Storage risks under marine cargo policies – Profound confusion

The biggest confusion prevailing in the Marine cargo market in India is about “ storage cover” under a marine transit policy. Almost every slip comes with a request for intermediate storage of 60-90 days. What is intermediate storage? Some insurers take it to mean “ storage in the ordinary course of transit”. If so, why state the obvious? If in the ordinary course of transit, it is automatically covered within the ambit of the Duration clause, without needing a specific mention.

So is the requirement for an intentional storage like in a bonded warehouse or any intermediate location AT THE BEHEST OF THE INSURED? No be seems to be clear— the brokers, insurers and the client’s themselves. Can an “ intentional intermediate storage “ be covered under a marine transit insurance? Yes, if all parties are on the same page and appropriate additional premium is paid. As of now mis-selling is rampant. Clients need to be clear what they want as regards storage, brokers should understand & express this clearly. Above all insurers should come clean on what they intend to cover. High time we addressed this malaise.