GENERAL INSURANCE BLOG

A good marine insurance guards you and your consignment from a variety of hazardous and unforeseen disasters and events. Below are all the clauses that are pivotal to marine insurance in India-

1. Institute Cargo Clause A- This clause covers all kinds of risks involved from loading and unloading to risks during the voyage.

2.Institute Cargo Clause B- This clause covers lesser risks compared to clause A and must be meticulously checked before buying as it may exclude key risks your type of work may be exposed to.

3.Institute Cargo Clause C- This clause covers the least number of risks and might even be the cheapest. However, the risks are higher at sea and if this clause is being adhered to, then one must research thoroughly before buying.

4.Valuation Clause- In this case, both parties namely, the insurance provider and the customer mutually agreed upon a said value. In case of damages, the compensation will be equal to the value and not any more than that. This ensures that both parties are convinced and arrive on common ground.

Art and Form' Clause- This clause usually states the time when the risk will start and be covered. This is important as most people don't read through the specific marine insurance clauses provided by their insurance provider. For example, if the marine insurance states, 'at and from Chennai' then only risks considered will be post-arrival to Chennai port and when it leaves the port.

Sue and Labour Clause - According to this clause, if an insurance holder has spent money to save goods from impending loss, then he or she is to be compensated for those charges by the insurance company. Additionally, unlike the 'change in voyage clause' here, any deviation does not have anything to do with saving the 'subject matter', the insurance company policy will not become void even in cases of a deviation or change in the voyage.

Warehouse to Warehouse Clause- The marine insurance policy mentions the warehouses that the goods are taken and delivered to. This means the company will take charge if any uncertainties occur while goods are being bought from hinterland to port and also during the voyage.

8. Change of Voyage- Any marine insurance mentions the details and the ports of arrival and departure accordingly. Insurance policies also provide said routes that are to be adhered by and followed. In cases of a deviation, marine insurance companies are not liable to settle the claim. If the route is later revered to, then this change is considered as a deviation. However, the insurer is not liable to secure against losses occurred in any change in the original route.

9. Touch and Stay Clause - This clause ensures that ships stay at the ports mentioned in the marine insurance policy. If a certain port is not mentioned, a ship must follow the routes given in policy and stay at the mentioned ports only. Only emergencies and justifiable reasons will be considered for calling at ports.

10. Inchmaree Clause - Under this clause, the negligence of the master or crew members are also covered under the insurance policy. Apart from this, other losses occurred during loading and unloading operations will also be duly recovered.

11. Jettison - In certain circumstances, shops may have to throw excessive luggage when it's the only way to save them. This is called Jettison and must be done intentionally and immediately.

12. Memorandum Clause - Under this clause, the insurance company does not have to pay for the losses of perishable goods. These losses will not have to be paid by the policyholder either.

With the awareness of the above clauses, you can be prepared to obtain a good Marine Insurance in India and be certain that the cover includes the above clauses. This will also help you in obtaining a good deal.

Does your company rely on some huge equipment to generate revenue? Even one failure or breakdown will lead to costly repairs to the extent that a company can even be forced to shut down indefinitely. So, how would you possibly have operated, without these key pieces of machinery like heavy machinery or specialized manufacturing equipment?

Usually, considering other things, companies overlook the importance of manufacturing power. The machinery is the backbone that keeps the force running. They're also a major investment and if not insured, any damage can cause not only hindrance but could also stop workflow altogether and huge loss. Therefore, it's important to opt for a machinery breakdown insurance policy. It is a form of property insurance designed to transfer unexpected breakdown risks associated with a company's mechanical and electrical equipment.

This insurance will cover physical damage from the unanticipated breakdown of machinery. By repairing or replacing the additional costs, this insurance will keep your work going and ensure it doesn't halt in the light of such unforeseen events.

Unfortunate and unforeseen circumstances caused due to carelessness, short circuit, electric overpressure, failure of safety device operation, defects in assembly, structural or mechanical, loosening of parts or excessive speed, falling, impact, collision and entry of foreign goods in the machinery are covered. Under this policy, the sum insured includes the following:

• Replacement value of the equipment
• Erection costs
• Freight charges
• Duties paid
• Value of brickwork

These policies are usually flexible and help organizations recoup financial losses related to property damage, interruption and spoilage. The premium, however, is calculated once the type of equipment and factors like their capacity and price are taken into consideration. There is a different premium for different machinery used. The machines that can be insured are-

• All stationery machinery equipment
• Electrical equipment
• Mechanical plant equipment
• Process machinery in industries

The eligibility criteria are that the owner or lessor of the machinery can get the insurance.

Mechanical loss of engineering insurance policy includes compensation for the cost of repair and replacement arising from unforeseeable circumstances. The cover is effective even if the equipment is not in use. The machinery is also covered if the equipment has been dismissed for maintenance and overhauling or is moved to a different location.

Usually, with an additional premium, the machinery breakdown insurance policy also covers third party liability, additional customs duty, air freight, escalation, property surrounding machinery, overtime, holiday wages etc. This makes it an essential complete package.

Since machinery breakdown insurance policy is for electrical and mechanical equipment, electronic material such as computers are not protected or covered. Specific risks that are not included in this policy are wear and tear, war, fire, gross negligence, damage due to overload and known pre-existing defects.

Machinery breakdown insurance is now crucial for businesses of all kinds and provides protection. However, secure the right policy to ensure your business is covered before, during and after an equipment breakdown.

