CHETANA’S

HAZARIMAL SOMANI COLLEGE OF COM. &

ECO. & SMT KUSUMTAI CHAUDHARI

COLLEGE OF ARTS

CHETANA SELF FINANCING COURSE

EXPORT IMPORT

(PROCEDURES AND DOCUMENTATION)

S.Y.B.M.S B

MARINE INSURANCE &

ISO 9001

Marine Insurance

Marine insurance is the first kind of insurance that existed as

early as vedic period.

Marine insurance is a contract under which the insurer agrees

to compensate the insured against losses, caused due to the

perils of the sea.

It may cover loss or damage to ship, cargo or goods carried on

the ship. The main advantage of marine insurance is that it

protects against losses to ship, cargo or goods in sea

transportation.

Types of Marine Policies

Voyage Policy

Time Policy

Mixed Policy

Valued Policy

Unvalued Policy

Blanket Policy

Floating Policy

Voyage Policy

The term ‘voyage’ means a journey by sea. As the meaning of

the word shows a voyage policy is for one trip only.

The compensation is paid if the goods are lost or damaged in

that voyage while they are being carried from one port to

another. The time needed in the journey is not considered in

this policy.

The policy comes to an end after after the journey of goods is

completed, that is, after the goods reach the port of delivery.

Time Policy

Time policy gives protection cover only for a particular period

of time. In this policy, goods are insured for a particular period.

Compensation is paid by the insurance company only when the

loss occurs during the specific period of insurance.

Hence, the subject matter matter is insured for a specific period

of time.

Mixed Policy

Mixed policy is a combination of voyage policy and time

policy.

It is a policy which covers the risk during a particular voyage

for a specific period.

Such policy contains a contract for both voyage and time.

Valued Policy

In valued policy, the insurer agrees to pay a fixed value of the

subject matter at the time of making the policy.

Compensation of that amount is paid if the loss occurs.

A particular fixed amount is paid by the insurer wheather the

loss suffered is total or partial.

Unvalued Policy

In unvalued policy the value of the compensation is fixed as

and when the loss actually occurs.

The loss is examined and then the compensation is paid

according to the amount of loss.

This policy is opposite to the valued policy, as the value of the

compensation is not fixed in the policy itself. It is also called as

open policy.

Blanket Policy

This policy is taken for a particular fixed amount and full

premium is paid in the beginning itself.

Floating Policy

Floating policy covers all the ships of a policyholder carrying

goods from one port to another. Here, particular ship or a

specific journey is not covered.

This policy is applicable to any ship and the compensation is

paid as and when the loss occurs. This policy is popular among

ship owners who are engaged in import-export trade on a

regular basis.

The goods may be carried on in any ship but insurance cover is

given in all ships. This policy is also know as open-cover

policy.

Scope of Marine Insurance

Hull Insurance

Cargo Insurance

Freight Insurance

Marine Liability Insurance

Hull Insurance

Hull insurance is an insurance contract which subject matter is

based on vessels. Insurance of vessel and its equipments are

included under hull insurance.

There are a number of classifications of vessels such as ocean

steamers, sailing vessels, builders, risks, fleet policies etc.

Cargo Insurance

When the goods or cargo transported from the port of departure

to the port of destination, from the subject matter of insurance,

it is called as cargo insurance.

These are used for the insurance of goods and are incorporated

in cargo policies. The clauses of this policy describe the nature,

extent and define the comprehensive condition and restrictions.

Terms and conditions of cargo insurance are specially

incorporated in the policies. Generally exporters of the goods

take this cargo insurance policy.

Freight Insurance

Freight insurance is an insurance contract which protect against

such loss of freight.

The clauses of freight insurance are framed in connection with

the loss of freight due to maritime perils which may be insured

for a voyage.

These clauses to be incorporated in the policy are generally

taken from various associations.

Marine Liability Insurance

Sometimes for the lack of sincerity of the captain and staff the

ship may fall in loss.

