargo such as new, used, fully reconditioned machinery will give the underwriter a better idea about what is to be insured. Including descriptions about age, type and usage are also helpful.
This is an important part of any risk. Some cargoes may only be partially packed or unpacked and our underwriters need to be aware.
Full container loads, full trailer loads and cargo shipped by roll on/roll off are looked upon more favourably by our underwriters. Goods transported in part container or part trailer loads are less desirable.
Will the goods be moved by sea, air, rail or road? Usually a combination will be used.
This amount should include the invoice cost of goods, freight and other transport and handling charges.
Details of all losses, not just claims paid and outstanding for the preceding three years (or five years if available) should be presented. If the company is a new venture it is important to confirm any experience held by directors or employees.
Limits on anyone vessel, conveyance, location or loss are required to assess any potential exposure under Open or Annual policies. A limit per postal package or parcel will also be required.
For Open or Annual policies an accurate estimate of the total insured value of cargo to be moved over the coming year will be required.
This is used on Open and Annual policies prior to declaration of the sum insured. Losses occurring prior to declaration will be settled on the formula basis which is known as Cost, Insurance and Freight (CIF). This means the invoice cost of the goods, the freight and other transport and handling charges, the insurance premium and a small percentage increase. This increase is normally 10% and covers operation costs, import or export licences, administration charges and increased costs of replacement goods. The uplift is included for the benefit of the buyer.
It is important to know from where to where the cargo is being moved. This should be specific by city rather than country. For Open and Annual policies details should be given of estimates between various voyages, country to country.
Marine Contracts
| Type | Description | Advantages |
|---|---|---|
| Annual | Issued for a 12 month period, which is then renewable annually. Rates are applied to the annual total value of shipments or company turnover. A Minimum and Deposit (M&D) premium is charged based on the estimated annual value of sendings. The M&D is usually 75% of the expected premium and is adjusted at the end of the period in accordance with declared annual sendings |
Administration is reduced to a minimum if total figures are used instead of individual shipment declarations. The deposit premium may be paid by instalments. |
| Open | These are permanently open policies with no renewal date, although they are reviewed annually. They provide automatic cover for all consignments falling within the scope of the policy. Premiums are normally charged monthly, based on declarations submitted to us. There is a facility to enable the policyholder to issue insurance certificates |
Premium is paid in arrears as and when the cover is utilised, not in advance. Shipments that fall inside the scope of the policy are covered automatically at agreed rates even when the loss occurs prior to declaration or when the declaration is innocently overlooked. |
| Single Voyage | The simplest form of cargo policy, issued for a single shipment. Often a minimum premium is charged rather than a conventional rate. |
Pay only as and when required. Suitable for companies who rarely import or export. |
Cargo Extensions
The following extensions can be provided under a Cargo policy
- Inland sendings
- Temporary storage outside of ordinary transit
- Travellers samples
- Engineer's tools
- Exhibitions in the UK or overseas
- Inter-factory movements
Please speak to your usual Marine contact for further details.