So much deliberation goes into buying a car, but car insurances? Not so much. This is one of the most concerning problems as these trivial mistakes are overlooked and more importantly can even be done away with if one is cautious enough.

Car insurance is almost mandatory in times like now but keeping relevant information from your insurance provides is often misleading than not. Here are mistakes to avoid when you're buying a car insurance policy -

• Not comparing prices- Many people who instantly go for insurances provided by someone they know or the insurances their acquaintances have applied for. Although the reliability factor is higher here, you can't be sure that they'd have made the right decision or looked up the new car insurance rates and updated offers in the market. For this one reason at least, compare the prices of different insurance policies till you're totally convinced about a single policy over the other. This will also give you the additional satisfaction of having researched well enough and made a wise choice.
• Cheap insurance policies- Cheaper insurances come with the obvious hazard that there's something flawed or even shady the company is trying to keep from you. Sometimes, companies manage to go about selling these without some key features which you may happen to overlook. Most people usually opt for the cheapest or the insurance policy with the lowest premium, and that doesn't assure the same type of safety as good reliable insurance will offer. Do not make hasty and flippant choices, as it's obvious that a lower premium also means a lower cover is provided when necessary.
• Buying it offline- Even if you know someone who may provide insurance services from a reliable company, there are a lot of unnecessary hidden costs that you'd not know. Rather than going for a cheaper unreliable premium, you can just opt for a good and reliable premium from a reputable company that also gives cheaper options. This is usually overlooked because people still choose or prefer the offline modes of application and payment. However, it is always more beneficial to find the online versions as not only does it come with a greater variety of options and plans, but it will also remove all the hidden costs for the job.
• Low deductibles- This is like choosing for cheap premium except here, deductibles are the charges paid by a customer before receiving the claim. If you're going to focus on this factor, then you'd be missing out on a balanced plan with a good premium as well. Usually, lower deductible plans come with higher premiums. Either way, you'd have to pay that said amount so why not choose a more profitable variation. If you opt for a policy that requires a higher deductible, then you can also attain the no claims bonus. This 'No Claim Bonus' or NCB is when an insurance company pays you if you do not file a claim for a stipulated amount of time. This could be an additional profit you will not be able to enjoy if you pay a lower deductible and a higher insurance premium.
• Driver details and history- Usually, the factors considered for the insurance premium include the details of the driver, including the age and other details like safety equipment installed, driving style. These may increase or decrease your premium accordingly. But because of that, if you choose to hide certain details for a lower premium thinking you've made a smart choice, it's misleading and doesn't assure you the certainty of your insurance. If an insurance provider finds out about the hidden details, they hold the authority to dissolve your policy as an invalid one. So, don't make a mistake like this just to save a few hundred rupees.

Acquainting yourself with the new car insurance rates, terms and conditions, and other essential aspects of the insurance policy is essential to help you maximize the benefits on offer.

Today, the number of cases with construction workers being a victim of such accidental risks is increasing. There isn't much awareness around it to make every person understand its importance. Physical loss of engineering insurance includes protection from machinery breakdown, machinery loss, contractor's risk, etc. The major focus is on covering losses that are unforeseen and unexpected. This is also called machinery breakdown insurance.

In the workplace, regardless of the precautions taken, it's always possible that there are unexpected and unfortunate accidents that might put you at risk. This is why you need the physical loss of engineering insurance.

Types of engineering risks include -

• Stock deterioration - Stock deterioration includes the depletion of goods kept in cold storage. This is covered if there's a breakdown of refrigerating machinery. It's similar to machinery breakdown insurance and can be seen as a subset of the same.

This type of insurance may benefit you if you're owners or users of cold storage houses, food preservation industry, and meat and fish processing industries, chemical and pharmaceutical industries.

• Movement of Machinery - This insurance covers the damage of machinery during specified operations. This type is important as a lot of machinery is heavy and not always easy to move accordingly. There can be damage during such movement even after the said precaution is taken. This type also often includes incidental storage in transit and moving and unloading to the work position.
• Computer equipment - Computer equipment insurance covers loss of or damage to all computer equipment. Additionally, provides cost required to reinstate lost records. These apply to almost every firm today that can make use of this insurance. Especially with data at threat, companies must safeguard themselves and have an insurance plan to turn to in such a situation.
• Unexpected damage - This policy covers damage that is unexpected and could be due to internal defects or external unfortunate situations. This insurance covers accidental damage most of the time, but it's advisable to check the documents and peculiarities before you go ahead.
• All Risk Cover - The all-risk cover, usually known as the Contractor's all risk, covers all of the above insurances. Usually, the threat of a single kind seems more than the rest, and hence particular insurance opts-in isolation. To easily define it, it covers all risks related to construction.

Here are the reasons why engineering insurance is important

• Machinery breakdown - This is one of the overlooked factors. Be it machines on the ground or even computers; your insurance must cover not only the cost of damage done to the computer installation but also for all the data that was lost. You can opt for machinery breakdown insurance as well.
• Risks of explosions - Such an unsafe work environment comes with its risks and troubles. Insurance will make it one step closer to safety, and you know you're covered in times of crisis.
• If you're in a risky job like that and have the uncertainty of consequences if something unfortunate happens, engineering insurance is your go-to remedy. Insurance covers can be generally applied to, but every insurance does not cover it all in detail. You can always choose multiple insurances, and that's completely alright. But you may need to understand something very important, at a workplace like a construction site; you ought to know that engineering insurance cannot be compromised.