What is Duty Insurance And what is Increase Value Insurance

What Is Duty Insurance

The policy /cover is applicable to imports in India only.

The sum insured for “duty” is adjusted on the basis of actual assessed duty. the policy is one of pure indemnity.

The rate of premium for covering duty shall be 75% of the rate applicable for covering the CIF value of cargo itself. Extra, as applicable, will also be charged on a 75% basis. War and SRCC rates as applicable will also be on 75% basic subject to such rates not being less than the prevailing inland Transit S.R.C.C. rate.

The “duty policy excludes claims I respect of:

(a) Total loss of whole or part of cargo prior to duty becoming payable.

(b) General average, salvage and/ or salvage charges arising from any casualty occurring prior to duty becoming payable.

In ascertaining the amount of claim recoverable credit should be given for any rebates or refund of duty that may become allowable.

The insurance is not assignable.

Claim under insured risks is payable on the basis of actual duty paid or on the basis of the sum insured, whichever is less.

The assured should lodge a claim with the customs authorities within the stipulated time (6 months from the date of payment of duty) for a refund of duty where admissible and with carriers or others as applicable and any refund obtained should go to reduce the claim under the policy.

The policy should be issued subject to the “Duty insurance clause” of tariff.

What Is Increase Value Insurance

The 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 the market value at destination on exceeding the actual difference between the 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 the component of the policy).

“increased value” insurance shall not be granted for more than 100% of the normal rate applicable to CIF pf tje 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 the 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 established market value or controlled price of the commodity concerned shall not be granted under any circumstances.

If any increased value insurance is affected 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 a claim, the assured shall provide the underwriters with evidence of the amounts insured under all other insurance.

Also read :- Vehicle Insurance : What is vehicle insurance and what is commercial vehicle insurance and types of vehicle insurance

Also read :- Insurance : Types of Insurance, Things Covered in insurance and it’s terms and conditions.

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