Marine insurance cover provides protection for the goods whilst they are moving in the normal course of transportation, from the place of dispatch to the place of receipt as stated in the policy document. These two places must be clearly defined in the policy document, for example: Wynburg, South Africa to New York, USA. If during the transit, the cargo is unforeseeably diverted, then the insurers must be immediately notified in writing of any such changes.
Normal storage awaiting loading is covered
Temporary storage of the goods which is normal during the course of transportation, such as storage in a transit shed in a port of loading pending the arrival of the intended vessel, will be covered. However placing the goods in a warehouse for storage other than during the normal course of transportation will terminate the cover, unless the assured notifies the insurance company of the additional storage requirements and he would have to pay an additional premium for such extended cover.
When does a policy terminate?
All policies terminate under any of the following conditions:
- When the cargo has been received at the place of delivery (the warehouse)
- Sixty days after the completion of discharging the goods from a vessel
- Thirty days after the completion of discharging the goods from an aircraft
You can ask the insurer for extension
Circumstances may arise, however, in which the 60/30, day limited has been exceeded – for instance, as a result of a labour dispute. Subject to prior notification, the insurers may be prepared to extend the duration of the cover upon payment of an additional premium. In another instance, the goods may be subject to being placed in a warehouse at the port/place of delivery, where it may not be possible for the goods to be unpacked and inspected. Again, the insurers may agree, subject to, the payment of an additional premium, the insurance company could extend the cover on a month-to-month basis.