Seller’s Interest clause in a marine cargo policy is assumed by many to be a saviour in all cases of short-payment by buyers. Under an INCOTERM where seller is not responsible for arranging insurance, buyer takes delivery, opens the container, notices some damages/ shortages and deducts an amount for these from the seller’s invoice. Seller […]
Why do cargo underwriters include ROD or RODC exclusion in the policies? Rust, Oxidation, Discoloration & Corrosion are perceived as gradually developing flaws which cannot be co-related to a single event during transit. Even without this specific exclusion, they would still fall under General exclusions under the ICC clauses. Some exclude RODC absolutely, which is
The Institute Replacement Clause was formalised in 1934 (modified in 2008), years before the insuring ICC came into being in 1982. Why? Marine practitioners realised that insuring a manufactured mechanical, electrical or electronic machine comprising of many identifiable parts was totally different from insuring any other commodities. In the absence of this clause, following a
The CEO was very upset. He was fast losing control & popularity. Drastic steps were needed but he did not have the b***s to take them. So, like a cry-baby he went running to the Chairman. Ok, ok ….. let’s start at the beginning. He was the CEO of Silly Inc. and his name was
The International Safety Management (ISM) code was adopted by the SOLAS convention and in 2002 , it was made applicable to all cargo ships. The aim- To ensure safety of human life at sea & to avoid environmental pollution. All ships had to be ISM Code- compliant or the owners/ charterers should hold a current
This one is about clients… not any management lesson but about their hospitality or how they are as hosts. The first test is how much they value the meeting and your time and here we are talking about meetings set up in advance. With a majority of the clients, this isn’t much of a problem.
There are only 11 Incoterms as per the 2010 version but defunct Incoterms like DDU & non-existent ones like C & I continue to be used in business. From the marine insurance standpoint, what we draw majorly from Incoterms are 1) Who has the responsibility to insure 2) What is the Risk-transfer point 3) Who
Deliberate Damage Pollution Hazard clause is sought by most clients and brokers and invariably insurers provide this clause but not many would know the relevance of this clause. Why? Because they would not have seen claims arising under this extension/clause. The clause states that should any Governmental agency destroy the cargo deliberately in the welfare
Even as marine cargo insurers and brokers keep adding newer clauses to policies, some relevant and some cosmetic, the fire accident on the ULCS Maersk Honam is a grim reminder that the maritime perils covered under Institute Cargo Clauses –C are the most relevant even today. Originally vessels were majorly made of wood and hence
Concealed damage or Deferred unpacking clause is often sought by clients and brokers and given by insurers, the only debate being how many days can be given for the discovery of the concealed damage- 30,60,90 or 120 days. Given the manner transits happen nowadays, this clause can be stated to be necessary. In simple terms,
