Exim Notes-2

Insurance: It is needed to cover the risk or damage of goods in transit (i.e. when the cargo has left consigner and not reached consignee.). The loss can be due to accident/ unforseen event/ peril ( perils are of two types- maritime perils (i.e if there is any damage to the goods while the goods are on board in sea) or extraneous perils (strikes, pilfirage).

• Insurance has got many categories: best cover- that covers maritime perils as well as extrenaeous perils, Medium cover- Covers maritime perils and some of extraneous perils and Minimum cover- that covers only maritime peril.


• Loss can be Total or Partial. Partial loss can be of two types that is particular average (i.e. when it is cover extraneously for such perils as strikes and lockouts) or general average( when their is a cover to save the voyage- in such cases the loss is shared by all the parties whose cargo is on board). Total Loss can be actual or constucted. Actual loss involves physical loss or change in specifics of the material. Constructed loss is said to take place when cost of repairing is more than the value of the goods left.
• In insurance there is something called as warehouse to warehouse cover, which involves cover from leaving of cargo from consigner and ends when cargo reaches consignee.
• maximum time period by sea in which the cover is valid- 90 days
• maximum time period by air in which the cover is valid - 30 days