In this article, we will discuss Marine Insurance (Description Part-2). So, let’s get started.
Extent of cover under ICC 1982
The Institute of London underwriters issued the first Insutitute Cargo Clauses in 1912. The standard clause, which covered named perils, were actively updated throught the early twentieth century and standard all risks clauses, the Institute Cargo Clauses(All Risks), were introduced on 1st January 1951. The Institute Cargo Clauses were reissued in 1963 and revised in 1982 when the MAR Form was introduced as a substitute for the SG policy form. In late 2005 it was decided by the JCC that review of the Institute Cargo Clauses should be undertaken. Accordingly in February 2006, a questioner was issued by the LMA to the interested parties worldwide and later that year the Joint Cargo Committee, set up a working party to analyze the feedback received and carry out the review. As a result of the market feedback, a new set of Institute Cargo Clauses AB, and C 1/1/2009 alongwith War and Strikes Clauses were introduced at the beginning of 2009 with some modifications to run in parallel with 1982 Clauses.
Attachment Termination (1/1/1982)
The risk under marine policy attaches from the time the goods leave the warehouse or place of storage at the place named herein for the commencement of transit and terminates upon delivery to the consignees or other final place of storage at the destination named in the policy. The transit risk may also terminate upon delivery to any other warehouse or place of storage, whether prior to or at the destination, elects by the Assured for storage other than ordinary course of transit and/or for allocation or distribution. The transit risk shall terminate upon expiry of 60 days after the completion of discharge overside of the goods from the overseas vessel at the final port of discharge.
Since period of 60 days is not a storage cover, any unreasonable delay detention/storage during transit within the control of the Assured shall cause immediate termination of cover.
Institute Cargo Clause 2009
Attachment Termination ( 1/1/2009)
The risk under the particular clause shall commence from the time the subject matter insured is first moved in the warehouse or at the place of storage at the place mentioned in the contract of insurance for the purpose of immediate loading into or on to the carrying vehicle or other conveyance for the commencement of transit.
The cover terminates on completion of unloading from the carrying vehicle or other conveyance at the final warehouse at destination.
The cover will also terminate if the storage is done other than ordinary course of transit for allocation or distribution and if the Assured or their employees elect the vehicle or other conveyance or any container for storage other than ordinary course of transit or on expiry of 60 days after completion of discharge overside of the goods from the overseas vessel at the final port of discharge. whichever shall first occur.
