Basically, there are three types of cover available viz:
- Institute cargo clauses ‘A’ (otherwise known as All Risks)
- Institute cargo clauses ‘B’ (Restricted cover)
- Institute cargo clauses ‘C’ (otherwise known as Free from particle average i.e. F.P.A)
It should however be noted that (a) & (c) are commonly demanded for. Either of the above can be granted on a single transit policy basis or on an open cover policy basis.
The following documents should be demanded at the time of proposal.
- A copy of the proforma invoice.
- A copy of the form ‘M’ from the proposer’s bankers whose figure must correspond with those in the proforma invoice.
Before agreeing on a rate, the following factors should be taken into consideration:
- The nature of the consignment
- Mode of packing i.e. whether or not it is containerized
- The sum assured
Mode of shipment i.e. whether by sea or air.
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