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How to Calculate Marin Cargo Policy

Marine Cargo Insurance
Marine Cargo insurance protects all goods while in transit depending upon the needs of the client. For sea and air transits, the "Institute" Clauses, drafted by the Technical and Clauses Committee of the Institute of London Underwriters are adopted for use in Bangladesh. Three broad types of cover are available for sea transit i.e. Institute Cargo Clauses "A", "B" & "C" and two types of cover are available for air transit i.e. Institute Cargo Clauses, Air &, Air All Risks . On the other hand Transit by rail and road are covered either by Rail/Lorry/Truck only or Rail/Lorry/Truck All Risks Clauses drafted by Central Rating Committee of Bangladesh.

Hull Insurance 
This cover is available for ocean going vessels, barges, tugs, dredgers, fishing trawlers, yachts, wooden dhows, pleasure/speed boats etc., under Institute Time Clauses Hulls. Cover is also provided for last breakup voyages to Chittagong.

Definition of Marine Insurance:-
Marine insurance means the contract of insurance upon vessels of only descriptions including cargoes freights and other interests which may be legally inured in or in relation to such vessels, cargoes and freights, goods wares, merchandise and property of whatever description insured for any transit by land or water.

Marine insurance covers the loss or damage of ships, cargo, terminals and any transport or a cargo by which property is transferred acquired or held between the points of origin and destination. 
Reasons for Marine Insurance :-

  • Fire, explosion
  • Contact with water
  • Breakage
  • Accident
  • Derailment of conveyance
  • Pilferage
  • Non-delivery

 Essential Elements Marine Insurance:-
A. General or Legal elements of marine insurance contract
  • offer
  • Acceptance
  • Plurality of Member
  • Competence of the Parties
  • Legal Relationship
  • Possibility and Responsibility of executing the contract
  • Lawful Consideration
  • Free Consent
  • Written
 2.Special Elements of Marine insurance:-
  • Insurable interest
  • Utmost good faith
  • Indemnity
  • Subrogation
  • Proximate cause
  • Payment of premium
  • Warranties
Marine perils means the perils consequent on or incidental to the navigation of the sea ,that is to say , perils of the seas ,fire, war perils (enemies),Pirates,rovers,thieves,captu res, restraints and detainment of princes and peoples, jettison and other perils. Either of the like kind or which may be designated by the policy.
A. Natural Perils
  • Cyclone
  • Strike from sinking mountain o Thunder
  • Strike from Ice
B. Unnatural/moral Perils
  • Fire
  • Thieves
  • External enemies o Capture
  • Betrayal o Jettison o War
  • Strike/Riots etc.
 Types of Warranties in Marin Insurance:-
A.Implied Warranties
  • Seaworthiness
  • Legality
B. Express
  • Towing Warranties
  • Others
 Types of Marine Insurance :-
  • Hull Insurance
  • Cargo Insurance
  • Freight Insurance
  • Liability Insurance
 Types of Marin Insurance Policy:-
  1. Time Policy
  2. Voyage Policy
  3. Mixed Policy
  4. Floating Policy
  5. Valued Policy
  6. Unvalued Policy
  7. Blanked Policy
  8. Builder’s risk Policy
  9. Port risk Policy
  10. Named Police
  11. Single vessel and Fleet Policy
  12. Block Policy
  13. Currency Policy
  14. Wager Policy
 CLASSIFICATION OF MARINE LOSSES:-
A. Total loss
  • Actual Total Loss
  • Constrictive total loss B. Partial Loss
  • Particular Averages Loss  General average loss
Different types of partial loss:-
A.  Particular average losses
  • Particular partial loss of ship
  • Particular partial loss of goods
  • Particular partial loss of compensation
B. General average losses
  • Sacrifice
  • Compensation
  • Other related expenses
  • Particular charges
  • Sue and Labour
  • Extra charges
D. Salvage charges

Example of Insurgence Policy:
Marin Cargo Policy No                : ABC/XYZ/FAB/MP-0015/01/2018
Issued in Lieu of Cover Note No: ABC/FAB/MC-0033/01/2019
Step: 01
You seem that your invoice value $ 20,000.00
Multiple by Dollar Rate seem that $ 80.90
(20,000.00 x 80.90 = BDT 16,18,000.00 + 10% = 17,79,800 BDT
.............................................................................
Step: 02
Premium Computation
Marine 0.2600 % - 10%  = 4627.48 -10%         = 4164.00 BDT
WAR & SRCC 0.05 %    = (16,18,000 x 0.05%)=  809.00 BDT
Net Premium________________________________________ 
                     Net Premium                               = 4973.00 BDT

Step: 03
VAT - 0%                                                            =    00.00 BDT
Stamp Duty                                                       =     1290 BDT
____________________________________________________
Grand Total                                                       = 6263.00 BDT

N:B: here 4164.79 reduce .79  = 4164.00 deduct by software bass. 

Here Invoice value $ 20.000.00 insurance cost BDT amount is 6263.00 Taka.
Speech from Writer:
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