Questions

1. What is happens if there is double insurance?
2. How often is a General Average Declared?
3. What happens if by mistake, an insured does not declare a shipment under the policy. Is he still covered in the event of loss or damage?
4. Can an insured reject the cargo to underwriters.?
5. What happens if my shipment is held up in customs?
6. What happens if my shipment is held in customs for a period in excess of 60 days?
7. How long do I have to claim against the insurance company?
8. What happens if there is a change in voyage or change in vessel.

Answers

1. What is happens if there is double insurance?
Answer
Under the rules and practices of ocean marine insurance, the claimant can claim under one of the 2 insurance policies. It is then up to the insurer who has paid the claim to recover a proportion of his outlay from the other insurer.
2. How often is a General Average Declared?
Answer
Not very often. The incidence of General Average is more frequent with older or poorly maintained vessels.
3. What happens if by mistake, an insured does not declare a shipment under the policy. Is he still covered in the event of loss or damage?
Answer
The Errors and Omissions Clause protects an insured under such circumstances provided that the omission was an honest one.
4. Can an insured reject the cargo to underwriters.?
Answer
The answer is no. An insured remains the owner of the cargo and must act as a prudent uninsured.
5. What happens if my shipment is held up in customs?
Answer
Coverage normally remains in place provided that it is considered to be in the ordinary course of transit and within the 60 day period from discharge of overseas vessel.
6. What happens if my shipment is held in customs for a period in excess of 60 days?
Answer
Cover will then expire but you can apply to underwriters for an extension to cover. This should be done before cover expires. In addition, some policies have the South America Clause which allow for extended periods in customs in South American countries.
7. How long do I have to claim against the insurance company?
Answer
Some policies impose time limits - others do not. As a general rule, the longer it takes to claim, the more difficult it is to prove that the loss occurred within the policy period. In addition there is a duty on the insured to preserve subrogation rights against third parties. Notices have to be filed within strict time limits. It is considered imprudent to delay filing a claim under the insurance policy.
8. What happens if there is a change in voyage or change in vessel.
Answer
You will need to consult the policy wording. But as a general rule, changes of this kind are held covered. If there is a significant change in the risk, an additional premium may be payable.