Bajaj Allianz General Insurance Co. Ltd.

Significance of this Policy

Specifically designed to cater to the marine liabilities of Port and Terminal Operations Policy takes care of modern methods of operations including
Where the port authorities have leased out their space or operations or managing cargo in depot This Policy addresses structural reengineering witnessed in recent times in the entire gamut of port operations.
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To whom the Policy can be sold ?

Port Authority acting as a landlord Port Authority operating a port / terminal Marine Terminal Operator Rail Freight Depot Inland container or Clearance Depot Operator of handling equipment Stevedores
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What Operations this Policy Cover ?

Loading and unloading of cargo / containers to or from vessels or other forms of coveyances Distribution, collection or release of cargo / containers to or from the insured location Operation of equipment Warehousing including packing and unpacking of cargo Repairs and maintenance of containers and equipment Provision of security services Provision of Port information
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Coverage
Legal Liabilities in respect of: 1. Physical Loss or damage to cargo while in care, custody and control of the operator 2. Physical loss or damage to third party cargo, vessels, containers, vehicles or transport equipment resulting from 1 3. Consequential loss and/ or business interruption due to 1 above 4. Cargo proportion of general average, salvage not recoverable by customer 5. Errors and Omission: negligent act, error or ommission 6. Third Party Liability; physical loss or damage to property, bodily injury, death or illness and legally recoverable consequential losses

Other Important Coverage

Port Blockage Channel Blockage Impact damage to jetty

Special Features
Fines and penalties Costs and expenses Policy of indemnity only Claims during policy period Claims servicing

Possibilities of direct business high

Concentrated in Mumbai, Chennai and Delhi Coming up centers entire North India, Coastal Areas, even hinterland like Rajasthan Important to note is that more traffic at ports will make things happen in the hinterland as formalities get completed there

Progress till date

Since November 2003:

Proposals handled :
Policy written: Not materialised: Proposals in process:

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Market size: presently indeterminable as we are the only organisation trying to develop this portfolio
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What this Policy is about ?

This policy offers a Comprehensive Insurance coverage for the risks associated with the entire gamut of operations a Port Authority is involved in. This Policy consists of the following Sections : A. Physical loss or damage to the Port assets declared for insurance B. Legal and contractual liabilities C. Removal of wreck etc. D. Consequential (Business Interruption) loss E. Port Vessels
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A : ASSETS - Perils included

Fire, lightning, explosion, aircraft, storm, tempest, flood, frost, impact, earthquake, collision, collapse, negligence, toppling over, falling, including cranes damaged during dismantlement, reconstruction, removal, re-siting, positioning, transit, re-erection or testing
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A : ASSETS Perils excluded

i. Water Risks, except whilst water borne as defined Wear & Tear, Gradual deterioration, inherent vice, Electrical & Mechanical Breakdown. But covers resultant loss of or damage to any other parts of the subject matter insured. Erosion of seabed or normal action of waves Subsidence and/or normal settling, shrinking or expansion of buildings structures or foundations. Defects existing at the inception date of this insurance and any aggravation therefrom.

ii.

iii. iv. v.

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A : ASSETS Basis of Indemnity

Indemnity hereon to be based on

reasonable cost of replacement, reinstatement or repair in respect

of individual items and if required claims to be paid even if such replacement etc., does not take place.
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A : Assets Indemnity : Public Authorities Clause

In addition to cost of reinstatement of property damaged, any additional cost that may be incurred solely by reason of the necessity to comply with Building or other Regulations under or framed in pursuance of any Act of Parliament or with Bye-Laws of any Municipal or Local Authority is also recoverable. But
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Public Authorities Clause

Excludes:
a) The cost so incurred for such losses: i. For damages occurring prior to the granting of this extension ii. For receiving notice from statutory authority prior to the
occurrence of such damage

b)

c)

iii. For undamaged portion of the affected assets. The additional cost that would have been incurred to bring the affected assets to its original condition even otherwise without Statutory Bodys advice. Any taxes, duties, rates, such other statutory charges which may be payable/charged by Statutory bodies for capital appreciation.
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B: LEGAL & CONTRACTUAL LIABILITIES

a) Foul berthing and/or in respect of pilotage b) Negligence of the harbour master, wharf superintendent or his assistants or such other employees. c) Detention of ships d) Embarkation and disembarkation of passengers (by tender or otherwise) including whilst on piers, gangways, landing stages etc. and all accesses thereto. Contd
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B: LEGAL & CONTRACTUAL LIABILITIES

e) Loading or unloading of vessels, vehicles or trucks including the delivery and collection of goods in connection therewith, or from anything (falling &/or striking a vessel, including loss arising out of wrongful delivery of cargo (whether by content or as to a person) due to in-advertence or otherwise. Explosion or collapse of vessels or apparatus subject to pressure, including oxy-acetylene or kindred type of cylinders, propane gas installation, liquid oxygen plant and supply lines. Diving operations Absence, misplacement or faulty working of buoys, lights and/or other navigational aids which it is the Assureds responsibility to provide
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f)

g) h)

B: LEGAL & CONTRACTUAL LIABILITIES

i) j) Connection with all lands, breakwaters, piers, premises, plant, equipment etc. Property held in the Assureds trust, custody or control or for which the Assured is responsible, including loading or unloading of vessels or vehicles and carriage by land, air, sea or inland waterway. Contractual responsibilities: including the hire, use, leasing of or responsibility for cranes, tugs, craft, plant and/or apparatus of any description the property of others which held covered at premium to be agreed.
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k)

B: LEGAL & CONTRACTUAL LIABILITIES

l)

Liability arising out of or relating to bodily injury or death of third party, including responsibilities to or for sub-contractors, (including loss of life and/or personal injury to workmen in the employ of subcontractors but only to the extent that the assured is or would be liable independently of such contract. m) The contracts as advised, indemnities to Principal and any indemnity which it may be necessary to grant in the course of business to any Harbour and/or Dock authority or other persons, firms or bodies n) Use of tractors, trailers, cranes, vehicles, motor and pedal cycles etc. on and across the public highway. o) The ownership, occupation or use of harbours, 18 wharves, quays, docks or craft.

Exclusions:
i. Liability for injury or loss of life to any person employed under a contract of service or apprenticeship with the Assured if the injury etc arises out of or in the course of such employment. Penalty for delay, compulsory cessation, time penalty, liquidated damages or penalties for breach of contract except as under ( c ) above. Insolvency, infidelity or financial default of any party. Liability for bodily injury or damage to property:
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ii.

iii. iv.

Exclusions:

contd

The Liability arising out of the presence of wreck or part thereof or any other floating or submerged object or obstruction whatsoever in or near the Assureds area or the water approaching thereto, in so far as these wreck, floating or submerged object or obstruction existing as on the date of inception of the policy Claims recoverable under the Government Explosives Indemnity to Harbour Authorities dt.15th December 1983. Removal of Wreck and/or Debris of vessels and property owned, hired or leased by the Assured. Seepage and Pollution exclusion:
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