What is Marine Open Covers?This consists of an unstamped contract either for a specified period of time (one-off or annual) or permanent (open cover) from a specified attaching date, to insure all the shipments coming within the scope of the cover on the terms specified therein. These include:
Name of the insured
Maximum sum insured any one conveyance or location
Voyage or voyages to be covered
Conditions of insurance
**For more scope of the cover, please read below.
- Full description of the interest to be covered showing method of packing and including a basis of valuation
- Cancellation clause - the cover will normally be subject to thirty days notice of cancellation from either party. War and strike risks are subject to seven days notice of cancellation except for shipments to the USA where strike risks are subject to forty-eight hours notice
- Classification clause - cover is subject to shipment being effected on an approved vessel, i.e. one coming within the terms of the Institute Classification Clause.
- The insured is protected by the insurance contract even though loss or damage may have occurred before he/she has advised his/her insurer of the shipment, or indeed, before the insured has been advised of the dispatch of goods.
- The insured has permanent forward cover at fixed rates and can fix the price of his goods accordingly.