Marine Insurance Open Policy
Protection for a specific period (usually one year), with an initial premium based on the estimated total value of the shipments/dispatches to be made during the year (at the end of policy term an adjustment is made following calculation of the actual value). This policy runs until cancelled by either party, and certificates are issued for individual shipments/dispatches.
Marine Insurance Specific Policy
The Marine Specific policy insures cargo for the duration of a specific voyage.
Frequently Asked Questions
Marine insurance policies cover the movement of goods from “warehouse to warehouse,” i.e. from the factory/inland warehouse of the exporter to the inland warehouse of the buyer, unless otherwise specified. They also cover all modes of transportation (sea, land or air).
The premium depends on various factors, including the nature of the cargo, the scope of cover, type of packaging, mode of transport and past claims.
International trade is conducted according to international commercial terms of sale (or incoterms) such as free-on-board (FOB); cost and freight (C&F); cost, insurance and freight (CIF), etc. These terms will determine the extent of insurance you need; e.g. under an FOB sale a Saudi importer would be responsible from the time the goods cross the ship's rail, and therefore marine insurance would need to cover the goods from that time until they reach their final destination.
An “open” marine cargo policy is an insurance policy that runs for 12 months. It’s appropriate for an exporter that makes regular shipments. Under an open policy, shipments can be declared, as per agreement, at a date provided enough premium is maintained with the insurance company.
Marine insurance policies do not contain conditions, definitions, exclusions, etc. like other insurance policies. These globally accepted terms and conditions are taken from the Institute Cargo Clauses (ICC) established by the Institute of London Underwriters. The scope of cover of a marine cargo insurance policy is determined by Clauses A, B and C, which define different levels of coverage against the risks that shipments may face.
Under an "all risks" policy, individual risks are not listed, and the policy pays for all losses except those caused by a risk/peril specifically excluded by the policy. An ICC – A is an “all risks” unnamed perils policy that covers all uncertainties. Certainties are, therefore, excluded in a marine policy by "general" exclusions and "un-seaworthiness and un-fitness" exclusions. "War" and "strikes" are two other exclusions in a standard marine policy, but may be covered upon request and by payment of a nominal additional premium.
Our standard marine policy covers goods during the "ordinary course of transit" up to the point where the goods are relinquished at the final destination. This includes customary trans-shipments beyond the control of the importer. If it is the intention of the exporter to store the goods during the transit/voyage, the Insurance Company must be informed in advance and may agree to extend the cover to include storage (with an additional premium and conditions).
A Certificate of Insurance confirms that a Marine Insurance Open Policy is in place. Under an open policy, Certificates are issued for each shipment. Such Certificates conform to the terms and conditions of the corresponding open policy.
Yes. The Certificates of Insurance issued by Wataniya Insurance Company are acceptable to importers, exporters, bankers, etc. all over world.
Yes. Special terms mentioned in LCs can be incorporated in a Certificate, as long as they do not conflict with the terms and conditions of the open policy.
Insurance Certificates or policies for a specific shipment exported from Saudi Arabia will contain the name and address of authorized Agency, who should be contacted in case of a claim. For importers to Saudi Arabia, the open cover specifies whom to contact and the documents required. Alternatively, you may contact us at: firstname.lastname@example.org
Checking your Marine Policy Documentation
Make sure your policy suits your needs by checking the following terms:
Check that all goods being transported are included. The marine cargo insurance policy will only cover the goods listed in the policy.
Standard customary packing should be strong, stable and suitable both for the nature of the goods and the journey. This includes considerations such as: port conditions; handling onboard and at the origin/destination; duration of travel; season; and all other aspects of the transit.
The marine cargo policy only covers the modes of transport mentioned in the policy. Any loss whilst using an unlisted mode of transport will not be covered. The mode of transport should be suitable for the goods being transported.
We advise you to check that the destinations included in the voyage are suitable; shipments to or from places not included in the policy will not be covered.
Single Carrying Limit
Also called a “limit per bottom” or “sending limit,” this is the maximum sum insured of any one consignment or shipment. Any value above this limit will not be covered by the marine cargo insurance policy unless it is declared to the insurer and corresponding amendments are made to the policy.
The location limit is the maximum value of all your shipments held at any one place at any one time, for example en route storage, carriers' or other godowns, at the port awaiting shipment and in similar locations.
Basis of valuation
Marine insurance policies are for an agreed value. Methods for calculating the value of a consignment or shipment include: FOB value + 10%; invoice value; invoice value + 10%; C&F value; and CIF value + 10%. As per standard industry practice, an additional 10% on the value of goods is generally added to cover potential incidental expenses incurred by the supplier/exporter. These may include duties, port handling charges, cost of transportation from port to the final warehouse, etc. The declared value of a consignment or shipment should not exceed the “Single Carrying Limit” or the “Basis of Valuation.”
All shipments should be declared on a regular basis and within the applicable time limit. Up-to-date declarations help you keep track of your premium and “sum insured” at all times.
Terms and conditions
It is important to read the terms and conditions carefully to determine your cover, as well as any applicable excess, exclusions, warranties, etc.
For more information, please email us at: email@example.com