The condition relieves Insurers of any liability for loss which is also recoverable under a Marine Insurance Policy.

This is insurance of loss of profits and fixed expenses, viz., standing charges. DSU covers are always given in conjunction with marine cargo insurance where project materials are in transit. If there is a loss to the cargo during transit, which results in the project period getting extended beyond the schedule date of completion, DSU Insurance would compensate the assured for the profits which would have been earned had the project been completed on schedule and the fixed expenses which have to be incurred whether the project is completed or not.

The Insurance is on increased value of cargo by reason of payment of customs duty at destination and is subject to the same clauses and conditions as the Insurance on cargo and pays the same percentage of loss as may be paid thereon. In ascertaining the amount of claim recoverable under the Duty Policy, credit shall be given for any rebates or refund of duty which may become allowable. Claims are payable on the basis of actual duty paid or on the basis of the sum insured, whichever is loss. The sum insured for duty shall be adjusted on the basis of actual assessed duty and the Policy shall be one of pure indemnity and not an agreed value Policy.

Losses arising very frequently caused by (a) theft, pilferage and/or non-delivery (b) fresh water and rain water damage (c) damage by hooks, oils, mud, acid and other extraneous substances (d) heating and sweating and (e) damage by other cargo and the assured may require cover against these so-called “extraneous risks. “ICC (B) & (C) may be extended to include these risks.

The deductible is an excess and only the balance amount is payable. If the amount of the claim is less than the deductible, nothing is payable. A claim arises on the policy only where the aggregate of all claims arising out of each separate accident or occurrence exceeds the amount of the deductible. The deductible clause applies the policy deductible to all partial losses covered by the policy. Thus it is applied to: i. Particular Average. ii. General Average sacrifice and contribution. iii. Salvage awards and contribution to salvage awards. iv. Sue and Labour. v. Expenses incurred for services in the nature of salvage. vi. Claims under the collision liability clause including costs in relation thereto. It is however to be noted that deductible is applied only once in respect of each accident or occurrence, so any loss in relation to the above is aggregated for the purpose of applying the deductible. Deductible does not apply to: i. Total Loss and/or Constructive Total Loss. ii. An associated claim made under the Sue and Labour Clause arising from the same casualty, this means that where an expense is incurred under the Sue and Labor clause, but a total loss results despite all attempts to save he ship, the deductible is not applied to the Sue and Labour charges. Expenses of sighting the bottom after stranding shall be paid even if no damage is found. iii. The total of heavy weather damages arising during the voyage between two consecutive ports is treated as being due to one accident. Where a policy during a period of heavy weather, and a new policy applies, the deductible is assessed in proportion to the days of heavy weather applying to the respective policies during the transit. Heavy weather is deemed to include contact with the floating ice. iv. Subject to Subrogation up to the amount of claim paid.

This insurance covers the Vessel’s proportion of salvage, salvage charges and/or general average, reduced in respect of any under-insurance, but in case of general average sacrifice of the Vessel the Assured may recover in respect of the whole loss without first enforcing their right of contribution from other parties. Adjustment to be according to the law and practice obtaining at the place where the adventure ends, as if the contract of affreightment contained no special terms upon the subject; but where the contract of affreightment so provides the adjustment shall be according to be York-Antwerp Rules. When the Vessel sails in ballast, not under charter, the provisions of the York-Antwerp Rules, 1974(excluding Rules XX and XXI) shall be applicable, and the voyage for this purpose shall be deemed to continue from the port or place of departure until the arrival of the Vessel at the first port or place thereafter other than a port or place of refuge or a port or place of call for bunkering only. If at any such intermediate port or place there is an abandonment of the adventure originally contemplated the voyage shall thereupon be deemed to be terminated. No claim under this Clause shall in any case be allowed where the loss was not incurred to avoid or in connection with the avoidance of a peril insured against.

A number of factors influence the rating of ships. The marine hull insurance business in India is detariffed and, hence, market-driven. The main factors that are taken into consideration in the underwriting and rating of hull risks are: Type and Physical Parameters of Vessels • Tanker, Dry cargo Vessel, Fishing Vessel, Dredger, etc. • Construction such as steel built, wooden construction, etc. • Age • Tonnage (GRT & DWT)/Engine power (BHP) • Method of Propulsion – single engine, double engine, dumb, etc. • Single bottom, double bottom, etc. SUM INSURED Indian Law permits Quarterly Installment facility to marine hull policies @ 25% of annual premium for time policies of minimum 12 month validity. Similarly, Builder’s risk policies are also eligible for installment facility, but only when the period of construction is 12 months or over and subject to the provisions of Premium Payment Regulations which, inter-alia, stipulates that the First installment should be 5% more than the rest. RATING Trade of the Vessel • Operation carried on – Fishing, Towing, Dredging, etc. • Nature of cargo carried – Dry/bulk, crude, acid, etc. • Trading Routes and Navigational Limits, weather condition, etc. Trading Warranty is introduced in the policy for insurance of ships clearly defining the geographical area in which the ship is permitted to navigate. In the absence of such warranty, the ship is at liberty to navigate anywhere worldwide increasing the risk exposure and degree of hazard. The Institute Warranty (IWL) dated 20.7.87 is normally used for all ocean-going ships. IWL breaches can be covered at additional premium paid in advance. Ownership • Fleet Characteristics, Size and Management • Fleet Claims Experience Classification: Seaworthiness, quality of maintenance, etc. Flag and Registry of the Vessel: Flag of Convenience (FOC) or not. Condition of Insurance: TLO or wider cover, P&I cover, etc. Sum Insured vis-à-vis Valuation of the Vessel. [2] GRT or Gross Registered Tonnage of a ship refers to the cubic capacity of all enclosed spaces. NRT or Net Registered Tonnage is the tonnage is obtained by deducting from the gross tonnage spaces for crew, ballast tank, chain space, workshop, etc. This parameter is used for rating cargo carrying ships. [3] BHP or Brake Horse Power refers to the power of the propulsion machinery and is used rating tugs.