Marine Sales Turnover Policy
Marine Sales Turnover Policy (STOP)
A Marine Sales Turn Over Policy, commonly known as STOP is an insurance policy with a unique proposition. Instead of the value of the cargo shipment, this protecting solution covers all transits that are required to achieve sales. Under this policy, a company’s estimated annual sales turnover can be covered as a single amount and all the company’s insurance requirements are met under this flexible and customizable policy.
The policy holder need not declare movement of each consignment under this policy, rather they need to submit the company’s sales turnover figures from time to time. This policy gives the policy holder a sizeable amount of savings on the premium as the he is charged a premium on the sales turnover.
What does this policy cover?
The Marine Sales Turnover Policy (STOP) provides you Transit insurance coverage on the following –
- Domestic Purchase and sales
A Marine Sales Turnover Policy covers all kinds of domestic purchases including raw materials and consumables. This also includes returns, loading, unloading, intermittent storage, movement of goods from factory to depots or warehouses and domestic sales of finished goods and products.
- Imports and Exports
A Marine Sales Turnover Policy covers all imports, custom duty and all exports. (FOB/CIF).
- Theft and Piracy
The Marine Sales Turnover Policy will protect your shipment from losses occurring due to theft, piracy attacks, damages in transit, loading or unloading.
Exceptions to the Marine Sales Turnover Policy
The Marine STOP Policy does not cover loss or damage to cargo in the event of the following:
- Willful misconduct of the insured
Any deliberate damage to the cargo or losses occurring due to willful misconduct will not be covered by the Marine Sales Turnover Insurance Policy.
- Insufficiency or unsuitability of packing or preparation of the cargo insured
Businesses need to ensure that the shipment is suitably packed. Damage/losses occurring due to insufficient safety precautions while packing or unsuitable packing or preparation of the cargo shipment is not covered under this insurance policy.
- Ordinary leakage, ordinary loss in weight or volume, ordinary wear and tear, and inherent flaws in the cargo insured
Any kind of ordinary/normal wear and tear, losses in weight or volume or leakage while in transit is not covered under the insurance policy.
Delays due to shipments being detained at customs, ship maintenance, unsuitable weather conditions causing transit delay is not covered under the insurance policy.
- Un-seaworthiness of the vessel
Businesses need to ensure that the vessel used in transit abides by the marine law of seaworthiness. This means that the ship should be in the condition or be reasonably fit to encounter perils at port and at sea. If a ship bearing the shipment is sent out to sea when it is in an unworthy sea state, the insurer is not liable to cover the cost of damages attributable to unseaworthiness.
Key Benefits under this policy
Unlike other Marine Insurance policies that cover the value of the shipment, the Marine Sales Turnover Policy charges businesses a premium that is based on their annual sales turnover.
Businesses don’t need to submit periodical declarations of transit and cargo movements – all transits required to achieve sales are automatically insured.