Marine Annual Sales Turnover Insurance

Premium charged on audited gross sales figure from previous year, subject to adjustment based on actual figures when available.

Policy covers all transits of raw materials and finished goods, with single premium rate applied to the sales turnover.

Premium rate is weighted average of various rates for different transit exposures, ensuring fair pricing across all shipment types.

If turnover doesn't include certain transactions like cross-voyages or raw material sales, these must be separately declared and covered.

Provides comprehensive coverage for all shipments within a 12-month period based on estimated annual sales turnover, eliminating need for individual voyage policies.

Highly flexible policy covering all shipments without individual declarations, adapting to changes in shipping volume and routes throughout the year.

Often more cost-effective than individual policies, with premiums based on sales turnover rather than individual shipment values, providing better risk management.

All shipments automatically covered without risk of oversight or delays in arranging coverage, ensuring continuous protection for business operations.

Premium adjustments based on actual vs estimated turnover ensure accurate pricing, with refunds for lower turnover or additional premium for higher volumes.

Businesses that have high volume of shipments throughout the year requiring consistent and reliable coverage.

Companies that need consistent and reliable coverage for their goods in transit without gaps or lapses.

Organizations wanting to simplify management of their marine insurance needs under single comprehensive policy.

Businesses preferring flexible policy that can adjust to changes in shipment volumes or routes throughout the year.

Insurer and business agree on policy covering all shipments within 12-month period based on estimated annual sales turnover.

Policy covers shipments by various transport modes including sea, air, road, and rail, customizable for specific routes and risks.

Business provides estimate of annual sales turnover at policy start, forming basis for initial premium calculation.

Estimated turnover reviewed and adjusted at policy end to reflect actual sales, ensuring accurate premium correspondence.

Premium based on estimated annual sales turnover, providing predictable and often lower cost than individual shipment insurance.

All shipments automatically covered without individual declarations, simplifying insurance process and ensuring continuous protection.

Straightforward claims filing with standard documentation, designed for efficient processing and quick business recovery.

Annual policy review with adjustments for next period based on experience and operational changes.

Incoterms do not cover ownership transfer or payment terms/methods.

Incoterms should be expressly incorporated into the Contract of Sale.

Choose the term suited to the type of goods and transport (e.g., airfreight).

Clarify who arranges transportation—domestic or international.

Specify the location (Point/Port/Place) clearly.

Ensure the term fits with the payment system (e.g., LC) and is suitable for containerized goods.

Underestimating turnover to reduce premium costs can lead to insufficient coverage and higher out-of-pocket costs if actual shipments exceed insured amount.

Failing to thoroughly assess risks associated with shipping routes, transport modes, or specific goods can result in inadequate coverage.

Not reviewing and adjusting policy mid-term to reflect changes in sales volumes or operations can lead to coverage gaps.

Not paying attention to specific exclusions can lead to unexpected claim denials when certain risks aren't included.

Poor documentation of shipments can complicate claims process, delay settlements, or result in claim denials.

Overestimating sales turnover leads to higher premium costs without additional benefit, as refunds may be limited.

Failing to account for multiple transport modes can leave certain journey legs uninsured, creating coverage gaps.

Delayed reporting can result in complications or claim denial due to strict time frames for claim filing.