Jayanta Bandyopadhyay 23 April 2021

Marine insurance

Under Incoterm CFR, we are importing high value equipments. Convetionally, foreign shippers take 3 days time to provide Invoice and Bill of Lading to Indian Importer for taking insurance coverage. Now some object and take 7 to 10 days time. Hence during this intervening period, , cargo remains uninsured although there is an open master policy but this is not identified. In view of recent Suez Canal and General Average clause enforced by Vessel owner, what should be ideal step.Please guide.

Regards,

Jayanta Bandyopadhyay

Kolkata

23.4.21

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4 Replies

Pradipta Nath (Advocate) 23 April 2021

I don't think this is a legal query, but is an Management query. Please discuss with the the marine insurance companies if they got any scheme for the intervening period!

SIVARAMAPRASAD KAPPAGANTU (Retired Manager) 24 April 2021

This is a matter to be discussed in trade related associations to discover remedy. And, Suez canal crisis is a one off incident and based on which insurance is to be decided, it only works out to enhance the premium all through the period.

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 24 April 2021

CFR insurance

Even though Incoterms laws do not mandate for cargo insurance to be provided under CFR, it is recommended for international ocean freight shipments to be shipped insured.

The shipments may be covered entirely by one single policy obtained by the buyer or seller, or by two separate insurance policies taken out by both the buyer and seller to cover their respective responsibilities.

Make sure that insurance terms and conditions are clearly defined and specified when negotiating your sales contract.