To protect these types of perils when the shipping authority

takes a policy then it would be called marine liability

insurance.

The marine liability insurance policy may include liability

hazards such as collision or running down.

Procedure to Obtain Marine Insurance

Insurance can be arranged by an insurance broker or an

insurance company.

An insurance policy is issued when the goods are insured, but it

is also usual to use a ‘certificate of insurance’ which is used as

an evidence of insurance.

A policy is also used as collateral security when an exporter

gets an advance against his bank credit. Individual policies for

a single shipment are seldom used by companies regularly

engaged in foreign trade.

Exporters normally insure under long term policies, known as

‘Open Cover’.

Procedure to Obtain Marine Insurance

As evidence of insurance of each shipment, the insured or his

insurance broker can issue a certificate of insurance, which

gives all the information contained in an insurance policy.

It also saves him the trouble of having to arrange for protection

every time he makes a shipment, and he always knows his

exact insurance costs.

On a CIF contract the exporter sends the certificate of

insurance to the customer, for him to claim at the port of

destination if the goods have been damaged on the ship.

It is a common practice to insure for 10% above the CIF value

of the goods, in order to allow for problems involved in

replacing the goods, waiting for the money.

Guaranteed Remittance Form

As per Foreign Exchange Management Act (FEMA) 2000, all

exporters from India are required to submit an exchange

control declaration from GR form.

The aim behind this declaration is to make sure that the export

payment is received by the exporters on time and defaulters are

tracked.

As per FEMA, exporters have to submit the export documents

to the authorized dealers (banks within 21 days from the date of

shipment).

Guaranteed Remittance (GR) forms is to be submitted to the

custom authorities at the port of shipment, that is the exporters

port.

Guaranteed Remittance Form

The exporter is needed to submit the duplicate copy of GR

form along with the shipping documents with the bank named

in the GR form for collection of export bills within 21 days

from the shipment of goods.

As soon as the documents are negotiated, the bank informs the

Reserve Bank of India. Later on, after the receipt of export

payment by the exporter, the bank submits the duplicate copy

of the GR form and a copy of invoice to the Reserve Bank of

India.

In this way, the RBI ensures that the exporters receive payment

on time. The exporters can obtain GR forms from the Regional

Offices of the Reserve Bank.

Guaranteed Remittance Form

GR forms are now made available online on the Reserve Banks

Website.

At certain custom offices, Electronic Data Interchange (EDI)

system has been introduced as the shipping documents are

processed electronically.

The existing declaration in GR form is replaced by a

declaration in form SDF (Statuory Declaration Form).

ISO 9001

The ISO 9001 certificate is suitable for all sizes of organisation

and is well established around the world as an invaluable

quality management system.

It is suitable for organisations in all industry sectors and will

help the organisation to improve management processes to

compete locally and globally.

To achieve ISO 9001 certification the organisation needs to

demonstrate that it can meet the regulatory requirements and

apply the system effectively to be of real benefit to the

customers.

Benefits To The OrganisationProvides senior management with an efficient management

process.

Sets out areas of responsibility across the organization.

Mandatory if you want to tender for some public sector work.

Communicates a positive message to staff and customers.

Identifies and encourages more efficient and time saving

processes.

Highlights deficiencies.

Reduces your costs.

Provides continuous assessment and improvement.

Marketing opportunities.

Benefits To The Customers

Improved quality and service.

Delivery on time.

Fewer returned products and complaints.

Procedure to Obtain ISO 9001 Certification

Identify the requirements of ISO 9001 and how they apply to

the business involved.

Establish quality objectives and how they fit in to the operation

of the business.

Produce a documented quality policy indicating how these

requirements are satisfied.

Communicate them throughout the organisation.

Evaluate the quality policy, its stated objectives and then

prioritise requirements to ensure they are met.

Identify the boundaries of the management system and produce

documented procedures as required.

Ensure these procedures are suitable for the organisation.

Once developed, internal audits are needed, to ensure the

system carries on working.

Procedure to Obtain ISO 9001 Certification

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