All About INCREASED VALUE INSURANCE : INSURANCE POLICY PROVISION

INCREASED VALUE INSURANCE

This policy/cover is applicable to imports in india only.

The insurance is not for an agreed amount but for an amount not exceeding the actual difference between market value at destination on the date of arrival of the goods in India and the total of CIF value plus Duty subject to establishment of a higher market value or controlled price as notified by appropriate statutory authority. The assured is required to bear 25% of the claim amount. (payable under this component of the Policy).

“Increased Value” insurance shall not be granted for more than 100% of the CIF value of cargo except in exceptional circumstances. The rate of premium shall be 100% of the normal rate applicable to CIF insurance. The policy is not assignable. This insurance shall not pay any part of General Average contribution or salvage charges arising from any casualty whatsoever.

“Lost or not lost” provision of the standard policy shall not apply unless the insurance has been effected in terms of a standing Open Policy or Open Cover. The Policy should be issued subject to the tariff increased value Insurance clause.”

No claim under ‘Increased Value’ policy shall be paid until the claim under CIF value insurance policy is payable but this provision need not apply to cases where CIF value is insured by overseas insurers. Insurance on cargo in inland transit (not in conjunction with overseas transit) in excess of the established market value or controlled price of the commodity concerned shall not be granted under any circumstances.

If any Increased Value insurance is effected by the Assured on the cargo insured herein the agreed value of the cargo shall be deemed to be increased to the total amount insured under this insurance and all Increased Value insurance covering the loss, and liability under this insurance shall be in such proportion as the sum insured herein bears to such total amount insured.

The agreed value of the cargo shall be deemed to be equal to the total amount insured under the primary insurance and all Increased Value insurance covering the loss and effected on the cargo by the Assured and liability under this insurance shall be in such proportion as the sum insured herein bears to such total amount insured.In the event of claim the Assured shall provide the Underwriters with evidence of the amounts insured under all other insurance.

INSURANCE POLICY PROVISION

This policy/cover is applicable to imports in india only.

GENERAL REGULATIONS: The insurance shall be granted only if there exists insurance on CIF value of cargo itself and against the same risks as the basic cargo insurance and only on the basis of a signed proposal form. If cargo is imported on CIF basis because of an unavoidable contractual obligation to insure abroad, insurance on “Increased value” and “Duty may be granted on terms and conditions wider than overseas CIF Insurance.

The insurance should be granted only to the party in whose favour the import licence has been issued/officially endorsed. In respect of imports by state Trading Corporation of India and/or any other government body under their own import licences and allotment is made to various parties on High Seas Sale Basis” such allottees may be considered as actual holders of the license provided an allotment letter or certificate from S.T.C. of India or government body concerned is produced as proof.

No insurance on “Increased Value” or “Duty” shall be granted after arrival of carrying ship at destination port. This however shall not apply where such insurance have been granted under open covers.

“Increased Value” and “Duty” Insurance Policies may also be issued in favour of “Actual Users” who purchase from recognised Export Houses under the Export Promotion Scheme, provided an allotment letter/certificate from a recognised Export House is produced as proof. Alternatively, the Policy issued in favour of the Export House from which the goods have been purchased, & can be assigned in favour of “Actual Users

The cover is subject to all extras (on account of overage, undertonnage, non-classification, etc.) applicable under the cargo policy.

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