Marine Insurance is highly International. It has been designed and developed primarily to promote international trade by providing adequate insurance protection to Cargo as well as to Ships carrying them. International practices, agreements, rules and conventions have more or less standardized Marine Insurance practices all over the world today. Insurance cover for risks underwritten in Marine section is provided by means of various standard clauses which are either attached to and/ or printed on the body of the policy. These clauses are independent and define the policy cover, conditions and exclusions. The policy cover is provided through relevant clauses which are either printed on the body of the policy or attached to the policy. Policy schedule is generated from the computerized system.
The Company uses applicable and relevant clauses in use in the International Marine Market. Reference to such ‘Law and Practice’ is made in the relevant clauses. In view of this English Statutes are also relevant for underwriting purposes, particularly Marine Insurance Act 1906 and any subsequent amendments to it.
Marine Cargo policies issued by the Company in respect of Land transits are as per Land Transit Risks Clauses including War & Strikes cover.
Cargo policies are issued in respect of cargo shipment by Sea, Air and Land or any combination of them. The Company’s Cargo portfolios are predominantly comprised of imports. Policies are also issued in respect of exports from the K.S.A. to other countries as well as exports from other countries to other countries arranged by traders based in the K.S.A.
Cargo Policy (Single Voyage)
Voyage policy is issued for a declared specific voyage to cover shipment under a single consignment. Policy will be issued on the basis of initial information provided by the insured. Changes to initial information if any, should be declared by the insured. Such changes should be incorporated through endorsements. If the details of carrying vessel could not be provided at the time of effecting insurance, it is required to be declared at least prior to its arrival in the destination port.
Under the terms of the policy partial shipments of a consignment are held covered but transshipment is held covered at additional premium to be agreed by the Company.
Open Cover Policy
Open Cover Policy is a time policy issued for either an annual period which is renewable at expiry or for a fixed period of time. Such fixed period may be for a period of not less than 12 months which may be extended on request from the insured. Open cover policy provides cover to all shipments of specified cargo for specified voyages / transits during the specified period as per specified terms. Open cover policies should only be issued to reputed clients. All shipments under an open policy arrangement are required to be declared by the insured as per the terms of the policy. Certificates of insurance for declarations may be issued as per client’s requirements. Under Open Cover Polices where declaration of shipments has been agreed at fixed intervals, such declarations on agreed intervals should be pursued and obtained.