This type of marine insurance usually are taken during specific transaction when goods are known to be transited from one defined place to another defined place.
Here, before the start of the journey, insured needs to have marine insurance policy issued from insurance company where policy is issued with complete course of transit from journey beginning address to journey ending address.
In a business of larger scale in this fast moving world, many transactions might be occurring at one time and so thus transit as well and it is always difficult for any business owner to ensure marine insurance policy issued at start of every journey of transit of their goods.
Therefore, marine open insurance was designed wherein insured takes one marine open insurance policy for 12 months with below specified information:
Here, insured provides transit wise details occurred in company every month to insurance company for preceding month.
In marine open insurance, insured may at any time increase policy sum insured by paying additional premium at agreed policy inception rate value if it is occurred to insured that policy declared sum insured value is going to be exhausted in mid term of policy.
Also, If after expiry of policy, Insured may also claim for premium refund for portion of sum insured which is left for transit.
This type of marine Insurance is basically designed for manufacturers where they pay premium against their sales turn over value against assurance that all transits of goods occurring in company to achieve declared sales turn over in insurance policy, is covered.
This is how a single marine insurance covers all type of transit of goods in a Manufacturer such as Transit for purchase items, Transit for sales items, Transit for sales returns, capital movement transit etc.
Another important advantage here, is that, Insured does not require to submit monthly transit wise details to insurance company. Instead of this, Insured declares Sales turn over value every quarter which is much more convenient than providing transit wise details.
At any time during mid term of policy, If insured feels that company actual achieved sales turn over is exceeding declared sales turn over in insurance policy then sum insured value may be increased by additional premium at same agreed rate during policy inception.
Similarly, If at expiry of policy period, if declared sales turn over value is found to be exceeding than actual achieved sales turnover by insured, then premium may be refunded for difference in sales turn over value.
Physical loss/damage to hull & machineries of ship/vessel by